Porsche reports profit nose-dive ahead of new CEO

McLaren's former boss is accustomed to financial straits - he will find the water at Porsche warm

By PH Staff / Friday, 24 October 2025 / Loading comments

Oliver Blume’s final quarterly report as Porsche CEO was never likely to be a rosy one. His decade-long stint has seen some remarkable highs, but his departure will be remembered for the slump that the firm now finds itself in. Fitting then that he left the bringing of bad news to CFO Dr Jochen Breckner, who was at least able to point to sales revenue of more than 26 billion euros in the first nine months of 2025. Unfortunately, the manufacturer’s operating profit slumped to just 40 million euros - a 99 per cent decrease on the 4.35 billon euros it made in the same period last year.

Good news was hard to find. Its net cash flow is healthy enough (suggesting ongoing resilience, Porsche says) and it delivered a record amount of cars to the US (presumably due to buyers pre-empting tariffs earlier in the year). But its return on sales plunged from 14.1 per cent in 2024 to 0.2 per cent for the year to date, thanks to the ongoing perfect storm of the Chinese market slump, pressure on US prices since August and the ‘one-off’ effect of delaying or walking back its EV strategy. Earlier on Friday, analysts had suggested to Reuters that a third quarter operating loss of 611 million euros might be expected; in fact, it stood at 966 million.

“This year's results reflect the impact of our strategic realignment. However, these measures are essential. We are consciously accepting temporarily weaker financial figures in order to strengthen Porsche's resilience and profitability in the long term,” noted Breckner. “We expect 2025 to be the trough that precedes a noticeable improvement for Porsche from 2026 onwards. Our goal is to sharpen our brand and make our products even more individual, exclusive and desirable.

Quite some challenge for Blume’s successor, former McLaren CEO Michael Leiters, who is due to officially take charge in January. He will be expected to oversee not only a restructuring programme that requires job losses, but also (re)navigate Porsche’s eventual path to electrification - which will require a deft touch in the face of lower than expected demand. While still at McLaren, Leiters was adamant that the case for battery power was unconvincing when it came to mid-engined supercars; at Porsche, a more nuanced approach will obviously be required.

Certainly, the brand cannot afford to be left behind when it comes to EV technology in general. But its cancellation of the electric SUV intended to sit above the Cayenne is evidence enough of the pessimism that has taken root; ditto the decision to insert petrol engines (most notably in the 718 replacement) where previously no petrol engine was planned. Understandably, Porsche’s primary concern is stopping the rot in the short term - though the suggestion that things might begin to turn around from next year seems optimistic.

The appointment of Leiters has been taken by some to mean a renewed focus on the most high-end cars, based on his extensive experience at McLaren and Ferrari. This would be greeted with enthusiasm by customers with a proven record for digging deep when Porsche gets it right - and if the EU waters down its plan to end the sale of combustion engines in 2035, as seems increasingly likely, it would fit the broader direction of travel. Ultimately though, convincing buyers to make the transition from high-revving flat-sixes to hushed volume batteries will be the defining challenge of the next ten years.