By Rachel More
BERLIN, July 29 (Reuters) – Porsche’s restructuring measures have enabled the luxury carmaker to confirm 2026 guidance despite multiple challenges, it said after reporting half-year results on Wednesday.
CEO Michael Leiters said the company, majority owned by Volkswagen, had worked intensively on strategy since he took the job at the start of the year but warned that a lot of work remains to be done.
A new package of job cuts, bringing the total to about 9,000, or 20% of the workforce, is expected to hit second-half results by between €300 million ($342 million) and €400 million, with an impact in a similar range next year, said finance chief Jochen Breckner.
“But we are convinced that this expenditure will soon pay off,” Breckner added.
Both Porsche and parent Volkswagen are targeting comprehensive overhauls, hit by billions in U.S. tariff charges, weak sales in China and cost pressures in Germany.
“The financial figures for the first half of the year are in line with our expectations,” Breckner added, citing rigorous cost management and positive effects from a shift towards high-end, margin-boosting cars — a key pillar of Leiters’ turnaround strategy.
Group operating profit grew by 34% to €1.35 billion in the first half of the year, Porsche said.
While revenue slumped 5%, the company posted an operating return on sales in the six-month period of 7.8%, above its targeted range of 5.5% to 7.5% for the full year.
($1 = 0.8772 euros)
(Reporting by Rachel MoreEditing by Linda Pasquini and David Goodman)
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