Porsche’s 91% Profit Collapse Spurs Second Cost-Saving Wave and a Retreat from Volume
25.06.2026 - 18:07:27 | boerse-global.de
Porsche is racing to push through a second round of cost cuts before the summer break, as the luxury carmaker scrambles to reverse a 91% plunge in net profit that has wiped out investor confidence. CEO Michael Leiters, who took the helm at the start of 2026, is already negotiating with labour representatives over fresh job reductions — the first wave eliminated 3,900 positions. The urgency reflects a deeper crisis: the company’s net income collapsed by more than 90% last year, and the first quarter of 2026 brought no relief.
Shareholders are feeling the pain directly. The dividend on non-voting preference shares has been slashed from €2.30 to just €1.01. At the annual general meeting, Deka fund manager Ingo Speich described the situation as a “Scherbenhaufen” — a heap of shards. The stock has fallen 6.9% over the past seven days, trading around €44.81, and remains well below its June high. Since its initial public offering, Porsche’s shares have lagged the DAX significantly.
Leiters has responded with a radical strategic overhaul. The new “Strategy 2035” jettisons the previous push for all-electric volume and instead prioritises profitability. A fully electric 911 is off the table, and the company plans to operate with significantly lower capacity. Porsche sold roughly 280,000 vehicles in 2025; the goal now is to earn money with fewer cars. Management is in talks with the works council over a second savings package, which Leiters wants finalised before the factory holiday in July.
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China, once a growth engine, has become the biggest structural headache. Local deliveries have fallen for four consecutive years, dipping below 50,000 units. Porsche is responding by halving its dealer network by year-end to just 80 outlets, betting on exclusivity over volume. The 718 entry-level line — Boxster and Cayman — will remain in the portfolio even though production has ceased since autumn, a surprise move that keeps the model available through existing stock.
Cost pressures are mounting from multiple directions. Porsche has budgeted roughly €700 million for tariff payments this year, while transformation costs approach €1 billion. To stretch resources, the brand is moving closer to sister company Audi, sharing more vehicle platforms and development work. Despite these headwinds, management is sticking to its full-year guidance: revenue of up to €36 billion and an operating margin between 5.5% and 7.5%.
Leiters has asked investors for patience, acknowledging that a quick return to record margins is not realistic. The market will get its first check on progress on 29 July, when Porsche publishes its half-year report. That data will show whether the new electric Cayenne is generating the hoped-for sales volumes. A full strategic roadmap is scheduled for the capital markets day on 7 October, where the CEO must convince analysts that a leaner model lineup can still deliver sustainable returns.
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