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Mercedes-Benz Q3 2026 Results: Record Electric Car Sales Offset Growing Pressure in China

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Mercedes-Benz recorded its strongest-ever quarterly electric vehicle sales in the third quarter of 2026, with BEV deliveries climbing 61% year-on-year. However, intensifying competition in China, currency headwinds and higher costs forced the German automaker to lower its full-year financial outlook, despite improved reported operating profit.

Mercedes-Benz Group has reported a mixed set of financial results for the third quarter of 2026. While the company achieved record battery-electric vehicle (BEV) sales, continued to expand its presence in Europe and the United States, and benefited from strong performances in its van and financial services divisions, challenging market conditions in China continued to weigh heavily on its passenger car business.

The Stuttgart-based manufacturer recorded third-quarter revenue of €30.7 billion, compared with €32.1 billion during the same period last year. Reported Group EBIT increased substantially to €1.77 billion, up from €750 million in Q3 2025, while net profit rose to €1.52 billion from €1.19 billion.

However, the improvement in reported operating profit requires some context. It was primarily driven by lower adjustments compared with the previous year’s third quarter. Adjusted Group EBIT, which provides a clearer picture of underlying operating performance, actually declined by 15%, reaching €1.78 billion compared with €2.10 billion a year earlier.

According to Mercedes-Benz CEO Ola Källenius, the company’s new models are attracting customers, particularly in Europe and the United States, but the global business environment has become increasingly difficult.

The company is responding through tighter cost controls, productivity improvements and continued investment in new technologies, while relying on the financial strength of its industrial business to navigate the changing automotive landscape.

Record Mercedes-Benz electric car sales in Q3 2026

One of the most encouraging developments during the third quarter was the performance of Mercedes-Benz’s electric vehicle portfolio.

The company achieved its highest-ever quarterly BEV sales, with deliveries increasing by 61% compared with Q3 2025 and 29% compared with the second quarter of 2026. Battery-electric vehicles accounted for a record 16.8% of global Mercedes-Benz passenger car sales.

When plug-in hybrids are included, electrified vehicles represented 25% of the company’s worldwide passenger car sales.

Europe was particularly important to this performance. Almost one in every two Mercedes-Benz passenger cars sold in the region featured an electrified powertrain, while fully electric models accounted for approximately one-third of deliveries.

Customer demand for the latest electric models remains encouraging, with order books for several important vehicles in Europe extending well into 2027.

The figures suggest that Mercedes-Benz’s extensive product renewal programme is beginning to deliver meaningful results, particularly as the company expands its electric offering across different vehicle segments.

The new electric GLC has been an important contributor to the positive momentum in the Core segment outside China, while the all-new CLA has helped strengthen the Entry segment. The electric GLC also received the German Premium Car of the Year 2027 award, further reinforcing the model’s position in the premium electric SUV market.

The new CLA, meanwhile, has received significant industry recognition, having been named Car of the Year 2026 and earning the Best Performer distinction in Euro NCAP safety testing.

Another important development came from the flagship S-Class. As production of the updated model ramps up, sales outside China more than doubled compared with the second quarter of 2026. The new S-Class subsequently received the 2027 MotorTrend Car of the Year award in October.

Despite these positive developments, Mercedes-Benz Cars delivered 407,232 vehicles worldwide during the third quarter, an 8% decrease compared with the 441,453 units sold in the same period of 2025.

The main reason was the challenging Chinese market, where increasingly aggressive competition continues to put pressure on established premium manufacturers.

Europe and the United States compensate for China’s slowdown

Mercedes-Benz is increasingly relying on markets outside China to support its passenger car business.

During Q3 2026, sales outside China continued to develop positively for the third consecutive quarter. European deliveries increased by 5%, with Germany recording particularly strong growth of 13%. Sales in the United States also improved, rising by 6%.

The positive performance demonstrates the importance of the company’s new product portfolio, which is helping Mercedes-Benz maintain customer interest despite a difficult global automotive environment.

However, the Chinese market remains a significant challenge. Intense competition, pricing pressure and changing customer preferences have reduced the earnings contribution from the region.

For Mercedes-Benz, China remains one of its most important markets, making the ability to defend its premium positioning and improve profitability there a central part of its strategy.

Mercedes-Benz Cars profitability under pressure

Although reported EBIT at Mercedes-Benz Cars increased by 5.8% to €455 million, compared with €430 million in Q3 2025, the underlying financial performance was considerably weaker.

Adjusted EBIT dropped to €560 million from €1.139 billion in the previous-year quarter. The adjusted return on sales consequently declined from 4.8% to 2.5%.

For the first nine months of 2026, Mercedes-Benz Cars achieved an adjusted return on sales of 3.5%.

The decline reflects several factors, including unfavourable currency movements, lower earnings from China, increased expenditure on marketing campaigns surrounding new model launches and costs associated with product lifecycle measures.

Efficiency improvements helped offset some of these pressures, but not enough to prevent a significant decline in adjusted profitability.

The company is currently completing its largest-ever product launch programme, which requires substantial resources but is intended to strengthen its competitiveness across the premium passenger car market.

Mercedes-Benz Vans and Financial Services deliver strong results

While the passenger car division faced considerable pressure, Mercedes-Benz Vans and Mercedes-Benz Financial Services provided important support for the Group’s overall financial performance.

Mercedes-Benz Vans recorded third-quarter sales of 84,421 vehicles, representing a 1% increase compared with the previous year.

Growth was particularly strong in the Rest of the World region, where deliveries increased by 25%, while North America recorded an 8% improvement. Sales of electric vans also developed positively, increasing by 12% year-on-year.

The division generated adjusted EBIT of €397 million, slightly below the previous year’s result. Its adjusted return on sales reached 9.4% in Q3 2026, while the nine-month figure stood at 9.9%, placing the business at the upper end of its expected range.

Profitability was affected by pricing pressure and preparations for the introduction of the new Van Architecture, which represents the largest product investment programme in the history of Mercedes-Benz Vans.

The company also used September’s IAA Transportation 2026 to showcase its commercial vehicle portfolio and the Mercedes-Benz PRO digital ecosystem, designed to provide professional customers with integrated vehicle and fleet-management solutions.

One of the main attractions was the all-new electric VLE, presented in an eight-seat configuration designed for professional shuttle services.

Mercedes-Benz Financial Services delivered an even stronger performance.

Adjusted EBIT increased by 42% to €445 million in the third quarter, compared with €313 million in Q3 2025. For the first nine months of 2026, adjusted EBIT climbed by 52% to €1.35 billion.

The improvement was supported by higher portfolio margins, a favourable development in credit risk costs and disciplined expense management.

The division’s adjusted return on equity increased to 13.8%, compared with 9.6% in the same period last year.

Financing and leasing remain an important part of the Mercedes-Benz business model, with nearly one in every two vehicles sold supported by Mercedes-Benz Financial Services.

Mercedes-Benz accelerates investment in AI and software-defined vehicles

Beyond its financial results, Mercedes-Benz is continuing to expand its technology strategy, with artificial intelligence and software-defined vehicles playing increasingly important roles.

The company’s proprietary MB.OS operating system is being introduced across all new and updated Mercedes-Benz models, regardless of their powertrain configuration.

The objective is to create vehicles that can receive over-the-air software updates across multiple vehicle systems, including driver assistance technologies.

Following its introduction in China and the United States, point-to-point assisted driving is scheduled to arrive in the first German cities by the end of 2026.

Mercedes-Benz is also strengthening its collaboration with NVIDIA to develop the next generation of driver assistance and automated driving systems. The partnership combines Mercedes-Benz engineering expertise and its MB.OS platform with NVIDIA’s computing capabilities and artificial intelligence technologies.

The company is also maintaining a multi-technology powertrain strategy, offering customers fully electric vehicles alongside advanced combustion engines equipped with 48-volt hybrid technology.

Artificial intelligence is also being integrated into the company’s internal operations.

One of the most important initiatives is PLM.AI, a new AI-native digital backbone designed to connect product development, procurement, production, sales and after-sales operations.

Mercedes-Benz expects the system to reduce product development times by up to 30%.

In manufacturing, AI applications are already being integrated into the MO360 digital production ecosystem to support quality control and improve operational efficiency.

The company is also working to automate administrative and sales processes, with the objective of accelerating decision-making, reducing complexity and freeing up resources for innovation.

These investments are part of a broader transformation aimed at making Mercedes-Benz faster, more efficient and more competitive in an automotive industry increasingly shaped by software, electrification and artificial intelligence.

Mercedes-AMG expands its performance SUV portfolio

Mercedes-Benz is also continuing to expand its high-performance product offering.

Earlier in October, Mercedes-AMG presented the new Mercedes-AMG GT SUV, the first full-size SUV developed entirely in-house during the brand’s 59-year history.

The model is the second vehicle based on the AMG.EA high-performance architecture, following the recently unveiled Mercedes-AMG GT 4-Door Coupé.

The introduction of the new SUV demonstrates the importance of performance-oriented electric vehicles in Mercedes-AMG’s future strategy, as the brand looks to combine its traditional driving character with next-generation electric technology.

Mercedes-Benz intensifies cost-cutting measures

Despite its record electric vehicle sales and strong performances in several business divisions, Mercedes-Benz is maintaining a strict approach to expenditure.

During the first nine months of 2026, investments in property, plant and equipment, together with research and development expenditure at Mercedes-Benz Cars, decreased by 11% compared with the previous year.

This follows an investment peak associated with the company’s extensive product launch programme.

Mercedes-Benz has also intensified its global productivity measures since June, with particular attention given to its German operations.

The company has already reduced fixed costs by approximately 25% since 2019 and plans to offer another voluntary severance programme for employees in indirect functions in Germany starting in December 2026.

During the first three quarters of 2026, Mercedes-Benz spent €6.4 billion on research and development and invested €2.9 billion in property, plant and equipment.

At the same time, it returned €5.2 billion to shareholders through dividends and share repurchases.

Despite these substantial expenditures, net liquidity in the industrial business remained relatively stable at €31 billion as of September 30, 2026, compared with €32.2 billion at the end of 2025.

The funding ratio of the company’s pension plans also improved, reaching 119%, compared with 113% at the end of 2025.

However, free cash flow from the industrial business declined considerably. It reached €3.1 billion during the first nine months, compared with €5.6 billion in the same period of 2025.

In Q3 alone, free cash flow amounted to €172 million, down from €1.367 billion a year earlier.

The decline was primarily associated with higher working capital requirements, particularly increased inventories of new vehicles expected to reach customers in the coming months.

Cash outflows of approximately €1.1 billion related to restructuring measures also affected the nine-month result.

Mercedes-Benz lowers its 2026 financial outlook

The increasingly difficult market environment, particularly in China, has forced Mercedes-Benz to revise its expectations for the full 2026 financial year.

The most significant adjustment concerns Mercedes-Benz Cars, where the company now expects an adjusted return on sales of between 2% and 3%, compared with its previous forecast of 3% to 5%.

The expected adjusted cash conversion rate has been increased to a range of 1.2 to 1.4, from the previous forecast of 1.0 to 1.2.

Investments in property, plant and equipment at Mercedes-Benz Cars are now expected to be significantly below the previous year’s level, rather than slightly below it.

At Group level, Mercedes-Benz now expects EBIT to remain around the previous year’s level, replacing its earlier forecast of a significant increase.

The outlook for free cash flow in the industrial business has also been reduced. The company now expects it to be significantly below the previous year’s level, compared with its earlier guidance of slightly below the prior-year figure.

For Mercedes-Benz Vans, the forecast for unit sales has been adjusted to approximately the previous year’s level, compared with the earlier expectation of slight growth.

The revised guidance reflects the combination of weaker market conditions in China, higher raw material costs expected in the fourth quarter and additional expenditure related to product lifecycle measures.

A challenging year for Mercedes-Benz despite record EV momentum

Mercedes-Benz’s third-quarter 2026 results illustrate the difficult balancing act facing traditional premium automakers.

On one side, the company is achieving encouraging progress in electrification, with record BEV sales, strong demand for new models and improving sales momentum across Europe and the United States.

On the other, declining adjusted profitability at Mercedes-Benz Cars, intense competition in China and significant transformation costs are limiting the financial benefits of this progress.

The strong performances of Mercedes-Benz Vans and Financial Services, together with the Group’s substantial industrial liquidity, provide important financial support as the manufacturer continues investing in its future.

The next challenge will be converting its expanding electric vehicle portfolio, software capabilities and AI investments into sustainable growth and stronger operating margins.

For Mercedes-Benz, the remainder of 2026 will therefore be less about chasing sales volumes at any cost and more about improving efficiency, protecting profitability and ensuring that its extensive product renewal programme delivers the financial returns expected by investors.

Source: Mercedes-Benz

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Stellantis Q3 2026 Results: Revenue Rises to €37.6 Billion as Automaker Pushes Ahead With Turnaround Plan

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Stellantis has reported a modest increase in revenue for the third quarter of 2026, as the automotive group continues to implement its FaSTLAne 2030 strategy and accelerate efforts to improve profitability. Net revenues reached €37.6 billion, up 1% year over year, while the company significantly reduced its quarterly net loss and reaffirmed its financial outlook for 2026.

The group, which owns brands including Jeep, Ram, Fiat, Peugeot, Citroën, Opel, Alfa Romeo, Maserati, and Dodge, is attempting to strengthen its competitive position across major markets while addressing operational challenges, regional sales declines, and rising costs.

CEO Antonio Filosa said the company was making progress with its strategic plan, new product launches, manufacturing improvements, and a rapidly expanding cost-saving initiative. Stellantis also reiterated its expectation of achieving positive industrial free cash flow in 2027.

Stellantis Revenue Reaches €37.6 Billion in Q3 2026

Stellantis generated €37.6 billion in net revenues during the third quarter of 2026, representing a 1% increase compared with the same period last year. Growth in Enlarged Europe and South America helped offset weaker performance in North America, the Middle East and Africa, and Asia Pacific.

Both Enlarged Europe and South America recorded 3% year-over-year revenue growth. In Europe, the improvement was supported by higher shipment volumes, while South America benefited from stable volumes and favorable foreign exchange movements.

North American net revenues declined 3%, primarily because of lower volumes associated with planned production downtime. The Middle East and Africa region experienced a steeper 19% decrease, while Asia Pacific revenues fell 7%.

Despite the modest revenue increase, Stellantis reported a net loss of €500 million for the quarter. However, this represented a 90% improvement compared with the third quarter of 2025, when the results were affected by significant financial items.

Adjusted operating income reached €300 million, producing an adjusted operating margin of 0.7%. Although the improvement signals progress in the company’s recovery efforts, the relatively narrow margin highlights the challenges Stellantis still faces in restoring sustainable profitability.

Industrial free cash flow remained negative at €4 billion, although this represented a €300 million improvement compared with the same period last year.

FaSTLAne 2030 Strategy Targets Profitability and Cost Reductions

The FaSTLAne 2030 plan remains central to Stellantis’ efforts to improve financial performance, streamline operations, and align production with customer demand.

One of the strategy’s main priorities is the Value Creation Program, which is designed to deliver €6 billion in annualized cost efficiencies. Stellantis expects to have implemented at least 40% of the targeted run-rate savings by the end of 2026.

The company expects the program to generate several hundred million euros in additional savings during the fourth quarter of 2026, approximately double the amount achieved in the third quarter.

Stellantis is also focusing on inventory management, production planning, and working capital improvements. Total consolidated shipment volumes are expected to increase in the fourth quarter compared with the previous three-month period, while North American inventory levels are projected to converge toward December 2025 levels by the end of 2026.

Management expects pricing conditions to remain broadly stable during the final quarter of the year. However, the company continues to face cost pressures from memory chips and recall-related expenses.

Full-year net tariff costs are estimated at €1 billion, with €600 million already incurred through September. Stellantis also expects approximately €1.6 billion in full-year cash outflows related to charges recorded during the second half of 2025.

Capital expenditure and research and development spending are projected to represent 6.5% of full-year net revenues, consistent with the company’s investment strategy.

Despite these pressures, Stellantis has reaffirmed its 2026 financial guidance and maintained its target of generating positive industrial free cash flow in 2027.

North America: Ram Leads Market Share Gains

North America delivered a mixed performance, with sales increasing 1% year over year despite slightly weaker results in the United States and Canada.

Sales declined 0.3% in both the United States and Canada, while Mexico recorded a substantial 24% increase, rising to 28% when Leapmotor is included.

In the United States, Stellantis outperformed the overall industry, which contracted 0.8% during the quarter. Several models delivered encouraging results, including the Ram 1500, whose sales increased 73% year over year. The Dodge Durango grew 14%, while the Chrysler Pacifica recorded a 6% increase.

The region’s market share rose to 7.5%, up 0.1 percentage points compared with the third quarter of 2025.

Ram was a particularly important contributor to the improvement. The brand increased its North American sales by 30% year over year, benefiting from its expanding product and powertrain offerings.

The results suggest that Stellantis’ strategy of strengthening its core truck and SUV businesses is beginning to deliver benefits in one of its most important markets. Nevertheless, the company must maintain that momentum while managing production levels, inventory, and operating costs.

Europe: Electric Vehicle Sales Surge 65%

Europe remained a key market for Stellantis, particularly as demand for battery-electric vehicles continued to expand.

Sales across the EU30 markets increased 1% year over year, rising to 6% when Leapmotor is included. The Smart Car program was a major contributor, recording 36% growth, while demand for battery-electric vehicles strengthened in France, Germany, and the United Kingdom.

Stellantis reported a particularly strong performance in electric passenger cars. EU30 battery-electric passenger car sales increased 65% year over year, or 93% including Leapmotor. Battery-electric light commercial vehicle sales rose 46%.

Despite the growth in overall sales and electric vehicles, Stellantis’ EU30 market share declined to 14.8%, down 0.6 percentage points year over year. Including Leapmotor, the figure reached 15.6%, representing a smaller decline of 0.1 percentage points.

The company retained its leading position in the European light commercial vehicle market, with a 26.9% share. However, this was 1.1 percentage points lower than a year earlier.

Stellantis is looking to reinforce its commercial vehicle business with the expansion of its Pro One lineup, including the affordable Smart Car Compact Van.

Leapmotor also continued to gain traction in Europe, with sales increasing to nearly four times their level in the same period of 2025. The partnership gives Stellantis another route into the increasingly competitive market for affordable electric vehicles.

Despite these positive developments, Europe was the weakest major region for Stellantis’ adjusted operating margin, which declined by 3.4 percentage points year over year. The contrast between growing electric vehicle sales and weaker operating profitability highlights the importance of pricing, product mix, and cost control.

South America: Fiat and Ram Support Regional Leadership

South America remained one of Stellantis’ strongest markets in terms of competitive positioning, even as regional sales declined.

Sales fell 4% year over year, narrowing to a 2% decline when Leapmotor is included. Stellantis maintained its regional leadership, securing an 18.6% market share, or 18.9% including Leapmotor.

Brazil and Argentina continued to be particularly important markets. Stellantis held a 25.1% share in Brazil and 25.3% in Argentina. Including Leapmotor, those figures increased to 25.5% and 25.6%, respectively.

Several models delivered solid year-over-year sales growth during the quarter. The Fiat Strada increased 13%, while the Fiat Toro recorded a stronger 26% gain. The Fiat Pulse grew 20%, and Ram sales increased 33%, supported by the all-new Ram Dakota.

These results demonstrate the importance of locally relevant vehicles, including pickup trucks and compact utility models, to Stellantis’ regional strategy.

Although the group experienced a decline in sales and a slight deterioration in adjusted operating margin, South America continues to provide a substantial market presence and a strong position in key vehicle segments.

Middle East and Africa: Sales Fall Amid Market Challenges

The Middle East and Africa region faced a more difficult quarter, with sales declining 22% year over year and net revenues falling 19%.

Stellantis recorded a regional market share of 10.1%, down 1.5 percentage points compared with the third quarter of 2025. The decline occurred against an 11% contraction in the overall regional automotive market.

However, the group maintained a strong position in light commercial vehicles, where it achieved a 21.8% market share, an improvement of 2.4 percentage points year over year.

Türkiye was a major factor behind the weaker performance. Difficult market conditions were compounded by a temporary product transition, including the phase-out of the Fiat Egea ahead of the introduction of the all-new Fiat Grizzly.

The start of local production of a small van in October is another part of the company’s effort to strengthen its regional offering.

The upcoming product launches could help Stellantis recover some lost ground, although the timing and scale of any recovery will depend on market conditions and the successful execution of its product strategy.

Asia Pacific: Weak Sales Continue as New Partnerships Take Shape

Asia Pacific remained Stellantis’ smallest and one of its most challenging major regions.

Sales fell 27% year over year, narrowing to a 22% decline when Leapmotor is included. The decrease was driven primarily by weaker performance from the Citroën C5 X.

The group’s regional market share slipped to 0.2%, down from 0.3% in the third quarter of 2025.

Despite the disappointing sales figures, Stellantis continued to make strategic investments in the region. Malaysian production of the Leapmotor C10 and B10 began during the quarter, potentially strengthening the group’s access to regional electric vehicle markets.

The company also established Dongfeng Stellantis Automotive Technology (Wuhan) Co., while Dongfeng Peugeot Citroën Automobile completed a shareholder loan-to-equity conversion in September 2026.

The restructuring is intended to support the development and expansion of two new Jeep models and two new Peugeot models.

These initiatives reflect Stellantis’ efforts to rebuild its position in Asia through local production, partnerships, and a broader range of vehicles. However, the latest figures show that the company still has considerable ground to recover in the region.

What Stellantis’ Q3 2026 Results Mean for Its Automotive Future

Stellantis’ third-quarter results present a mixed picture. Revenue growth remains modest, industrial free cash flow is still deeply negative, and adjusted operating profitability remains limited. At the same time, the sharp reduction in net losses, improving results in North America, and accelerating cost-saving initiatives suggest that the company is making progress toward stabilizing its financial performance.

Electric vehicle growth in Europe is another encouraging sign, while the performance of Ram in North America and Fiat in South America demonstrates the value of strong regional brands and established product segments.

However, the pressure on European margins, declining market shares in several regions, and weak performance in Asia Pacific underline the scale of the turnaround still required.

For the remainder of 2026, Stellantis will focus on increasing shipments, maintaining inventory discipline, controlling costs, and delivering the next phase of its Value Creation Program. The company must also balance these efforts with continued investment in new vehicles, electrification, research, and development.

The most important milestone will come in 2027, when Stellantis expects to achieve positive industrial free cash flow. Meeting that target would represent a significant step toward restoring financial stability and giving the company greater flexibility to invest in its brands and future products.

For now, the third-quarter results indicate that Stellantis is moving in the right direction, but the success of its FaSTLAne 2030 strategy will ultimately depend on turning cost savings and operational improvements into stronger, sustainable profitability.

Source: Stellantis

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Porsche Reports Higher Profit and Stronger Cash Flow in First Nine Months of 2026 Despite Falling Sales

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Porsche has reported an improvement in profitability and automotive net cash flow for the first nine months of 2026, despite a challenging global economic environment and a significant decline in vehicle deliveries. The German sports car manufacturer generated €25.28 billion in revenue, down 5.9% from €26.86 billion during the same period last year, while operating profitability improved substantially as the company continued implementing its strategic realignment.

The results highlight Porsche’s renewed focus on financial discipline, cost reduction and long-term profitability under its Sportwagenschmiede ’35 strategy. Although customer deliveries declined by 16%, the company improved its operating return on sales, strengthened its cash position and confirmed its financial outlook for the full 2026 financial year.

Porsche Improves Profitability as Deliveries Decline

Between January and September 2026, Porsche delivered 178,532 vehicles to customers, compared with 212,509 during the first nine months of 2025. Despite the reduction in sales volume, the company managed to limit the decline in revenue to a considerably smaller percentage, reflecting its focus on value-oriented sales management and balancing supply with demand.

Porsche’s Group operating return on sales climbed to 6.9%, compared with just 0.2% in the previous year. However, the comparison must be viewed in context: the first nine months of 2025 included approximately €2.7 billion in costs associated with the company’s strategic realignment, compared with around €500 million recorded during the corresponding period in 2026.

The Automotive EBITDA margin also improved, reaching 17.3% against 11.9% a year earlier.

Porsche CEO Dr Michael Leiters said the company was implementing its strategic realignment consistently, concentrating on its core business, a more competitive cost structure and sustainable improvements in profitability.

The strategy aims to create a leaner and more agile organisation while strengthening the appeal of Porsche’s product portfolio. New products will remain central to the company’s future, but management intends to combine investment in emotionally engaging sports cars with lower capital intensity and stronger cash generation.

Automotive Net Cash Flow Rises to €2.5 Billion

One of the most significant improvements in Porsche’s financial performance was the increase in Automotive net cash flow, which reached €2.50 billion during the first nine months of 2026. That represents a substantial increase from €1.34 billion in the same period last year.

The Automotive net cash flow margin rose to 11.3%, compared with 5.6% in 2025. Porsche’s Automotive net liquidity also strengthened, increasing by €884 million from the end of the 2025 financial year to €8.23 billion as of September 30, 2026.

A major contributor to the improvement was the completed sale of Porsche’s stakes in Bugatti Rimac and the Rimac Group. The transaction generated a cash inflow of €984 million and a gain of €593 million, significantly influencing the group’s financial result.

Nevertheless, several one-off costs weighed on cash flow during the third quarter. These included between €100 million and €200 million related to the strategic realignment, €250 million allocated to the further financing of pension obligations and €200 million in charges associated with US tariffs.

Porsche’s finance and IT executive board member, Dr Jochen Breckner, described the results as evidence of the company’s financial resilience. He highlighted the combination of a solid operating result, strong net cash flow and a robust balance sheet as important foundations for continuing the restructuring programme.

North America Remains Porsche’s Largest Market

North America continued to be Porsche’s largest sales region during the first nine months of 2026, accounting for 56,088 vehicle deliveries.

China, meanwhile, remained a challenging market for the German manufacturer. Porsche continues to prioritise its long-term brand positioning and profitability in the country rather than pursuing higher sales volumes at the expense of value.

This approach reflects the company’s broader “Value over Volume” strategy, which places greater emphasis on pricing discipline, product positioning and sustainable returns than on maximising deliveries.

The decline in overall deliveries also affected the proportion of battery-electric vehicles in Porsche’s sales mix. Battery-electric vehicles accounted for 21.7% of deliveries during the first nine months of 2026, down from 23.1% a year earlier.

The higher electric-vehicle share in 2025 was partly attributable to the strong sales ramp-up of the all-electric Porsche Macan. The latest figures underline the challenges of managing the transition to electric mobility while responding to different customer preferences and market conditions across regions.

Porsche’s full-year forecast nevertheless anticipates an Automotive battery-electric vehicle share of between 24% and 26%, suggesting that the company expects the proportion of electric models to increase during the final quarter.

Porsche Continues to Streamline Its Business Portfolio

Beyond its financial results, Porsche made further progress in reshaping its business structure during the third quarter.

In August, Porsche agreed to sell its wholly owned management and IT consultancy subsidiary, MHP, to Tata Consultancy Services (TCS). The companies are also planning a strategic collaboration focused on digital solutions and artificial intelligence.

The partnership is intended to accelerate the development, deployment and integration of AI applications across key business areas. Completion of the transaction remains subject to several closing conditions and is expected within the following 12 months.

Porsche classified the assets and liabilities associated with the planned sale as held for sale as of September 30, 2026, in accordance with IFRS 5 accounting requirements.

The planned MHP transaction forms part of Porsche’s wider effort to focus its resources on its core automotive business while pursuing opportunities to improve operational efficiency through technology and digitalisation.

The completed sale of its Bugatti Rimac and Rimac Group stakes represents another important step in this portfolio realignment, releasing capital and contributing to the improvement in Automotive net cash flow.

Porsche Confirms Its 2026 Financial Forecast

Despite ongoing economic uncertainty, geopolitical risks and pressure in key automotive markets, Porsche has confirmed its financial outlook for the full 2026 financial year.

The company’s projections take into account the cash inflow from the sale of its Bugatti Rimac and Rimac Group stakes, as well as the additional €250 million contribution towards pension obligations.

Porsche’s financial targets for 2026 are as follows:

  • Group sales revenue: €35 billion to €36 billion.
  • Group operating return on sales: 5.5% to 7.5%.
  • Automotive net cash flow margin: 5.5% to 7.5%.
  • Automotive EBITDA margin: 15% to 17%.
  • Automotive battery-electric vehicle share: 24% to 26%.

These targets reflect Porsche’s intention to prioritise profitability and financial resilience as it adapts to changing market conditions. While the manufacturer faces declining deliveries and a difficult environment in China, improved cost control and portfolio restructuring have started to support its financial performance.

The expected Automotive net cash flow margin for the full year is also lower than the 11.3% recorded during the first nine months, illustrating the importance of seasonal effects, planned spending and the influence of exceptional transactions on the interim results.

What Porsche’s 2026 Results Mean for Its Future

Porsche’s first-nine-month results reveal a company attempting to balance two priorities: preserving the exclusivity and emotional appeal of its sports cars while restoring sustainable profitability in a demanding global automotive market.

The reduction in deliveries remains a significant challenge, particularly as the company navigates competitive pressure in China, changing demand for electric vehicles and additional costs associated with US tariffs. However, the improvement in operating margins and automotive cash generation indicates that its restructuring measures are beginning to influence the financial results.

The disposal of non-core investments and the planned sale of MHP also demonstrate Porsche’s willingness to reconsider its business portfolio as it concentrates on its core automotive operations.

The next test will be whether the company can maintain its improved profitability without relying on one-off asset disposals and other exceptional financial effects. Delivering attractive new vehicles, controlling costs and sustaining demand across its major markets will be crucial to achieving that goal.

For Porsche, the Sportwagenschmiede ’35 strategy is therefore about more than reducing expenses. It represents a broader effort to build a more focused, agile and financially sustainable business while protecting the brand identity that has made its sports cars distinctive.

With its 2026 forecast unchanged, Porsche is signalling confidence in its restructuring programme. The coming quarters will show whether the improvements recorded so far can translate into lasting financial strength and a more sustainable growth trajectory.

Source: Porsche