Porsche targets some improvement under new CEO after 2025 tailspin

German carmaker Porsche, a subsidiary of Volkswagen, expects some recovery this year, as it dusts itself off from a turbulent 2025 rocked by profit warnings, tariff costs and the departure of its long-standing CEO.

Porsche on Wednesday forecast a group operating return on sales in the range of 5.5% to 7.5% in 2026, after collapsing to 1.1% in 2025.

“We are using the current challenges as an opportunity to act even more decisively,” said Michael Leiters, who took over at the helm from Volkswagen chief Oliver Blume on January 1.

Both the 2025 margin and the guided range for 2026 were below analysts’ expectations for 1.3% and 7.8%, respectively, according to a Visible Alpha poll.

The company cut its proposed dividend for the past year to 1.00 euro ($1.16)  per ordinary share and 1.01 euros per preferred share, after earnings were hit by charges from a halt to its electric rollout on weak demand and around 700 million euros in tariff costs.

($1 = 0.8593 euros)