Porsche reported an operating loss of negative EUR 966 million and an underlying operating profit of just under EUR 1.2 billion for the third quarter, with an underlying margin in line with the company’s medium-term guidance for a double-digit margin. The solid profit result is expected to drive market expectations for a quicker recovery to double-digit margins, with a return to double-digit margins projected for 2028. China remains a weak point for Porsche, with weaker sales expected in 2026, impacting group volumes. Larger price increases in the US may lead to a significant portion of the tariff burden falling on Porsche in 2026. The fair value estimate for Porsche is maintained at EUR 46, with shares viewed as fairly valued at current levels. A significant recovery in profitability in 2026 is forecasted, with the exclusion of one-off costs, to a high-single-digit underlying margin. The appointment of a new CEO, Michael Leiters, a leader with experience at Porsche and Ferrari, may bring strategic adjustments. Leiters believes electric vehicle technology is not yet ready for supercars.

Read more at Morningstar: Porsche Earnings: Solid Underlying Margin Provides Hope for Quicker Recovery to Double-Digit Margin