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Porsche AG (P911.DE) said today at the company’s annual press conference in Stuttgart that it is shifting into the next gear in the realignment of the company and its product portfolio, which began in 2025 after disastrous results.*
“Since I took office, our management team has systematically analyzed the situation and begun a series of initial targeted measures. These include the consistent application of our Value over Volume principle, especially in the difficult market environment of China; and the quality-oriented ramp-up of production of the all-electric Cayenne,” said the new CEO, Dr Michael Leiters.
“We will streamline our management structure, reduce hierarchies and cut back on bureaucracy. We have also already begun to focus more strongly on our core business. We are using the current challenges as an opportunity to act even more decisively. We will comprehensively reposition Porsche, make the company leaner, faster and make the products even more desirable,” claimed Leiters.
The New Strategy 2035
“The name Dr. Ing. h.c. F. Porsche stands for the technical excellence of a sports car manufacturer. We stand for uncompromisingly good sports cars that you want to drive yourself, that are fun, that convey performance and passion. And all this regardless of the type of powertrain. We are considering the expansion of our product portfolio in order to grow in higher-margin segments. In doing so, we are looking at models and derivatives both above our current two-door sports cars and above the Cayenne. With Strategy 2035, we want to lay the foundations for sustainably strong cash flow, strong results and margins that are appropriate for Porsche,” said Leiters.
During In 2025, two derivatives celebrated their world premiere. In September, Porsche debuted the new 911 Turbo S. A bi-turbo powertrain with T-Hybrid technology makes the series flagship the most powerful production 911 of all time.* In November, the company celebrated the world premiere of the all-electric Cayenne SUVe.* It is the most powerful production Porsche ever built. The new Cayenne Electric complements the existing offer of combustion-engined and plug-in hybrid models in the model series. In 2026, Porsche “will also present emotive new derivatives with which the sports car manufacturer wants to inspire its global customers and fans.”
Disastrous Financial Year With Extraordinary Expenses
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The 2025 financial year saw Group Sales revenue decline to €36.27 billion in 2025 (2024: €40.08 billion). Group operating profit fell from €5.64 billion to €413 million . The reasons for this were, among other things, extraordinary expenses of approximately€ 3.9 billion . These consist of the realignment of the product strategy and the rescaling of the company (approximately €2.4 billion), additional expenses from battery activities (approximately €700 million ) and US tariffs (approximately €700 million ).
The Group operating return on sales was a mere 1.1% (2024: 14.1%), which was within the last adjusted forecast. The Automotive EBITDA margin fell to 13.3% per cent (2024: 22.7%). This was above the last adjusted forecast.
“The global challenges and the company’s realignment impacted earnings in 2025. In 2026, our recalibration measures will continue to have one-off effects on earnings in the high three-digit million 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,” said CFO Dr Jochen Breckner.
Porsche Group Forecast for 2026
- “Porsche AG is again anticipating very challenging market conditions for the 2026 financial year.
- For example in China, the luxury segment remains under pressure, and intense price competition, especially for fully electric vehicles, continues to have an impact.
- Porsche also expects geopolitical uncertainties and the US tariff policy to remain in place.
- The potential impact of recent developments in the Middle East, however, have not been taken into account.
- Based on these assumptions and additional one-off effects, Porsche expects a higher Group operating return on sales in the range of 5.5% to 7.5% for the 2026 financial year.
- This forecast includes assumed sales revenue in the range of around €35 to 36 billion. Porsche also expects a higher Automotive net cash flow margin, ranging between 3% and 5%.”
“Ich drücke dir die Daumen!” AutoCrat.
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Porsche AG Reorganization 2.0 or The New Strategy 2035
Click for more.
Porsche AG (P911.DE) said today at the company’s annual press conference in Stuttgart that it is shifting into the next gear in the realignment of the company and its product portfolio, which began in 2025 after disastrous results.*
“Since I took office, our management team has systematically analyzed the situation and begun a series of initial targeted measures. These include the consistent application of our Value over Volume principle, especially in the difficult market environment of China; and the quality-oriented ramp-up of production of the all-electric Cayenne,” said the new CEO, Dr Michael Leiters.
“We will streamline our management structure, reduce hierarchies and cut back on bureaucracy. We have also already begun to focus more strongly on our core business. We are using the current challenges as an opportunity to act even more decisively. We will comprehensively reposition Porsche, make the company leaner, faster and make the products even more desirable,” claimed Leiters.
The New Strategy 2035
“The name Dr. Ing. h.c. F. Porsche stands for the technical excellence of a sports car manufacturer. We stand for uncompromisingly good sports cars that you want to drive yourself, that are fun, that convey performance and passion. And all this regardless of the type of powertrain. We are considering the expansion of our product portfolio in order to grow in higher-margin segments. In doing so, we are looking at models and derivatives both above our current two-door sports cars and above the Cayenne. With Strategy 2035, we want to lay the foundations for sustainably strong cash flow, strong results and margins that are appropriate for Porsche,” said Leiters.
During In 2025, two derivatives celebrated their world premiere. In September, Porsche debuted the new 911 Turbo S. A bi-turbo powertrain with T-Hybrid technology makes the series flagship the most powerful production 911 of all time.* In November, the company celebrated the world premiere of the all-electric Cayenne SUVe.* It is the most powerful production Porsche ever built. The new Cayenne Electric complements the existing offer of combustion-engined and plug-in hybrid models in the model series. In 2026, Porsche “will also present emotive new derivatives with which the sports car manufacturer wants to inspire its global customers and fans.”
Disastrous Financial Year With Extraordinary Expenses
Click to enlarge.
The 2025 financial year saw Group Sales revenue decline to €36.27 billion in 2025 (2024: €40.08 billion). Group operating profit fell from €5.64 billion to €413 million . The reasons for this were, among other things, extraordinary expenses of approximately€ 3.9 billion . These consist of the realignment of the product strategy and the rescaling of the company (approximately €2.4 billion), additional expenses from battery activities (approximately €700 million ) and US tariffs (approximately €700 million ).
The Group operating return on sales was a mere 1.1% (2024: 14.1%), which was within the last adjusted forecast. The Automotive EBITDA margin fell to 13.3% per cent (2024: 22.7%). This was above the last adjusted forecast.
“The global challenges and the company’s realignment impacted earnings in 2025. In 2026, our recalibration measures will continue to have one-off effects on earnings in the high three-digit million 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,” said CFO Dr Jochen Breckner.
Porsche Group Forecast for 2026
“Ich drücke dir die Daumen!” AutoCrat.
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.