Porsche AG Eyes Wider Margins After $1.2 Billion Sale of Bugatti, Rimac Stakes
By Joshua Kirby
Porsche AG said it expects its profitability to get a boost from the nearly $1.2 billion the company netted from its sale of stakes in a venture producing sports-car label Bugatti and in electric-vehicle maker Rimac Group.
The luxury-auto maker on Wednesday completed the sale of its 45% stake in Bugatti Rimac--its joint venture with Rimac housing Bugatti--and its 21% stake in Rimac itself, a deal announced in April this year. The German group, looking to focus on its core business, sold its stakes to a consortium led by U.S.-based investment firm HOF Capital, and which includes Abu Dhabi-based BlueFive Capital as its largest investor.
Porsche said it would receive proceeds of 1 billion euros ($1.16 billion) from the divestments. Around a quarter of that will go on the company's pension obligations. The resulting cash inflow means the group's net cash flow margin in its mainstay automotive segment will increase this year to between 5.5% and 7.5%, up from previous guidance of 3% to 5%. Porsche last year booked an automotive net cash flow margin of 4.7%, sharply down from 10.2% a year earlier.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
September 09, 2026 12:45 ET (16:45 GMT)
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