New goals in sight! Porsche SE is now also considering the defense industry!

Source: dpa | Translated by AI 2 min Reading Time

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After a significant billion-dollar loss due to a lackluster year with their car investments in VW and Porsche, the Porsche SE Holding now aims to perform better again. This is expected to come...

The Porsche SE holding has recently suffered significant losses. This absolutely cannot continue. Therefore, the decision-makers, led by CEO Hans Dieter Pötsch (pictured), are planning, among other things, to explore ways into the defense industry...(Image: Holding Porsche SE)
The Porsche SE holding has recently suffered significant losses. This absolutely cannot continue. Therefore, the decision-makers, led by CEO Hans Dieter Pötsch (pictured), are planning, among other things, to explore ways into the defense industry...
(Image: Holding Porsche SE)

Efforts to save on core investments are expected to bring Holding Porsche's business back on track, as has now been announced. However, investors must continue to brace themselves for changes in book values. According to CEO Hans Dieter Pötsch, the investment company is considering building a third strong pillar. Defense engagements are also being considered for new investments, as the Stuttgart-based company admits. There may also be stakes in partners. Liquidity currently stands at around two billion euros. But the net loss amounted to around 20 billion euros (approx. 22 billion USD) last year due to high impairments. A year earlier, the investment company of the VW owner families Porsche and Piech had made a profit of 5.1 billion euros (approx. 6 billion USD). Despite this staggering loss, Porsche SE intends to pay a dividend as previously indicated. However, the payout is expected to decrease from 2.56 to 1.91 euros (2.77 to 2.07 USD). The Porsche SE preferred share rose by 0.4 percent after this news.

Porsche SE's Chief Financial Officer does not rule out share buybacks

In the current year, the management team around CEO Hans Dieter Pötsch is aiming for an adjusted post-tax result of 2.4 to 4.4 billion euros (approx. 2.6 to 4.8 billion USD). The company is now excluding valuation changes of core investments. Pötsch made it clear at a press conference that further valuation changes may occur in the coming quarters. Without the high write-downs, the holding would have made a profit of 3.2 billion (approx. 3.5 billion USD) the previous year. Board member Lutz Meschke, responsible for portfolio management, stated that engagements in the defense sector are also conceivable. Pötsch generally referred to possible opportunities related to the multi-billion state financial programs for defense and infrastructure. CFO Lattwein emphasized that no additional debt is planned for this purpose. The group aims to continue reducing it over the coming years. Net debt is expected to initially amount to 4.9 to 5.4 billion euros (approx. 5.3 to 5.9 billion USD) in 2025. By the end of 2024, it had already decreased to 5.2 billion euros (approx. 5.6 billion USD), as previously known. He also does not rule out share buybacks for the future.

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