The Volkswagen-owned company announced that German sports car manufacturer Porsche aims to achieve better results in 2025 after a loss of one billion euros the previous year.

According to preliminary results, Porsche’s net loss was 20 billion euros ($21.6 billion) in 2024 due to challenges in VW and Porsche AG’s automotive investments.

For 2025, management is targeting an adjusted profit after tax of between 2.4 billion and 4.4 billion euros. Analysts had initially expected a figure in the upper half of this range. CEO Hans-Dieter Pöch said there was potential for value enhancement through cost-cutting and restructuring programs at Volkswagen and Porsche.

The Stuttgart-based company has a majority of voting rights in the Volkswagen Group and a blocking minority in sports car manufacturer Porsche AG, which is largely part of the Volkswagen Group structure.

Porsche had to take significant write-downs on the book value of its two major investments last year, as business was worse than previously expected due to challenges in the industry.

Despite the loss in 2024, Porsche plans to pay a dividend of 1.91 euros per preferred share, down from 2.56 euros the previous year. Net debt is expected to be between €4.9 billion and €5.4 billion in 2025, after decreasing to €5.2 billion by the end of 2024.

• Read More: Porsche SE Has No Intention Of Selling Its Volkswagen Stock