Porsche AG 3Q'26 First Take: Solid Third Quarter

Our Take: All in all, a solid quarter confirming improved momentum yoy. Porsche reaffirmed its full-year forecast in a challenging market environment, with guidance for the net cashflow margin in the Automotive segment having been raised in September following the sale of its stakes in Bugatti/Rimac. Pricing and product mix underpin the strength of earnings; despite lower volumes, a higher proportion of high-margin models and positive pricing and product-mix effects are supporting business performance. 3Q26 sales came in at €8,053m, down 7.5% yoy (vs. consensus €8,262m), while EBIT reached €387m with a 4.8% margin, in line with consensus. Automotive net cashflow rose to €2.5bn with the net cashflow margin up to 11.3%, and net liquidity increased to €8.23bn. Group operating return on sales rose to 6.9% in 9M26, helped by lower strategic realignment costs (c.€500m vs. €2.7bn a year earlier);