Dr. Ing. h.c. F. Porsche AG (P911.DE), commonly known as Porsche AG, is moving forward with a sweeping overhaul of its business strategy. The Executive Board and Supervisory Board have approved significant changes to the product portfolio for the medium and long term, aiming to strengthen the company's financial performance over time.
As part of this shift, Porsche will expand its lineup with brand-defining combustion engine models. Market conditions have prompted a major change to the upcoming SUV series positioned above the Cayenne, which was originally planned as a fully electric offering. Instead, it will launch exclusively with combustion engine and plug-in hybrid variants. Existing models like the Panamera and Cayenne will continue to be available in combustion and hybrid formats well into the 2030s, with successor generations now included in the updated Cycle Plan.
In contrast, the rollout of certain all-electric vehicle models will be postponed due to slower-than-expected growth in demand for premium battery-electric vehicles. Specifically, the development of a new EV platform planned for the 2030s will be rescheduled and redesigned in collaboration with other Volkswagen Group brands. Despite these delays, Porsche remains committed to its current BEV lineup, which includes the Taycan, Macan, Cayenne, and a forthcoming two-door sports car in the 718 segment.
The company also anticipates significant external pressures, including U.S. import tariffs, a downturn in China's luxury market, and the broader slowdown in EV adoption. Porsche expects that its strategic realignment will only partially offset these challenges. As a result, it now targets a medium-term operating return on sales in the double-digit range, with strong performance potentially reaching up to 15%—the lower end of its previous guidance.
The rescheduling of the EV platform will lead to depreciation and provisions that could impact Porsche's 2025 operating profit by up to €1.8 billion. These costs were not factored into the company's earlier forecast.
Accordingly, Porsche has revised its expectations for the 2025 financial year. Sales revenue is projected to remain between €37 and €38 billion, unchanged from the previous forecast. Operating return on sales is now expected to be slightly positive, up to 2%, down from the earlier range of 5% to 7%.
Despite these adjustments, Porsche's Executive Board plans to propose a dividend payout ratio that significantly exceeds the medium-term policy of approximately 50% of IFRS profit after tax. However, the actual dividend amount would be considerably lower than the previous year's distribution. Final decisions on the dividend will be made by the relevant committees.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.