Porsche profit slump: Billions in additional costs due to pro-combustion engine decision

Severe Losses Special Costs Massively Dent Porsche's Profit

2025-10-29 Source: dpa 2 min Reading Time

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Billions in additional costs have almost completely eroded Porsche's profit in the first three quarters. It is likely due to the pro-combustion engine decision.

Loss streak! The Porsche penny is still faltering economically. However, internally, it is now believed that the darkest times are behind them ...(Image: Porsche) — Loss streak! The Porsche penny is still faltering economically. However, internally, it is now believed that the darkest times are behind them ...
(Image: Porsche)

Porsche's net profit after taxes plummeted by nearly 96 percent year-on-year to only $122 million, as the sports car manufacturer reports. This was mainly due to $2.9 billion in special charges. From July to September, the Stuttgart-based (Germany) company even reported red figures. The result before interest and taxes was therefore minus

$1 billion. In the same quarter of the previous year, there was still a profit of $1.04 billion. However, the stock hardly moved in after-hours trading. It had even gained 3.7 percent during regular trading. The most significant burden is the strategic shift by management under the outgoing Porsche CEO Oliver Blume. Recently, the ambitious electric targets were shelved, along with the planned battery production. The launch of new electric models from Porsche has also been postponed. Instead, the balance is expected to come from the comeback of the combustion engine, considering market realities and customer needs, which is projected to extend well into the next decade. However, these measures also cost a lot of money, which is why special costs of around $3.3 billion are anticipated in the 2025 fiscal year.

Porsche Believes the Worst is Behind Them

The aforementioned after-tax profit amount for the first nine months is also thanks to a positive financial and tax result, as further revealed. The operating profit during this period was $43 million—99 percent less than the previous year's figure (just over four billion euros). Revenue shrank by six percent (to just under $29 billion). According to Porsche CFO Jochen Breckner, the results reflect the burdens of the strategic realignment. Breckner stated, "We are consciously accepting temporarily weaker financial figures in order to strengthen Porsche's resilience and profitability in the long term." The manager expressed confidence that the low point could be passed this year and that Porsche would significantly improve from 2026 onwards. This may also be due, as experts reveal, to Porsche having raised sales prices across the board for the 2026 model year, mainly as a result of U.S. import tariffs. Currently, for this year, an operating margin of break-even to a maximum of two percent was targeted. A high single-digit percentage margin seems realistic for the next year. However, this time frame will not suffice for a return to double-digit margins.

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Date: 08.12.2025

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