Porsche outlines higher-margin push under Strategy 2035

Porsche AG has reported a sharp decline in 2025 earnings as it unveiled a strategic realignment under new Chief Executive Officer Dr Michael Leiters, with operating profit falling to €413m from €5.64bn the previous year. The automaker attributed the drop largely to extraordinary charges of approximately €3.9bn, covering product strategy restructuring costs, battery-related expenses and US tariffs.

Group sales revenue fell 9.5% to €36.27bn, with the operating return on sales declining to 1.1% from 14.1% in 2024. Customer deliveries dropped 10.1% to 279,449 vehicles. Despite the deterioration, Porsche reported high net liquidity and a healthy balance sheet, which it said provides flexibility for its restructuring programme.

Leiters, who took office in January, outlined the first elements of a Strategy 2035 at the company’s annual press conference in Stuttgart. Measures include a leaner management structure, reduced hierarchies and a sharper focus on core business. The company is also considering expanding its product portfolio into higher-margin segments, including models positioned above its existing two-door sports cars and above the Cayenne.

In a statement, Leiters said: “We will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable.”

Dr Jochen Breckner, Member of the Executive Board for Finance and IT, added: “In 2026, our recalibration measures will continue to have one-off effects on earnings in the high three-digit million euros range. In order to secure adequate margins by Porsche standards in the medium term and strengthen our resilience in the long term, we accept these burdens.”

Porsche forecast a 2026 group operating return on sales of 5.5–7.5%, on sales revenue of €35–36bn.

Source: Porsche