Holding company Porsche SE reported on Wednesday a drop in its 2025 after-tax profit, pressured by costs at both the broader auto group and Porsche AG.

The company reported adjusted earnings after tax of €2.9 billion, marking a decline of around 9% from the previous year.

Net debt edged lower to €5.1 billion from €5.2 billion in the year prior. 

At the same time, the company said its smaller investments delivered €193 million in profit, underscoring its ongoing efforts to diversify beyond its core automotive holdings.

“This relates in particular to Quantum Systems of 114 million euro and Celestial AI of 47 million euro. At the same time, the carrying amount of the portfolio investments has nearly doubled to around 535 million euro since the end of the fiscal year 2024,” Porsche SE said in the release. 

“Our unique network has become a key strategic asset that significantly contributes to the strong financial performance of our portfolio,” board chairman Hans Dieter Poetsch said in a statement.

Porsche SE is a holding company controlled by the Porsche-Piëch family that acts as the anchor shareholder of the Volkswagen Group.

The group operates against a challenging backdrop for Germany’s automotive sector, including tariff pressures, rising competition from China, and the high costs associated with the transition to electric vehicles. In response, Porsche SE has been exploring opportunities in the defence sector as part of its diversification strategy.

Looking ahead, Porsche SE expects adjusted group profit after tax for 2026 to range between €1.5 billion and €3.5 billion. Net debt is projected to come in between €4.7 billion and €5.2 billion.