The profit of Porsche fell by 91.4 percent in 2025 compared to the previous year. It was only 310 million euros, as the company announced. In 2024, the Stuttgart luxury car brand had earned almost 3.6 billion.
The main reason for the sharp decline is the change in strategy under ex-boss Oliver Blume: He had it again more on the combustion engine models of the company because the electric models were hardly sold. The costs for this strategic pivot amounted to 2.4 billion euros and almost completely consumed the profit in 2025.
The Winding up of the battery subsidiary as part of the change in strategy and the US trade tariffs cost the company an additional 700 million euros each. Another reason for the drop in profits is the poor business in China. The company’s sales fell by almost a tenth last year to around 36.3 billion euros.
Further savings and realignment announced
For the current year, Porsche expects sales of up to 36 billion euros. The in office since the beginning of the year Company boss Michael Leiters continues to expect “very challenging market conditions” and geopolitical uncertainties. “We will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable,” said Leiters. Part of this strategy includes further savings and a realignment of the model range. According to Leiters, the product portfolio should be expanded in the segments where the profit margin is stronger.
Porsche’s parent company already had Volkswagen yesterday presented their numbers. VW’s profits also fell sharply: compared to the previous year, group earnings fell by around 44 percent. As a consequence of the slump in profits, the group announced that it would cut around 50,000 jobs by 2030.