Porsche Expects Further Earnings Hit as Turnaround Continues

By Dominic Chopping

Porsche expects earnings this year to be hit by several hundred million euros of costs as the German luxury sports-car maker continues to realign its strategy.

Porsche cut guidance several times last year as it grappled with a slow uptake of electric vehicles, weakness in China, and U.S. tariffs. Porsche is particularly hard hit by import levies as it only manufactures its cars in Germany.

The company is investing in new gas-powered and hybrid models after deciding to delay the rollout of new all-electric cars. Together with tariffs and costs from its battery activities, Porsche booked one-off costs of around 3.9 billion euros ($4.53 billion) in 2025.

To spur its turnaround efforts, former McLaren boss Michael Leiters has been appointed to lead the company. Leiters took over at the beginning of 2026 and he said Wednesday that Porsche is again expecting challenging market conditions this year.

In China, the luxury segment remains under pressure, and intense price competition, especially for fully electric vehicles, continues to have an impact. At the same time, Porsche expects geopolitical uncertainties and U.S. tariff policy to remain in place.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

March 11, 2026 02:56 ET (06:56 GMT)