Porsche has recorded a more than 30% drop in profits in 2024 due to rising costs and falling sales.

Porsche Loses Profits

In 2024, Porsche faced a significant decline in its financial performance. Net profit fell by 30.3% compared to the previous year, to around €3.6 billion. Operating profit (EBIT) fell by 22.6%, to €5.64 billion. Earnings per share fell by 30%, to €3.95 per preferred share.

The main reasons for this decline were the high costs of updating the model range and a sharp drop in sales in China, where deliveries fell by 28%. Porsche's total deliveries in 2024 fell by 3%, amounting to around 310,700 vehicles.

In response to these challenges, the company plans to invest around 800 million euros in business recovery, including new models and cost-cutting programs. In addition, Porsche intends to cut around 1,900 jobs at the main plant in Zuffenhausen and the development center in Weissach by 2029.

Despite the decline in profits, the company decided to maintain dividends at the previous year's level: EUR 2.30 per ordinary share and EUR 2.31 per preferred share.

In February 2025, Porsche announced a restructuring of its board of directors and an adaptation of its strategy, including increased investment in combustion engines and plug-in hybrids. The company also lowered its medium-term profitability target from 17-19% to 15-17%.

In 2025, Porsche plans to invest an additional 800 million euros in redefining its product portfolio, software, and battery technology. These investments are expected to temporarily reduce profitability, but in the long term, the company aims for an operating margin of more than 20%.

Porsche is thus taking active steps to adapt to changing market conditions and ensure sustainable growth in the future.