BERLIN, Oct. 25, 2025: Porsche AG reported an operating loss of €967 million for the third quarter of 2025, its first quarterly loss since the company went public in 2022. The result compares with an operating profit of €974 million in the same period a year earlier, marking a sharp reversal for the German luxury automaker. For the first nine months of 2025, Porsche’s operating profit dropped to €40 million, down from more than €4 billion in the corresponding period last year.
The company attributed the loss primarily to one-time expenses linked to product development adjustments, restructuring costs and inventory write-downs following changes in its model lineup. Porsche said that total one-off charges for the year amount to around €3.1 billion, including costs related to the cancellation or revision of several projects. The company noted that these charges have significantly affected its quarterly performance but were necessary to align its operations with current global market conditions.
The carmaker’s revenue for the nine-month period declined by roughly 6 percent, amounting to a decrease of about €1.7 billion compared with the same period in 2024. Deliveries fell to 212,509 vehicles, a 6 percent drop year-on-year, reflecting weaker demand in key markets such as China and Europe. In its quarterly filing, Porsche cited rising import tariffs and supply chain constraints as additional factors weighing on its performance.
Operating profit plunges to €40 million in nine months
The company estimated that tariffs on U.S. imports will cost approximately €700 million this year, as it currently has no manufacturing base in the United States. Porsche confirmed that it is maintaining its 2025 operating margin guidance in the range of 0 to 2 percent, compared with about 14 percent in 2024. The company’s cash flow and liquidity position remain stable, supported by measures to reduce costs and preserve capital.
As part of an efficiency program announced earlier this year, Porsche plans to eliminate approximately 1,900 permanent jobs and 2,000 temporary positions by the end of 2025. The company stated that these workforce reductions are aimed at lowering operational expenses amid a weaker sales environment. Leadership changes are also taking place at the top of the company. Chief Executive Officer Oliver Blume will step down from his position at Porsche at the end of the year while continuing to serve as CEO of Volkswagen AG, the automaker’s parent company.
Tariffs and sales slump weigh heavily on Porsche’s outlook
Michael Leiters, currently head of McLaren Automotive, will assume the role of Porsche CEO beginning January 2026. Porsche’s results underscore the broader challenges facing the global automotive industry, including increased costs, market volatility and slower demand for high-end vehicles. The company remains one of Volkswagen Group’s most important profit contributors despite the current downturn.
The latest figures mark a significant contraction in profitability for Porsche, whose brand has long been associated with high margins and strong demand for performance-oriented models. In the previous fiscal year, Porsche reported an operating profit of €7.3 billion and a return on sales exceeding 18 percent. Porsche’s management said the company continues to focus on operational discipline and cost control amid persistent global headwinds.
It reaffirmed that its near-term priorities include maintaining financial stability and optimizing production volumes to align with current demand trends. The company’s shares were down in early Friday trading on the Frankfurt Stock Exchange following the earnings release, reflecting investor concern over the scale of the quarterly loss and the challenging market backdrop for the automotive sector. – By EuroWire News Desk.