Porsche Reports 92.7% Drop In Operating Profit For 2025 Fiscal Year

On March 12, Porsche released its fiscal year 2025 financial report last night, showing significant pressure across all key metrics.

Annual revenue was 36.27 billion euros, down 9.5% year-on-year; sales profit plummeted from 5.64 billion euros to 413 million euros, a drop of 92.7%, with a sales return rate of only 1.1%, far below the 14.1% in 2024; globally, 279,449 new vehicles were delivered, a decrease of 10.1% year-on-year.

The core reason for the sharp decline in profit is a special expenditure of 3.9 billion euros, including product strategy adjustment and scale optimization (2.4 billion euros), additional battery business costs (0.7 billion euros), and the impact of US tariffs (0.7 billion euros).

China market became a major hit, with a total of 41,938 vehicles delivered throughout the year, a sharp drop of 26% year-on-year, falling from the world's largest single market to the second, far exceeding the global average decline; the North American market delivered 88,000 vehicles, a 7% decline year-on-year, showing relatively stable performance.

Notably, despite the decline in sales, the average price per Porsche vehicle reached 111,000 euros, an increase of 4,000 euros year-on-year, indicating that the brand's premium pricing power remains intact, with the decline in revenue being less pronounced than the reduction in deliveries.

Porsche has launched a comprehensive transformation with the goal of being "more streamlined, more agile, and more appealing," aiming to cut 3,900 jobs by 2030, streamline management levels, and reduce operating costs.

In terms of distribution channels, the number of retail outlets in the Chinese market will be further reduced from 114 to 80, focusing on core cities to enhance per-store efficiency.

Product strategy shifts back to "quality over quantity," extending the lifecycle of internal combustion engine and hybrid models, delaying certain pure electric vehicle plans, and prioritizing investment in iconic high-margin models like the 911.

At the same time, the management clearly stated that they would not join the price war, refuse to localize production in China, adhere to the pure import route, and rebuild high profit margins through premiumization and cost control.