New 'high-end' sports cars and SUVs on the cards as Porsche fights to rebuild margin from 2025's 1.1%
Porsche will "accelerate" the expansion of its portfolio into high-end new segments and urgently streamline its entire operation, as part of a radical recovery plan aimed at restoring it to financial stability after its margins almost evaporated in 2025.
In a "challenging" 12 months, the sport car manufacturer's revenues fell by almost €4 billion to €36.27bn, and profit on that was just €413m - down from €5.64bn in 2024, and representing a return of just 1.1%. The company attributes the profitability downturn primarily to the cost of reworking its product strategy and 'rescaling' the company, which it puts at around €2.4bn. It anticipates ongoing costs from these 'one-off effects' to have another three-digit-million impact in 2026, but said "we accept these burdens" in the context of its strategy to recover margins and strengthen its financial footing. Expenses related to EV battery development and production, and the US import tariffs, meanwhile, cost the company another €700m apiece last year. Nonetheless, Porsche said it remains "in a strong financial position" going into 2026, with high net liquidity and a healthy balance sheet. The company forecasts more "very challenging market conditions" in the year ahead, predicting that strong headwinds in the crucial Chinese market, global trade tariffs and other geopolitical uncertainties will continue to dent its performance. But it nevertheless expects to boost margins significantly back up to the 5.5-7.5% region, reflecting the potential impact of the wide-reaching measures undertaken by new CEO Michael Leiters, the ex-McLaren boss who took the helm from Oliver Blume at the beginning of the year. Speaking at the firm's financial results presentation, Leiters said the company is "using the current challenges as an opportunity to act even more decisively". "We will comprehensively reposition Porsche, make the company leaner, faster and the products more desirable," he said. As part of that strategy, he pledged to "streamline" the management structure and "cut back on bureaucracies, while refocusing the company's efforts on its core automotive business. He also said Porsche is "considering the expansion of our product portfolio in order to grow in high-margin segments". "The name Dr. Ing. h.c. F. Porsche stands for the technical excellence of a sports car manufacturer," he said. "We stand for uncompromisingly good sports cars that you want to drive yourself, that are fun, that convey performance and passion. And all this regardless of the type of powertrain." He confirmed that new "emotive" two-door sports cars above the 911 are on the cards, as well as SUV models above the Cayenne - likely referring to the mooted 'K1' seven-seater that's due next year with the choice of V6 or V8 powertrains, and primarily targeted at the US and Middle East. The company has not confirmed or denied widespread reports that the long-planned electric successor to the 718 Cayman and Boxster has been scrapped, but confirmed its "continued commitment to a mix of powertrain types" going forward.
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