May 14, 2026

Porsche SE, the holding company overseeing Volkswagen, reported a net loss after tax of €923m ($1.08bn) for the first quarter of 2026. The shortfall stemmed mainly from a €1.3bn non-cash impairment charge on its stake in Volkswagen.

Hans Dieter Pötsch, chairman of Porsche SE's management board, commented: "The start to the fiscal year aligns with our expectations. However, the business models supporting our core investments for many years must now adapt. This demands steady execution of smart strategies to boost competitiveness and profitability over the long term."

Volkswagen and Porsche AG rank as the group's primary core investments.

The adjusted result after tax reached €382m in the January-March period, a decline from €484m in the prior year's corresponding quarter. Even so, the net loss marked a modest improvement over the €1.08bn loss in Q1 2025.

This impairment on the Volkswagen holding arose from a value-in-use evaluation of €36.1bn as of 31 March 2026, down from €36.6bn at the end of 2025.

In contrast, the Porsche AG investment saw its carrying amount climb by €39m after reversing an earlier write-down, with value in use assessed at €5.7bn.

Volkswagen Group's first-quarter revenue dipped to €75.7bn from €77.6bn a year earlier.

Operating profit fell €0.4bn year on year to €2.5bn, while the operating return on sales shrank to 3.3% from 3.7%.

These figures incorporated around €0.5bn in expenses linked to ending ID.4 production at the Chattanooga plant in the US, a process that wrapped up in mid-April 2026.

Group-wide vehicle deliveries dropped 4% to 2.05 million units.

Porsche AG Group experienced a 5.2% revenue decline to €8.4bn. Operating profit slid to €0.6bn, narrowing the operating return on sales to 7.1% from 8.6%.

Net debt inched up to €5.15bn from €5.10bn at the close of 2025.

Porsche SE upheld its full-year 2026 guidance, forecasting an adjusted group result after tax between €1.5bn and €3.5bn, with year-end net debt ranging from €4.7bn to €5.2bn.

Volkswagen Group and Porsche AG reaffirmed their 2026 operating projections, while noting that these exclude potential impacts from the US administration's announced 25% tariff on EU car and truck imports - revealed on 1 May 2026 - plus disruptions from the ongoing Middle East conflict.