Porsche lowers targets due to EV, tariff challenges

The company said on Tuesday that it now expects sales revenues to total €37-38bn this year, down from €40.1bn in 2024 and an earlier guidance range of €39-40bn.

Return on sales is tipped to come in at just 6.5-8.5%, down from 14.% previously and the initial 10-12% forecast.

Porsche said it is undertaking a "strategic realignment" of battery activities due to a slower ramp-up of electromobility, which includes shelving plans to expand the production of batteries by its Cellforce subsidiary. As a result, it has raised its guidance for "special expenses" from €0.8bn to €1.3bn.

The company also pointed to supply management challenges due to geopolitical conditions worldwide, including declining demand in the Chinese electric luxury market.

In terms of the tariff impact, the auto group said it has now included the negative impacts of additional US import duties from April and May in its full-year forecasts.

"However, the adjusted forecast does not take into account further effects of the introduction of US import tariffs. Currently, it is not yet possible to make a reliable assessment of the effects for the fiscal year," Porsche said.

The news came as the company reported sales revenues of €8.86bn for the first quarter, down from €9.01bn the year before, along with a big drop in pre-tax profits to €747m from €1.33bn.

Deliveries across the group dropped 7.9% year-on-year to 71,470 vehicles during the period, as strong growth in North America and other emerging markets was offset by heavy declines in Europe – particularly in Germany where shipments fell 33.5% – and China.

Porsche shares were more or less flat at €36.81 by 1202 in Frankfurt, but are trading 25% lower