The sports and off-road vehicle manufacturer Porsche reports another decline in profits. From January to March, profit after taxes fell by almost 25 percent to 391 million euros, as the Stuttgart-based company announced. Analysts had expected a value of this magnitude. In the first quarter of 2025 had Porsche generated a surplus of 518 million euros.
After sharp drop in profits in 2025 However, the decline slowed at the beginning of the year: In the previous quarters, Porsche had recorded significantly higher declines – and was once in the red. Sales fell by five percent to 8.4 billion euros from January to March compared to the same period last year.
Sales are falling particularly in China
“2026 will be a time of realignment for Porsche,” said CEO Michael Leiters, who has been in office since the beginning of January. Among other things, the group wants to lower the break-even point. Porsche spent around 100 million euros on the strategy change in the first three months of the year, as the manager said in a conference call. In addition, the US tariffs caused losses of around 200 million euros in the first quarter.
Nevertheless, Porsche expects the situation to be somewhat better this year. Management is planning sales of around 35 to 36 billion euros. However, this does not yet factor in the potential consequences of the Iran war.
Porsche also sold fewer vehicles at the beginning of the year. There were 60,991 worldwide – 15 percent fewer than a year earlier. The reasons given by the company included, among other things, the end of production of the Cayman and Boxster models with combustion engines and the loss of tax breaks for electric and hybrid vehicles in the USA. In China, sales fell by 21 percent to 7,519 sports and off-road vehicles.
Employees do not receive a bonus and the board of directors does not receive a bonus
The crisis at Porsche has recently had noticeable consequences for employees. For the first time in years, they will not receive a bonus. This The board canceled it because of the economic situation. In 2023, employees at German locations who are permanently employed by Porsche AG and subsidiaries received up to 9,690 euros. In 2024 it was up to 5,250 euros.
The board members will also not receive an annual bonus for 2025. Leiters announced further job cuts in March. In the region by 2029 Stuttgart around 1,900 jobs will be lost. In addition, the contracts of around 2,000 temporary employees have expired.