Volkswagen's profit slump in the second quarter: Porsche weighs heavily on VW's balance sheet

The sports car manufacturer's operating profit has plummeted by more than two-thirds year-on-year. This makes Porsche one of the largest negative items within the group.

According to the financial report published on Friday (July 25, 2025), Porsche achieved an operating result of only 832 million euros in the first six months of the year – compared to 2.9 billion euros in the same period last year. The operating margin plummeted to just 5.2 percent (previous year: 16.4 percent). The group cites special charges from battery projects , increased US tariffs , and strategic changes in the model portfolio as the main reasons .

The US market, where Porsche has traditionally enjoyed a strong presence, was particularly affected. Sales there fell significantly due to the new import tariffs, with total sales declining by eleven percent. Revenue also fell by nine percent to €16.1 billion. The best-selling model remains the Macan, which is currently at the end of its product life cycle.

The Volkswagen Group as a whole also suffered significant losses in the second quarter. The Wolfsburg- based company earned €2.29 billion after taxes— a good third less than a year earlier. Operating profit fell by almost 30 percent to €3.83 billion, and the margin declined from 6.5 to 4.7 percent . This represents Volkswagen's lowest profit level since the coronavirus pandemic in 2020.

Chief Financial Officer Arno Antlitz nevertheless speaks of a "solid operational result" – measured against the external circumstances. These include, among others:

Sales revenue fell by three percent to €80.8 billion in the second quarter. Compared to the first half of the year, net profit declined by 38.5 percent.

In light of the weak performance, Volkswagen has revised its expectations for the full year downwards. The operating return on sales is now expected to be between four and five percent – previously, the group had projected up to 6.5 percent. Net cash flow in the Automotive Division is also expected to be significantly lower than previously, at one to three billion euros.

US tariffs remain an uncertainty factor, and according to the company's forecast, they could remain at up to 27.5 percent. In the most optimistic scenario, a reduction to ten percent is expected – but there are no concrete indications of political easing so far.

Despite declining profits at the premium and luxury brands, the volume brands reported largely stable results. Škoda even achieved a record operating margin of 8.5 percent.

Cariad remains in deficit with an operating loss of €1.17 billion , but has improved slightly compared to the previous year. The commercial vehicle division Traton reported a significant 39 percent decline in profits due to declining sales in North and South America.