Dr. Ing. h.c. F. Porsche AG

Porsche reported H1 2026 revenue of EUR 7.2 billion, down 5.1% year over year, with group operating profit of EUR 1.35 billion and operating return on sales of 7.8%, up 230 basis points. Deliveries were more than 122,000 vehicles, down 16%, and wholesale volume was approximately 121,000 units, down 11%. Auto revenue per vehicle rose to around EUR 126,000, up approximately EUR 6,000 year over year. Automotive net cash flow increased to around EUR 1 billion from around EUR 400 million, and automotive net cash flow margin improved to 6.7% from 2.4%. For 2026, guidance was unchanged: group return on sales of 5.5% to 7.5%, automotive net cash flow margin of 3% to 5%, full-year extraordinary burdens of EUR 800 million to EUR 900 million tied to strategic realignment, and around EUR 700 million of tariff impacts. CapEx was around EUR 900 million in H1, R&D expenditure was down approximately 12% to EUR 1.1 billion, R&D capitalization rate was around 44%, and automotive net liquidity was EUR 7.3 billion. Management also said the Zukunftspaket-related recalibration and organizational expenses are expected to be EUR 300 million to EUR 400 million in H2 2026.

Michael Leiters emphasized that Porsche is operating in a very challenging and geopolitically pressured environment and said the company cannot remain sustainably competitive with its current setup. His tone was constructive but urgent: Porsche is reshaping the product portfolio, simplifying the organization, reducing complexity, and focusing on core sports cars and higher-margin segments. He highlighted the sale of stakes in Bugatti Rimac and the Rimac Group, as well as the shutdown of Cellforce, Porsche eBike Performance and Cetitec, as part of a sharper focus on what defines Porsche at its core.

Jochen Breckner focused on the financial resilience of the business and the near-term costs of the reset. He said H1 included around EUR 100 million of net burden from strategic realignment, made up of about EUR 400 million of charges partly offset by around EUR 300 million of supplier-settlement benefits, plus a EUR 300 million to EUR 400 million burden from U.S. tariffs. He also noted automotive net cash flow of around EUR 1 billion, CapEx of around EUR 900 million, R&D of EUR 1.1 billion, and net liquidity of EUR 7.3 billion. On outlook, he said full-year guidance is unchanged, with second-half volumes expected to be broadly in line with H1, BEV share rising, around EUR 1 billion of Audi license payments flowing through CapEx, and first meaningful positive impact from the Zukunftspaket expected in 2028.

Analysts focused heavily on the Zukunftspaket, asking when cost savings would show up, what the steady-state P&L effect could be, and whether 2027 would see another step down in extraordinary charges. Management said the program should generate multibillion-euro savings through 2035, with a mid-triple-digit million euro steady-state effect in P&L and cash, but also said there will be a low triple-digit million euro burden in 2027 and that the first meaningful positive effect should come in 2028. Questions also centered on mix, especially the 911 and BEV sales, China exposure, and the delayed ICE Macan successor; management said 911 demand remains very healthy, BEVs are margin dilutive but still contribute positively at the margin, China remains challenging but is managed conservatively, and the Macan successor is planned for after the 2027 financial year.