- Dr.Ing.H.C.F.Porsche Vzoi
- 11 March 2026 11:58:11
Source: Sharecast
The Stuttgart-based automaker said group operating profit fell to €413m in 2025 from €5.64bn a year earlier, while operating return on sales dropped to 1.1% from 14.1%.
The decline was largely driven by nearly €3.9bn in one-off charges tied to restructuring, a reset of product strategy, battery-related activities and the impact of US tariffs.
The writedowns sharply reduced profitability in Porsche’s core automotive business, where operating profit fell 98% from €5.3bn to just €90m, highlighting the scale of the company’s strategic reset.
About €2.4bn of the charges were linked to a shift away from an ambitious electric-vehicle programme, while roughly €700m related to battery activities and another €700m to tariff costs.
Underlying business performance also weakened during the year.
Revenue declined to €36.27bn from €40.08bn in 2024, while global deliveries fell 10.1% to 279,449 vehicles.
Sales in China, once a key profit driver, dropped more than 25% as domestic manufacturers gained ground in the premium electric-vehicle segment with cheaper, technology-focused models, Reuters reported.
The results mark a difficult period for Porsche, which had previously been among the most profitable automakers globally by margin and a major profit contributor within the Volkswagen Group.
Porsche’s margins had exceeded 14% in 2024, far above the 3% to 6% typically generated by mass-market carmakers.
New chief executive Michael Leiters, who took over in January, said the company would respond by refocusing on higher-margin sports cars and tightening costs.
“We will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable,” Leiters said, adding that the brand would emphasise “value over volume.”
The strategic reset includes a broader mix of powertrains rather than an exclusive push toward battery-electric vehicles.
Porsche said it was extending the life of combustion engines and hybrids while reviewing its product portfolio and considering new models in higher-margin segments above its current sports-car and SUV range.
The company also planned cost reductions and workforce adjustments, with around 3,900 jobs expected to be cut by the end of the decade, including temporary staff, as part of efforts to improve efficiency.
Looking ahead, Porsche forecast revenue of €35bn to €36bn in 2026 and an operating margin of 5.5% to 7.5%, signalling a modest recovery from 2025 but still well below historic levels.
The company said restructuring measures would continue to weigh on earnings in the near term as it implements its strategic recalibration.
At 1236 CET (1136 GMT) shares in Porsche AG were up 1.11T at €38.33.
Reporting by Josh White for Sharecast.com.