Automobile

Porsche SE Under Pressure Takes a New Strategic Turn

By Eva Morletto26 mars 2026

Amid challenging conditions for the German automotive sector, Porsche SE reported a decline in earnings for 2025. Its after-tax profit fell by 9% compared to the previous year, while the group explores new strategic opportunities alongside Audi.

In 2025, the holding company controlled by the Porsche and Piëch families reported a net profit of €2.9 billion, down 9% from the previous year (Porsche)

Amid economic uncertainty, the automotive industry is forced to slow down. The Porsche SE group, the largest shareholder of the Volkswagen Group, has reported a sharp decline in annual results, confirming the turbulence shaking the luxury automotive industry.

In 2025, the holding company controlled by the Porsche and Piëch families posted a net profit of €2.9 billion, down 9% from the previous fiscal year. This performance nevertheless exceeded analysts’ expectations, who had forecast a net profit of €2.3 billion following two downward revisions to their projections. Minority interests contributed €193 million, a significant amount following several years of limited contributions.

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A strategic partnership with Audi

Beyond the numbers, Porsche is considering future development strategies and is drawing closer to automaker Audi. The two giants are strengthening their collaboration to find common solutions to address the current economic climate. The challenges faced by both companies are indeed similar: the slowdown in the Chinese market—key to their growth—as well as the increase in U.S. tariffs on European vehicles represent two thorny issues for both Porsche and Audi.

To optimize costs and platforms, the two automakers have thus decided to share the PPE (Premium Platform Electric) and PPC (Premium Platform Combustion) modular architectures. These platforms serve as common technical foundations for future high-end electric and internal combustion vehicles, allowing for the sharing of components and technologies. Specifically, Porsche’s upcoming Macan, Cayenne, and Concept C will be built on these shared platforms, which secures production and maintains profitability despite pressure on margins.

A slowdown in the electric vehicle market and a resurgence of internal combustion engines

At the same time, the electric vehicle sector, which has been a growth driver until now, is experiencing a marked slowdown. Porsche had projected that 80% of its sales would be 100% electric by 2030, but these ambitions must be scaled back. The group is also announcing a return to internal combustion engines with new models, as the transition to electric power is proving more costly than expected. This shift comes at the cost of significant additional investments.

Between internal consolidation and strategic adjustments, Porsche SE’s situation illustrates the complex balance that automakers are striving to find today, caught between electric innovation and the need for profitability.

Key Points

Porsche SE’s net profit fell by 9% in 2025, though it still exceeded analysts’ expectations.

The group is strengthening its strategic partnership with Audi to navigate a more challenging economic environment.

The consolidation of the PPE and PPC platforms aims to reduce costs and preserve margins.

In response to the slowdown in the electric vehicle market, Porsche is readjusting its strategy and reviving the development of internal combustion engines.

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