Porsche SE (PSHG) profits fall 9% as VW costs take a hit in 2025

TLDR

• Porsche SE reported adjusted after-tax profits of €2.9 billion for 2025, down almost 9% year-on-year.
• Results were down due to poor performance and high costs at Volkswagen and Porsche AG
• Net debt fell slightly to €5.1 billion from €5.2 billion
• The portfolio’s small investments generated €193 million in profits, led by drone maker Quantum Systems and chip startup Celestial AI.
• The company announced an investment of €100 million in a new European defense technology fund

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

Porsche Automobile Holdings SE, PAH3.DE

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

🚨 Porsche Automobil Holding SE PORSCHE SE Stock Check – The Holding Company’s Discount Story Deepens

Porsche SE announced adjusted after-tax profits for 2025 of 2.9 billion euros.
📉 Decreased by approximately 9% year-on-year

Shares about:
31.80 euros

This is not just a drop in profits.

It’s a sign about the whole… pic.twitter.com/jR11pFiPCt

— Emmanuel – major investor in technology and artificial intelligence (@EmmanuelInvest) March 26, 2026

Volkswagen itself has been dealing with a difficult period — tariff headwinds, increasing competition from Chinese automakers, and the cost of transitioning to electric vehicles all weighed on results. Porsche AG, the sports car unit in which Porsche SE also has a 12.5% ​​stake, halted the rollout of its electric cars in September, adding further costs.

Net debt at Porsche SE fell to €5.1 billion from €5.2 billion a year earlier – a modest improvement but still a heavy burden.

Portfolio investments provide a bright spot

Not everything went wrong. Smaller Porsche SE portfolio investments generated €193 million in profits, with drone company Quantum Systems contributing €114 million and semiconductor startup Celestial AI adding €47 million.

The carrying value of these portfolio investments has almost doubled to approximately €535 million since the end of fiscal 2024 – a figure the company was pleased to highlight.

Chairman of the Board of Directors Hans-Dieter Bötsch described the group’s investment network as a “key strategic asset.”

The defensive bet gets bigger

In a move that reflects changing priorities across the German industry, Porsche SE has announced a €100 million investment in a newly launched defense fund managed by investment firm DTCP.

The fund targets European technology startups working in areas including cyber defense and artificial intelligence. Investors’ appetite for the defense and technology sectors has increased, as conflicts in Ukraine and the Middle East have increased the profile of this sector.

Butsch said the company remains committed to Volkswagen as a major investor, pointing to €1 billion in cost cuts made across the group last year.

“We expect the management of both Volkswagen AG and Porsche AG to view the difficult situation as an opportunity to implement strategic adjustments,” he said.

For 2026, Porsche SE is on track for adjusted group profits after tax of between €1.5 billion and €3.5 billion – a wide range that reflects uncertainty in its core car holdings. Net debt is expected to reach between €4.7 billion and €5.2 billion.

The broad guidance range tells you most of what you need to know about how clear 2026 is from where management sits now.

Porsche SE stock was down 2.99% at reporting time.