Financial Performance and Profitability
In the first half of 2025, Porsche generated group sales revenue of €18.16 billion, down 6.7% from €19.46 billion the previous year. Operating profit fell significantly to €1.01 billion from €3.06 billion, reducing the operating margin to 5.5% from 15.7%. These declines reflect macroeconomic and geopolitical headwinds including slowed luxury demand in China, U.S. import tariffs costing around €400 million, and ongoing challenges in the transition to electric mobility. Special charges related to battery activities and strategic realignment totaled approximately €1.1 billion. Automotive net cash flow was €394 million, down from €1.12 billion the prior year. Porsche delivered 146,391 vehicles worldwide in H1 2025, with 36.1% electrified (23.5% all-electric, 12.6% plug-in hybrids); in Europe, electrified vehicles comprised about 57% of sales, exceeding IPO targets.
Revenue by Geography (2025 H1 approx.):
| Region | Revenue (Billion Euros) | Share of Total Revenue (%) |
|---|---|---|
| North America | Not separately detailed | Strong sales and record deliveries |
| Europe | Included in total | ~57% electrified vehicles sold in region |
| Overseas & Emerging Markets | Included | Record deliveries noted |
Regional and Global Sales Performance
Porsche saw record deliveries in North America as well as in Overseas and Emerging Markets during the period. China experienced a sharp reduction in luxury vehicle demand, impacting global results. Porsche is following a "value over volume" strategy, focusing on managing supply and demand flexibly with an attractive revamped product lineup.
Best Selling Vehicles (H1 2025):
| Model | Units Delivered | Notes |
|---|---|---|
| Porsche Macan | 45,137 | Best-selling model worldwide |
| Other models | Not individually detailed | Product portfolio revamped and well received |
Weakest Performers and Segment Underperformance
No specific weakest models noted, but challenges persist from slowed electrification transition, tariff impacts, and macroeconomic uncertainties.
Industry Outlook and Strategic Focus
Porsche is executing a strategic realignment aimed at strengthening profitability and resilience through product portfolio flexibility and cost management. Negotiations on a second restructuring package with employee representatives are planned to improve earnings and cash flow. The company forecasts 2025 group sales revenue between €37 billion and €38 billion with return on sales expected between 5% and 7%. Porsche aims to restore positive momentum beginning in 2026, driven by its revamped product range and stronger market position.
Summary
Porsche faced significant financial pressures in the first half of 2025 with declines in revenue and profits due to tariffs, geopolitical headwinds, and slower EV adoption. Despite this, it achieved record deliveries in key regions and exceeded electrification targets in Europe. The company is actively realigning strategically to boost profitability and expects positive momentum to return in 2026.
Sources: Porsche AG newsroom and H1 2025 financial report.newsroom.porsche
