Car industry Porsche sports car manufacturer's profit slumps by over 90 percent
The billions in costs for the extension of the combustion engine have largely eaten up the profits of sports car manufacturer Porsche 2025. Earnings after tax plummeted by 91.4 percent to 310 million euros compared to the previous year, as the DAX-listed company announced.
11.03.2026, 07:41
SDA
In 2024, the Stuttgart-based company had still earned almost 3.6 billion on the bottom line. Last year, turnover fell by almost a tenth to around 36.3 billion euros.
While there were already signs of a strong headwind for the Swabians in 2024, things got even worse last year. Business in China faltered, tariffs in the USA cost a lot of money and the company's electric models were much less popular than expected. Ex-Porsche CEO Oliver Blume therefore changed the strategy before his departure - more combustion engines in the range should give a boost again.
Change in strategy weighs on profits
However, the turnaround costs money. Around 2.4 billion euros were spent on this alone. In addition, the liquidation of the battery subsidiary cost around 700 million euros - and the US tariffs around the same amount. In total, this amounts to extraordinary costs of around 3.9 billion euros.
The operating profit plummeted by 92.7 percent to 413 million euros. In the automotive business - i.e. excluding financial services - operating profit was as low as 90 million euros. In 2024, it was still around 5.3 billion euros, according to the balance sheet of the parent company Volkswagen.
Porsche expects business to improve again in the current year. However, the management team led by new CEO Michael Leiters continues to anticipate "very challenging market conditions" and geopolitical uncertainties. The potential impact of recent developments in the Middle East has not been taken into account. Leiters took over from Blume at the beginning of the year, who has since concentrated on managing the parent company Volkswagen.
