Škoda surpassed Porsche in operating return on sales — Motor1

Czech automaker Škoda surpassed Porsche in operating return on sales within the Volkswagen Group in 2025: Škoda's figure was 8.3%, while Porsche's fell to 1.1%. This was reported by Motor1.

In 2024, Porsche's operating return on sales was 14.1%. Škoda, in turn, maintained its previous year's result at 8.3%. Automotive analyst Matthias Schmidt told Reuters that the Czech brand had effectively become the new Porsche for the Volkswagen Group.

Comparison of operating indicators

Operating return on sales is calculated as the ratio of operating profit to revenue. Both companies use this indicator in their reporting, so their results can be compared directly.

At the same time, this does not mean that Škoda earns more profit from each car than Porsche. The brands have different prices, model ranges and cost structures. However, the data demonstrate a significant deterioration in the sports car manufacturer's operating profitability.

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Porsche's costs and Škoda's results

Porsche's result in 2025 was affected by extraordinary costs of approximately €3.9 billion. The company expects its operating return on sales to range from 5.5% to 7.5% in 2026.

Porsche is also facing weaker demand in China, intensifying competition, tariff-related costs and difficulties in implementing the expensive transition to electric vehicles. The company is relying on a “value over volume” strategy, focusing on vehicles with higher margins.

Škoda achieved the 8.3% figure not because of a one-off factor: the company reported record revenue, record operating profit and deliveries of more than one million vehicles. Among the models that supported the brand's results, Motor1 names the Octavia as well as more affordable electric vehicles.