Porsche anticipates maintaining a 14-15% profit margin in 2024, according to insights from a recent investor call summarized in a Bernstein Research analyst note. However, the luxury carmaker expects 2025 to present ongoing challenges. This information was shared prior to the company’s annual results announcement scheduled for March 12th.
The call outlined potential headwinds for Porsche in the coming year. The discontinuation of the combustion engine Macan and 718 models in the European Union from the end of June is expected to impact sales volume. Additionally, potential supply chain disruptions related to the iconic 911 model could further contribute to decreased sales.
Beyond sales volume, Porsche also addressed its presence in the Chinese market. The company indicated efforts to reduce its footprint in China, promising to elaborate further during the official earnings call on March 12th. This strategic shift suggests a reevaluation of the company’s approach to one of the world’s largest automotive markets.
While a stable profit margin projection for 2024 offers a positive outlook, the acknowledged challenges facing Porsche in 2025 underscore the dynamic and competitive landscape of the automotive industry. Investors and industry observers will undoubtedly be keen to hear more detailed analysis and strategic plans when Porsche releases its full financial results in March. The company’s ability to navigate these challenges will be crucial for maintaining its position as a leading luxury automotive brand. The upcoming annual results presentation will offer valuable insight into Porsche’s preparedness for the evolving market dynamics.
