Porsche profit hits 1.74 billion euros as China sales fall

Porsche reported operating profit of 1.74 billion euros, or 1.94 billion dollars, for the first nine months of 2026. This figure marks a steep increase from the 40 million euros recorded during the same period in 2025, a year when the company booked approximately 2.7 billion euros in strategic restructuring costs.

The profit gain occurred even as sales revenue declined by 5.9 percent to 25.28 billion euros. Global vehicle deliveries dropped by 16 percent, totaling 178,532 units. North America remained the largest market for the company by volume during this period.

Porsche executives stated that the company has reduced its financial exposure to China, a market where sales have fallen sharply due to competition from domestic electric vehicle makers such as BYD, Geely, and Xiaomi. Jochen Breckner, the company's chief financial officer, said during a webcast on Tuesday that the geographically balanced sales footprint provides resilience.

"As you know, we have significantly reduced our exposure to China," Breckner said. "This makes our overall business less dependent on developments from this challenging market environment."

Citi analysts noted in a report on Tuesday that the results were in line with expectations. They observed that despite low delivery numbers and higher costs, Porsche's underlying earnings before interest and taxes remained resilient compared to other German premium automakers. The analysts projected that the company aims to return to double-digit operating margins by 2028. They also estimated that net cash flow would surpass levels seen at the initial public offering by 2031.

The company is currently cutting thousands of jobs as part of a cost reduction plan designed to address weaker demand. Porsche shares traded 2.3 percent higher following the earnings announcement on Tuesday.