Volkswagen AG (VWAPY) recently reported annual results for 2024, but there wasn’t much of a share price reaction. The German carmaker earned $2.31 per share and had $351 billion of revenue (vs. $338 billion est.) in the fiscal year, writes John Buckingham, editor of The Prudent Speculator.
Overall, shares have rebounded 28% this year even as tariffs and other headwinds threaten to ding the company’s newfound momentum. On the webcast, CFO Arno Antlitz said: “The market environment in 2024 was truly challenging. Against that backdrop, we delivered a decent overall result. Vehicle sales in 2024 totaled 9 million units, 3% below the previous year’s figure.
(Editor’s Note: John will be speaking at the 2025 MoneyShow Masters Symposium Miami that runs May 15-17. Click here to register.)
Volkswagen AG (VWAPY)
Mr. Antlitz also offered this as a 2025 outlook: “We expect a significant tailwind from our revamped model portfolio of fascinating cars and a slightly positive volume trend in the markets outside China. We expect the implementation of future Volkswagen and continued cost discipline to have a significant positive impact on the cost side.”
Overall, we thought VW had a good year, despite numerous headwinds and all sorts of uncertainty related to global public policy. Global EV sales have continued to climb, and the infrastructure buildout continues to make EVs more attractive alternatives compared to internal combustion cars.
Despite the successes, there’s still not enough demand for EVs, and the ongoing investment in combustion vehicles is necessary to hit fuel economy and pollution targets. We suspect there will be a plurality of car propulsion systems on the roads for the foreseeable future, and we like that Volkswagen offers a wide variety of options for consumers and businesses. Our Target Price for VWAPY is now $15.
Recommended Action: Buy VWAPY.
