Porsche AG posted a 34% increase in first-half operating profit to €1.35 billion, defying a sharp decline in Chinese demand and weaker overall vehicle sales. The Stuttgart-based sports-car maker attributed the improvement to disciplined cost control, pricing strategy and a richer product mix, alongside its 'value over volume' approach.
The result surpassed analysts' consensus estimate of €1.26 billion, according to S&P Global Visible Alpha. Revenue, however, fell 5.1% to €17.23 billion from €18.16 billion a year earlier. Operating return on sales rose to 7.8%, up from 5.5% in the same period last year.
Cost restructuring and job cuts
A significant factor behind the profit jump was a sharp reduction in restructuring costs. Porsche recorded a net charge of roughly €100 million from its strategic realignment in the first half of 2026, compared with about €800 million a year earlier. The company is pressing ahead with its long-term overhaul, dubbed 'Sportwagenschmiede 35', which aims to sharpen its focus on core sports-car operations and improve profitability and resilience.
On Monday, Porsche announced plans to eliminate an additional 5,000 jobs by 2035, building on a previously disclosed reduction of 3,900 positions by 2030. The combined cuts, estimated by Reuters at around 9,000 roles, will be achieved through expanded partial-retirement schemes, natural attrition and voluntary severance agreements. In exchange, employment and site protections at its Zuffenhausen and Weissach plants will be extended until the end of 2035, ruling out compulsory redundancies.
CEO Dr Michael Leiters said in a statement: 'Over the past six months, the Porsche team has worked very intensively and with great discipline on our strategy. However, we still have a lot of work ahead of us to position Porsche robustly for the challenging future.'
China headwinds and model performance
Deliveries in the first half totalled 122,306 vehicles, a 16.5% drop year-on-year. In China, deliveries plunged 32% to 14,501 vehicles, reflecting what Porsche described as a challenging market environment and its continued emphasis on value-oriented sales. The slump in China mirrors broader difficulties for German luxury carmakers, as Mercedes-Benz also lowered its sales forecast amid similar pressures.
Higher sales of the high-margin 911 sports car, particularly the GTS, Turbo and GT variants, helped offset weakness in the Taycan, Panamera and Macan lines. The company maintained its full-year revenue guidance of €35 billion to €36 billion, compared with €36.27 billion in 2025, and expects an operating margin between 5.5% and 7.5%.
Porsche faces mounting competition from Chinese manufacturers, US tariffs and elevated costs in Germany. The company's strategic programme is nearing completion, with detailed plans to be presented at its Capital Markets Day on 7 October 2026. Leiters added: 'With 'Sportwagenschmiede 35' strategy, we aim to strengthen Porsche's profitability, cashflow and resilience in the coming years. We are firmly aligning our company with our core business.'
