Significant Decrease in Porsche SE's Profit by More Than 80 Percent
Porsche SE Reports Lowered Profits and Pursues Defense Sector Diversification
In the first half of 2025, Porsche SE, the holding company, reported a net profit of €338 million, a significant decrease from the €2.1 billion recorded in the same period the previous year. The decline in profits is primarily due to lower contributions from core investments in Volkswagen AG and Porsche AG, whose combined contribution to results fell to about €1.3 billion from previously €2.3 billion.
The second quarter saw Porsche SE record value adjustments of €799 million, with the burden of the struggling sports car maker increasing but being more than offset by catch-up effects in the VW stake. This catch-up effect helped Porsche SE to report a net profit in the second quarter.
Porsche AG itself has seen a significant downturn in operating profit, with a 67% decline in H1 2025 operating profit (€1.01 billion vs €3.06 billion in H1 2024). This decline directly affects Porsche SE’s earnings.
In response to the challenges in the automotive sector, Porsche SE is actively pursuing diversification into the defense and security sector. The holding company aims to increase involvement in defense and defense-related technologies — including satellite surveillance, reconnaissance and sensor systems, cyber security, logistics, and supply chain systems. Porsche SE already has stakes in defense-adjacent startups such as satellite firm Isar Aerospace and drone manufacturer Quantum Systems and plans to create an investment platform in this space. It is also seeking to collaborate with other wealthy family offices to build a diversified portfolio in the defense sector.
For the fiscal year 2025, Porsche SE lowered its full-year adjusted profit forecast to between €1.6 billion and €3.6 billion, down from an earlier range of €2.4 billion to €4.4 billion. This cut reflects current market challenges in the automotive sector, particularly impacting Volkswagen and Porsche AG results.
Porsche SE owns 53.3% of the ordinary shares of VW AG and holds a blocking minority of exactly 25% plus one share in the non-listed ordinary shares of Porsche AG. However, the weakness of Volkswagen and Porsche AG is significantly impacting Porsche SE, causing a plummet in its profit by 84% in the first half of 2025.
Porsche SE did not disclose the figures for the second quarter in its interim report as of June 30, like Porsche AG. The figures for the first quarter and the first half-year show that Porsche SE reported a total of €338 million in surplus in the first half of 2025, a decrease of 84% compared to the same period last year. Porsche SE experienced a net loss of €1.1 billion at the beginning of the year.
Porsche SE's share initially rose by 0.7% but later fell back to the previous day's level. The holding company faces the risk of being removed from the DAX due to the decline in share price. However, Porsche SE stated its intention to further diversify its portfolio of investments with defense stocks, reflecting its intention to reduce reliance on the volatile automotive industry and capitalize on emerging opportunities in defense and security.
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