Half-year profit stabilizes at German luxury carmaker Porsche

German luxury carmaker Porsche on Wednesday reported a stabilization in profits over the first half of the year, with net profit rising 49.1% year-on-year to €1.07 billion ($1.22 billion).

Porsche is navigating its most serious crisis in years, prompted by an extremely weak performance in China, US tariff policy and low demand for electric models.

The company confirmed its full-year outlook for 2026, citing management of costs and prices as among the reasons for the rise in profit.

However, there was little cause for celebration at the headquarters in Stuttgart. Much of the increase is due to the absence of one-off costs that weighed on the prior-year period, including charges related to the strategic adjustment of its electric vehicle plans and a broader corporate restructuring. 

Those costs totalled around €800 million in the first half of 2025, and were a key reason why group net profit had slumped from €2.15 billion to just over €718 million - a fall of 71%.

In the first half of 2026, costs related to the strategic repositioning of the Volkswagen subsidiary amounted to around €400 million, the company said. However, those costs were largely offset through negotiations with suppliers.

Revenue fell by just over 5% in the first half to around €17.23 billion, while operating profit rose by a third to almost €1.35 billion. 

Chief financial officer Jochen Breckner said the figures were in line with expectations. 

"Our rigorous cost management and our value-over-volume strategy are starting to have positive effects, which is why we are reaffirming our full-year forecast despite a market environment that remains challenging," he said.

The company said on Tuesday that it would cut a further 5,000 jobs in Germany by the end of 2035, while guaranteeing no compulsory redundancies.