Porsche reported a 6% drop in sales revenue for the first three quarters of the year, totaling 26.86 billion euros ($31.22 billion). Operating profit plummeted by 99% to only 40 million euros ($46.50), resulting in an operating return on sales of just 0.2%, down from 14.1% last year.

The company now projects global sales revenue for the year to be between 37 to 38 billion euros (compared to the prior 40.1 billion euros), with a turn on sales ranging from “slightly positive to 2%.” Adjustments to its powertrain strategy and other costs could reach around 3.2 billion euros ($3.72 billion) this year.

Porsche expects a tariff hit of around 700 million euros ($813.67 million) for the full year. The decline in North America sales was due to lower imports post-summer break, while challenges in China’s luxury segment prompted cuts in dealerships, employees, and other costs in the region.

CEO Oliver Blume will step down from Porsche, with Michael Leiters taking his place on January 1, 2026. Forward guidance includes a return of sale of up to 2% this year, down from the previous 5%, and an automotive EBITDA margin between 10.5% to 12.5%, down from 14.5% to 16.5%.

Read more at Yahoo Finance: Porsche reports downbeat YTD results, forward guidance as it recalibrates its EV, China strategy