BERLIN Volkswagen’s sports car maker Porsche reported a recovery in profit for the first nine months of the year on Tuesday, an early sign that chief executive Michael Leiters’ turnaround plan to downsize the business and retreat from China is beginning to pay off.
Leiters took office at the start of the year after Porsche’s supervisory board appointed him to change course following the failure of the group’s electrification strategy to gain traction, which resulted in €2.7 billion (US$3.0 billion) in restructuring costs.
Earlier this month, Leiters outlined his strategy for the automaker to investors. He plans to expand customisation options and introduce more exclusive, higher-margin models, shrinking the group while aiming to increase profits.
Tuesday’s results showed a 12 per cent increase in sales of its high-margin flagship 911, the only model in Porsche’s portfolio to record higher sales in 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 reached €1.74 billion, compared with just €40 million in the same period last year, when the carmaker was hit by higher costs largely related to its abandoned electrification strategy, the company said.
Declining sales in China have also weighed on Porsche, its parent company Volkswagen and fellow subsidiary Audi, prompting a restructuring of the group.
Porsche’s operating return on sales fell to a record low of 1.1 per cent in 2025 but improved to 6.9 per cent in the first nine months of this year, within its target range of 5.5 to 7.5 per cent for the full year.
