Porsche chief promises turnaround plan later this year as investors wait

Porsche Chief Executive Michael Leiters told shareholders on June 23 that the company will set out its turnaround plan in detail at a Capital Markets Day on October 7, but the bigger problem remains China, where sales fell 26% in 2025 and have become the clearest sign of how much pressure Porsche faces.

At the annual general meeting, Porsche confirmed 2026 guidance that points to an operating return on sales of 5.5% to 7.5% and an automotive net cash-flow margin of 3% to 5%. The company said it is assuming 35 billion to 36 billion euros in revenue, while also absorbing 800 million to 900 million euros in one-off expenses and about 700 million euros in tariff costs. For investors, those numbers underscored a recovery that is still more promise than proof.

The credibility gap is sharpest in China. Porsche’s 2025 deliveries fell 10% to 279,449 vehicles, its steepest annual drop since 2009, and China was the worst-performing major market. The weakness comes as local rivals, including Xiaomi, are winning buyers with lower-priced, tech-heavy electric SUVs, while Porsche’s own January delivery report showed it had delayed some all-electric launches and taken a 1.8 billion euro hit to earnings.

Porsche is also trying to convince investors that it can repair margins while shrinking its cost base. The company has already agreed to cut 3,900 jobs after laying off 2,000 temporary workers last year, and Leiters wants a second cost-cutting package finalized by July, before the factory holidays. Porsche is also planning lower production capacity than the roughly 280,000 cars it sold last year and is seeking closer cooperation with Audi, while keeping the entry-level 718 series.

That restructuring has not calmed shareholders. Porsche’s operating margin collapsed to almost 1% in 2025, and the company’s shares have roughly halved since its 2022 listing. Investors at the AGM raised concerns about the company’s business model in China, while smaller shareholders questioned whether Porsche is paying enough attention to software and autonomous-driving technology, two areas that matter to premium buyers in the Chinese market.

Leiters is now leaning on high-end models such as the 911 and the upcoming all-electric Cayenne SUV as Porsche tries to defend its brand and restore pricing power. But until China stabilizes and the company shows that it can lift margins with fewer cars, investors are likely to treat the October 7 plan as only the first step, not the answer.