Porsche’s Q1 profit drops 40% amid trade tensions, weak Chinese demand

Porsche AG has revised its 2025 financial forecast downward following a significant decline in first-quarter profits, attributing the downturn to U.S. import tariffs and a sharp drop in Chinese sales.​

The luxury automaker reported a 40.6% decrease in operating profit, falling to €760 million, and a 1.7% dip in sales to €8.86 billion. The operating margin contracted to 8.6%, missing analyst expectations of 9.8%.​
Finance Chief Jochen Breckner highlighted that U.S. tariffs imposed in April inflicted at least €100 million in costs over April and May. “We will, of course, have to react accordingly in the market and pass on at least a proportion of the tariffs to end customers,” he stated.​

In response, Porsche has adjusted its 2025 revenue projection to €37–38 billion, down from the previously forecasted €39–40 billion, and lowered its expected operating margin to 6.5–8.5%, a significant decrease from the previous forecast of 10–12%. ​

The company also announced the cessation of plans to expand high-performance battery production at its Cellforce subsidiary, citing diminished demand for electric luxury vehicles in China. ​

Shares in Porsche declined by 5% following the announcement.​

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