Despite a 16% drop in sales, profit remains stable! Porsche (POAHY.US) maintains its earnings, with the 911 as a key support

According to Golden Ten Data APP, despite another sharp decline in car sales, the profitability of the established German luxury carmaker Porsche (POAHY.US) has remained stable. Demand for high-end 911 models and their expensive derivative versions has helped the company buffer the impact of sluggish performance in the Chinese market. Data shows that Porsche's revenue for the first nine months of 2026 was €25.282 billion, down 6% from €26.864 billion in the same period last year. The 16% drop in deliveries over the first nine months was a key factor behind the decrease in revenue, though pricing and product mix helped cushion the blow to some extent.

However, the operating profit margin for the first nine months was 6.9%, higher than almost zero in the same period last year—then dragged down by hefty restructuring costs. Cash flow also improved. Among the factors, Porsche's sale of its stakes in sports car manufacturers Bugatti and Rimac Group played an important role in boosting cash flow. These asset disposals generated nearly €1 billion in gains, strengthening the company's financial position.

According to a statement released by Porsche on Tuesday, despite the decline in revenue, favorable pricing and a more high-end product mix boosted profits, while asset sales enhanced cash generation. These results suggest that even as Porsche scales back operations to adapt to an increasingly challenging structural environment, its profitability is starting to stabilize.

Porsche CEO Michael Leiters is working to reshape the company’s profit model. In the past, this model relied on strong demand from the Chinese market, high factory utilization rates, and a steady stream of lucrative new model launches. Now, all three pillars are simultaneously weakening. At the same time, U.S. tariffs and a costly adjustment in Porsche’s electric vehicle strategy have forced the company to incur significant expenses just as its previous growth drivers are fading.

The 911 model remains Porsche’s strongest defensive pillar. Even as the overall business scales back, deliveries of this sports car continue to rise, with buyers still favoring the expensive GTS, Turbo, and GT versions. This model mix helps offset declining demand in China, as well as the sales gap left by the discontinuation of the gasoline Macan and 718 models.

Nevertheless, the 911 alone cannot fully compensate for the pressure created by factory and R&D activities that were scaled for much higher sales volumes. Leiters’ primary task is to downsize Porsche to fit a much tougher era.

Porsche plans to cut over 9,000 jobs, reduce management levels by 40%, and lower the annual sales required to break even to around 200,000 vehicles. Leiters is also cutting R&D spending and concentrating resources on fewer, more profitable projects.

In addition, Porsche plans to resolutely move further upmarket. This strategy includes raising prices of its most distinctive sports cars by about 20%, expanding its lineup of customized and track-focused models, and launching new models positioned above the 911. Earlier this month, Porsche unveiled the “Mission S” concept car, officially positioned as a mid-engine supercar platform above the 911 and planned for long-term series production. This is not a short-lived, limited hypercar, but rather a core product under Porsche’s “Sportwagenschmiede '35” strategy, aimed at filling the flagship gap left after the production halt of the 918 Spyder and directly competing with the regular supercars of Ferrari and McLaren.