Stuttgart, Germany – Porsche AG, the iconic German sports car manufacturer and subsidiary of Volkswagen Group, announced a dramatic slump in earnings for the first three quarters of 2025, with net profits falling by 95.9% year-on-year to just €114 million ($132.5 million). Operating profit collapsed even further, sinking to €40 million, a decline of nearly 99% compared with the same period last year when Porsche generated slightly over €4 billion. The financial shock comes amid sweeping strategic changes led by CEO Oliver Blume, who recently announced plans to step down while continuing to oversee Porsche’s restructuring. The company has scrapped its ambitious electric vehicle (EV) targets, shelved planned battery production, and delayed the launch of new EV models. Restructuring Costs and Market Shifts Porsche acknowledged that its restructuring will carry heavy costs, estimating additional €3.1 billion in expenses for the current fiscal year alone. Revenue also declined, with sales falling 6% year-on-year to just under €26.9 billion. The company attributed part of its strategic pivot to persistent customer demand for internal combustion engine (ICE) vehicles, which management now expects to remain significant through the next decade. Leadership Commentary Chief Financial Officer Jochen Brückner admitted the financial hit reflects the near-term burden of restructuring but defended the long-term strategy: “We consciously accept a temporary decline in key financial indicators in order to strengthen Porsche’s resilience and profitability in the long run. We expect to surpass the lowest point this year and anticipate significant improvement beginning in 2026.” From Profit Engine to Crisis Case For much of the past decade, Porsche had been a consistent profit engine for its parent company, Volkswagen Group, funneling billions into the conglomerate’s balance sheet. Now, the once high-flying sports car maker is grappling with a crisis of execution as it struggles to balance EV ambitions with ongoing demand for traditional vehicles.