Porsche SE cuts outlook, plans bigger push into defence
Why it's important
US tariffs have dealt a heavy blow to global carmakers, forcing them to book billions of dollars in losses, issue profit warnings, slash forecasts and raise prices. Though the EU has reached a trade deal that brought US tariffs on EU-made cars down to 15% from the previously imposed 25%, some analysts remain cautious as the duty is far higher than the 2.5% rate before US President Donald Trump launched his trade offensive.
German car and car parts makers are meanwhile exploring the defence sector as a potential growth avenue, as Europe ramps up military spending.
Key quotes
'Against the backdrop of a changing geopolitical situation and growing security policy requirements, Porsche SE sees considerable development potential in the defence and security sector and intends to capitalise on this,' the company said in a statement.
'With regard to portfolio investments, our aim is to increase our involvement in the defence and defence-related sectors while maintaining our core focus on mobility and industrial technology,' chairperson Hans Dieter Poetsch said.
By the numbers
Porsche SE expects the adjusted group result after tax to land between €1.6bn (R32,860,000,000) and €3.6bn (R74,005,200,000) in 2025, compared with €2.4bn (R49,349,280,000) to €4.4bn (R90,469,676,000) anticipated earlier.
It reported an adjusted net profit of €1.1bn (R22,617,419,000) for the first half of the year, down by nearly a half from last year's €2.1bn (R43,178,709,000).
Context
Porsche SE, controlled by the Porsche and Piech families, is highly exposed to Volkswagen's performance through its nearly 32% stake, which influences its valuation, earnings and financial guidance.
It also owns 12.5% of luxury carmaker Porsche AG, with much of the rest held by the Volkswagen Group. For full-year 2024, Porsche SE had disclosed impairments of €19.9bn (R409,169,671,000) on VW and €3.4bn (R69,899,240,000) on Porsche AG.
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