Porsche restructuring starting to pay off, says CEO

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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