Porsche reports sharp drop in profits as it accelerates strategic overhaul

Porsche's slump in operating profit performance down 67% to €1.01 billion (£870m) in the first half of 2025 is pushing forward the brand's "strategic realignment" in response to global economic pressures, shifting market dynamics and rising costs.

Sales revenue declined 6.7% to €18.16bn (£16bn), with operating return on sales falling to 5.5% from 15.7% in the same period last year.

Porsche has initiated a wide-reaching realignment programme aimed at improving profitability and resilience, including "extensive measures to rescale and recalibrate the company".

Part of this will look at refining its electric mobility strategy. 

The company said it expects costs of around (£1.1bn) related to its strategic realignment plans.

Oliver Blume, chairman of the executive board, said some strategic decisions from a few years ago need to be reassessed.

According to Blume, three factors in particular are shaping the current situation for Porsche: “In China, demand in the premium and luxury segment has fallen sharply.

"In the US, import tariffs are also putting huge pressure on our business.

"Looking ahead, the movement of the dollar could also have an impact.

"In addition, the transformation to electric mobility is progressing more slowly than expected overall, with consequences for the supplier network.”

Second package of measures to be negotiated with employees

“The aim of our strategic realignment is to strengthen our profitability and resilience,” says Dr Jochen Breckner, Member of the Executive Board for Finance and IT.

In the second half of this year, Porsche will start negotiations with employee representatives on a second package of measures, as announced. “In order to make Porsche fit for the future, we will discuss far-reaching approaches,” says Breckner. "These measures are expected to have a positive impact on earnings and cash flow in the coming years.”

Despite the weaker financial performance, Porsche delivered 146,391 vehicles globally, with strong results in North America and emerging markets.

The Macan led the model line-up with 45,137 units delivered. Electrified vehicles made up 36.1% of global deliveries, including 23.5% fully electric and 12.6% plug-in hybrids. In Europe, that share rose to 57%, exceeding the company’s own target.