Porsche Sees 91% Drop in Q2 Operating Profit

Porsche’s revenue also declined by around 12.9%. Photo: Depositphotos

Porsche has experiences a dramatic collapse in quarterly profits, with its automotive division posting an operating profit of just €154 mln in the second quarter of 2025, a steep fall from approximately €1.7 bn in the same period last year. The 91% year-on-year decline highlights the mounting pressures facing the Stuttgart-based sports car manufacturer, a majority-owned subsidiary of the Volkswagen Group, Bild reports.

According to Volkswagen’s half-year financial report, Porsche’s revenue also declined by around 12.9%, falling to just over €8.3 bn. The figures exclude earnings from the company’s financial services branch.

In contrast, Volkswagen’s core passenger car brand posted a significant rebound. From April to June, the VW marque generated €991 mln in operating profit, almost six times more than the previous year’s weak quarter. That result surpassed the combined earnings of both Porsche and Audi, underlining the shifting dynamics within the group. Porsche, once a key driver of group profitability, has long been valued for its high earnings despite relatively modest sales volumes.

China Slowdown, US Tariffs and EV Transition Strain Porsche’s Bottom Line

Much of Porsche’s downturn has been attributed to weak sales in China, its largest market. Company leadership, including CEO Oliver Blume, recently reported a noticeable decline in deliveries, particularly in the Chinese mainland. Meanwhile, elevated restructuring costs and punitive import tariffs in the United States have added to the financial burden.

Furthermore, the company’s ongoing transition to electric mobility continues to demand substantial investment, adding pressure to its already strained margins.

In response, Porsche is launching a major cost-cutting initiative. The company plans to reduce headcount by around 1,900 roles in the Stuttgart region by 2029, with further austerity measures already under discussion. In a letter sent to staff last week, Blume warned employees to expect additional savings efforts in the near future.

Kursiv also reports that LVMH is currently engaged in confidential discussions with multiple potential buyers regarding the sale of its fashion label Marc Jacobs.