Porsche SE announced increased investments in the defence and security sector following a 9% drop in adjusted 2025 earnings to €2.9 billion ($3.35 billion).

The decline reflects billions in costs at its core holdings, Volkswagen AG and Porsche AG, from tariffs and delays in Porsche’s EV rollout.

Despite automotive challenges, Porsche SE’s smaller tech and defence investments generated €193 million in 2025, driven by stakes in drone maker Quantum Systems and semiconductor startup Celestial AI.

CEO Hans Dieter Poetsch highlighted significant growth potential in defence and security, announcing a €100 million investment in a new European-focused defence fund via DTCP, targeting cyber defence and AI startups.

Porsche SE remains Volkswagen’s largest investor (31.9% shares, 53.3% voting rights) and continues to support management restructuring at both Volkswagen and Porsche AG, while the group considers strategic divestments to focus on core business and improve margins, particularly in China.

Shares of Porsche SE fell 2.7% in early trade, underperforming the broader market amid sector weakness.