Porsche AG Faces Financial Headwinds

In a startling turn of events, Porsche AG saw its shares tumble by over 7% following the announcement of its first-quarter financial results, which fell significantly short of market expectations. The luxury carmaker also revised its 2025 financial forecasts downward, sending shockwaves through the investor community.

Detailed Financial Performance

The company reported a 44% plunge in profit after tax, amounting to €518 million, with earnings per share also dropping by 44.5% to €0.56. This disappointing performance has raised concerns among stakeholders about the company's near-term growth prospects.

Revised Outlook Sparks Concern

Further compounding the issue, Porsche has adjusted its revenue expectations for 2025 from the previously projected range of €39-€40 billion down to €37-€38 billion. Additionally, the return on sales guidance was significantly lowered from 10%-12% to a more modest 6.5%-8.5%, indicating potential challenges ahead in maintaining profitability.

The immediate market reaction was stark, with Porsche's stock price falling to €43.35 by 9:18 am CET, marking a 7.6% decline from the previous close.