Porsche just posted its worst quarterly numbers ever, confirming a massive €1.1 billion ($1.2 billion) operating loss for Q3, after slamming the brakes on parts of its electric vehicle plans and rewriting its strategy across China and the United States.
That loss didn’t show up as one clean figure, but came from multiple line items, including platform changes, restructuring, and rising tariffs. The numbers were buried in its nine-month results, where the damage spread wide.
Sales revenue for the first three quarters came in at €26.86 billion ($31.22 billion), which is 6% lower than last year. Operating profit cratered to just €40 million ($46.5 million), a 99% collapse from last year.
That meant return on sales (ROS), a key profitability gauge, dropped from 14.1% to a near-zero 0.2%. “This result fell clearly short of our expectations,” said finance chief Dr. Jochen Breckner during the earnings presentation.
Porsche slashes full-year forecast and margins
Porsche cut its full-year sales forecast, now expecting €37 to €38 billion, down from €40.1 billion earlier. Breckner said the company is now aiming for a return on sales between 0% and 2%, slashed from a previous 5%.
Automotive EBITDA margin guidance also dropped, now expected between 10.5% to 12.5%, down from the prior 14.5% to 16.5%.
The biggest impact came from changes in the company’s vehicle strategy. Last month, Porsche confirmed it’s extending internal combustion engine production for its Panamera and Cayenne models well into the 2030s. It’s also shifting powertrain plans for an upcoming three-row SUV. Those decisions come at a price. The company expects the combined hit from lineup changes and other costs to total €3.2 billion ($3.72 billion) this year.
Out of that, €1.8 billion ($2.09 billion) is tied to the rework of its new EV platform.
Tariffs added more pain. Porsche revealed it had already absorbed €500 million ($581.3 million) in tariff-related costs through Q3. That number could rise to €700 million ($813.67 million) by the end of the year, according to Breckner.
This follows a 15% tariff deal signed by the EU earlier this summer. The new rate began applying to exports starting August 1, and it hit Porsche’s margins hard.
North America slows, China cuts deepen, leadership changes loom
North American sales also dipped, but the company blamed it on lower imports after the summer break and bloated inventories from late Q2. Meanwhile, in China, the situation looks worse.
Porsche described market conditions there as “challenging,” pointing to tighter luxury demand and heavier pricing pressure. The company is responding by trimming dealerships, staff, and stakeholder costs to stop the bleeding.
Leadership changes are also on the way. CEO Oliver Blume, who currently holds the top seat at both Volkswagen and Porsche, will step down as Porsche CEO.
Former McLaren boss Michael Leiters will take over starting January 1, 2026. As of now, Porsche’s stock is down nearly 20% year-to-date.
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