Porsche Lowers Outlook Amid China, Tariff Pressures

Porsche has revised its 2025 financial outlook downward, now forecasting annual sales of €37-38 billion and a return on sales as low as 6.5%, compared to its previous projection of €39-40 billion and at least a 10% margin. The company reported a 1.7% decline in first-quarter sales and a 40.6% drop in operating profit, with the operating margin falling from 14.2% to 8.6%. These results are attributed to persistent weakness in the Chinese market, higher costs related to battery operations and restructuring, and the partial financial impact of new U.S. import tariffs. Porsche has halted independent expansion of high-performance battery production due to slower EV adoption and to support its supplier network. Despite these challenges, the company's electric vehicle sales target remains unchanged. Porsche also continues to invest in products and software to strengthen its future market position.