Porsche Slashes 2025 Forecasts Amid China Weakness and U.S. Tariffs

Porsche cut its 2025 revenue and profit margin forecasts, citing weak demand in China, rising supply chain costs, and U.S. tariffs disrupting the global auto market. The German luxury sports car maker now expects 2025 revenues of €37–38 billion, down from a previous €39–40 billion forecast. It also revised its expected profit margin to 6.5–8.5%, compared to the earlier 10–12% target.

U.S. tariffs, effective since April at 25%, have significantly impacted Porsche, which has no American manufacturing base. In response, Porsche shipped extra inventory to the U.S. earlier this year to minimize the immediate tariff effects, keeping March order prices stable. However, the company noted its latest forecasts do not fully account for the future impact of tariffs.

Market analysts, including JP Morgan, suggested Porsche might be taking a conservative approach to reset expectations but forecast a potential return to double-digit margins by 2026. Analyst consensus from LSEG estimates Porsche’s 2025 operating margin at 9.7% on €38.8 billion in revenue.

Porsche, once valued higher than parent Volkswagen AG at its 2022 IPO, has struggled particularly in China, where first-quarter sales plummeted 42%. Bill Russo, CEO of Automobility, noted Chinese consumers are increasingly favoring domestic EV brands with superior technology. Additionally, Porsche scrapped plans to expand battery production at its Cellforce subsidiary, citing weaker demand for luxury electric vehicles in China.

Porsche is set to release its first-quarter results later today.