- Nine-month operating profit rises to €1.74 billion from €40 million
- Sales of flagship 911 model rise 12% in first nine months
- Profit margin improves to 6.9% from 2025 record low 1.1%
BERLIN, Oct 27 (Reuters) - Volkswagen's sports car maker Porsche on Tuesday reported a recovery in profit in the first nine months of the year, in an early sign CEO Michael Leiters' turnaround plan to downsize and retreat from China is yielding results.
Leiters took office at the start of the year. Porsche's supervisory board appointed him to change course after the group's electrification strategy failed to take off, resulting in €2.7 billion ($3.0 billion) in restructuring costs.
Leiters fleshed out his strategy for the automaker to investors earlier this month. He plans more customisation and exclusive higher-margin models, which will shrink the group, but should increase profits.
Tuesday's results showed a 12% increase in sales of its high-margin flagship 911 car, the only model in Porsche's portfolio for which sales rose over the first nine months of the year.
"We are implementing our strategic realignment consistently and at a rapid pace. Our focus is on our core business, a competitive cost structure and a sustainable increase in our profitability," Leiters said.
"With the measures already implemented, we are creating the conditions to position Porsche as a stronger, more focused and more profitable company in the long term."
Nine-month operating profit of €1.74 billion followed a weak prior-year result of €40 million, when the carmaker was hit by increased costs largely related to its halted electrification strategy, the company said.
Declining sales in China have also depressed the results of Porsche as well as parent Volkswagen and fellow subsidiary Audi, prompting a restructuring of the group.
Porsche's operating return on sales hit a record low of 1.1% in 2025 but improved to 6.9% in the nine-month period, within a targeted range of 5.5% to 7.5% for the full year.
($1 = 0.8946 euros)
Reporting by Rachel More; Additional reporting by Christoph Steitz; Editing by Friederike Heine and Barbara Lewis
Source: Reuters