Porsche’s Operating Profit Collapses 99% Amid Market Pressures

Porsche's operating profit plummeted 99% to just €40 million ($46.5 million) in the first nine months of the year, a stark contrast to last year's performance. Sales revenue dropped 6% to €26.86 billion ($31.22 billion), while return on sales cratered from 14.1% to a near-zero 0.2%. "This result fell clearly short of our expectations," admitted finance chief Dr. Jochen Breckner during the earnings presentation.

The automaker slashed its full-year sales forecast to €37-38 billion, down from €40.1 billion, and now expects return on sales between 0% and 2%, a dramatic cut from the previous 5% target. Automotive EBITDA margin guidance also dropped to 10.5%-12.5%, well below the prior 14.5%-16.5% range.

Strategic shifts in vehicle production weighed heavily on results. Porsche recently extended internal combustion engine production for Panamera and Cayenne models into the 2030s while adjusting powertrain plans for an upcoming SUV. These decisions, combined with platform changes, restructuring costs, and rising tariffs, created a perfect storm of financial headwinds.