Porsche AG Cuts Dividend and Revives Combustion Engine for 718 in Sweeping Restructuring
23.06.2026 - 06:22:03 | boerse-global.de
Porsche AG is charting a pragmatic new course. The luxury sports-car maker has abandoned its plan for a fully electric next-generation 718 series, opting instead to retain combustion engines for the Boxster and Cayman – at least for high-performance variants. The U-turn comes as the Stuttgart-based group battles a brutal earnings slump and mounts a fresh cost-cutting drive.
The shift in powertrain strategy is part of a broader efficiency programme that management aims to finalise by the July 2026 summer break. Porsche is slimming its model portfolio, cutting less profitable variants, and deepening cooperation with sister brand Audi to squeeze out cost synergies. The twin focus on margin protection and product simplification reflects the severity of the headwinds: a 92% collapse in operating profit to just €0.41 billion last year, against €5.6 billion in 2024.
That earnings rout has forced the board to slash the dividend. For the 2025 financial year, Porsche will propose a payout of €1.00 per ordinary share at the annual general meeting being held today, down from €2.30 a year earlier. The total distribution stands at €916 million. Although the cut is dramatic – barely 43% of the prior year’s level – the dividend still exceeds the company’s self-imposed floor of 50% of net profit. All board members have waived their annual bonuses for 2025, receiving zero.
Should investors sell immediately? Or is it worth buying Porsche AG?
The AGM is not without opposition. Germany’s Critical Shareholders Association and governance expert Prof. Christian Strenger have submitted countermotions, though Porsche has not disclosed their content. The meeting comes at a moment when the stock has shown resilience: the shares have climbed 36% from their March trough of €35.22 to trade near €47.87, comfortably above the 200-day moving average of €43.43. Over the past twelve months the equity has gained roughly 16%, though it has slipped 4.5% over the past week to €47.59, backing away from the 52-week high of €50.56.
Operationally, the outlook remains cautious. Revenue fell nearly 10% to €36.27 billion in 2025, and the operating margin tumbled from 14.1% to just 1.1%. For 2026, management expects revenue of €35–36 billion and a margin recovery to between 5.5% and 7.5% – a meaningful improvement but still far from pre-crisis levels. China continues to drag, with brutal price competition in electric vehicles squeezing the luxury segment, while US tariffs and geopolitical uncertainty compound the pressure.
CEO Michael Leiters is pushing for a second round of cost reductions, including potential job cuts at the main Zuffenhausen plant. Talks with works council representatives are set to conclude by the summer shutdown in July. In parallel, Porsche is adjusting production volumes to match weaker demand and leaning on Audi for joint development work to protect margins.
The full picture for the first half of 2026 will emerge on 10 July with a pre-close call, followed by the half-year report on 29 July. By then, investors will have a clearer view of whether the margin stabilisation plan and the 718 combustion-engine pivot are enough to restore the group’s profitability – and whether the dividend cut marks the bottom or the start of a longer recovery.
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Porsche AG Stock: New Analysis - 23 June
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