Porsche SE (PSHG) Earnings Fall 9% as Volkswagen Costs Bite in 2025

TLDR

• Porsche SE reported adjusted after-tax profit of €2.9 billion for 2025, down ~9% year on year
• Results were dragged lower by weak performance and high costs at Volkswagen and Porsche AG
• Net debt fell slightly to €5.1 billion from €5.2 billion
• Smaller portfolio investments generated €193 million in profit, led by drone maker Quantum Systems and chip startup Celestial AI
• The company announced a €100 million investment in a new European defence technology fund

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Porsche SE stock fell 2.7% in early trade on Thursday, underperforming the broader market index.

Porsche Automobil Holding SE, PAH3.DE

Porsche SE reported adjusted earnings after tax of €2.9 billion for full-year 2025, down around 9% from the prior year. The result was driven largely by weakness across the Volkswagen Group, in which Porsche SE holds a 31.9% stake and 53.3% of voting rights.

Volkswagen itself has been dealing with a tough stretch — tariff headwinds, rising competition from Chinese carmakers, and the cost of shifting to electric vehicles have all weighed on results. Porsche AG, the sports car unit in which Porsche SE also holds a 12.5% stake, halted its EV rollout in September, adding further costs.

Net debt at Porsche SE edged down to €5.1 billion from €5.2 billion the year prior — a modest improvement but still a heavy load.

Portfolio Investments Provide a Bright Spot

Not everything went the wrong way. Porsche SE’s smaller portfolio investments delivered €193 million in profit, with drone company Quantum Systems contributing €114 million and semiconductor startup Celestial AI adding €47 million.

The carrying value of those portfolio investments has nearly doubled to around €535 million since the end of fiscal 2024 — a number the company was happy to highlight.

Defence Bet Gets Bigger

In a move that reflects shifting priorities across German industry, Porsche SE announced a €100 million investment in a newly launched defence fund run by investment company DTCP.

The fund targets European technology startups working in areas including cyber defence and artificial intelligence. Investor appetite for defence and tech has grown as conflicts in Ukraine and the Middle East have raised the sector’s profile.

Poetsch said the company remains committed to Volkswagen as an anchor investor, pointing to €1 billion in cost cuts made across the group last year.

For 2026, Porsche SE is guiding for adjusted group profit after tax of between €1.5 billion and €3.5 billion — a wide range that reflects the uncertainty in its core auto holdings. Net debt is projected to land between €4.7 billion and €5.2 billion.

The wide guidance band tells you most of what you need to know about how visible 2026 looks from where management is sitting right now.

Porsche SE stock was down 2.99% at the time of reporting.

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