by Changes on the German Exchange
Porsche has been excluded from the German DAX index, which comprises the country’s 40 largest companies. Its place has been taken by Scout24 SE, the company operating the ImmoScout24 real estate platform. This platform is a leading online marketplace for residential and commercial real estate in Germany.
Reasons and Consequences
The decision on the changes was made during a regular review conducted every three months. Porsche shares are being moved to the less prestigious MDAX index, where they will join companies such as Lufthansa. According to data as of today, the value of Porsche shares has fallen by 24.08% since the beginning of the year, largely due to tariffs and the situation in China.
Management’s Reaction
Porsche CEO Oliver Blume expressed disappointment with this decision, stating that the company aims to return to the DAX as soon as possible. He also noted that the index would lose one of Germany’s most valuable companies.
I want to return to the DAX as quickly as possible. The index will become poorer by one company when it comes to one of Germany’s most valuable companies.
Financial Performance
Porsche has faced serious challenges related to macroeconomic and geopolitical factors that negatively impacted its first-half results. The company incurred special expenses of approximately 1.1 billion euros due to strategic restructuring, activities in battery technology, and US tariffs.
The company’s revenue decreased from 19.46 billion euros to 18.16 billion euros, and operating profit sharply fell from 3.06 billion euros to 1.01 billion euros. Blume cited weak demand in China and US tariffs, which are putting significant pressure on the business, as the reasons for these changes. He also noted that the transition to electromobility is happening slower than expected.
This situation could have long-term consequences for Porsche, as exclusion from the DAX may affect investor confidence and the overall perception of the brand. However, the company continues to adapt to new conditions, emphasizing the importance of strategic changes for future growth. Blume’s position indicates that Porsche does not intend to rest on its laurels and plans to actively work on returning to leading positions.
