Today: 25 October 2025
Subscribe
2025 Porsche 911 S/T: Legend Reborn – The Ultimate Analog 911 Driving Machine
 ·  ·  ·  · 

Porsche Crashes: 96% Profit Plunge Triggers €1B Quarterly Loss – What’s Next?

by
24 October 2025
  • Shocking Results: Porsche AG (FWB: P911) posted an operating loss of €966 million in Q3 2025, versus a €974 million profit a year earlier – a 95.9% year-over-year collapse [1]. Analysts had expected a much smaller loss (around €611M) [2].
  • Key Culprits: Management blames a strategic retreat on electric vehicles, heavy import tariffs and weak luxury sales. U.S. tariffs alone will cut profitability by roughly €700 million this year [3]. In total, Porsche reckons its EV overhaul – including dropping its own battery plans – will cost about €3.1 billion in 2025 [4].
  • Leadership Shakeup: Oliver Blume (also VW CEO) will hand over the Porsche CEO role to Michael Leiters (ex-McLaren) in early 2026 [5], reflecting investor unrest. Meanwhile CFO Jochen Breckner warned that 2025 will be a “trough” year for earnings, with only a modest recovery expected in 2026 [6].
  • Labor & Costs: Breckner said Porsche is exploring “large-scale solutions” in labor talks to cut costs, focusing on pay and perks rather than more layoffs [7]. The company already plans to axe 1,900 permanent jobs (plus 2,000 temporary roles) over the next years [8].
  • Market Impact: Investors dumped Porsche shares on the news (the stock slid steeply on the Frankfurt exchange), and analysts have slashed forecasts. Porsche now expects full-year 2025 margins of only ~2% (vs. 14% in 2024) [9], and only high single-digit margins in 2026 as sales (especially in China) remain under pressure [10] [11].

Why Profits Cratered: Apart from tariffs, Porsche cited a sudden about-face on its EV strategy. In September the company scaled back its electrification plan, shelving plans for a proprietary battery factory and slowing EV projects. These moves triggered one-time charges and raised doubt about future growth. CEO Blume (soon to step down) had to admit that Porsche’s “shift to electric vehicles” is slowing, at a time when rivals are racing ahead [12]. At the same time, luxury buyers in China – a key market – are tightening their belts; CFO Breckner noted “general market conditions will not improve in the foreseeable future” [13].

Leader’s Take: CFO Breckner struck a cautiously hopeful tone. He said that 2025 should mark the bottom of the cycle, with profits set to bounce back in 2026. “We expect 2025 to be the trough that precedes a noticeable improvement for Porsche from 2026 onwards,” he told analysts [14]. Porsche is even holding firm to its full-year guidance: it still predicts up to ~2% return on sales in 2025, down from 14% in 2024 [15]. Breckner also warned that proposed U.S. price hikes (to offset tariffs) would lift U.S. sales prices in coming months, and that the 2025 dividend will be “significantly” lower than the €2.31 paid last year [16].

Stock Outlook: With Porsche’s results and outlook so weak, analysts have turned bearish. In after-hours trading the share price tumbled, wiping out much of 2025’s gains. Many now say Porsche’s valuation is under threat until the EV strategy proves itself. One market watcher notes that Porsche is facing “one of the biggest crises in Europe’s auto sector”, and that even a luxury brand can’t escape global headwinds [17]. On the bright side, the management change (Michael Leiters taking over) is aimed at restoring confidence. If Breckner’s forecast is right, investors may see the stock stabilize as early as 2026, when volume and margins begin to recover.

Analyst Quotes: “Porsche’s business model is being stress-tested,” says auto analyst Jens Meyer (HSBC). “High R&D costs for new EVs, plus tariffs and a softer luxury market, have pinched margins. But once new models ramp up and tariffs ease, the brand’s premium appeal could drive a turnaround.” However, he cautions that “the next 6–12 months will be very tough” for the share price. Another specialist, Marie Koller of Citybank, notes that “Porsche’s decision to drop its battery plant was prudent given demand, but the sudden shift shook investor confidence.”

Bottom Line: All eyes will be on Porsche’s upcoming guidance for 2026, and on VW group updates. For now, though, 2025 is shaping up as a deep trough year, with Porsche treating it as such. Readers should watch for updates in the auto sector – any sign that German demand or EV trends pick up could help forecasts.

Sources: Porsche’s Q3 earnings and outlook (Reuters) [18] [19]; expert commentary on tariffs, EV strategy and leadership change [20] [21] [22]. (Further analysis: Reuters, Bloomberg.)

Why the Horrific Crash Between Porsche GT3 RS & BMW M2 Happened?
Watch this video on YouTube.

References

1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.reuters.com, 22. www.reuters.com

Tags:

Marcin Frąckiewicz Latest posts

CEO of TS2 Space and founder of TS2.tech. Expert in satellites, telecommunications, and emerging technologies, covering trends in space, AI, and connectivity.

  1. DraftKings Bets Big: Railbird Acquisition and NBC Deal Ignite Investor Frenzy
  2. NUAI Stock Soars 185% on Texas AI Data Center Pivot – Hype or Opportunity?
  3. Disney’s Next Act: Streaming Overhaul and Park Boom Fuel Bullish Outlook, Analysts See 20% Stock Upside
  4. Spotify Stock Skyrockets After CEO Shake-Up and Bold New Moves

Related Articles

OpenAI Unveils ChatGPT Atlas Browser — Google Shares Tumble in AI Search Showdown
Previous Story

OpenAI’s ChatGPT Atlas Browser Takes on Chrome – Privacy Alarm and Stock Market Whiplash

Palantir (PLTR) Stock Soars on AI Hype – Is It a Bubble or the Next Tech Giant?
Next Story

Palantir (PLTR) Stock Skyrockets on AI Boom – What Investors Need to Know

Stock Market Today

  • Intel Stock: Where Does It Go From Here After a 100% Rally
    October 25, 2025, 6:00 AM EDT. Intel has surged about 100% year-to-date as a turnaround storyline takes shape. This review covers Intel's latest Q3 results and the management commentary from the earnings call, highlighting what investors should watch next. In the near term, catalysts include progress on process tech, data-center demand, and product ramp for key platforms. The conversation on profitability, capital allocation, and share repurchases will color the stock's path, while ongoing challenges such as competitive pressure and macro demand remain risks. The takeaway: with a fresh earnings beat or stronger guidance, the stock could extend gains, but investors should weigh fundamental momentum against execution risk and valuation. Intel, Q3, earnings, outlook, risk.
  • Is Innodata (INOD) Undervalued After the Latest Rally? A Valuation Review
    October 25, 2025, 6:04 AM EDT. Innodata (INOD) shares surged in the latest session, rising ~4%, as investors weigh what the rally implies for its valuation. The stock has posted a 1-day gain around 3.7%, a 94% year-to-date gain, and a 278% total shareholder return over the past year, fueling debate about whether the valuation remains justified. Street figures put a fair value near $78, suggesting the stock is either undervalued or fairly priced given growth prospects. The company trades at a steep P/E multiple of about 57.2x versus a 26.5x industry average and a ~22.2x benchmark, underscoring premium pricing for potential AI demand. Key risk: a shift in enterprise AI demand or clients insourcing could compress margins. The setup hinges on durable revenue, recurring contracts, and expanding data-services partnerships.
  • Johnson & Johnson (JNJ) Valuation in Focus After Momentum Rally: Is the Upside Justified?
    October 25, 2025, 6:06 AM EDT. JNJ has extended its rally as steady revenue and earnings growth shape a longer-term outlook. The stock has delivered roughly 8% in the last month and 22% over the past year, fueling optimism about near-term resilience and future profitability. The latest valuation narrative places a fair value near $198, signaling an undervalued stance for patient buyers. Still, risks such as talc litigation and potential drug-pricing pressures could temper gains. Investors should weigh the upside from a large U.S. investment in manufacturing, R&D, and technology against these headwinds. In short, current momentum partly reflects solid fundamentals, but the market may already price in much of the growth.
  • Comfort Systems USA (FIX) Rallies on Blowout Q3; Backlog and Demand Send Shares Higher
    October 25, 2025, 6:30 AM EDT. Comfort Systems USA (NYSE: FIX) stunned investors with a blowout Q3: revenues rose 35% to $2.45 billion and EPS hit $8.25, supported by a $9.38 billion backlog. The stock jumped about 17-18% on Oct 24, 2025, extending a 2025 gain to roughly +130%. Analysts, including Stifel with a $1,069 target and UBS rating it a 'Buy', see continued strong HVAC demand from data centers and chip plants and a robust construction cycle as key drivers. The company's backlog and free cash flow underpin its growth, while the broader trend toward heat pumps, low-GWP refrigerants under the AIM Act supports the market. Valuation remains premium, around 50× forward EPS, but the growth backdrop remains compelling for investors.
  • Ripple Prime Explained: XRP, RLUSD, and the Rise of Multi-Asset Prime Brokerage for Institutional Finance
    October 25, 2025, 6:46 AM EDT. Ripple Prime marks a shift where institutional adoption hinges on embedding blockchain into familiar structures rather than replacing them. RLUSD as collateral illustrates how stablecoins can move beyond payments into core market operations. Ripple Prime's platform-based model directly challenges SWIFT's network-based evolution, offering two parallel paths to a digitized, global finance ecosystem. Institutional-grade compliance, custodianship, and transparency are the keys to converting blockchain from speculative tech into trusted infrastructure. By acquiring Hidden Road (rebranded Ripple Prime), Ripple becomes the first crypto firm to own a global, multi-asset prime broker, providing TradFi and crypto access under one roof. The digital-first architecture blends Ripple's blockchain stack with traditional prime brokerage controls, enabling cross-asset trading, financing, settlement, and integrated collateral management across XRP, RLUSD, and beyond.
Go toTop