Brand Intelligence — Automotive

Porsche's operating profit fell 92.7% in 2025 — now a supplier reportedly faces insolvency

Porsche AG's FY2025 results show operating profit down to €413 million on a €3.9 billion one-off reset. As part of that reset, orders to supplier Weber Magdeburg were cancelled — German media report insolvency proceedings could begin 1 October 2026, threatening around 140 jobs.

Sources: Porsche Newsroom, t-online.de, CarNewsChina, IG Metall, electrive.com Updated 12 August 2026
Porsche crest badge on a car
Porsche crest badge · Photo: Wikimedia Commons / Ivan Radic, CC BY 2.0
FY2025 Operating Profit
€413M
Down 92.7% from €5.64B in 2024. Margin fell to 1.1% from 14.1%. Source: Porsche Newsroom
One-Off Reset Costs
€3.9B
€2.4B strategy realignment + €700M battery activities + €700M US tariffs. Source: Porsche Newsroom
China Deliveries 2025
41,938
Down 26% year-on-year. Dealer network cut from 150 (2024) to 114 (end 2025). Source: CarNewsChina
Jobs At Risk, Weber Magdeburg
~140
Cylinder-head supplier reportedly facing insolvency after Porsche withdrew its orders. Source: t-online.de
01
Supply Chain
Porsche withdrew its orders from Weber Magdeburg. Insolvency proceedings could follow.

Weber Magdeburg GmbH, part of the Albert-Weber group, manufactures cylinder heads for Porsche at its Magdeburg site. Porsche has decided to stop placing orders with the supplier from 30 September 2026. German outlets report that insolvency proceedings for Weber Magdeburg could begin as early as 1 October 2026.

Around 140 jobs at the Magdeburg site are directly affected, with additional positions at Albert-Weber group sites in Markdorf and Neuenbürg also under threat. According to the IG Metall union, Weber Magdeburg had been contracted to supply Porsche until 2032. The union said all parties involved "must now live up to their responsibility" toward employees who contributed to the company's success over many years.

Sources: t-online.de, July 2026 · Faillissementsdossier.nl
02
Financial Reset
FY2025 revenue fell 9.5% to €36.27B. Operating profit fell 92.7% to €413M.

Porsche AG's full-year 2025 revenue reached €36.27 billion, down 9.5% from €40.08 billion in 2024. Operating profit fell 92.7% to €413 million, from €5.64 billion in 2024, taking the operating margin down to 1.1% from 14.1%. The company attributed the decline to roughly €3.9 billion in one-off costs: €2.4 billion tied to a product-strategy realignment that delays some all-electric launches in favour of new combustion and hybrid models, €700 million in battery-related expenses, and €700 million in US tariff costs.

The first quarter of 2026 showed a similar pattern: revenue of €8.40 billion (down 5.2%), operating profit of €595 million (down 21.9%), and an operating margin of 7.1%, down from 8.6%. Vehicle deliveries fell 14.7% to 60,991 units, and the battery-electric share of deliveries dropped to 19.8% from 25.9% a year earlier.

Sources: Porsche Newsroom — FY2025 results · Porsche Newsroom — Q1 2026 results
03
China & 2026 Outlook
China deliveries fell 26% in 2025. Porsche is closing dealerships and guiding cautiously for 2026.

Porsche's China deliveries fell 26% year-on-year to 41,938 vehicles in 2025, as the luxury segment there stayed under pressure from a broader downturn and intensifying competition from domestic electric brands. Porsche has reduced its Chinese dealer network from 150 outlets in 2024 to 114 by the end of 2025, with a further reduction to around 80 outlets planned for 2026.

For full-year 2026, Porsche is guiding to revenue of €35–36 billion and an operating margin of 5.5–7.5%, and has said further one-off effects from the recalibration will continue to weigh on earnings. The company cites continued pressure in the Chinese luxury segment, US tariff policy, and price competition in fully electric vehicles as the key factors shaping the year ahead.

Behind the numbers: Porsche's own profit reset and its supply chain are now moving in the same direction. A 92.7% profit fall is funding a strategic pivot back toward combustion and hybrid models, and Weber Magdeburg — under contract until 2032 — is now among the suppliers reportedly affected by that shift.
Sources: CarNewsChina, Jan 2026 · CarNewsChina — dealer network · Porsche Newsroom — 2026 guidance
04
Emissions Strategy
Porsche has left Volkswagen's CO₂ pool. Its new partner is China's Xpeng.
Porsche Taycan electric vehicle
Porsche Taycan · Photo: Wikimedia Commons / Alexander Migl, CC BY-SA 4.0

On 5 August 2026, Porsche formally exited the Volkswagen Group's shared CO₂ compliance pool and filed with EU regulators to form a new, separate emissions pool with Chinese EV maker Xpeng, covering the 2026 and 2027 model years. Porsche remains part of the Volkswagen Group; the change affects only how its fleet emissions are counted for EU compliance, not its ownership.

The move follows a shift in Porsche's own fleet: its battery-electric volumes in Western Europe fell close to 30% year-on-year in 2026, with EVs down to around 30% of regional registrations from about 40% a year earlier, as combustion and hybrid models take a larger share of the line-up. Under EU rules that pulls the group average further from the 93.6g/km CO₂ target — Volkswagen Group's fleet averaged 100g/km in 2025, and CFO Arno Antlitz said in May 2026 the group could face up to €1.5 billion in fines for missing its 2025–2027 targets. Pooling with Xpeng, whose fully electric line-up sits far below the target, offsets Porsche's higher-emission mix.

Porsche said the arrangement gives it "flexibility in the transition to electric mobility" without changing its long-term strategy: "We are continuing to invest in the transformation of our company, the electrification of our vehicles and innovative technologies to reduce our emissions sustainably through our own efforts."

Volkswagen Group already holds a 5% stake in Xpeng, bought for roughly €700 million in 2023. Xpeng delivered close to 20,000 vehicles across Western Europe in the first half of 2026 and is tracking toward around 50,000 for the full year — a pace market analyst Matthias Schmidt says puts it on course to overtake Polestar as the top-selling Chinese-affiliated premium EV brand in the region.

Behind the numbers: Volkswagen's own CFO has flagged up to €1.5 billion in fines for missing EU emissions targets. Porsche's pivot back toward combustion and hybrid models makes those targets harder to hit inside the group pool — so instead of leaning on Volkswagen's other electric brands, Porsche is now leaning on a Chinese EV maker the group already owns a stake in.
Sources: electrive.com, Aug 2026 · Matthias Schmidt — EV market analysis
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