Porsche Profit Plunges in 2025 After €3.9 Billion Writedown
Porsche AG reported a sharp decline in earnings for 2025 after a €3.9 billion writedown significantly impacted the company’s automotive division. The luxury carmaker posted earnings of €0.47 per ordinary share, a steep drop from €3.94 per share in 2024, as profitability across its vehicle business weakened.
Despite generating €32.2 billion in automotive sales revenue, the division delivered only minimal operating profit due to the large writedown and rising costs.
Operating Profit and Revenue See Major Declines
Porsche’s group operating profit fell 92.7% to €413 million, down from €5.64 billion a year earlier. The company’s return on sales dropped sharply to 1.1%, compared with 14.1% in 2024.
Total group revenue also declined, falling 9.5% to €36.27 billion. Meanwhile, net profit after tax dropped 91.4% to €310 million, highlighting the significant financial impact of the charges.
Automotive Division Hit Hard by Restructuring Costs
The automotive division experienced the most severe decline in profitability. Operating profit fell 98.3% to €90 million, resulting in a return on sales of just 0.3%.
The €3.9 billion writedown included several major expenses:
- €2.4 billion in restructuring and realignment costs
- €700 million related to battery development and electric vehicle activities
- €700 million linked to tariffs imposed by the United States
Automotive free cash flow dropped 59.5% to €1.5 billion, representing 4.7% of automotive sales revenue, compared with 10.2% in the previous year.
Net liquidity within the automotive division also declined 14.2% to €7.3 billion. At the same time, Porsche increased its investment in innovation, with research and development spending rising to €3.16 billion, equivalent to 9.8% of automotive sales revenue, up from 5.6% in 2024.
Vehicle Deliveries Decline Despite Higher Pricing
Porsche delivered 279,449 vehicles in 2025, representing a 10.1% decrease from the previous year. Total vehicle sales dropped 15% to 265,663 units.
However, the company achieved higher pricing, with average revenue per vehicle rising to €121,000, compared with €117,000 in 2024, supported by improved pricing strategies and a stronger model mix.
Among individual models:
- Macan remained Porsche’s best-selling vehicle with 84,328 deliveries, up 2%.
- 911 deliveries reached a record 51,583 units, increasing 1%.
- Cayenne sales fell 21% to 80,886 vehicles.
- 718 deliveries declined 21% to 18,612 units.
- Taycan sales dropped 22% to 16,339 units.
European availability of the 718 and combustion-engine Macan was limited due to new EU cybersecurity regulations.
Regional Demand and EV Adoption Trends
North America continued to be Porsche’s largest market, accounting for 31% of total deliveries, up from 28% the previous year, with 86,229 vehicles sold.
In contrast, China’s share declined to 15% from 18%, reflecting weaker demand in the region.
The share of battery electric vehicles (BEVs) increased significantly, representing 22.2% of deliveries, compared with 12.7% in 2024, showing continued growth in Porsche’s electric vehicle strategy.
Dividend Proposal and Outlook for 2026
Porsche announced plans to propose a dividend of €1 per ordinary share and €1.01 per preferred share at its annual general meeting in June, maintaining a 50% payout ratio, subject to shareholder approval.
Looking ahead, the company expects group revenue between €35 billion and €36 billion in 2026, with a return on sales forecast between 5.5% and 7.5%.
However, Porsche warned that vehicle sales in 2026 are likely to fall below 2025 levels, and the company anticipates additional, although smaller, extraordinary charges next year.
The company projects an automotive EBITDA margin of 15% to 17%, while aiming to increase the share of battery electric vehicles to between 24% and 26% of total deliveries.
