Principles and goals of financial management
The Porsche AG Group’s financial management covers the management of market, credit and default risks as well as liquidity management. The Porsche AG Group Treasury performs and organizes the financial management for all group companies centrally, based on internal guidelines and risk parameters. The goal of financial management is to ensure that the Porsche AG Group remains solvent at all times and, at the same time, to generate an adequate return from the capital investment of surplus funds. Financial instruments are used to limit the financial risk exposures and to ensure the Porsche AG Group’s solvency, continuing existence and its earnings power. All financial transactions are based on the needs of the underlying transaction and are not entered into for speculative purposes.
Management of market risk
The purpose of managing market risk is to minimize or eliminate the risks arising from fluctuations in currencies, interest rates and commodity prices to which the Porsche AG Group is exposed as a result of its business activities. The aim is both to increase the planning certainty of the Porsche AG Group and to limit the impact on consolidated profit. This is achieved by using non-derivative and derivative financial instruments.
Furthermore, the management of market risk includes the capital investment of surplus liquidity in investment funds, which are subject in particular to share and bond price risk, which can result from fluctuations in stock market prices, stock market indices and market interest rates. These risks are generally countered by the Porsche AG Group by ensuring a broad diversification of products, issuers and regional markets when investing funds.
In some cases, the risk management systems in place define minimum values and exchange rate hedges are entered into when market conditions are appropriate.
In order to fund the pension plans, contributions are made regularly to a separate pool of assets administered in trust, segregated by company and commitment. These are currently invested primarily in investment funds. In order to manage the market risk of the plan assets, these are subject to the capital investment policies within the framework of the trustors’ investment guidelines. In addition, asset-liability management studies are conducted if required so as to ensure that the capital investment is in line with the obligations that need to be covered. Further information on the pension plans and similar obligations can be found in the notes to the consolidated financial statements. Notes to the consolidated financial statements – 26. Provisions for pensions and similar obligations
In addition, the financial services segment is exposed to residual value risks from the leasing business, where the market price of used cars is the key risk variable. Operational risk management is provided via ongoing monitoring of the development of used vehicle prices by means of data available outside the company, among others. Residual value forecasts are used to check the appropriateness of the loss allowance and the residual value risk potential. Sensitivity analyses are used to quantify the effects of changes in used car prices.
Management of credit and default risk
The purpose of managing credit and default risk is to limit the financial loss from unpaid receivables. To this end, the Porsche AG Group applies a multi-layered checking and risk management process. Before claims arise against contractual partners, the respective Porsche company carries out a credit check using a rating and scoring system and clear checking procedures. In addition, the portfolio is measured on an ongoing basis and taken into account when recognizing loss allowances in accordance with IFRS 9 in order to identify any increasing probability of default at an early stage. Intensive receivables management with active reminders further reduces the probability of default.
The maximum credit risk is also limited by the collateral held, such as vehicles, collateral assignments, guarantees and cash collateral.
Credit risk also arises from investing surplus liquidity or entering into derivatives. To manage these risks, the Porsche AG Group only enters into contracts that contain counterparties, instruments and volumes that have been reviewed and approved in advance.
Liquidity management
The purpose of liquidity management is to ensure the solvency and refinancing of the Porsche AG Group at appropriate conditions at all times.
Sufficient liquidity is ensured by means of rolling liquidity planning, a liquidity reserve, confirmed lines of credit and loans. A revolving line of credit of €2,500 million with 21 banks secures the liquidity position further. These existing revolving lines of credit were not utilized in the reporting year (utilization in 2024: €0 million). Porsche AG was always able to fulfill its financial obligations in the fiscal year 2025.
The Porsche AG Group mainly generates funds through its business operations, external financing and the securitization of receivables. The funds are chiefly used to finance net working capital and capital expenditure and to cover the finance requirements of the leasing and sales financing business. Operational liquidity management uses cash pools in which material cash and cash equivalents are pooled on a daily basis. Such a cash pool is in place with the Volkswagen Group. This enables liquidity surpluses and shortfalls to be controlled in line with requirements. The maturities of financial assets and financial liabilities as well as forecasts of cash flows from operating activities are included in short and medium-term liquidity management.
More information is provided in the notes to the consolidated financial statements on the hedging policy, hedging guidelines, credit and liquidity risks as well as the quantification of the aforementioned hedging activities and the market risk within the meaning of IFRS 7.
Notes to the consolidated financial statements – 36. Financial risk management and financial instruments
Net assets
At the end of the reporting period, the Porsche AG Group reported total assets of €52,715 million, that is a 1.5% decrease compared to December 31, 2024.
Intangible assets decreased from €8,941 million to €8,243 million. The decline is mainly due to impairment losses on capitalized development costs as a result of the realignment of the product strategy.
Property, plant and equipment increased by €61 million to €10,109 million compared to 2024. Within property, plant and equipment, there was an increase mainly due to advance payments made and assets under construction. These include impairment losses caused by both the strategic realignment of battery activities and the realignment of the product strategy. In addition, plant and machinery increased. By contrast, furniture and fixtures developed negatively. Leased assets increased by €200 million to €5,593 million compared to 2024. This item includes vehicles leased to customers under operating leases.
Non-current and current financial services receivables increased from €6,886 million to €7,026 million. These mainly include receivables from finance leases as well as receivables from customer and dealer financing. The increase was mainly due to the increase in finance leases, with exchange rate effects, particularly against the US dollar, having an offsetting effect.
Equity-accounted investments, other equity investments, other financial assets, other receivables and deferred tax assets decreased overall from €3,780 million in the prior year to €3,710 million.
Investments accounted for at equity include additions of €176 million, with offsetting subsequent measurements resulting in an overall increase of €76 million to €703 million.
In total, non-current assets decreased by €462 million to €32,777 million. Non-current assets expressed as a percentage of total assets amounted to 62.2% (2024: 62.1%).
Compared to the prior year, inventories decreased from €6,130 million to €6,006 million. The decrease is due primarily to the falling number of new vehicles in the regions North America and China incl. Hong Kong.
Current other financial assets and other receivables increased by €709 million to €4,421 million. The increase was mainly from marking derivative financial instruments to market and receivables from loans. By contrast, there was a decrease in other receivables.
Securities and time deposits as well as cash and cash equivalents decreased by €1,045 million to €7,304 million compared to 2024.
As of December 31, 2025, the equity of the Porsche AG Group increased by €65 million to €23,121 million compared to the figure as of December 31, 2024. The profit after tax led to an increase in equity of €310 million. In addition to this, an increase in equity was caused by other comprehensive income, net of tax. This was mainly due to the measurement of derivative financial instruments through other comprehensive income as well as equity and debt instruments, the remeasurement of pension plans, net of tax, and non-controlling interests, with currency translation effects having an offsetting effect.
Dividend payments of €2,100 million, which were announced by the Annual General Meeting of Porsche AG on May 21, 2025, caused equity to decrease.
Pension provisions decreased by €544 million in the fiscal year 2025 compared to the comparative period of 2024. The decrease in pension provisions is mainly due to actuarial gains resulting from the increase in the discount rate used for German pension obligations from 3.4% to 4.3%.
Non-current other liabilities increased by €526 million to €5,421 million compared to December 31, 2024. The increase was mainly due to other provisions and deferred tax liabilities. In total, non-current liabilities decreased by €654 million to €15,474 million. Non-current liabilities expressed as a percentage of total capital amount to 29.4% (2024: 30.1%).
Non-current and current financial liabilities increased from €11,413 million to €11,431 million. This increase mainly related to liabilities to banks. By contrast, there was a decrease in the refinancing of the financial services business through asset-backed securities as well as the repayment of debenture bonds.
Compared to year-end 2024, trade payables decreased from €3,378 million to €3,244 million in the ordinary course of business.
Current other liabilities decreased by €744 million to €5,968 million compared to December 31, 2024. The decrease is mainly attributable to other financial liabilities due to the decline in derivatives to which hedge accounting is applied. This was offset by the addition to provisions for outstanding obligations. In total, current liabilities decreased by €222 million to €14,121 million. Current liabilities expressed as a percentage of total capital amounted to 26.8% (2024: 26.8%).
As of December 31, 2025, there were off-balance-sheet contingent liabilities of €29 million. The decrease was due in particular to recognizing fewer legal and product-related matters compared to the prior-year period (2024: €46 million).
Off-balance-sheet other financial obligations decreased by €1,344 million to €4,304 million. This is essentially due to obligations from development, supply and service agreements.
