German automaker Porsche reported a sharp drop in net profit, down 29.8% to approximately $2.92 billion through September.
Major Slowdown in Sales
The decline comes as sales in China, Porsche’s largest single market, face a major slowdown, compounded by weaker demand for electric models globally.
The company’s revenue dropped by 5.2% to about $30.2 billion in the same period, with approximately $27.3 billion coming from its automotive division — a 6.9% decline from last year.
Operating profit (EBIT) fell by 26.7%, hitting around $4.27 billion, while return on sales dropped to 14.1%. For the third quarter alone, revenue decreased by 6.1% to roughly $9.6 billion, according to El Economista.
Dropped 29%
Porsche sold 221,304 vehicles by the end of September, down nearly 12% year-over-year, with total deliveries declining by 6.9% to 226,026 units.
In China, where vehicle registrations dropped almost 29%, Porsche expects flat growth in 2025 compared to this year and is planning a substantial cut to its local dealership network.
“We’re not exiting the Chinese market, but we must face reality,” a Porsche representative stated.
The luxury carmaker is now evaluating a cost-cutting strategy and revising its model lineup to reflect slowing global demand for electric vehicles, a trend acknowledged by CFO Lutz Meschke.
He warned that the third quarter was the weakest of the year so far. Porsche is targeting annual sales of around 250,000 vehicles — down from the more than 300,000 vehicles it registered in recent years.
Despite the challenges, Porsche is maintaining its full-year outlook, forecasting annual revenue between $41.3 and $42.3 billion and an operating margin of 14-15%, with hopes of a late-year recovery in demand.
In July, Porsche revised its yearly guidance, projecting up to a 15% return on sales.
