Porsche’s 92.7% Profit Crash and the Plan to Win It Back
Porsche's operating profit fell 92.7% from €5.64 billion ($6.53 billion) to €413 million ($478 million) in 2025. This drop comes alongside a 10% decline in vehicle deliveries and a drop in revenue from €40.08 billion ($43.8 billion) to €36.27 billion ($39.6 billion). In China, the brand's single biggest growth market, sales dropped by 26%. Porsche is also restructuring its workforce, with roughly 1,900 jobs expected to be cut by 2029, mainly through retirements and voluntary departures. Overall, Porsche delivered 279,449 vehicles worldwide in 2025, down from 310,718 the year before.
Not every model struggled. The Macan was Porsche's best-selling model in 2025 with 84,328 units delivered, up from 82,795 the year prior. The 911 also grew slightly, with 51,583 deliveries compared to 50,941 in 2024. The volume decline was concentrated in the Cayenne, Taycan, and 718 models, each falling by over 20 percent.
Much of the financial decline was tied to €3.9 billion in one-off charges. These included restructuring costs linked to changes in the product lineup, a €700 million write-down on battery investments, and another €700 million attributed to United States tariffs. CFO Dr. Jochen Breckner, Member of the Executive Board for Finance and IT, was straightforward about what lies ahead:
"The global challenges and the company's realignment impacted earnings in 2025. In 2026, our recalibration measures will continue to have one-off effects on earnings in the high three-digit million euros range. In order to secure adequate margins by Porsche standards in the medium term and strengthen our resilience in the long term, we accept these burdens."
New Leadership
Porsche appointed Michael Leiters as CEO on January 1, 2026. Leiters previously held senior roles at Ferrari and McLaren. Speaking at the company’s annual press conference in Stuttgart, about 70 days into the job, he outlined the early direction of Strategy 2035.
"The name Dr. Ing. h.c. F. Porsche stands for the technical excellence of a sports car manufacturer. We stand for uncompromisingly good sports cars that you want to drive yourself, that are fun, that convey performance and passion. And all this regardless of the type of powertrain."
He also addressed the financial results directly, with a focus on repositioning and long-term recovery for Porsche.
"We are using the current challenges as an opportunity to act even more decisively. We will comprehensively reposition Porsche, make the company leaner, faster, and the products even more desirable."
How Porsche Plans to Recover
Internally, Porsche is flattening its management structure and reducing bureaucracy. The company is also applying what Leiters calls a strict “Value over Volume” principle, particularly in China, where the brand is prioritising pricing integrity over chasing sales numbers.
Electric vehicle plans are also shifting. In 2025, 65.6 percent of all Porsche deliveries were combustion engine models, 22.2 percent were plug-in hybrids, and just 12.2 percent were fully electric. Nearly two-thirds of Porsche customers are still buying petrol cars, and the brand is responding accordingly. Electric versions of the next-generation Porsche 718 Cayman and Porsche 718 Boxster are reportedly being dropped, and the Porsche Panamera and Porsche Taycan could be more closely aligned in the future to reduce development costs.
Despite the turbulence, Porsche still launched three significant cars in 2025. The all-electric Cayenne arrived as the most powerful production Porsche ever built, combining electric performance with off-road capability and long-distance comfort. The first all-electric Macan GTS followed, carrying the iconic GTS badge, a nameplate dating back to the 1963 904 Carrera GTS. And the new 911 Turbo S debuted with Porsche's T-Hybrid system, making it the most powerful production 911 since the model first launched in 1963.
At the same time, Porsche is moving further upmarket. A three-row SUV, internally known as the K1, is in development. It will sit above the Porsche Cayenne and target rivals such as the Mercedes-Benz GLS, the Bentley Bentayga, and the Range Rover, with a planned 2028 arrival.
Engineers are also evaluating a new flagship sports car above the Porsche 911, with early speculation pointing toward either a successor to the Porsche 918 Spyder or a model positioned against the Ferrari 296 GTB. Porsche has not had a true flagship hypercar since the 918 Spyder left production in 2015. The Mission X concept, revealed in 2023, is widely interpreted as a preview of what that future car could look like, though no production version has been confirmed.
For 2026, Porsche is forecasting revenue in the range of €35 to €36 billion and an operating return on sales of 5.5 to 7.5 percent. New derivatives are scheduled to launch this year, and the company projects a stronger recovery by 2027 as restructuring takes hold.
Sources: Porsche AG Press Conference,2025 Porsche AG Annual and Sustainability Report, Porsche Newsroom