Germany’s old industrial aristocracy is having a very 2026 moment.
Porsche SE, the holding company atop the Porsche-Piëch family empire, just delivered another reminder that its car bets are wobbling, so it’s doing what half of Europe’s capital markets now seem determined to do: It’s looking at defense.
When the auto cycle turns ugly and geopolitics turns hot, drones and cyber start to look a lot more exciting than hatchbacks and EV delays.
Porsche SE, the biggest shareholder in Volkswagen and a major investor in Porsche AG, said adjusted earnings after tax fell around 9% in 2025 to €2.9 billion (about $3.3 billion). The drop reflected another bad year for its core automotive holdings, which have been hit by tariffs, weak demand, restructuring costs and the increasingly awkward reality that China is no longer a guaranteed profit fountain.
The holding company owns 31.9% of Volkswagen’s shares and controls 53.3% of voting rights. It also owns 12.5% of Porsche AG. So when the German auto complex has a bad year, Porsche SE feels it too.
This time, though, there was one bright spot. Porsche SE said its smaller portfolio investments generated €193 million in profit, helped largely by drone maker Quantum Systems and chip startup Celestial AI. That gave management an opening to talk up its venture portfolio as a strategic asset rather than just a side hobby.
More importantly, Porsche SE used the results to announce a €100 million investment into a newly launched defense fund run by DTCP. The fund will focus on European technology startups in areas such as cyber defense and artificial intelligence. Chief executive Hans Dieter Pötsch said the group sees “significant growth potential” in the defense and security sector and signaled that more investments will follow.
Pötsch also tried to calm nerves around the core business, saying Porsche SE remains committed to Volkswagen as an anchor investor. He backed the management teams at both Volkswagen and Porsche AG and said the difficult situation should be treated as an opportunity to push through strategic changes. He also hinted that portfolio pruning at Volkswagen is very much on the table, with discussions underway on possible disposals of non-core businesses.
Markets were not exactly thrilled. Porsche SE shares fell in early trading, underperforming the broader market.
Because this is not really a story about one holding company writing a €100 million check. It is a story about where European capital thinks the growth is now.
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