Porsche (P911) Q4 2025 earnings summary

Executive summary

• 2025 was marked by significant restructuring and strategic realignment, with extraordinary expenses of €3.9 billion related to product strategy, battery activities, and organizational adjustments.

• Customer deliveries declined 10.1% year-over-year to 279,449 vehicles, with China seeing a 26% drop, while North America remained stable and the largest region by deliveries.

• The company prioritized value over volume, focusing on high-margin products, cost efficiency, and a streamlined product portfolio.

• Strategy 2035 aims to reposition the company for higher resilience, sustainable cash flow, and appropriate margins.

• Accelerated realignment included streamlining management, reducing costs, and launching new sports car derivatives.

Financial highlights

• Group sales revenue for 2025 was €36.3 billion, down 9.5% year-over-year.

• Operating profit dropped sharply to €413 million, with an operating return on sales of 1.1%.

• Automotive net cash flow was €1.51 billion (margin 4.7%), impacted by extraordinary outflows and tariff-related expenses.

• CapEx was €2.1 billion; R&D spend was €2.3 billion.

• Earnings per ordinary share were €0.47; dividend proposed at €1.00 per ordinary share, payout ratio above 50%.

Outlook and guidance

• 2026 will remain challenging, with expected lower vehicle sales due to portfolio effects and supply constraints.

• Group revenues are forecasted between €35–36 billion, with supportive pricing and a stronger 911 mix partially offsetting volume declines.

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

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

• Midterm target of 10–15% group return on sales reaffirmed.