German sports car manufacturer Porsche reported a third-quarter loss nearing one billion euros on Friday, attributing the setback to expenses linked with shifting back to petrol-powered models and postponing its electric vehicle (EV) rollout.
Porsche’s latest projections reveal a 99% drop in operating profit compared to the previous year, with only €40 million recorded in the first three quarters of 2025, down from €403.5 million during the same period in 2024. The company’s global sales revenue also declined by €1.7 billion, while vehicle deliveries fell by 13,000 units, representing a 6% decrease year-on-year.
“This year’s results reflect the impact of our strategic realignment. However, these measures are essential. We are consciously accepting temporarily weaker financial figures in order to strengthen Porsche’s resilience and profitability in the long term,” said Jochen Breckner, Member of the Executive Board for Finance and IT.
Despite the bleak headline figures, Porsche emphasized a rise in automotive net cash flow—from €1.24 billion ($1.44 billion) to €1.34 billion ($1.56 billion)—as a sign of operational resilience and solid performance amid tough conditions.
The company also reported record-high deliveries in the United States and in regions it classifies as ‘Overseas and Emerging Markets.’ Additionally, Porsche experienced a 56% surge in global sales of its electrified vehicles.
In September, Porsche revealed plans to postpone the launch of certain fully electric vehicles while extending the production of some combustion engine and hybrid models. As a result of this product strategy shift and a downward revision of profit forecasts, its parent company, Volkswagen Group, recorded a €5.1 billion loss for the year.
Porsche faces strong competition in its key market, China, and is particularly exposed to U.S. tariffs, as it has no manufacturing presence in the country. During a call with analysts and investors, Breckner revealed that tariff-related expenses had already exceeded €500 million.
To mitigate the effects of tariffs, Porsche plans to ‘further strengthen’ its pricing strategy through 2025 and 2026.
GENERAL | Lucid Offers its First Discount on Gravity Amid Production Rebound
