Porsche Posts Higher First-Half Profit Despite Drop in Vehicle Deliveries

The financial result exceeded the average projection of analysts surveyed by S&P Global Visible Alpha, which stood at €1.26 billion.

Porsche Reports First-Half Profit Increase

The earnings increase came despite a 5.1% drop in revenue to €17.23 billion, down from €18.16 billion during the same period in the previous year. Porsche’s operating return on sales rose to 7.8%, up from 5.5%. Total vehicle deliveries for the first half of the year fell by 16.5% to 122,306 vehicles.

Porsche profit jumps 34% despite China slump and falling sales — Photo: euronews.com

Porsche attributed the profit growth to tighter management of costs, prices, and its product mix, as well as its value over volume strategy. Additionally, earnings were supported by significantly lower restructuring costs. The company recorded a net charge of approximately €100 million from its strategic realignment during the first half of 2026, compared to about €800 million in the previous year. Higher sales of high-value 911 sports cars—particularly GTS, Turbo, and GT models—also supported earnings and annual guidance, offsetting sales declines in the Taycan, Panamera, and Macan lines.

Challenges in China and Workforce Reductions

The automaker faced continued pressure from slumping demand in China and weaker-than-expected electric vehicle sales. Deliveries in China plunged by 32% to 14,501 vehicles, a drop Autonext noted matched the 14,938 deliveries recorded in Germany for the same period. Amid the challenging market environment and its focus on value-oriented sales, Porsche has been reducing its retail footprint in the region, planning to scale down its dealer network to about 80 outlets in 2026 and beginning the closure of its approximately 200 proprietary Chinese charging stations.

Porsche Posts Higher First-Half Profit Despite Drop in Vehicle Deliveries — Photo: Autonext

Alongside market headwinds, Porsche announced workforce reduction measures. The company announced it will cut an additional 5,000 jobs by 2035 through partial-retirement plans, natural attrition, and voluntary severance agreements. This initiative follows a previously announced plan to slash 3,900 jobs by 2030, including 2,000 temporary workers. In exchange for the new cuts, employment and site protections at Zuffenhausen and Weissach have been extended until the end of 2035 to rule out compulsory redundancies during that timeframe.

Looking ahead, Porsche expects full-year revenue for 2026 to land between €35 billion and €36 billion, with an operating margin projected between 5.5% and 7.5%. The company plans to present its long-term strategic and restructuring programme, Sportwagenschmiede 35, in detail at its Capital Markets Day.