On the Dash:
- Porsche posted a 966 million euros ($1.1 billion) operating loss in Q3, reversing last year’s profit.
- The automaker plans further cost cuts, higher U.S. prices, and a leadership transition in 2026.
- Porsche expects 2025 to mark the low point, with profit margins recovering by 2026.
Porsche reported a 966 million euros ($1.1 billion) operating loss in the third quarter of 2025, marking a sharp downturn from a 974 million euro profit a year earlier. The results, worse than analysts’ expectations of a 611 million euro loss, highlight deepening financial challenges for the German automaker as it faces tariffs, price wars, and slowing demand in key markets.
Once a symbol of engineering excellence following its 2022 IPO, Porsche is now navigating a turbulent transition toward EVs while struggling to maintain sales across Europe, North America, and China. The latest quarterly results were heavily impacted by expenses tied to the company’s recent rollback of its EV strategy, including the decision to scrap in-house battery production.
Finance Chief Jochen Breckner confirmed that 2025 would represent “the trough” before a recovery, with profit margins expected to rise to high single digits by 2026. Porsche reaffirmed its guidance for this year, projecting a slim 2% return on sales, down from 14% in 2024.
Breckner noted that U.S. import tariffs will result in a roughly 700 million euro hit this year. To offset those costs, Porsche plans to raise vehicle prices in the U.S. in the coming months and reduce its 2025 dividend below last year’s €2.31 per share.
The automaker is also implementing significant restructuring measures. Porsche will eliminate 1,900 permanent jobs in the coming years, in addition to 2,000 temporary positions already cut in 2024. A second cost-saving plan under negotiation will focus on adjusting salary levels and reducing employee perks rather than further layoffs.
Moreover, current Porsche and Volkswagen CEO Oliver Blume will hand over the top job at Porsche to former McLaren Automotive CEO Michael Leiters in early 2026, following investor criticism of Blume’s dual leadership role and aims to stabilize the company amid restructuring.
Nevertheless, Porsche expects a 3.1 billion euro hit to full-year earnings from its EV strategy overhaul and restructuring costs. Despite the near-term headwinds, company executives remain optimistic that 2026 will mark a turning point as Porsche recalibrates its strategy and streamlines operations to restore profitability.
