Sports car maker Porsche reported a 91.4 percent profit drop for 2025, reducing net profit to 310 million euros. Revenue fell by about ten percent to 36.3 billion euros, weighed down by strategic shifts, challenges in China, and US tariffs. New CEO Michael Leiters plans a company realignment.
Porsche AG, a subsidiary of the Volkswagen Group, recorded a dramatic decline in results for the 2025 fiscal year. Net profit after taxes fell by 91.4 percent to 310 million euros compared to nearly 3.6 billion euros in 2024. Revenue stood at 36.3 billion euros, marking a drop of almost ten percent.
The main burdens came from special costs totaling around 3.9 billion euros. These included 2.4 billion euros for extending combustion engine production, 700 million euros for winding down the battery subsidiary Cellforce, and another 700 million euros due to US tariffs. Operating profit plunged by 92.7 percent to 413 million euros, and in the automotive business, it was only 90 million euros.
CFO Jochen Breckner stated: "The global challenges and the company's realignment have burdened the 2025 results. In 2026, our recalibration measures will also have one-time effects in the high three-digit million range." Former CEO Oliver Blume changed the strategy before his departure to offer more combustion engines, as electric models saw less demand. Business in China stagnated, and US tariffs under President Donald Trump had a negative impact.
New CEO Michael Leiters, who took over from Blume in January, announced measures: "Since taking office, our management team has systematically analyzed the situation and initiated a series of targeted first measures." These include streamlining the leadership structure, reducing hierarchies, and expanding the product portfolio in high-margin segments.
For 2026, Porsche expects revenue of 35 to 36 billion euros and an operating return of 5.5 to 7.5 percent. The operating margin was 1.1 percent in 2025. The company proposes a dividend of 1.00 euros per ordinary share and 1.01 euros per preferred share, down from 2.31 euros the previous year. The stock market value has nearly halved since the IPO three years ago. Parent company Volkswagen also reported a profit decline of almost half, influenced by Porsche.