How Does Porsche Automobil Holding Company Work?

Porsche Automobil Holding SE functions as an investment company, not a direct manufacturer. Its operations focus on managing its substantial stakes in other automotive businesses.

The company's value proposition is built upon increasing shareholder wealth through its strategic ownership and active management of its investment portfolio.

As of December 31, 2024, Porsche SE holds a dominant position in Volkswagen AG, owning 53.3% of ordinary shares and 31.9% of subscribed capital. It also possesses 25% plus one share of the ordinary shares in Dr. Ing. h.c. F. Porsche AG, defining its Porsche SE ownership.

Porsche SE actively manages its investments, categorizing them into long-term core holdings and temporary, high-growth potential investments. The company seeks opportunities in mobility and industrial technology aligned with macro trends.

Porsche Automobil Holding SE's strategic evolution is characterized by its substantial investment in Volkswagen AG. The acquisition of a majority voting stake in Volkswagen AG was a landmark achievement, positioning Porsche SE as a controlling shareholder. More recently, the 2022 acquisition of a 25% plus one share in Porsche AG further cemented its strategic focus on its automotive heritage.

Fiscal year 2024 presented significant headwinds for Porsche SE, including a challenging economic climate and increased competition within the automotive sector. Market shifts in China, a slower adoption of electromobility, and rising geopolitical tensions contributed to substantial non-cash impairment losses. These impacted its investments in Volkswagen AG by minus €19.9 billion and Porsche AG by minus €3.4 billion.

In light of market dynamics, Porsche SE is emphasizing the need for its core investments to prioritize competitiveness and profitability. The company supports strategic initiatives aimed at strengthening financial performance and sustainable growth, such as Volkswagen AG's 'Zukunft Volkswagen' agreement and Porsche AG's profitability enhancement measures.

Porsche SE's competitive edge is derived from its controlling shareholder status in Volkswagen AG, offering diversification across a portfolio of strong automotive brands. Its proactive investment strategy, extending into high-growth sectors like mobility and industrial technology through investments in companies such as Flix SE, Waabi, and Quantum Systems, also provides a distinct advantage.

Porsche Automobil Holding SE holds a distinct position as the largest shareholder in Volkswagen AG, wielding significant influence over one of the world's leading automotive conglomerates. This indirect market share and customer loyalty stem from Volkswagen's vast array of brands, catering to a global customer base. The Porsche SE structure is central to its operational framework.

The company's financial health is intrinsically linked to the performance of Volkswagen AG and Porsche AG. In 2024, these entities faced headwinds from intense competition, particularly in China, and a slower-than-expected shift to electromobility. Broader economic uncertainties and regulatory shifts in the automotive industry also present ongoing risks.

Porsche SE aims to evolve into a more diversified investment platform. For fiscal year 2025, the company projects an adjusted group result after tax between €2.4 billion and €4.4 billion. Net debt is expected to be between €4.9 billion and €5.4 billion by the end of 2025.

The strategic direction involves actively seeking new investment opportunities in mobility and industrial technology. This approach aims to enhance shareholder value through astute portfolio management and by supporting the strategic objectives of its core holdings to bolster competitiveness and profitability.