Porsche (OTCPK:DRPR.F) Update / briefing Transcript

Porsche (OTCPK:DRPR.F) Update Summary Company Overview - Company: Porsche - Date of Call: January 20, 2026 Key Points Industry and Market Dynamics - Global Deliveries: Porsche delivered 279,400 vehicles globally in Q4 2025, reflecting a 10% decline year-over-year due to product runouts and market dynamics, particularly in China [2][3] - Electrification: Electrified models accounted for 34% of total deliveries, with 22% being fully electric and 12% plug-in hybrids. In Europe, electrified models surpassed combustion-only deliveries for the first time, reaching a 58% share [2] - Regional Performance: North America remained Porsche's largest market with 86,200 deliveries. China saw 42,000 units delivered, impacted by market softness in the luxury segment [3][2] Sales and Product Performance - Model Highlights: The 911 achieved a record high of 52,000 units, while the Macan was the strongest model with 84,300 units, over half of which were all electric [2] - Customer Demand: Strong demand for individualization and new models, particularly the 911 Turbo S and Cayenne BEV, was noted. Incoming orders are in line with market realities [5][4] Financial Performance - Revenue Expectations: Group revenues for Q4 and FY 2025 are expected to decline at a lower rate than wholesales due to a strong premium product mix and pricing effects [6] - Extraordinary Expenses: Porsche anticipates approximately EUR 3.1 billion in extraordinary expenses for FY 2025 related to strategic realignment, including product strategy adjustments and battery technology initiatives [6][7] - Cash Flow: Q4 cash flow is expected to remain slightly positive despite extraordinary outflows of around EUR 700 million [11] Strategic Realignment - Long-term Focus: The strategic realignment is aimed at supporting long-term competitiveness and sustainable growth, despite short-term financial burdens [8] - Cost Management: Continued inflationary pressure is expected, particularly in material costs and compensation payments to BEV suppliers [8][13] 2026 Outlook - Sales Projections: Retail and wholesale volumes for 2026 are expected to be below 2025 levels, with a significant increase in the share of BEVs [12][29] - Pricing Strategy: Pricing is expected to remain positive, with an improved mix for the 911 model [29] - CapEx and R&D: CapEx for FY 2026 is expected to be significantly lower for ongoing business, with a EUR 1 billion-plus license payment to Audi impacting reported CapEx [32][36] Dividend Policy - Dividend Proposal: The executive board intends to propose a dividend for FY 2025 that is materially lower than the previous year but above a 50% payout ratio, reflecting financial discipline and long-term value creation [18] Geopolitical and Economic Factors - Tariff Impact: The company is closely monitoring U.S. import tariffs and their potential impacts on cost structures and planning reliability [12][16] Management Transition - Leadership Changes: New CEO Dr. Michael Leiters is focused on establishing a clear vision for Porsche and enhancing customer focus and operational performance [23][24] Additional Notes - Market Volatility: The company is navigating significant transformation within the European automotive industry, influenced by structural factors such as the slower adoption of electric mobility and geopolitical uncertainties [11][12] - Future Communication: A Capital Markets Day is planned for later in the year to provide further insights into Porsche's strategy and product developments [33]