Porsche SE cuts guidance, eyes bigger involvement in defence
US tariffs have dealt a heavy blow to global automakers, forcing them to book billions of dollars in losses, issue profit warnings, slash forecasts and raise prices.
Although the European Union has reached a trade deal that brought US tariffs on EU-made cars down to 15% from the previously imposed 25%, some analysts remain cautious as the duty is far higher than the 2.5% rate before Trump launched his trade offensive.
German auto and car parts makers are meanwhile exploring the defence sector as a potential growth avenue as Europe ramps up military spending.
"Against the backdrop of a changing geopolitical situation and growing security policy requirements, Porsche SE sees considerable development potential in the defense and security sector and intends to capitalise on this," the company said in a statement.
"With regard to portfolio investments, our aim is to increase our involvement in the defense and defense-related sectors while maintaining our core focus on mobility and industrial technology," Chairman Hans Dieter Poetsch said.
Porsche SE expects the adjusted group result after tax to land between €1.6 billion and €3.6 billion in 2025, compared with €2.4 billion to €4.4 billion anticipated earlier.
It reported an adjusted net profit of €1.1 billion for the first half of the year, down by nearly a half from last year's €2.1 billion.
Porsche SE, controlled by the Porsche and Piech families, is highly exposed to Volkswagen's performance through its nearly 32% stake, which influences its valuation, earnings and financial guidance. It also owns 12.5% of luxury carmaker Porsche, with much of the rest held by the Volkswagen Group.
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