Porsche’s €916M Dividend Proposal Tests Investor Confidence as Shares Rally But Margins Sink

Porsche proposes €916M dividend for 2025; Q1 profit falls 22%, revenue down 5.2%, deliveries drop 15% amid China weakness. Stock rallies 19% but analysts cautious.

Porsche is set to test its shareholders’ patience with a generous payout even as the luxury carmaker’s operating numbers flash warning lights. Management and the supervisory board have proposed a dividend of €1.00 per ordinary share and €1.01 per preferred share for the 2025 financial year, totalling €916 million in distributions. The annual general meeting, to be held virtually, will see investors vote on the plan through the company’s investor portal from 2 June 2026.

The proposal comes at a curious juncture for the stock. After a shaky start to the year, the preferred shares have snapped back sharply, closing at €47.81 on Tuesday (the secondary article reports €47.85, a slight intraday difference) — representing a gain of roughly 19% over the past 30 days. That rally has narrowed the gap to the 52-week high to just 1.16%, though year-to-date the stock is only up 0.84%. Technical indicators suggest the recovery still has room to run: the shares trade 12.89% above their 50-day moving average and 10.97% above the 200-day line, while the relative strength index sits at a comfortable 31.4, well short of overbought territory.

Yet beneath the price action, the business continues to struggle. First-quarter revenue fell 5.2% to €8.40 billion, while operating profit tumbled almost 22% to €595 million. That drove the operating margin down to 7.1%, a level that unnerves investors accustomed to Porsche’s historic pricing power and double-digit profitability. Earnings per share slid to €0.44. The average analyst price target of €42.22 sits well below the current trading level, and ratings range from “Underweight” to “Buy” — hardly a ringing endorsement.

Deliveries worldwide dropped 15% in the quarter to 60,991 vehicles, with China — the company’s biggest headache — accounting for just 7,519 units as Porsche persists with its “value over volume” strategy. The 911 provided a rare bright spot, with deliveries climbing 22%, boosted by strong demand for GTS, GT and Turbo variants. Still, the sports car alone cannot offset the broader pressure from weak Chinese demand and rising costs.

Porsche is pinning its near-term hopes on an electric offensive. The fully electric Cayenne is due to start deliveries this summer, and the recently unveiled Panamera 4 E-Hybrid — with a combined 463 hp from a 2.9-litre V6 biturbo and electric motor, and a claimed electric range of around 70 km — signals the brand’s commitment to electrified powertrains. Competition is intensifying, however: BYD’s premium Denza brand is targeting the Taycan with its Z9GT, and Rolls-Royce has upgraded its Spectre Series II.

For the full 2026 year, Porsche maintains its guidance of revenue between €35 billion and €36 billion, with an operating return on sales of 5.5% to 7.5%. Analysts currently pencil in a dividend of €1.03 per preferred share for this year, suggesting they expect earnings to support a modest increase. The next critical test comes with the second-quarter report, due in July, which will reveal whether the stock’s recent surge can find backing from an improving operational story.