Porsches operating profits slump, down 99 per cent compared to previous year
Porsche have struggled this year with slow electric adaptation, with operating profits falling 99 per cent, but the top brass feels all is not lost and these are temporary hiccups for their bigger target.
New Delhi: Porsche have been struggling this year, and in July, outgoing CEO Oliver Blume noted that the company was facing issues due to the global EV downturn. Shipments have fallen by six per cent in the first half of the year, which has prompted the German carmaker to cut around 1,900 jobs by 2029.
The struggles are quite well shown in the company’s recent financial statement. Porsche’s latest forecast how that the operating profits have fallen 99 per cent compared to last year, with just € 40 million reported through the first three quarters of 2025. This is down from the €403.5 million reported during the same period in 2024.
Porsche’s global sales have fallen by €1.7 billion, while deliveries saw a drop by 13,000 units as compared to last year, which is a six per cent decline. Despite all of this, the brand is positive that things can turn around. Dr Jochen Breckner, Member of the Executive Board for Finance and IT, has said that despite all of this, they have managed a strong cash flow.
Further, he noted, they improved their strategic alignment. For Porsche's long-term profitability and durability, the brand are deliberately accepting temporarily lower financial figures.
It isn’t that everything is in tatters, really, as the company’s net cash flow has risen above €1.3 billion, and deliveries in the United States, which the brand looks at as a big "overseas and emerging market”, also saw new heights. Porsche also saw strong growth in electrified vehicles, with global sales climbing 56 per cent.
In 2026, the brand is going to welcome a new CEO, as Michael Leiters, former McLaren head and Ferrari Chief Technical Officer, takes the reins in January. The target is to revitalise the struggling sports car brand.