Sales plummeted 16% and remained profitable! Porsche (POAHY.US) profit stabilized, 911 became the key support

The Zhitong Finance App learned that despite another sharp decline in car sales, the profitability of the established German luxury car manufacturer Porsche (POAHY.US) remains stable, and demand for the high-end 911 and high-priced derivatives helped the company cushion the impact of poor performance in the Chinese market. According to the data, Porsche's revenue for the first nine months of 2026 was 25.282 billion euros, down 6% from 26.864 billion euros in the same period last year. The 16% drop in deliveries in the first nine months was an important reason for the decline in revenue, although pricing and model combinations moderated this impact to a certain extent.

However, the operating profit margin for the first nine months was 6.9%, up from almost zero in the same period last year — heavy restructuring costs at the time dragged down the company's profits. Cash flow has also improved. Among them, Porsche's sale of its holdings in sports car manufacturers Bugatti and Rimac Group (Rimac Group) played an important role in increasing cash flow. The disposal of these assets brought in nearly 1 billion euros in revenue and strengthened the company's financial position.

According to a statement issued by Porsche on Tuesday, despite declining revenue, favorable pricing and a mix of higher-end models boosted profits, while asset sales boosted cash generation capacity. These results show that even as Porsche is scaling down its business to adapt to an increasingly structurally challenging market environment, its profit situation is beginning to stabilize.

Porsche CEO Michael Wrights is setting out to reshape the company's profit model. In the past, this model was based on strong demand in the Chinese market, high factory utilization rates, and the continuous introduction of lucrative new models. However, these three pillars are now weakening at the same time. At the same time, US tariffs and changes in direction made by Porsche after paying a high price in the electric vehicle strategy caused the company to still have to spend heavily at a time when the growth momentum in the past is gradually fading away.

The 911 model remains Porsche's strongest defensive pillar. Despite the overall contraction of the business, deliveries of this sports car continued to grow, and buyers continued to favor the expensive GTS, Turbo, and GT versions. This combination of models helped offset the decline in Porsche's demand in the Chinese market and the sales gap left after the fuel version of the Macan and 718 models were withdrawn.

However, 911 is still unable to fully cover the pressure brought about by factories and R&D operations that were originally configured at a sales scale far higher than current levels. The first task facing Lytes is to scale down Porsche to adapt to an even more difficult time.

Porsche plans to cut more than 9,000 jobs, cut management by 40%, and reduce the annual sales volume needed to break even to about 200,000 vehicles. Lytes is also cutting R&D spending and concentrating resources on fewer, more profitable projects.

Furthermore, Porsche is determined to further advance into the premium market. This strategy includes increasing the price of the most unique sports car by about 20%, expanding the lineup of customized models and products built specifically for the racetrack, and launching new models positioned higher than the 911. Earlier this month, Porsche launched a concept car called the “Mission S”. Officially positioned as a mid-engine supercar platform higher than the 911, it plans to mass-produce it as a long-term product line. This car is not a short-lived, limited-edition Hypercar, but a core product under Porsche's “Sportwagenschmiede '35” strategy. It aims to fill the gap in the 918 Spyder's flagship after discontinuation of production and compete head-on with regular supercars from Ferrari and McLaren.