The new CEO, Dr Michael Leiters, is pushing the pace: “Since I took office, our management team has systematically analysed 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. 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.” At the company’s annual press conference in Stuttgart, Michael Leiters emphasised: “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 the products even more desirable.”
Key points of the new Strategy 2035
Leiters clearly expressed his own expectations of the company: “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.”
Seventy days after taking office in January, Leiters outlined the first concrete cornerstones of his Strategy 2035: “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 a view to the capital market, he added: “With Strategy 2035, we want to lay the foundations for sustainably strong cash flow, strong results and margins that are appropriate for Porsche.”
Emotive new sports cars in 2025 and 2026
In 2025, two top derivatives celebrated their world premiere. In September, Porsche presented the new 911 Turbo S. An innovative 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. It sets new standards in the SUV segment and 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 and underlines Porsche’s continued commitment to a mix of powertrain types. In 2026, Porsche will also present emotive new derivatives with which the sports car manufacturer wants to inspire its global customers and fans.
Challenging financial year with extraordinary expenses
The 2025 financial year was challenging. Group sales revenue declined to 36.27 billion euros in 2025 (2024: 40.08 billion euros). Group operating profit fell from 5.64 billion euros to 413 million euros. The reasons for this were, among other things, extraordinary expenses of approximately 3.9 billion euros. These consist of the realignment of the product strategy and the rescaling of the company (approximately 2.4 billion euros), additional expenses from battery activities (approximately 700 million euros) and US tariffs (approximately 700 million euros).
The Group operating return on sales was 1.1 per cent (2024: 14.1 per cent), which was within the last adjusted forecast. The Automotive EBITDA margin fell to 13.3 per cent (2024: 22.7 per cent). This was above the last adjusted forecast. “Porsche had enormous challenges to fight worldwide in 2025″, reported Dr Jochen Breckner, Member of the Executive Board for Finance and IT. “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 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.”
Dividend adjusted due to charges
Automotive net cash flow was 1.51 billion euros (2024: 3.73 billion euros). The resulting Automotive net cash flow margin of 4.7 per cent (2024: 10.2 per cent) was within the adjusted range. The share of purely battery-powered electric vehicles (automotive BEV share) was 22.2 per cent (2024: 12.7 per cent) and thus above the originally expected range. Deliveries to customers declined in the 2025 financial year. Overall, the sports car manufacturer delivered 279,449 vehicles. This was 10.1 per cent less than in the previous year (2024: 310,718 vehicles). Despite the challenging conditions, Porsche is in a strong financial position. High net liquidity and a healthy balance sheet give the company flexibility and resilience.
| Porsche AG Group | FY 2025 | FY 2024 | Change |
|---|---|---|---|
| Sales revenue | €36.27 billion | €40.08 billion | -9.5% |
| Operating profit | €0.41 billion | €5.64 billion | -92.7% |
| Operating return on sales | 1.1% | 14.1% | |
| Deliveries to customers | 279,449 | 310,718 | -10.1% |
Edited Porsche Factory Press Release
Pictures & Video courtesy Porsche AG
