Porsche reports 1.74 billion euro profit as China sales dip

Porsche reported an operating profit of 1.74 billion euros for the first nine months of 2026. The Volkswagen-owned company published these figures on Tuesday, marking a sharp increase from the 40 million euros recorded during the same period last year. Last year's low profit was driven by 2.7 billion euros in strategic restructuring costs.

Revenue declined by 5.9% to 25.28 billion euros over the nine-month span. Vehicle deliveries also fell, dropping 16% to 178,532 units. North America remained the largest sales region for the company by volume.

The company stated that it has reduced its dependence on the Chinese market. China has historically been a key area for German luxury automakers, but local brands have increased competition, especially in electric vehicles. Porsche sales in the region have fallen as rivals such as BYD, Geely, and Xiaomi expand.

Jochen Breckner, the company's chief financial officer, discussed the shift in geographic focus during an earnings webcast on Tuesday. He said, 'Our geographically balanced sales footprint continues to provide resilience across different markets.' Breckner added, 'As you know, we have significantly reduced our exposure to China. This makes our overall business less dependent on developments from this challenging market environment.'

Porsche shares ended trading 2.3% higher following the announcement. The company is also cutting thousands of jobs as part of a plan to reduce costs and address weaker demand.

Citi analysts described the results as expected in a note released on Tuesday. They noted that underlying earnings before interest and taxes remained resilient compared to other German premium peers. The analysts said, 'Despite challenging conditions, including exceptionally low deliveries, higher costs, and higher battery electric vehicle deliveries, Porsche's underlying EBIT remains very resilient and ahead of German premium peers.'

The analysts projected that the company's underlying operating profit margins would return to double digits starting in 2028. They stated that net cash flow is expected to rise above levels seen at the company's initial public offering by 2031. The note concluded that while the 2027 fiscal year will remain a low point, a multi-year recovery in earnings and net cash is supported and credible.