Porsche posts profit rebound as restructuring starts to deliver

By Rachel More

BERLIN, Oct 27 (Reuters) - Sports car maker Porsche on Tuesday reported a recovery in profit in the first nine months of the year, in an early sign CEO Michael Leiters' turnaround plan to downsize and retreat from China is yielding results.

Leiters took office at the start of the year at Porsche, part of the Volkswagen group. Porsche's supervisory board appointed him to change course after the company's electrification strategy failed to take off, resulting in €2.7 billion ($3 billion) in restructuring costs.

Leiters fleshed out his strategy for the automaker to investors earlier this month. He plans more customisation and exclusive higher-margin models, which will shrink the group, but should increase profits.

This was underlined by a 12% increase in sales of its high-margin flagship 911 car, the only model in Porsche's portfolio for which sales rose over 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."

Shares in the company were 2.3% higher, with Jefferies analysts noting better-than-expected third quarter margins of more than 10%, compared with a record low of 1.1% in 2025.

Porsche, which has no production outside Europe, has suffered from US import tariffs, but finance chief Jochen Breckner said plans for a potential plant in Georgia by fellow VW brand Audi would not cause a production shift.

"It's still adding complexity to our business. We would still have engines in other parts that we would need to export into the United States. We would have double investments when it comes to suppliers," he told analysts.

Declining sales in China have also depressed the results of Porsche as well as Volkswagen itself and fellow subsidiary Audi, prompting a restructuring of the parent company.

Nine-month operating profit of €1.74 billion followed a weak prior-year result of €40 million, when the carmaker was hit by increased costs largely related to its halted electrification strategy, it said.

($1 = 0.8946 euros)

(Reporting by Rachel More; Additional reporting by Christoph Steitz; Editing by Friederike Heine, Barbara Lewis and Keith Weir)