Porsche (P911) Q4 2025 earnings summary

Executive summary

• Leadership accelerated strategic realignment, focusing on value over volume, cost efficiency, and brand exclusivity, with a strong emphasis on streamlining management and expanding into higher-margin segments.

• Strategy 2035 aims to reposition for sustainable cash flow, resilience, capital efficiency, and appropriate margins.

• Immediate actions included streamlining the dealer network, ramping up quality-driven EV production, and reinforcing the core sports car business.

• Deliveries declined 10.1% to 279,449 units, with BEV share rising to 22.2%.

• North America remained the largest region by deliveries, while China and Europe faced significant challenges.

Financial highlights

• Group sales revenue for 2025 was €36.3 billion, down 9.5% year-over-year; operating profit dropped to €413 million (1.1% margin), impacted by €3.9 billion in extraordinary expenses.

• Automotive net cash flow was €1.51 billion (4.7% margin), with net liquidity at €7.3 billion.

• Automotive EBITDA margin decreased to 13.3% from 22.7% year-over-year.

• Basic/diluted EPS fell to €0.47/€0.48; dividend proposal: €1 per ordinary share, €1.01 per preferred share, payout ratio above 50%.

Outlook and guidance

• 2026 revenue expected between €35–36 billion, with group return on sales guidance of 5.5–7.5% and automotive net cash flow margin of 3–5%.

• BEV share forecast to rise to 24–26% in 2026.

• Guidance includes €800–900 million in extraordinary expenses and €700 million in U.S. tariffs.

• Underlying operating cash flow expected to improve, with continued cost discipline and selective portfolio adjustments.