Q3 2025 Dr Ing Hc F Porsche AG Earnings Call

October 24, 2025

<unk> five results. This call will be hosted by a Doctor you can break now member of the executive Board for finance it during.

Operator: Regarding Porsche AG's Q3 2025 results. This call will be hosted by Dr. Jochen Breckner, Member of the Executive Board for Finance and IT. During the intro statement at the beginning of our call, all participants will be in a listen-only mode. After the intro, we will jump into the question and answer sessions. Anyone who wishes to ask a question may press star and one. At this time, it's my pleasure to hand over to Dr. Sebastian Rudolph, Vice President, Communications, Sustainability, and Politics. Please go ahead.

Operator: Regarding Porsche AG's Q3 2025 results. This call will be hosted by Dr. Jochen Breckner, Member of the Executive Board for Finance and IT. During the intro statement at the beginning of our call, all participants will be in a listen-only mode. After the intro, we will jump into the Q&A sessions. Anyone who wishes to ask a question may press star and one. At this time, it's my pleasure to hand over to Dr. Sebastian Rudolph, Vice President, Communications, Sustainability, and Politics. Please go ahead.

Do you own the interest statement at the beginning of our call all participants will be in a listen only mode. After the interim we will jump into the question and answer sessions anyone who wishes to ask a question May press signed one at this time, it's my pleasure.

To hand over to doctors about Janet Woodruff, Vice President Communications sustainability and politics. Please go ahead.

Yeah, Thank you and Hello, everybody and welcome to our joint media analysts and investors call. We were talking about the results of the first nine months of 2025 of Porsche AG.

Dr. Sebastian Rudolph: Yeah, thank you. Hello, everybody, and welcome to our joint media, analysts, and investors call. We are talking about the results of the first 9 months of 2025 of Porsche AG. With me today are our CFO, Dr. Jochen Breckner, and Björn Scheib, our Head of Investor Relations. Dr. Jochen Breckner will give you a brief overview of our business performance year-to-date. After a short break, we will hold two Q&A sessions, first with analysts and investors, then with the media. As always, you can find the press release in the Porsche newsroom. The investor stack and the quarterly report are available in the investor section of the Porsche website. With this, I hand over to my colleague, Björn.

Sebastian Rudolph: Yeah, thank you. Hello, everybody, and welcome to our joint media, analysts, and investors call. We are talking about the results of the first 9 months of 2025 of Porsche AG. With me today are our CFO, Dr. Jochen Breckner, and Björn Scheib, our Head of Investor Relations. Dr. Jochen Breckner will give you a brief overview of our business performance year-to-date. After a short break, we will hold two Q&A sessions, first with analysts and investors, then with the media. As always, you can find the press release in the Porsche newsroom. The investor stack and the quarterly report are available in the investor section of the Porsche website. With this, I hand over to my colleague, Björn.

And with me today are our CFO, Jacobo Aetna and beyond shape, our head of Investor Relations Johan will give you a brief overview of our business performance year to date, then after a short break we will hold two Q&A sessions first with analysts and investors than with the media.

As always you can find the press release and the portion used through the investor deck and the quarterly report are available in the investors section of the Porsche website and with this I hand over to my colleague Dr. Jay.

Thank you very much. Good evening, you also from my side and before we begin. Please note that any forward looking statements. During this call are subject to the risks and uncertainties outlined in the Safe Harbor statement, which is included in our materials. This introduction is also governed by this disc.

Björn Scheib: Sebastian, thank you very much. Good evening also from my side. Before we begin, please note that any forward-looking statements during this call are subject to the risks and uncertainties outlined in the Safe Harbor statement, which is included in our materials. This introduction is also governed by this disclaimer. With this, I hand over now to Jochen.

With this I hand over now to Yahoo.

Beyond the terrestrial. Thank you very much also thanks, everyone for joining this call. It good evening everyone let.

Dr. Jochen Breckner: Björn and Sebastian, thank you very much. Thanks everyone for joining this call. Good evening, everyone. Let me walk you through Porsche's performance in the first nine months of 2025 and the strategic actions we have been taking. Let's start with the big picture. Porsche continues to build on a strong foundation, a loyal customer base, a compelling and completely refreshed product portfolio, and one of the most iconic brands in the world. Keeping in mind the current gaps in our product portfolio, our unit sales are resonating well. As you've seen in our press release two weeks ago, Porsche reported robust delivery figures with 212,500 vehicles delivered to customers worldwide between January and September. Here, the share of electrified vehicles significantly grew to 35.2%. In Europe, the share even reached 56%.

Let me walk you through partners performance in the first nine months of 2025 and the strategic actions we have been taken.

Let's start with a big picture.

Project continues to build on our strong foundation and loyal customer base, a compelling and completely refreshed product portfolio and one of the most iconic brands in the world.

Keeping in mind, the current gaps in our product portfolio, our unit sales are resonating well.

As you've seen in our press release, two weeks ago, partially reported robust delivery figures with 212500 vehicles delivered to customers worldwide between June and September.

The share of electrified vehicles significantly grew to 35, 2%.

In Europe, the fair even reached 56%.

Region overseas and emerging markets and the U S. A achieved a new all time record North America remains our largest region with 64000 deliveries and a 5% increase.

Dr. Jochen Breckner: Our region overseas and emerging markets and the US achieved a new all-time record. North America remains our largest region with 64,000 deliveries and a 5% increase. Now let's skip from deliveries to vehicle wholesales. Here, Porsche sold 198,000 vehicles in the first nine months. This is a year-over-year decline of 11% with a mixed picture across model lines and regions. The Macan showed strong momentum, becoming the best-selling model with 61,500 units. That's 10% increase year-over-year and includes 33,900 units of the new all-electric Macan. Sales of the Cayenne declined by 22% due to a prior year catch-up effect. The 911 saw a 6% drop linked to staggered launches of the new generation. The 718 was impacted by limited model availability due to new EU cybersecurity regulations.

Now, let's get from deliveries to vehicle wholesales here cautious hold 198000 vehicles in the first nine months.

This is a year on year decline of 11% with a mixed picture across model lines and regions.

The Mccann showed strong momentum, becoming the best selling model with 61500 units, that's a 10% increase year over year and includes 33900 units of the new all electric mccahon.

Sales of <unk> declined by 22% due to a prior year catch up effect.

The 911 saw a 6% drop linked to staggered launches of the new generation.

The $7 18 was impacted by limited model availability due to a new EU cyber security regulations.

North America, excluding Mexico recorded a 6% decline in the first nine months. This reflects the temporarily lower impulse. After the summer break following high inventory levels at the end of Q2.

Dr. Jochen Breckner: North America, excluding Mexico, recorded a 6% decline in the first nine months. This reflected temporarily lower imports after the summer break, following high inventory levels at the end of Q2. China, including Hong Kong, saw a 25% drop. This was driven by ongoing market challenges in the luxury segment, intensified competition, and a strategic focus on value-oriented sales. In contrast, our overseas and emerging markets grew by 3% to almost 40,000 units, which demonstrates resilience and growth potential. Porsche's global sales remain well-balanced across key regions. This underlines the strength of the brands, the appeal of our product portfolio, and the resilience of our diversified market presence. Despite adverse market conditions, incoming orders remain robust. This reflects strong brand desirability and a favorable product mix. Demand for individualization options remains unchanged on a very high level.

China, including Hong Kong, So a 25% drop this was driven by ongoing market challenges in the luxury segment intensified competition and a strategic focus on value value oriented sales.

In contrast, our overseas and emerging markets grew by 3% to almost 40000 units, which demonstrates resilience and growth potential.

Cautious global sales remained well balanced across key regions. This underlines the strength of the brands the appeal of our product portfolio and the resilience of our diversified market presence.

Despite adverse market conditions incoming orders remained robust this reflects strong brand desirability and a favorable product mix demand for individualization options remains unchanged on a very high level.

In the first nine months of this year Pasha generated group revenues of $26 9 billion euros.

Dr. Jochen Breckner: In the first nine months of this year, Porsche generated group revenues of EUR 26.9 billion. This is 6% below the prior year period. The under proportional and moderate decline was primarily driven by positive pricing along with higher revenues in the financial services segment. This performance underscores the strength and diversification of Porsche's business model, even in a challenging market environment. Let's now take a closer look at our expense development in the first nine months. Total expenses, including cost of goods sold, distribution, and administrative functions, increased by EUR 2.3 billion year-over-year, reaching EUR 27 billion. Despite temporary relief from lower production volumes on cost of goods sold, Porsche faced broad-based cost increases driven by several structural and external factors.

It is 6% below the prior year period the.

The under proportional and moderate decline was primarily driven by positive pricing along with higher revenues in the financial services segment.

This performance underscores the strength and diversification of partners business model, even in a challenging market environment.

Let's now take a closer look at our expense development in the first nine months.

Total expenses, including cost of goods sold distribution and administrative functions increased by $2 3 billion euros year over year, reaching 27 billion.

Despite temporary relief from lower production volumes on cost of goods sold Pasha faced broad based cost increase is driven by several structural and external factors.

These are the persistent inflationary pressure across the supply chain.

Dr. Jochen Breckner: These are the persistent inflationary pressure across the supply chain, a significant increase in R&D expenses, primarily due to reduced capitalization and higher depreciation and amortization, geopolitical challenges beyond our control, most notably the US import tariffs, and significant costs associated with our strategic transformation initiatives. To counterbalance these headwinds, our comprehensive profitability program Push to Pass delivered targeted efficiency improvements. This initiative reflects Porsche's disciplined execution and long-term commitment to innovation, regulatory preparedness, and cost resilience in an inflationary environment. Nevertheless, group operating profit declined to EUR 40 million. This corresponds to an operating return on sales of 0.2%, a result that clearly falls short of our expectations. It is important to note, however, that this figure includes substantial extraordinary charges. Year to date, Porsche recognized approximately EUR 2.7 billion in extraordinary expenses related to its strategic realignment, portfolio adaptations, and battery activities.

Michigan's increase in R&D expenses, primarily due to reduced capitalization and higher depreciation and amortization.

Geopolitical challenges beyond our control most notably the U S import tariffs and significant costs associated with our strategic transformation initiatives.

To counterbalance these headwinds our comprehensive profitability program push to pass deliberately targeted efficiency improvements.

This initiative reflects partial disciplined execution and long term commitment to innovation regulatory preparedness and cost resilience in an inflationary environment.

Nevertheless group operating profit declined to 40 million euros. This corresponds to an operating return on sales of <unk>, 2%. A result that clearly falls short of our expectations.

It is important to note. However that this figure includes substantial extraordinary charges year to date, partially recognized approximately $2 7 billion euros in extra ordinary expenses related to its strategic realignment portfolio adoptions and battery activities. In addition, tariff related costs and post a burden or.

Dr. Jochen Breckner: Tariff-related costs imposed a burden over EUR 500 million, which further impacted profitability. These charges also had a significant impact on the automotive segment, which reported a year-to-date operating loss of EUR 200 million. Let me emphasize, excluding the extraordinary effects from the strategic realignment and the US import tariffs, the underlying performance of the automotive segment remains robust. This strength is driven by favorable pricing, the successful execution of our Push to Pass initiatives, and a temporarily favorable foreign exchange and quality environment. Reflecting the operational strength of our ongoing business, Porsche's automotive net cash flow increased to EUR 1.3 billion by the end of Q3 of this year, up from EUR 1.2 billion in the prior year period.

500 million euros, which further impacted profitability.

These charges also had a significant impact on the automotive segment, which reported a year to date operating loss of $200 million.

Let me emphasize excluding the extraordinary effects from the strategic realignment and the U S import tariffs the underlying performance of the automotive segment remains robust.

This strength is driven by favorable pricing the successful execution of our push to pass initiatives and a temporary favorable foreign exchange and quality environment rich.

Reflecting the operational strengths of our ongoing business.

Automotive net cash flow increased to $1 3 billion by the end of the third quarter of this year up from $1 2 billion euros in the prior year period. This corresponds to a net cash flow margin of five 6% compared to four 8% a year earlier.

Dr. Jochen Breckner: This corresponds to a net cash flow margin of 5.6% compared to 4.8% year earlier. This also highlights our continued focus on disciplined spending and effective working capital management. The strong cash flow performance in Q3 was supported by disciplined investment and spending practices, as well as rigorous working capital management. Notably, based on our value-oriented production approach, we achieved a significant reduction in temporarily elevated inventories in the United States and China, which had built up by the end of Q2. Year to date, automotive net cash flow also reflects extraordinary outflows of approximately EUR 900 million. These are primarily related to our strategic realignment initiatives and tariff-related expenses. With that, let me turn to the outlook. We plan to continue our model offensive and customer-focused product strategy. Porsche remains well-positioned from both a product and pricing perspective.

This also highlights our continued focus on disciplined spending and effective working capital management.

The strong cash flow performance in Q3 was supported by disciplined investment and spending practices as well as rigorous working capital management, notably based on our value oriented production approach, we achieved a significant reduction in temporarily elevated inventories in the United States and China, which had built up by the end of Q2.

Year to date automotive net cash flow also reflects extra ordinary outflows of approximately $900 million euros. These are primarily related to our strategic realignment initiatives and tariff related expenses.

With that let me turn to the outlook.

We plan to continue our model offensive and customer focused product strategy, partially remains well positioned from both a product and pricing perspective, our core assumptions regarding unit sales supply chain stability and cost trends remain unchanged.

Dr. Jochen Breckner: Our core assumptions regarding unit sales, supply chain stability, and cost trends remain unchanged. Recent news flows underline that global supply chains are expected to remain volatile. The supply bottlenecks at the Dutch chip manufacturer Nexperia continue for the time being to have no impact on production at Porsche. The Dutch company, Nexperia, is not a direct supplier of the Volkswagen Group. However, some Nexperia components are used in vehicle parts with which also Porsche is supplied by its direct suppliers. The Volkswagen Group is currently examining alternative sourcing options in order to minimize possible effects on its supply chain. The company is also in close contact with potential suppliers in this regard. Porsche has also set up a task force. In light of the EU-US agreement on import tariffs, our forecast for the full year reflects the 15% US import duty effective 1 August.

Recent news flows underline that global supply chain are expected to remain volatile.

Supply bottlenecks at the Dutch chip manufacturer and Xperia continue for the time being to have no impacts on production that Pasha the.

The Dutch company next PRA is not a direct supply of the Volkswagen group. However, some xperia components are used in vehicle parts with which also partially supplied by its direct suppliers.

The Volkswagen Group is currently examining alternative sourcing options in order to minimize the possible effects on its supply chain. The company is also in close contact with potential suppliers and disregard.

Pulse is also set up a task force.

In light of the EU U S agreement on import tariffs our forecast for the full year reflects the 15% U S. Import duty effective August 1st we are proactively implementing mitigation measures such as targeted pricing adjustments to preserve margin integrity.

Dr. Jochen Breckner: We are proactively implementing mitigation measures such as targeted pricing adjustments to preserve margin integrity. Without the product-related portfolio decisions made last month, Porsche would have reaffirmed its original group return on sales outlook from Q2 2025, despite persistent market headwinds. As a result, we expect group revenue in the range of EUR 37 to 38 billion, unchanged from our previous guidance. At the lower end of the bandwidth, we anticipate a slightly positive group return on sales and an automotive net cash flow margin of 3%. At the upper end of the bandwidth, the group return on sales is expected to reach 2% and an automotive net cash flow margin of 5%. The latter remains well within the range of our initial guidance from the end of April.

Without the product related portfolio decisions made last month partial would have reaffirmed our original group return on sales outlook from Q2 25.

Spike persistent market headwinds as a result, we expect group revenue in the range of 37 to 38 billion euros unchanged from our previous guidance.

At the lower end of the bandwidth, we anticipate a slightly positive group return on sales and in automotive net cash flow margin of 3%.

At the upper end of the bandwidth. The group return on sales is expected to reach 2% and an automotive net cash flow margin of 5%.

Letter remains well within the range of our initial guidance from the end of April.

The group's return on sales guidance for full year 2025 reflects approximately $3 1 billion euros in extra ordinary expenses, primarily related to strategic realignment efforts.

Dr. Jochen Breckner: The group's return on sales guidance for full year 2025 reflects approximately EUR 3.1 billion in extraordinary expenses, primarily related to strategic realignment efforts. These include the repositioning of Cellforce Group and adjustments due to recent product portfolio decisions. Also, the group's return on sales guidance incorporates a high triple-digit million euro impact from US import tariffs. For the full year automotive net cash flow margin outlook, we anticipate outflows related to our strategic realignment initiatives alongside tariff-related payments of approximately EUR 1.2 billion. Our cash flow guidance of 3% to 5% for the fiscal year reflects a tariff agreement reached between EU and US authorities. Assume reimbursement would be recognized post-31 December only. Current expectations support maintaining the guidance unchanged. We continue to pursue a disciplined currency hedging strategy.

Dr. Jochen Breckner: The group's return on sales guidance for full year 2025 reflects approximately EUR 3.1 billion in extraordinary expenses, primarily related to strategic realignment efforts. These include the repositioning of Cellforce Group and adjustments due to recent product portfolio decisions. Also, the group's return on sales guidance incorporates a high triple-digit million euro impact from US import tariffs. For the full year automotive net cash flow margin outlook, we anticipate outflows related to our strategic realignment initiatives alongside tariff-related payments of approximately EUR 1.2 billion. Our cash flow guidance of 3% to 5% for the fiscal year reflects a tariff agreement reached between EU and US authorities. Assume reimbursement would be recognized post-31st December only. Current expectations support maintaining the guidance unchanged. We continue to pursue a disciplined currency hedging strategy.

These include the repositioning of cellphone group and adjustments due to recent product portfolio decisions.

So the group's return on sales guidance incorporates a high triple digit million euro impact from U S import tariffs for.

For the full year automotive net cash flow margin outlook, we anticipate outflows related to our strategic realignment initiatives alongside tariff related payments of approximately $1 2 billion euros.

Our cash flow guidance of 3% to 5% for the fiscal year reflects a tariff agreement reached between EU and U S authorities.

Assuming reimbursement would be recognized post December 31st only current expectation so pulp maintaining the guidance unchanged.

We continue to pursue a disciplined currency hedging strategy for 2025 substantial exposure has already been secured with significant coverage beyond 2025. This approach supports planning reliability and safeguards margin integrity.

Dr. Jochen Breckner: For 2025, substantial exposure has already been secured, with significant coverage beyond 2025. This approach supports planning reliability and safeguards margin integrity. Before concluding, let me briefly address our capital allocation strategy. Driven by the new product initiatives aligned with our strategic realignment, we anticipate R&D spending to peak in the current and upcoming fiscal year, followed by a decline. Porsche remains committed to delivering a reliable dividend to our long-term shareholders. Supported by our strong balance sheet and robust cash flow, the executive board currently intends to propose a dividend for fiscal year 2025 that deviates from the medium-term policy. In absolute numbers, the proposed dividend is expected to be significantly lower than last year's payout. It still would clearly exceed the level implied by our medium-term framework of 50% payout ratio. Final approval remains subject to the relevant corporate bodies.

Before concluding let me briefly address our capital allocation strategy.

Driven by the new product initiatives aligned with our strategic realignment, we anticipate R&D spending to peak in the current and upcoming fiscal year, followed by a decline.

Partially remains committed to delivering a reliable dividends to our long term shareholders supported by our strong balance sheet and robust cash flow. The executive Board currently intends to propose a dividend for fiscal year 'twenty to 'twenty five that deviates from the medium term policy in absolute numbers. The proposed dividend is expected to be cigna.

It can be lower than last year's payout.

But it's doable clearly exceed the level implied by our medium term framework of 50% payout ratio.

Final approval remains subject to the relevant corporate bodies.

Cautious reduced its asset base by more than 1 billion euros in 2025 compared to previous year. This reflects the significantly lower capitalization rates and reduced capex year over year, combined with higher depreciation amortization and impairments.

Dr. Jochen Breckner: Porsche has reduced its asset base by more than EUR 1 billion in 2025 compared to previous year. This reflects a significantly lower capitalization rate and reduced CapEx year-over-year, combined with higher depreciation, amortization, and impairments. Looking ahead, our capital asset allocation strategy will increasingly emphasize partnerships and licensing over ownership and vertical integration. This shift will not safeguard, but enhance our agility and strategic flexibility. With this, we strive to better seize opportunities in a fundamentally transformed market environment. With a clear focus on involving customer preferences, we are expanding our portfolio to include additional combustion engine and plug-in hybrid models. This strategic move complements our commitment to electrification and ensures a broader offering across key segments. We also continue to execute our successful halo strategy, anchored by high-impact lighthouse projects that elevate brand desirability and attract high-value customers.

Looking ahead, our capital allocation strategy will increasingly emphasize partnerships and licensing over ownership in vertical integration. This shift will not safeguards, but enhance our agility and strategic flexibility with this we strive to better seize opportunities and are fundamentally transformed market environment.

With a clear focus on evolving customer preferences, we are expanding our portfolio to include additional combustion engine and plug in hybrid models.

This strategic move complements our commitments to electrification and ensures a broader offering across key segments.

We also continued to execute our successful halo strategy anchored by high impact lighthouse projects that elevate brand desirability and attract high value customers.

Models, such as the <unk> GT and the 911th Dakar exemplify our unique blend of performance and lifestyle appear they reinforced social identity in the occlusive segment.

Dr. Jochen Breckner: Models such as the Cayenne Turbo GT and the 911 Dakar exemplify our unique blend of performance and lifestyle appeal. They reinforce Porsche's identity in the exclusive segment. The latest result of this strategy, the 911 Turbo S, has received strong demand and highly positive feedback from both media and customers. This underscores the enduring strengths of the 911 brand. Starting in 2028, a more balanced drivetrain offering will further strengthen our market position and support sustainable long-term growth. We remain also committed to electromobility and view decarbonization as a core societal responsibility. To rescale our operations and strengthen long-term resilience, we have already taken decisive steps to align our cost structures and strategic footprint with future market realities. We have initiated a comprehensive workforce transformation targeting both direct and indirect roads in order to ensure organizational agility and efficiency.

The latest result of this strategy. The 911 Turbo S has received strong demand and highly positive feedback from both media and customers. This underscores the enduring strengths of the 911 brands.

Starting in 2028 more pellets drivetime offering will further strengthen our market position and support sustainable long term growth.

We remain ultra committed to Electromobility and view decarbonization as of course societal responsibility.

Rescale, our operations and strengthen long term resilience, we have already taken decisive steps to align our cost structures and strategic footprint with future market realities, we have initiated a comprehensive workforce transformation targeting both direct and indirect roles in order to ensure organizational agility of deficiency.

We're accelerating cost efficiency initiatives across the organization to unlock sustainable savings.

Dr. Jochen Breckner: We are accelerating cost efficiency initiatives across the organization to unlock sustainable savings. In China, we are executing targeted strategic adjustments, including streamlining our dealer network and reinforcing our presence in high-demand regions. Where long-term profitability is no longer viable, we will responsibly reduce our footprints. Originally, we anticipated reducing our dealer network from approximately 150 dealerships down to around 100 by 2027. This target has now been revised downward to around 80 dealerships, reflecting a more focused and profitability-driven approach. Additional measures are currently under evaluation. Let me also briefly address the discussions on our future package. As you are aware, management and the workers council are currently engaged in constructive dialogue to jointly shape this initiative. Our shared objectives is to enhance the company's resilience, flexibility, and agility, thereby reinforcing our long-term competitiveness in an increasingly dynamic market environment.

In China, we are execute and targeting strategic adjustments.

<unk> streamlining our dealer network and reinforcing our presence in high demand regions.

The long term profitability is no longer viable we will responsibly reduce our footprints originally we anticipated reducing our dealer network from approximately 150 dealerships down to around 100 by 2027. This target has now been revised downward to around 80 dealerships, reflecting a more focused and profitability.

<unk> driven approach.

Additional measures are currently under evaluation.

Let me also briefly address the discussions on our future package as you are aware management and the Workers' Council are currently engaged in constructive dialogue to jointly shape. This initiative.

Our shared objective is to enhance the company's resilience flexibility and agility, thereby reinforcing our long term competitiveness in an increasingly dynamic market environment.

Importantly, we do not anticipate any significant extra ordinary burdens arising from these negotiations.

Dr. Jochen Breckner: Importantly, we do not anticipate any significant extraordinary burdens arising from these negotiations. While all these measures will temporarily impact our financials in 2025, they are strategically sound and essential for long-term success. We are confident that this approach would strengthen our position in a dynamic market and support sustainable value creation. Porsche has a proven track record of navigating complex environments, and we are currently managing through another period of macro industry-wide challenges with strategic clarity and operational discipline. With our strategic realignment, we are executing a clear plan designed to strengthen our brand and to sharpen our product offering. Our focus remains on enhancing product portfolio flexibility, strengthening product individuality, increasing exclusivity, and driving desirability across our portfolio. These efforts are aligned with our long-term ambition to position Porsche for sustained high-margin growth and resilient profitability.

But all these measures will temporarily impact our financials in 2025, they are strategically sound and essential for long term success. We are confident that this approach will strengthen our position in a dynamic market and support sustainable value creation.

Porsche has a proven track record of navigating complex environments and we are currently managing through another period of macro industry wide challenges with strategic clarity and operational discipline.

With our strategic realignment, we are executing a clear plan designed to strengthen our brand and to sharpen our product offering our focus remains on enhancing product portfolio flexibility strengthening product individuality, increasing exclusivity and driving desirability across our portfolio.

These efforts are aligned with our long term ambition to position posture for sustained high margin growth and Brazilian profitability we.

We expect 2025 to represent the trough in the current cycle from 'twenty to 'twenty six umbrella, we anticipate a meaningful recovery in performance supported by positive momentum from our product portfolio and the profitability measures from push to pass.

Dr. Jochen Breckner: We expect 2025 to represent the trough in the current cycle. From 2026 onward, we anticipate a meaningful recovery in performance, supported by positive momentum from our product portfolio and the profitability measures from Push to Pass. With that, let's turn to your questions after a short break. Thank you very much.

And with that let's turn to your questions. After a short break thank you very much.

Ladies and gentlemen, we didn't know I have a short break before starting the Q&A for the analysts and investors. Please hold the line.

Operator: Ladies and gentlemen, we'll now have a short break before starting the Q&A for the analysts and investors. Please hold the line.

Yeah.

[music].

Okay.

Yeah.

Operator: Ladies and gentlemen, at this time we will now begin the question and answer session for the analysts and investors. Anyone who wishes to ask a question may press star and one on their touchtone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from request in queue, you may press star and two. Please press star key followed by zero for operator assistance in case of any technical difficulties. Participants are requested to use only handsets while asking a question. Please ensure that all other devices with which you may be watching the video stream in parallel are completely muted to avoid interference. In the interest of time, please limit yourself to one or two questions. As mentioned, anyone who has a question may press star and one at this time.

Yeah.

[music].

Yeah.

Ladies and gentlemen at this time, we will now begin the question answer session for analysts and investors anyone who wishes to ask a question May press star and one on their Touchtone telephone.

Turning to confirm that you have entered the queue. If you wish to remove yourself from requests. Since you you May press Stein to be stressed stocky for zero for operator assistance in case of any technical difficulties participants are requested to use only handsets while asking your question.

Please ensure that all other devices with which you may be watching the video soon in parallel a completely muted to avoid interference in the interest of time, please limit yourself to one or two questions as mentioned anyone who has a question May press star and one at this time.

With that I hand over again to be in shape. Please go ahead.

Operator: With that, I hand over again to Björn Scheib. Please go ahead.

Thank you very much. So we will start the Q&A session for analyst with timber O'connor of Deutsche Bank, and then next and the ROE will be Horst Schneider of Bank of America gentleman.

Björn Scheib: Thank you very much. We will start the Q&A session for analysts with Tim Rokossa of Deutsche Bank. Next in the row will be Horst Schneider of Bank of America. Gentlemen, as said, this is a joint pre-media and analyst call. As such, please limit yourself to one or quite short two questions. Thank you.

I said this is a joint.

Media and analyst call as such please limit yourself to one.

Quite short two questions. Thank you.

Pretty much it's Tim from Deutsche Bank. Thank you want the best and if you're on I would have one and a half questions. Then it's actually pretty good underlying margins and free cash flow numbers to 12, 13% margin adjusted for one off some tariffs now terrorists will likely be the new normal and that also feels like you still need to do some repositioning for the business fine tuning here and there.

Tim Rokossa: Very much. It's Tim from Deutsche Bank. Thank you Jochen, Sebastian, and Björn. I would have one and a half questions then. It's actually pretty good underlying margins and free cash flow numbers, the 12, 13% margin adjusted for one-offs and tariffs. Now, tariffs will likely be the new normal, and that also feels like you still need to do some repositioning for the business, fine-tune here and there. Jochen, when can we expect the burden from one-offs to really go away and think about an underlying matching the stated figure? Is that 2026 or already during Q4? When we think about Q4 and 2026, is there any sound bites you can already give us? You sound pretty confident in your statements.

Jan when can we expect the burden from one off to really go away and think about an underlying matching the stated figure out that 26 already during Q4 and then when we think about Q4 and 26 is there any sound bites you can already give us you sounded pretty confident in your statements can we assume that you can possibly improve as of today.

Tim Rokossa: Can we assume that you can possibly improve as of today from the 5% to 7% EBIT margin rates that we had previously? Is there any sort of major one-offs there to be expected in Q4? Thank you.

<unk> from the five 5% to 7% EBIT margin rates that we had previously is there any sort of major one will start to be expected in Q4. Thank you.

Tim Thank you very much and as you said, we were really happy with our operational performance in this year for the first nine months and as discussed and just also elaborated on we had various onetime effects that will go away in the future as of now we have posted 271.

Dr. Jochen Breckner: Tim, thank you very much. As you said, we were really happy with our operational performance in this year for the first nine months. As discussed and just also elaborated on, we had various one-time effects that will go away in the future. As of now, we have posted EUR 2.7 billion until September. This is expenditure. Your question was about cash flow. Let me start with that one. EUR 2.7 billion that we've already posted for the effects that, you know, strategic realignment that we commuted at the beginning of the year, also our organizational adjustments, and then the latest decisions on the updated product portfolio. These expenditures are already digested in Q3. We expect additional one-offs and special expenses in Q4, as we've guided for.

Billion until September and this is expenditure. Your question was about cash, but let me start with that 127 billion that we've already posted for the effects that you know strategic realignment.

We committed at the beginning of the year also our organizational adjustments and then the latest of decisions on the updated product portfolio. So these expenditures are already digested in Q3, we expect additional one offs and special expenses in Q4 as we've guided for so when we look at that.

Full fiscal year 2025, we are very confident that we reached a zero to 2% profitability guidance corridor for 'twenty six.

Dr. Jochen Breckner: When we look at the full fiscal year 2025, we are very confident that we will reach the 0% to 2% profitability guidance corridor. For 2026, no major one-off effects are expected. The expenditures that we need for the strategic realignment for reorganization, the by far biggest part will be in the books in 2025. On the cash flow side, again, a very robust net cash flow. By the end of Q3, we have optimized working capital. We have reduced CapEx spending as good as we could. Most of the additional expenditures we had for the one-off effects were not cash relevant until the end of September.

Major one off effects are expected so the expenditures that we need for the strategic realignment for reorganization the by far biggest part will be in the books in 2025 now on the cash flow side again, a very robust net cash flow by the end of Q3 with <unk>.

<unk> working capital, we have reduced capex spending as good as we could and most of the additional expenditures we had for the one off effects were not cash relevant until the end of September some of them are already gone as cash spending since you are talking about depreciation of.

Dr. Jochen Breckner: Some of them are already gone as cash spendings since you are talking about depreciation of capitalized R&D expenditures, for example, and other cash effects are expected to be and had with in 2026. By the end of this year, cash flow margin will be between the 3% and 5% that we've guided for. For the end of 2025, we also will have first effects for the strategic realignment for 2026 pulled forward into Q4. 2026, it's too early to guide that year, and we will do that as always with the official forecast report with the annual press conference. It earlier and also in this statement, we will be in a substantially better situation on reported numbers. 2025 will be the trough.

Capitalized R&D expenditures for example, and other cash effects are expected to be had with in 2026. So again by the end of this year cash flow margin will be between the 3% and 5% that we've guided for and having said all of that for the end of 2025. We also will have first effects for the strategic re.

Alignment for 2026 pulled forward into Q4.

2026, it's too early to guide that year, and we will do that as always with the official forecast report with the annual press conference, but as I've communicated earlier and also in the statement, we will be in a substantially better situation on reported numbers of 2025 will be the trough, but having said that we.

Do not expect on a return on sales level, a double digit performance in 2026 that is something that we will target for for the years to come after 2026.

Dr. Jochen Breckner: Having said that, we do not expect on a return on sales level a double-digit performance in 2026. That is something that we will target for the years to come after 2026.

Would you confirm though your previous statement that a high single digit margin is possible with everything we know today, obviously things can still change right.

Tim Rokossa: Would you confirm, though, your previous statement that a high single digit margin is possible with everything we know today? Obviously, things can still change, right?

Youre, saying a high single digit margin is possible for 2026, I would confirm that yes.

Dr. Jochen Breckner: You're saying a high single digit margin is possible for 2026? I would confirm that, yes.

Thank you.

Next in the role as cost of Bank of America, and he will be followed by Sam from Exxon.

Tim Rokossa: Yeah. Thank you.

Björn Scheib: Next in the row is Horst of Bank of America, and he will be followed by Sam from Exane BNP.

BNP.

Okay can you hear me talk to you.

Operator: Okay. Can you hear me? It's Horst here.

Horst Schneider: Okay. Can you hear me? It's Horst here.

We can hear you okay. That's great. Thank you.

Björn Scheib: We can hear you.

My.

Operator: Okay, that's great. Thank you. My first main question that is basically on the tariffs again, I think that's an item that surprised me the most on the upside in this release. You say it was above 500 million EUR in year to date, which implies a burden of something like 100, maybe 150 million EUR in Q3. I know the tariff came down, but it looks to me that the impact in Q2 was a little bit overstated, in Q3 it was basically there was a benefit from kind of

Horst Schneider: Okay, that's great. Thank you. My first main question that is basically on the tariffs again, I think that's an item that surprised me the most on the upside in this release. You say it was above 500 million EUR in year to date, which implies a burden of something like 100, maybe 150 million EUR in Q3. I know the tariff came down, but it looks to me that the impact in Q2 was a little bit overstated, in Q3 it was basically there was a benefit from kind of

Main question that is basically on the tennis again.

I think that's an item that surprised me the most of the upside.

In this way when you say it was about 500 million in year to date, which implies the burden of something like 100.

150 million euros in Q3, I know the tariff came down but it looks to me that the impact in Q2 was a little bit overstated and in Q3. It was basically there was a benefit from kind of tariff provision release, maybe so maybe you can explain that and also the magnitude of that and is it.

Horst Schneider: Tariff provision release maybe. Maybe you can explain that and also the magnitude of that? Is it right, basically, that now the underlying tariff burden is something like EUR 250 million and not EUR 150 million a quarter? Thank you.

<unk> basically that the underlying tariff burden.

Like 250 million euros, and not 150 million a quarter.

Thank you.

Yeah tariff situation that was quite complex horse. So maybe just for everyone. In this call to everyone. On the same sheet of paper were 27, 5% as of April So the reduction to 15% as of August 1st and on that assumption Youre also guiding the full fiscal year. So that terrorists will remain at 15.

Dr. Jochen Breckner: Yeah. Tariff situation was quite complex, Horst. Maybe just for everyone in this call to everyone on the same sheet of paper. We are 27.5% as of 3 April, then the reduction to 15% as of 1 August. On that assumption, we are also guiding the full fiscal year so that tariffs will remain at 15%. Based on quarterly numbers, we communicated with the Macan numbers that we had effects from the US tariffs around EUR 400 million. By the end of Q3, cumulative numbers are a bit more than EUR 0.5 billion. This is a complex math of the varying rates that we had, the 27.5% and the 15%.

Percent.

Based on quarterly numbers, we communicated with the H one numbers that we had effects.

Effects from the U S tariffs around 400 million euros and by the end of Q3 cumulative numbers are a bit more than <unk> 5 billion euros and this is a complex math of the varying.

Rates that we had the 27 five and 15%.

Did not have the 15% fall for the full third quarter and that's something that just kicked in by the end of July So as August 1st and based on these assumptions and in fact by the way the actuals, we have made up the <unk>.

Dr. Jochen Breckner: We did not have the 15% for the full Q3, that's something that just kicked in by the end of July, so as 1 August. Based on these assumptions and facts, by the way, the actuals, we have made up the tariff numbers. For the full year, we expect a very high three-digit number. You can do the math. I mean, having the number for the Q2 with the special effects, also Q3, lower rates, and first pricing mitigation numbers that we have there. For the full year, we expect the tariff burden to be in the ballpark number as I've communicated also in the last call. That's something where we would see roundabout EUR 0.7 billion for the full fiscal year.

Tariff numbers for the full year, we expect a very high three digit number.

You can do the math I mean, having the number for the Q2 with a special effects also Q3 lower rates.

First pricing mitigation member numbers that we have there.

For the full year, we expect the tariff burden to be in the ballpark number as I've communicated also in the last call. So there's something there we would see roundabout <unk> 7 billion for the full fiscal year.

Okay. That's great just small follow up would you be able to comment on price mix in the third quarter.

Horst Schneider: Okay, that's great. Just small follow-up. Would you be able to comment on price mix in Q3? Because you raised prices, maybe you can give a wrap-up, again, overview by how much, and are any further price increases coming from here, or you're basically done now with the tariff pricing?

Because you raised prices, maybe you can give a wrap up again overview by how much and any.

Any further price increases coming from Neil you are basically done obviously tariff pricing.

Yeah, we've increased our pricing for the new model year 2026 across the board for all regions. So that's a effect that depending on the launch of these new cars have already started to kick in in Q3 and that further our strength in the pricing position throughout the year and then also for 2026 on top of that we had an additional of pricing.

Dr. Jochen Breckner: We've increased pricing for the new model year 2026 across the board for all regions. That's an effect that, depending on the launch of these new cars, already started to kick in in Q3 and will further strengthen the pricing position throughout the year and also for 2026. On top of that, we had an additional pricing hike in the US for a first compensation measure for the US tariffs to keep our margins on a, say, decent level. Coming to pricing as a mitigating effect on a measure on the tariffs, we are planning to have an additional price increase in the months to come. It's not communicated yet and not decided in full detail yet, that's something you can watch out for.

Hum hike in the United States for a first compensation measure for the U S tariffs to keep our margins on a decent level and coming through pricing as a mitigating effect on and measure on the tariffs. We are planning to have an additional price increase.

In the months to come it's not communicated yet and not decided in full detail yet. So that's something you can you can watch out for them, but we really plan to have a second second step.

Dr. Jochen Breckner: We really plan to have a second step there. The full effects of all these pricing measures will be seen in 2026.

Sure.

The full effects of all these pricing measures will be seen in 2026.

But just very good at right just integrate it right on the tariffs you said $2 7 billion for the full year and you have not released provisions in the third quarter did I get that right or.

Horst Schneider: just that I got it right...

Dr. Jochen Breckner: Very good.

Horst Schneider: Just that I got it right on this tariff, you said EUR 0.7 billion for the full year, you have not released provisions in Q3. Did I get that right or?

No I said I thought that for the full year, we expect seven.

Dr. Jochen Breckner: No, I said that for the full year, we expect.

Billion euros as a tariff effect.

Horst Schneider: Mm-hmm.

Dr. Jochen Breckner: EUR billion as a tariff effect.

Includes and is based on the assumptions that we have paid the 27, 5% until the end of July and that we have paid and we will pay the 15% from August through December 31st.

Horst Schneider: Mm-hmm.

Dr. Jochen Breckner: That includes and is based on the assumptions that we have paid the 27.5% until the end of July, and that we have paid and will pay the 15% from 1 August through 31 December.

To be clear there is no release in any tariff provision or anything else. That's okay. Okay. That's clear. Thank you so much.

Horst Schneider: Okay. Thank you.

Dr. Jochen Breckner: To be clear, there is no release in any tariff provision or anything as such.

Horst Schneider: Okay. Okay, that's clear. Thank you so much.

Next in the ROE will be Sam and he will be followed by Steven from Bernstein.

Björn Scheib: Next in the row will be Sam, and he will be followed by Stephen from Bernstein.

Hi, there. Thanks for taking my question building on Ken's question, frankly around the reversal of one offs into next year, which judging from your previous answer.

[Analyst] (Exane BNP): Hi there. Thanks for taking my question. Building on Tim's question, frankly, around the reversal of one-offs into next year, which judging from your previous answer, was that you basically expect them to fully reverse. What's the risk here that with the new CEO, we get further tilts in the strategy into next year and therefore further one-offs? Is the assumption that he's gonna come in and then adopt the exact strategy that's already been laid out? Be my first question, then a quick question on China. Have you seen any impact of the luxury tax that's come in in demand, in August and September, or any pre-buy in July before it came in? Thanks.

Sam Perry: Hi there. Thanks for taking my question. Building on Tim's question, frankly, around the reversal of one-offs into next year, which judging from your previous answer, was that you basically expect them to fully reverse. What's the risk here that with the new CEO, we get further tilts in the strategy into next year and therefore further one-offs? Is the assumption that he's gonna come in and then adopt the exact strategy that's already been laid out? Be my first question, then a quick question on China. Have you seen any impact of the luxury tax that's come in in demand, in August and September, or any pre-buy in July before it came in? Thanks.

Basically just that limit to fully reverse what's the risk here with the new CEO as we get further into this.

Strategy into next year, and therefore further one offs or is the assumption that he's going to come in and then adopt the exact strategy. That's already been laid out would be my first question. Then a quick question on China have you seen any impact of the luxury tax that's come in in demand.

In August and September or any pre buy in July before it came in thanks.

Yeah. So on your first question some.

Whether we would expect additional strategic realignment decisions with the new CEO coming to our company on January 1st Michael Lighters.

Dr. Jochen Breckner: Yeah. On your first question, Sam, whether we would expect additional strategic realignment decisions with the new CEO coming to our company on 1 January, Michael Leiters. That's something that we will see when he's here. I mean, he's not here yet. He's in a competitive situation with his former company, McLaren, so we have not started discussing professional issues and business issues as of now. Having said that, Michael is a well-known colleague. We've worked together in the past when he worked with Porsche. Great collaboration, a great guy, and he knows Porsche very well. He knows our strategy. He's from the automotive business. Of course, every time a new CEO joins the company, there will be a programmatic approach to that.

That's something.

We will see when his year I mean, he is not here yet.

<unk> is in a competitive situation with his former company make lower and so we have not started discussing a professional issues and business issues.

As of now.

Being said that Michael is a well known colleague we brought together in the past when you bought this pace of great collaborations a great Guy and he knows parcel very well he knows our strategy is from the automotive business so of.

Of course every time, a new CEO joins the company there will be a programmatic approach to that but from today's perspective would.

Would be early to expect a more one off expenses from my personal perspective, I think the major decisions have been made and are.

Dr. Jochen Breckner: From today's perspective, would be early to expect more one-off expenses. From my personal perspective, I think the major decisions have been made and are suitable and great decisions for the company. Second question was on China. The baseline for the luxury tax has been lowered to CNY 900,000 renminbi, which affects our portfolio or some part of our portfolio. We have not seen pre-buying effects because that new legislation was launched within 48 hours, so no customer had a chance to really run much into pre-buying. That effect was close to zero, I would say. After the effect, we have conserved prices and protected prices for the existing customers. Demand was on the level that we have seen.

Suitable and great decisions for the company.

Second question was on China.

The baseline for the luxury tax has been lower to 900000, Reminbi, which affects our portfolio also some part of our portfolio, we have not seen pre buying effects because that's.

New legislation was launched within 48 hours. So there's no customer had a chance to really run a much into pre buying so that effect was close to zero I would say after.

After the effects, we have conserved prices and protective prices for the existing customers so demand.

On the level that we've seen and looking forward the increase of the luxury tax or the lowering of the baseline for the.

Dr. Jochen Breckner: Looking forward, the increase of the luxury tax or the lowering of the baseline for the level when the luxury tax kicks in, is something that we will monitor. We have looked at our portfolio, and we will come up with strategic decisions on how we can position the one or the other derivative to be in a more competitive situation.

The level when the electric tax kicks in.

Something that we will monitor we have looked at our portfolio and we will come up with a strategic decisions on how we can position the one or the other derivative to be in a more competitive situation.

Thank you very much.

Thank you very much Johan so next into ROE will be Steve Bernstein, and he will be followed by Anthony of auto via chat.

[Analyst] (Bernstein): Thank you very much.

Sam Perry: Thank you very much.

Björn Scheib: Thank you very much, Johan. Next in the row will be Stephen of Bernstein, and he will be followed by Anthony of Oddo BHF.

Yes.

Good afternoon.

[Analyst] (Bernstein): Yes. Good afternoon. My question is about the US. I asked on the last about your the repeal of the IRA, which in the lease credit on your BEVs. Could you comment on what's been happening since then, in particular, the pricing and how you're pricing the leases of the Macan electric and also the Taycan, which I noticed were some of the better performers in Q3, at least at the retail level, judging by some of the data that we can see here.

Stephen Bernstein: Yes. Good afternoon. My question is about the US. I asked on the last about your the repeal of the IRA, which in the lease credit on your BEVs. Could you comment on what's been happening since then, in particular, the pricing and how you're pricing the leases of the Macan electric and also the Taycan, which I noticed were some of the better performers in Q3, at least at the retail level, judging by some of the data that we can see here.

My question is about the U S. A milestone the lost.

About <unk>.

The.

The repeal of the oil rate.

And the Zip.

At least credit on your Pvs.

Could you comment on what's been happening since then in particular, the pricing and how you're how you're pricing the leases of the Mccann electric and.

Also to take him, which I noticed where some of the best performers in the third quarter at least at the retail level judging by some of the data that we can see here.

Yeah.

Turning to $7500 of tax credits.

Dr. Jochen Breckner: You're referring to the $7,500 tax credits the electric cars were eligible to if they're not bought as cash. By this was bought on a lease contract. Of course, the deduction of that effect leads to higher lease rates on a monthly basis, and therefore our products are getting more expensive than they have been. There we see some minor effects on the demand side, but the effect is significantly lower than you might have expected, that it could be given that $7.5 thousand just is a rather big number. As of now, we are quite happy with how the demand developed, also at the higher monthly payments that we have to communicate with our Porsche Financial Services offers we have.

The electric hospital, if theyre not bought as cash.

Buying decides about on these contracts.

Of course.

The deduction of that effect.

It leads to higher lease rates.

On a monthly basis, and therefore, our products are getting more expensive than they have been about we see some minor effects on the demand side, but the effect is significantly lower than you might have expected that it could be given that 70 575000, just ours is a rather big number.

But as of now we are quite happy with how the demand develops.

So at the higher monthly payments that we have to communicate with our auto financial services offers we have.

Thank you and then second question could you remind us as well.

[Analyst] (Bernstein): Thank you. The second question, could you remind us as well what the timeline is for the ending of production of the Macan ICE and also for the Cayman and the Boxster, please? ICE versions.

Stephen Bernstein: Thank you. The second question, could you remind us as well what the timeline is for the ending of production of the Macan ICE and also for the Cayman and the Boxster, please? ICE versions.

The timeline is for the ending of production of the Mccann ice and also for the payment of the books that please.

Last question.

Yeah, we still offer the ice Mccann in the regions out of Europe out of the European Union, we will produce the car well into 2026, and that's car will be will.

Dr. Jochen Breckner: Yeah. We still offer the ICE Macan in the regions out of Europe, out of the European Union. We will produce the car well into 2026, and that car will be on offer throughout 2026 and in some markets, even in 2027, based on a final stocking that we will do. Exact EOP end of production date still to be decided and planned in the exact planning, but it will be more or less in the middle of 2026. As I've said, customers will get their cars also throughout 2026 and some even in 2027. On the Boxster and the Cayman, the end of production is here to come. That will be in October. We are producing the very last cars these days.

It will be on offer throughout 2026 and in some markets. Even in 2027 based on our final stocking that we will do exactly <unk> and a production date still to be decided and plant in the exact planning, but it will be more or less in the middle of 2026, but as I said customers would get their costs also throughout 2026.

And some even in 2027 on the books that they came in at the end of production is here to come that will be in October. So we are producing at the very last cars. These days and then it's the same situation as with the first Mccambley ice Mccann that customers will receive their products throughout the next months.

Dr. Jochen Breckner: It's the same situation as with the first Macan, the ICE Macan, that customers will receive their products throughout the next month.

Thank you very much.

Very good.

[Analyst] (Bernstein): Thank you very much.

Stephen Bernstein: Thank you very much.

Next will be Anthony.

Björn Scheib: Very good. Next then will be Anthony. After Anthony, we have Michael. Please note in about five minutes, we move over to the press.

<unk>.

After Anthony we have Michael and she's note about five minutes, then we move over to the press.

Yes, hi, thanks for taking the question and the first one is on just the general kind of margin environment for 2026.

Anthony: Yes. Hi. Thanks for taking the question. The first one is on just the general kind of margin environment for 2026. It seems like there's, you know, quite a few tailwinds for you, of course, outside of the non-recurring charges you had in 2025. You might also be having lower tariff impacts, you know, based on that kind of EUR 150 million run rate and also some positive pricing and likely mix also. I was just wondering, you know, what might be preventing you from reaching that double-digit margin in terms of, you know, what headwinds should we take into account for 2026? The second one is just a follow-up also on the free cash flow.

Anthony Dick: Yes. Hi. Thanks for taking the question. The first one is on just the general kind of margin environment for 2026. It seems like there's, you know, quite a few tailwinds for you, of course, outside of the non-recurring charges you had in 2025. You might also be having lower tariff impacts, you know, based on that kind of EUR 150 million run rate and also some positive pricing and likely mix also. I was just wondering, you know, what might be preventing you from reaching that double-digit margin in terms of, you know, what headwinds should we take into account for 2026? The second one is just a follow-up also on the free cash flow.

So it seems like there's quite a few tailwind for you of course outside of the nonrecurring.

Charges you had in 2025, but you know you might also be having lower tariff impact based on that kind of 150 million Euro run rate and also some positive pricing in Nike makes also so I was just wondering what might be.

Preventing you from from reaching that double digit margin in terms of you know what headwinds should we take into account for 2026.

And then the second one is just a follow up also on the free cash flow.

So you mentioned $1 2 billion euros of cash out this year for the restructuring and the tariffs could you actually maybe break that down between the restructuring in the salaries and also what remains in 2026 in terms of.

Anthony: You know, you mentioned EUR 1.2 billion of cash out this year for the restructuring and the tariffs. Could you actually maybe break that down between the restructuring and the tariffs? What remains in 2026 in terms of what cash out remains on the restructuring and what kind of reimbursements should we expect for the tariffs? Thank you.

Anthony Dick: You know, you mentioned EUR 1.2 billion of cash out this year for the restructuring and the tariffs. Could you actually maybe break that down between the restructuring and the tariffs? What remains in 2026 in terms of what cash out remains on the restructuring and what kind of reimbursements should we expect for the tariffs? Thank you.

Cash-out remains on the restructuring and what kind of reimbursements should we expect for that for the tariffs.

Yeah, a couple of questions, Let me, let me answer it.

Dr. Jochen Breckner: Yeah, a couple of questions. Let me answer it. First, a question on why do we not expect double-digit return on sales performance in 2026, given the quite robust performance that we've seen, if you do the reconciliation with all the one-off effects from 2025. In 2026, based on the substantial improvement that we will expect, we also have some headwinds that we have to take into account. First one is product offering. I've just commented on the ICE Macan and also on the run out of the 982, so the Boxster Cayman car, which will have last sales based on the production that we had so far. From a portfolio perspective, we've had additional issues where we do not have supply.

So first a question on why do we not expect double digit return on sales performance in 2026, given the quite robust performance that we've seen if you. If you do the reconciliation with all the one off effects from 2025 in.

In 2026.

Based on the on the substantial improvement if you would expect we also have some headwinds that we have to take into account first one is product offering of just commented on the ice Mccann and also on the run out of the nine eight tools. So the box for Kaman car, which.

We'll have lost faith based on the production that we had so far but from a portfolio perspective, we've had additional.

Additional issues, where we do not have supply second is we do not expect China to recover so given the trend in China and also in some other markets. Our assumption is that our sales will be.

Dr. Jochen Breckner: Second is we do not expect China to recover. Given the trend in China and also in some other markets, our assumption is that our sales will be unit sales will be lower in 2026 than in expected for 2025. Also, from an FX perspective, as I've said, 2025 almost fully hedged. Also in the years to come, we have quite high and substantial hedging ratios, but there are some open positions. Also in 2026, first effects will occur where our FX situation is a little bit weaker than it has been in 2025. Given these effects, we see a huge improvement, really a relevant one, single-digit performance in return on sales.

Unit sales will be lower in 2026 spend expected for 2025 also from an FX perspective, as I've said 2025, almost fully hedged also in the years to come we are quiet.

Hi, and substantial hedging ratios, but there are some open positions and also in 2026.

First effects will occur where our FX situation is a little bit weaker than it has been in 2025 and giving these effects and we see.

A huge improvement.

Really a relevant one.

Single digit.

Our performance in return on sales, but.

It will take a bit more time to come back to the two digit performance.

Dr. Jochen Breckner: It will take a bit more time to come back to the two-digit performance. Net cash flow for Q3. In year-to-date Q3, outflows were about almost EUR 900 million. When it comes to US tariffs, that's a bit more than EUR 500 million. We had additional spendings on the strategic activities and organizational realignment activities. That gives you the number of almost EUR 900 million of special effects on the cash side for the one-offs and US tariffs.

Net cash flow.

For Q.

Q3 so.

Year to date Q3 outflows for about almost 900 million euros.

When it comes to.

U S tariffs, that's a bit more than $500 million euros, and then we had additional spendings.

The strategic activities and organizational realignment activities that gives you the number of almost 900 million of special effects on on the cash side for the one offs and U S tariffs.

Very good for 26 remaining in terms of disbursements.

Björn Scheib: Very good.

Operator: For 26 remaining, in terms of, disbursements related to the realignment and reimbursements related to the tariffs?

Anthony Dick: For 26 remaining, in terms of, disbursements related to the realignment and reimbursements related to the tariffs?

Disbursements related to the realignment and reimbursements related to the tariff.

But for 2026, we will have from our perspective and based on our assumptions of stable tariff situation of 15% import tariffs to United States. So we will see that in the full year compared to.

Dr. Jochen Breckner: For 2026, we will have, from our perspective and based on our assumptions, a stable tariff situation of 15% import tariffs to United States. We'll see that in the full year, compared to 2.5% in Q1, 27.5% until July, and then 15% from August to December. If you do the average for these differing quarters in this year, for the next year, you will have a similar number that we expect for the next year. Tariffs, stable situation, 15% more or less a burden as we have it in this year. For the strategic realignment, the one-off expenses will be the really biggest part will be posted in 2025, so we do not expect material effects in 2026.

Two 5% in the first quarter 'twenty seven five per.

Percent until July and then 15%.

August through December if you do it.

The average for these deferring quarters in this year for the next year you will have a similar number that we expect for the next year or so tariffs stable situation, 15% more or less a burden as we have it in this year and for the strategic realignment. The one off expenses will be.

The really biggest parts will be posted in 2025, so we do not expect material effect in 2026.

Thank you.

Good So next will be Michael and then we will hand over.

Operator: Thank you.

Anthony Dick: Thank you.

Björn Scheib: Very good. Next then will be Michael, then we will hand over to our colleagues of the media. If we would have time at the end of this call, we will see if we can squeeze in the one or the other question. Mike? You're next.

To our colleagues of the media.

And if we would have time at the end of this call will let's see if I can squeeze in one or the other question.

Mike.

Thanks.

Couple of quick ones, if I can.

[Analyst] (Company Unknown): Yeah. Thanks. A couple of quick ones if I can. Just in regards to China, the work you're doing in China, can you talk about the cost of that? Shrinking from 150 dealers to 100 now to 80, you know, what have you had to pay the dealers to have them walk away from the contracts that you've got with them? That's the first question. China compensation, if you like. The second question is just around the tariff piece. If I remember rightly, you built inventory in the US on your own books in the first half. Is that the reason why the tariff in the first half looks really high versus what looks to be a very low tariff in Q3? That you're actually burning off that inventory in Q3, which meant the actual tariff impact was smaller. Thanks.

[Analyst]: Yeah. Thanks. A couple of quick ones if I can. Just in regards to China, the work you're doing in China, can you talk about the cost of that? Shrinking from 150 dealers to 100 now to 80, you know, what have you had to pay the dealers to have them walk away from the contracts that you've got with them? That's the first question. China compensation, if you like. The second question is just around the tariff piece. If I remember rightly, you built inventory in the US on your own books in the first half. Is that the reason why the tariff in the first half looks really high versus what looks to be a very low tariff in Q3? That you're actually burning off that inventory in Q3, which meant the actual tariff impact was smaller. Thanks.

Just in regards to China, the work you're doing in China.

Can you talk about the cost of that so shrinking from 150 delays to 100 now to a tee.

What have you had to pay the dealers to have them walk away from the contracts that you've got with them.

The first question so China competition, if you like and then the second question is just around the tariff piece if I remember rightly you built inventory in the U S. On your own books in the first half.

Is that the reason why the tariff in the first half looks really high versus what looks to be a very low tariff in Q3 that you actually burning off that inventory in Q3, which meant the actual tariff impact was smaller.

Yeah.

Yeah. Thanks for the questions on China, and the restructuring work that we're doing in the in the dealer body from 152, initially 100, and our targeting 80 dealers to set up a dealer network that is robust and financial financially viable and profitable.

Dr. Jochen Breckner: Yeah. Thanks for the questions, on China and the restructuring work that we are doing in the dealer body from 150 to initially 100, and now we're targeting 80 dealers to set up a dealer network that is robust and financially viable and profitable. That's an activity that we are doing in really good cooperation and good talks together with our dealers because they have the same interest in coming up with a business model that works profitably in the Chinese markets, as opposed to what we've seen during the last couple of months or years. That comes with a cost. That's clear. These costs are not substantial compared to the other effects that we have communicate in terms of strategic realignment and restructuring of the company.

The activity that we are doing and really good cooperation and good talks together with our dealers because they have the same interest in in coming up with a business model that Brooks profitably in the in the Chinese markets as opposed to what we've seen during the last couple of months or years.

That comes with a cost that's clear, but these costs are not substantial compared to the other effects that we have communicated in terms of strategic realignment and restructuring of the company. If they would have been would have incorporated that into our communications. So I'm.

Dr. Jochen Breckner: If they would have been, we would have incorporated that into our communication. I'm not in a position to give you an exact number, since we're also in negotiation position with our dealers. As I said, very constructive talks, joint interest in adapting the and joint target in adapting the dealer network, the dealer body. That's something that we can digest in our profitability in the current year and also in the next year when these actions will happen. On tariffs, of course, the cars imported by the end of Q2 had a 27.5% we had to pay based on the import date that we have.

I'm not in a position to give you an exact number since we are also in negotiation position with our dealers, but as I've said very constructive talks joined interest in adopting <unk>.

And joined targeting adopting that Ethernet broker dealer body and that's something that we can.

Digest in our profitability in the current year and also in the next year and these actions will happen on.

On tariffs of course, the cars imported by the end of Q2 at 27, 5% we had to pay based on the import data rather than once you release. These cars of course.

The terrorists are posted to the cost of goods sold when we reduce.

Dr. Jochen Breckner: Once you release these cars, of course, the tariffs, opposed to the cost of goods sold when we reduce the working capital. You have some effect there. I think you should look at the tariff situation as I commented on it on a yearly basis for the full year, EUR 27 billion, and that's also a good estimate for the year to come, based on the 15% throughout the year.

The broken capital So you have some.

Effect, there, but I.

I think you should look at the tariff situation as I commented on it on a yearly basis for the full year <unk> 7 billion and that's also a good estimate for the year to come based on that 15%.

Throughout the year.

Before we hand over May only clarify one thing when Johan talked about lower unit sales next year. We are talking about unit sales to the degree of cost says Oh. It says this is no revenue guidance. This will all come next year, because I already got first.

Björn Scheib: Before we hand over, may I only clarify one thing? When Johan talked about lower unit sales next year, we are talking about unit sales to the degree of car sales, wholesale. This is no revenue guidance. This will all come next year because I already got first questions if this is a revenue guidance. This is no revenue guidance.

Questions. If this is a revenue guidance. This is no revenue guidance.

Thanks Joan.

Dr. Jochen Breckner: Thanks, Björn.

Okay colleagues them, we make a short break and then we're right back with the Q&A for the media.

Björn Scheib: Okay. colleagues, then we make a short break, and then we're right back with the Q&A for the media. Thanks.

Ladies and gentlemen.

We will now have a short break before beginning the Q&A for the media. Please hold the line.

Operator: Ladies and gentlemen, we will now have a short break before beginning the Q&A for the media. Please hold the line.

Yeah.

[music].

Yeah.

[music].

Operator: Ladies and gentlemen, we will now begin the question and answer session for the media. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and 2. Please press the star key followed by 0 for operator assistance in any case of technical difficulties. Participants are requested to use only handsets while asking a question. Please ensure that all other devices with which you may be watching the video stream in parallel are completely muted to avoid interference. In the interest of time, please limit yourself to 1 or 2 questions. As mentioned, anyone who has a question may press star and 1 at this time. With that, I hand again over to Dr. Sebastian Rudolph.

Yeah.

Hum.

[music].

Okay.

Yes.

Yeah.

Okay.

Ladies and gentlemen, we will now begin the question and answer session for the media.

Anyone who wishes to ask a question May press star and one on your Touchtone telephone you will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from request. Since you you May Press Star then two.

Please press the star key for zero for operator assistance in any case of technical difficulties participants are requested to use on the handsets white asking a question. Please ensure that all of the devices. This will chew may be watching the video assume in parallel a completely muted to avoid the favorites.

The interest of time, please limit yourself to one or two questions as mentioned anyone who has a question press star one at this time, we set I hadn't again over to doctors about channel doors. Please go ahead.

Yeah. Thank you very much and welcome back colleagues to the Q&A session for the media.

Operator: Please go ahead.

Dr. Sebastian Rudolph: Yeah, thank you very much and welcome back, colleagues, to the Q&A session for the media. We have limit time. It would be great if you limit your questions to one, if possible. With this, I would say we start with the Financial Times and Sebastian Ash. Just unmute your mic and the floor is yours.

Sebastian Rudolph: Yeah, thank you very much and welcome back, colleagues, to the Q&A session for the media. We have limit time. It would be great if you limit your questions to one, if possible. With this, I would say we start with the Financial Times and Sebastian Ash. Just unmute your mic and the floor is yours.

We have from the time that would be great. If you limit your questions to one if possible and with this I would say we start with the financial times and Sebastian Ash just on mute you Mike in the floor is yours.

Yeah.

Hi can you hear me, yes, we can.

Sebastian Ash: Hi, can you hear me?

Sebastien Ash: Hi, can you hear me?

I wanted to ask with respect to the U S tariffs tariff resolution last week, which was bought a somewhat of a tailwind for us.

Dr. Sebastian Rudolph: Yes, we can.

Sebastian Rudolph: Yes, we can.

Sebastian Ash: Good. I wanted to ask with respect to the US tariff resolution last week, which has brought somewhat of a tailwind for US car makers. How do you feel this impacts your position and the position of European car makers relative to other manufacturers with a manufacturing presence in North America?

Sebastien Ash: Good. I wanted to ask with respect to the US tariff resolution last week, which has brought somewhat of a tailwind for US car makers. How do you feel this impacts your position and the position of European car makers relative to other manufacturers with a manufacturing presence in North America?

I'll make is and how do you feel this impacts.

Your position and the position of European Carmakers relative to.

Some of the manufacturers with a manufacturing presence in North America.

Yeah.

Sebastian Thanks for the question if we got you rightly you're asking about the U S tariffs and changes that you were referring to so commenting on that one I'm not aware of any relevant changes as I've just communicated in the other call.

Dr. Jochen Breckner: Sebastian, thanks for the question. If we got you rightly, you're asking about the US tariffs and changes that you were referring to. Commenting on that one, I'm not aware of any relevant changes. As I've just communicated in the other call, we are planning our assumptions on 15% as persisting and remaining tariffs for cars to be imported. I know that there are some political decisions on the truck business, where trucks might be affected, but that's not relevant for us as passenger car manufacturers. Again, we are paying 15% since 1 August, and that's our assumption for the end of this year and also for the next year.

We are planning our assumptions on 15% S. Persisting at remaining tariffs for cars to be imported.

Know that there are some political decisions on the truck business.

Where trucks might be affected but that's not relevant for us as passenger car manufacturers. So again we.

We are paying 15% since August 1st and that's our assumption, but at the end of this year and also for the next year.

Our next question goes to have Rachel Moore of Reuters. Please Rachel.

Dr. Sebastian Rudolph: The next question goes to Rachel More of Reuters. Please, Rachel.

Sebastian Rudolph: The next question goes to Rachel More of Reuters. Please, Rachel.

Hi, Good evening can you hear me, yes, we can.

Rachel More: Hi. Good evening. Can you hear me?

I wanted to ask if there is an update on the measures that will be required as part of the restructuring.

Dr. Sebastian Rudolph: Yes, we can.

Sebastian Rudolph: Yes, we can.

Rachel More: I wanted to ask if there is an update on the measures that will be required as part of the restructuring. You have the second package of measures currently under negotiation. What... Can we expect more job cuts, and what's the timeline on that?

The second package Nash measures currently under negotiation.

What.

Can we expect more job cuts.

What's the timeline on that.

Okay.

Yeah right. So we have started the negotiation on the second.

Dr. Jochen Breckner: Yeah. Rachel, we've started the negotiation on the second package. We call it the Future Package because that's a package that will really improve the competitiveness of our business model and our sites in Germany. We do that internally, the discussions and negotiations, our works council. We are not in a position yet to communicate anything details because it's not agreed and we do not want to discuss this in public. We do that on eyes level with the partners from the works council. What I can say is that we are targeting significant measures. And you were talking about job positions.

Package, we call it the.

Future package, because that's a package that will really improve the competitiveness of our business model and our sites in Germany, we do that internally the discussions and negotiations with our Workers' Council. So.

We are not in a position yet to communicate anything of details because it's not agreed and we not do not want to discuss this in public we do that on ice level with our partners from the brokerage counsel, but what I can say is that we are targeting significant measures.

And you were talking about drop positions on that one I would like to comment that a major part of the future package is not about job positions, but rather on salary levels and additional perks and compensation elements that we have in our current baseline.

Dr. Jochen Breckner: On that one, I would like to comment that a major part of the future package is not about job positions, but rather on salary levels and additional perks and compensation elements that we have in our current baseline.

Yeah.

Question goes to Stefan will not Wall Street journal stuff in place.

Dr. Sebastian Rudolph: Question goes to Stephen Wilmot, Wall Street Journal. Stephen, please.

Sebastian Rudolph: Question goes to Stephen Wilmot, Wall Street Journal. Stephen, please.

Christian.

I just wanted to ask can you give us any beyond the second package that you've just talked about what are you doing internally to reflect the strategic realignment that you.

Stephen Wilmot: Question. I just wanted to ask, can you give us any beyond the second package that you've just talked about, what are you doing internally to reflect the strategic realignment that you've provided for in your financial results? Can you give us any kind of indication of what is going on internally in terms of kind of teams being allocated to hybrids or other kind of projects that reflects the strategic realignment? Thank you.

Provided for in your financial results.

Can you give us any kind of indication of what.

What is going on internally in terms of kind of teams being allocated.

Allocated to.

Hybrid too.

They're kind of project.

That reflects the strategic realignment. Thank you.

Yeah, I mean, when it comes to our R&D work and our product portfolio of work, we have a multi project planning approach and you are stuffing the projects alone our cycle plan and strategy as the <unk>.

Dr. Jochen Breckner: Yeah. I mean, we, when it comes to our R&D work and our product portfolio work, we have a multi-project planning approach, and we are stuffing the projects along our cycle plan and strategy as the projects come along and needs to be developed. Based on the later decisions that we would push out the new electric platform and the car projects, the heads, as we call them, that were planned to be on that platform, of course, we've updated our multi-project planning approach and have redistributed, if I may say so, our colleagues and experts in R&D, but also in other areas of the company, from that platform and that car project into the other ones that we will develop to put our portfolio in a more flexible position starting as of 2028.

Projects come along it needs to be developed and based on the latest decisions that we said we would push out the new electric platform in the car projects. The Hertz as we call them that were planned to be on that platform of course, we've updated our multi project planning approach and have had.

Redistributed if I may say, so our colleagues are experts in R&D, but also in other areas of the company from that platform of Dot Com project into the other ones that we will develop to put our portfolio in a more flexible.

Position starting as of 2008, so that's a bit of a process of change, but it's not it's.

Dr. Jochen Breckner: That's a bit of a process of change, but it's nothing special. In general, we do that regularly because projects come, projects go, projects are finalized, so engineers and all the other colleagues and experts need to be allocated to various tasks. With the latest decisions, it has been a little bit bigger the task to execute it, but in general, that's a daily business and we are executing that, yeah, in a very stringent way. Colleagues are already working on the new cars, on the ICE and plug-in hybrid drivetrains that we communicated.

It's not nothing special in general we do that regularly because projects come projects gold projects are finalized so engineers and all the other colleagues and experts.

I need to be allocated to various tasks and in that with the latest decision. It has been a little bit bigger task to execute it but in general that's daily business and we are executing that.

Yeah.

Stringent way and colleagues are already working on the new cars.

The ICU and plug in hybrid Drivetrains that we communicated.

I have and maybe if I may add one thing and this has nothing to do with the second package. So this is as I said daily Burke of relocating experts engineers resources.

Dr. Sebastian Rudolph: I have-

Sebastian Rudolph: I have-

Dr. Jochen Breckner: Maybe if I may add one thing, this has nothing to do with the Second Package. This is, as I said, a daily work, reallocating experts, engineers, resources. The Second Package, the Future Package we're talking about is more about structural changes.

The second package the future because we're talking about it's more about structural changes.

We have one more question on Oralist, that's why our repeat if you want to ask a question Press Star One and then you appear here on our path. So with this Monica Bloomberg look floor is yours.

Dr. Sebastian Rudolph: We have one more question on our list. That's why I repeat, if you wanna ask a question, press star one, and then you appear here on our pad. With this, Monica Bloomberg, the floor is yours.

Sebastian Rudolph: We have one more question on our list. That's why I repeat, if you wanna ask a question, press star one, and then you appear here on our pad. With this, Monica Bloomberg, the floor is yours.

Yes, Hello. Thank you can you hear me all right.

Yes, we can wonderful.

Monica: Yes, hello. Thank you. Can you hear me all right?

Monica Diocades: Yes, hello. Thank you. Can you hear me all right?

We've heard quite a bit from Mr Bloom or already in previous calls about porsches intention to expand the exclusive manufacturer of program.

Dr. Jochen Breckner: Yes.

Dr. Sebastian Rudolph: Yes, we can.

Sebastian Rudolph: Yes, we can.

Monica: Wonderful. We've heard quite a bit from Mr. Blumer already in previous calls about Porsche's intention to expand the Exclusive Manufaktur program, and that individualization and sort of higher-margin vehicles will play an important role in Porsche's future strategy. I was wondering if we could hear a bit more color or details on what structural changes or concrete measures are being taken to expand that program, and what would need to be offset for that expansion, specifically in Zuffenhausen, physically, if facilities need to be expanded, if more people need to be onboarded, et cetera. Thank you.

Monica Diocades: Wonderful. We've heard quite a bit from Mr. Blumer already in previous calls about Porsche's intention to expand the Exclusive Manufaktur program, and that individualization and sort of higher-margin vehicles will play an important role in Porsche's future strategy. I was wondering if we could hear a bit more color or details on what structural changes or concrete measures are being taken to expand that program, and what would need to be offset for that expansion, specifically in Zuffenhausen, physically, if facilities need to be expanded, if more people need to be onboarded, et cetera. Thank you.

And that individualization and sort of higher margin vehicles will play an important role in and pushed the future strategy. I was wondering if we could hear a debt or color or details on what structural changes are concrete measures are being taken to expand that program and.

And what would need to be offset for that expansion, specifically insistent housing physically if if facilities need to be expanded if more people need to be on boarded et cetera. Thank you.

Yeah Monika Thanks for that question the exclusive and is under Bush manufacturers, we call that business is really key to our strategy is one key pillar.

Dr. Jochen Breckner: Monica, thanks for that question. The Exclusive and Sonderwunsch Manufaktur, as we call it, business is really key to our strategy. It's one key pillar for the brands, but also in that part of the business for highly profitable margins. We will expand that business as communicated earlier, and we will do that step by step in a very cautious way, because in that area of our business model, it's really key that we keep scarcity and keep it as a luxury part of the business. This is a step-by-step approach.

The brands, but also in that part of the business for highly profitable our margins, we will expand that business as communicated earlier and we will do that step by step.

In a very cautious way because in that area of our business model, It's really key that we keep scarcity and keep it as a luxury part of the business. So this is a step by step approach.

Year by year, we have already increased significantly of the capacity and also the output in that area throughout the last years and over the next 235 years until the end of this decade.

Dr. Jochen Breckner: Year by year, we've already increased significantly, the capacity and also the output in that area, throughout the last years and over the next 2, 3, 5 years until the end of this decade, substantial increases in terms of output will be organized in our operational model. This will come with additional capacity in that area of our business model, but we are not planning for a substantial additional hires to organize that one. That is something where we, as I just said in the answer to the other question, our multi-project planning, given the staff and the workforce we have, we will organize the increase in capacity in the Sonderwunsch and Exclusive Manufaktur program.

Substantial increases in terms of output will be organized in our operational model. This will come with additional capacity in that area of our business model, but we're not planning for a substantial additional hires to organize that one that is something where we as I just said in the answer to the other question.

Our multi project planning.

Given the staff and the workforce we have.

We will organize the increase in capacity and that's under a bunch and exclusive manufacturer program. When it comes to assets buildings machinery et cetera again.

Dr. Jochen Breckner: When it comes to assets, buildings, machinery, et cetera, again, our plant in Zuffenhausen is big enough to implement the increases in the Sonderbund Exclusive Manufaktur, so there are no significant CapEx expenditures planned to organize that part of the business on the growth path that we've entered.

Our planet's open houses is big enough to.

Yeah to implement the increases in these other mutual exclusive manufacturer. So there are no cigna.

Significant capex.

<unk> planned to organize that part of the business on the growth path that we've entered.

Thank you I would take two last questions. The first goes to Chicago title and then we finish with Dow Jones. So much here Schmidt you go first struck at that site.

Monica: Thank you.

Monica Diocades: Thank you.

Dr. Sebastian Rudolph: I would take two last questions. The first goes to Stuttgarter Zeitung, then we finish with Dow Jones. Matthias Schmidt, you go first. Stuttgarter Zeitung, please.

Sebastian Rudolph: I would take two last questions. The first goes to Stuttgarter Zeitung, then we finish with Dow Jones. Matthias Schmidt, you go first. Stuttgarter Zeitung, please.

Thank you.

Just on sharp question is the new CEO.

Matthias Schmidt: Thank you. Hello good evening. Just one short question. Is the new CEO already involved in the negotiations on the second package?

Right.

We'll see.

As a package.

I just repeat because it was acoustically a hard too is the upcoming C. All already involved in the negotiations were talking about the Chicago pocket so constructed.

Dr. Sebastian Rudolph: I just repeat because it was acoustically hard to. Is the upcoming CEO already involved in the negotiations? We're talking about the Strukturpaket, Zukunftspaket.

Sebastian Rudolph: I just repeat because it was acoustically hard to. Is the upcoming CEO already involved in the negotiations? We're talking about the Strukturpaket, Zukunftspaket.

No he's not Michael Lighters, who joined the company on January 1st.

Dr. Jochen Breckner: Yeah. No, he's not. Michael Leiters will join the company on 1 January. He's not with the company yet. Decisions have been made that he will join the company. We are looking forward to welcoming him at Porsche and working together with him. Given the situation, competitive situation with also the other company that he used to work for, we are not in discussions and in any, yeah, in any direct work with him yet. We will start that as of 1 January. Given the fact that he's been with Porsche for quite some years, then afterwards, he's a highly respected expert in the automotive industry, we really expect to have a fast start and a kickstart in January 2026, but no actions so far.

He is not with the company yet decisions have been made that he will join the company we're looking forward.

Well coming in at portion of working together with him, but given the situation competitive situation with also.

The company that used to work for we are not in discussions and in any.

In any direct Burke with him yet we will start that as of January 1st and given the fact that he's been.

With Porsche for quite some years and then after growth is.

He is a highly respected expert in the automotive industry, we really expect to have a fast start on the kick start in Jan 2026, but no actions so far.

Thank you.

And then with the last question for today Micros Clauson Dow Jones please.

Markus Klaus: Thank you.

Matthias Schmidt: Thank you.

Björn Scheib: We have the last question for today, Markus Klaus, Dow Jones, please.

Yeah, Hi, many thanks.

For the possibility one question regarding that and then let's call them you said, Mr. Brook, now totally 100% sure that next year possible reach and.

Markus Klaus: Yeah. Hi. Many thanks for the possibility. One question regarding the analyst call. You said, Mr. Breckner, to be 100% sure that next year Porsche will reach a high single-digit return, and then the year ahead, 2027, a double-digit return is possible. Is it reasonable to assume that Porsche will once again achieve a return of 80% at some point in the future, or is it no longer within reach? Thanks.

The high single digit return.

And then yeah.

2027.

Double digit return is possible and is it reasonable to assume that possible. Once again achieved a return of 80% at some point in the future.

Or is it no long ago within reach thanks.

Yeah. So first let me confirm that we are expecting a high single digit return on sales for next year. That's correct second we've communicated.

Dr. Jochen Breckner: First, let me confirm that we are expecting a high single-digit return on sales next year. That's correct. Second, we've communicated that our ambition is a 10% to 15% profitability margin and range in the midterm. Whether the midterm starts in 2027 or maybe a bit later, that's something that we still have to see. That's two years from now, so we do not give exact guidance on that one. Can't comment on 2026, sorry, on 2027, more precisely. I think the most important information is high one single-digit margin in 2026, not double digit, and then we take it from there. As of 2028, the positive effects from our strategic realignment will start to kick in.

<unk>, that's our ambition is a 10% to 15%.

Profitability margin and range in the midterm and whether the midterm starts in 2027 or maybe a bit later thats something that we still have to see.

Now two years from now so we do not give exact guidance on that one.

Comment on 2020, sorry in 2027 or more precisely, but I think the most important information as high one single digit margin in 2026, not double digit and then we'll take it from there and as of 2028, the positive effects from our strategic realignment to start to kick in.

Okay.

18% is it is within reach in some point in the future no longer reachable.

Markus Klaus: Okay, thanks. 18% is within reach in some point in the future, or is it no longer reachable?

Yeah, I mean, I'll just add that we communicated that our ambition is to have a return on sales in the midterm between 10% to 15%. That's the way to go and we have taken the decisions to get there and higher margins would have been even higher than the 10% to 15% so from today's perspective.

Dr. Jochen Breckner: Yeah. I mean, I just said that, we communicated that our ambition is to have a return on sales in the midterm between 10% to 15%. That's the way to go. We have taken the decisions to get there, and higher margins would have been even higher than the 10% to 15%. From today's perspective, I would not confirm a target of 18%. That's why we communicated a range of 10% to 15%.

<unk> I would not confirm the target of 18% that's why we can.

Communicated a range of 10% to 15%.

Okay. Many thanks.

What kind of all and as a surprising fact, Jose you had been quiet tenacious and patient in a way that on the Q right towards the end.

Markus Klaus: Okay, many thanks.

Dr. Jochen Breckner: Welcome.

Björn Scheib: As a surprising factor, Jose, you had been quite tenacious...

Dr. Jochen Breckner: Jose.

Björn Scheib: Patient and waited on the queue right to the end. This is a sports car company that is incentivizing this passion. Therefore, last in the row is Jose of JP Morgan.

A sports car company that is incentive I think this person. So therefore lost their ROE is costly akshay people will say great to hear you're looking forward to your questions.

Dr. Jochen Breckner: Jose, great to hear you. Looking forward to your question.

Thank you so much and thank you very much.

Jose: Thank you so much. Thank you very much for the opportunity and, apologies for, yeah, becoming the last one here. Thank you very much. A simple question, please. As we think about the next 6 months, 12 months, mid-medium term, but a bit more like into 2026, I'm sure you're launching new vehicles, right? Which, which vehicles do you think will drive the momentum in 2026? When do you expect the Cayenne Electric to start helping a bit, the P&L and that sales mix? Thank you.

Jose Yearwood: Thank you so much. Thank you very much for the opportunity and, apologies for, yeah, becoming the last one here. Thank you very much. A simple question, please. As we think about the next 6 months, 12 months, mid-medium term, but a bit more like into 2026, I'm sure you're launching new vehicles, right? Which, which vehicles do you think will drive the momentum in 2026? When do you expect the Cayenne Electric to start helping a bit, the P&L and that sales mix? Thank you.

Apologies bullets or.

And the last one here thank you very much.

It's a simple question. Please as we think about the next six months 12 months medium.

Medium term, but there'd be more like in the 26 I'm sure you're launching new vehicles, right, So, which which vehicles do you think will drive.

The momentum.

When do you expect that electric too does that help you guys hit the P&L in that territory.

Thank you.

Yeah from a model availability perspective, Jose I've already commented on the fact that.

Dr. Jochen Breckner: Yeah. From a model availability perspective, José, I've already commented on the fact that the 982, the Boxster, Cayman, is in the run-out phase. The H1, ICE car is still available in some markets out of the European Union in 2026, but that car is also starting its run-out phase, but that will take a bit longer than with the Boxster and Cayman. A positive momentum, we can expect from the completely newly developed full electric Cayenne, what we call internally, the Cayenne E4. That car is about to be launched in 2026, and that's an addition to the existing Cayenne lineup.

The 900 to the box the Cayman is a neuron outpace also the H one IC car is still available in.

Some markets out of the European Union in 2026, but US carriers also starting its run out face, but they'll take a bit longer than with the bookstore and it came in a positive momentum we can expect from the completely newly developed full electric Cayenne, what we call internally.

You KN afford the car is about to be launched in 2026 and that's in addition to the existing Korean lineup. So we expect that we will gain some market share in the <unk> segment and then given the fact that we have done is plug in hybrids and also electric cars.

Dr. Jochen Breckner: We expect that we will gain some market share in the Cayenne segment, then given the fact that we have then ICE plug-in hybrids and also electric cars. On top of that, we've just launched the very important derivative, the icon model line. I'm talking about the 911 Turbo S in the 911 model line in the Munich Auto Fair. That car will be available by the end of this year and therefore will give us tailwinds, especially when it comes to margin and also brand and company positioning in 2026. Given all these effects, maybe also combined with the weaker demand in China that we expect, will put us in a position to reach the one-digit profitability margin I've just talked about.

Top of that we've just launched of the <unk>.

Important derivative the icon in the icon model line I'm talking about the 911 progress in the 911 <unk> line in the unique auto fair and that the car will be available.

Mailable it by the end of this year, and therefore will give us a tailwind, especially when it comes to margin and also Brent and company.

Company positioning in 2026 and given all these effects, maybe also combined with a weaker demand in China that we expect.

We will put us in a position to reach the one digit profitability margin of just talking about.

And.

Yeah, that's how we look at 22006 from portfolio and also so its unit perspective and with this I hope.

Dr. Jochen Breckner: Yeah, that's how we look at 2026 from portfolio and also sales unit perspective.

Both of US say, thank you to Johann.

Björn Scheib: With this, I say-

Dr. Jochen Breckner: Thank you.

Jose Yearwood: Thank you.

Björn Scheib: Both of us say thank you to Jochen. For myself, I say thank you to Björn as well. For you, colleagues from the media and also analysts and investors for the joint call, have a good weekend and see you. Bye-bye.

And for myself I say, thank you to be earned as well and for you colleagues from the media and also analysts and investors for the joint call I have a good weekend and bye bye.

Thank you everyone for joining thanks for your questions talk soon.

Dr. Jochen Breckner: Thank you everyone for joining. Thanks for your questions. Talk soon.

Ladies and gentlemen, the conference has now concluded and you may disconnect. Thank you for joining and have a pleasant day goodbye.

Markus Klaus: Ladies and gentlemen, the conference is now concluded, and you may disconnect. Thank you for joining, and have a pleasant day. Goodbye.

Operator: Ladies and gentlemen, the conference is now concluded, and you may disconnect. Thank you for joining, and have a pleasant day. Goodbye.

Q3 2025 Dr Ing Hc F Porsche AG Earnings Call

Request a DemoDemo

DRP

Porsche AG

Earnings