Porsche (P911) Q4 2025 earnings summary

Executive summary

• 2025 was a challenging year, with decisive actions taken to recalibrate the business, including strategic realignment, product strategy shifts, and battery-related activities, resulting in extraordinary expenses of €3.9 billion.

• Group sales revenue fell 9.5% year-over-year to €36.3 billion, with operating profit plunging 92.7% to €413 million due to one-off charges and macroeconomic headwinds.

• Customer deliveries declined 10.1% to 279,449 vehicles, with BEV share rising to 22.2% (+950 bps year-over-year); North America remained the largest and most stable market, while China and Europe faced significant challenges.

• The company is prioritizing value over volume, focusing on brand strength, cost efficiency, and a streamlined product portfolio, with Strategy 2035 aiming for higher resilience, capital efficiency, and margins.

• Accelerated realignment includes streamlining management, reducing costs, and expanding into higher-margin segments with new sports car derivatives.

Financial highlights

• Group revenue for 2025 was €36.3 billion, down 9.5% year-on-year, with auto revenue per vehicle rising to €121,000.

• Group operating profit fell to €413 million, with an operating return on sales of 1.1%; automotive EBITDA margin was 13.3%.

• Automotive net cash flow was €1.5 billion (margin 4.7%), impacted by extraordinary outflows and tariffs; net liquidity stood at €7.3 billion.

• CapEx was €2.1 billion (flat year-on-year), R&D spend declined 9% to €2.3 billion (7.1% of sales revenue).

• Basic/diluted EPS fell to €0.47/€0.48 from €3.94/€3.95 year-over-year; dividend proposal: €1 per ordinary share, €1.01 per preferred share, payout ratio above 50%.

Outlook and guidance

• 2026 will remain challenging, with lower vehicle sales expected due to portfolio effects and supply constraints, especially in China and for electric vehicles.

• Group revenues are forecast between €35–36 billion, with supportive pricing and a stronger 911 mix partially offsetting volume declines; BEV share forecast to rise to 24–26%.

• Group return on sales expected at 5.5–7.5%, automotive net cash flow margin at 3–5%, and EBITDA margin of 15–17%.

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

• Midterm target of 10–15% group return on sales reaffirmed; strategic realignment and cost discipline to continue.