Porsche (P911.DE) slashed its full-year outlook after reporting a sharp fall in first-quarter profits, citing a toxic mix of waning demand in China, rising supply chain costs and disruptive US tariffs that are shaking the global car industry.
The company said its profit after tax plunged 44% to €518m and earnings per share slid 44.5% to €0.56. Furthermore, the revenue outlook for 2025 was cut from the €39bn-€40bn range to €37bn-€38bn and return on sales guidance was lowered from 10%-12% to 6.5%-8.5%.
“The introduction of US import tariffs leads to negative impacts for the months of April and May 2025 which are included in the adjusted forecast. However, the adjusted forecast does not take into account further effects of the introduction of US import tariffs,” the company said in a statement.
“Currently it is not yet possible to make a reliable assessment of the effects for the financial year,” it added.
The tariffs, part of a wider escalation in global trade tensions, are expected to increase the price of imported vehicles by thousands of dollars, weakening demand in a market already grappling with a slowing shift to electric vehicles.
Porsche is also contending with softening demand in its largest market, China, particularly for its all-electric models.