Porsche plots Ferrari killer sports car to rescue crashing profitsPorsche is preparing a new halo sports car aimed squarely at Ferrari, just as its profits are collapsing and its strategy is being rewritten. The company is betting that an ultra-high margin flagship above the 911 can help restore credibility after a profit implosion that has shaken investors and fans alike. The plan is emerging as Porsche cuts costs, trims jobs, and retreats from parts of its electric roadmap, even while insisting that its future still lies in building the most desirable sports cars in the world. Profit collapse forces a reset Porsche has just endured what some analysts describe as a near wipeout in earnings, with one widely shared breakdown referring to a 99% collapse in operating profit that stunned markets. Another investor summary framed the swing as a 96% plunge that turned a previous $4.3 billion gain into about $1.1 billion of profit. The collapse followed two major write-downs at Porsche AG, which almost erased operating profit in 2025 and highlighted the cost of shifting away from parts of its EV strategy. As a result, the group’s return on sales dropped to 1.1%, down from 14.1%, a fall that has forced management to accelerate what it calls a 2035 Strategy focused on long-term resilience rather than raw volume. The financial shock is visible in the basic sales numbers. Vehicle deliveries fell 10.1% to 279,449, while vehicle sales dropped 15.0% to 265,663, even as average revenue per vehicle climbed to about €121 thousand. Globally, Porsche delivered 10% fewer cars, with declines in every region except the United States, where deliveries stagnated, and the return on sales fell from 14.1% to about 1.1%. Leaner, faster, more exclusive In response, Porsche AG used its latest annual press conference to promise a leaner structure and a sharper product focus. The company described a realignment that will make it Leaner, faster, and more desirable, with a forecast for 2026 that includes a return on sales between 3 and 5 per cent. Executives are also accelerating a product overhaul laid out in the group’s latest annual report, which emphasizes high-margin sports cars and SUVs over lower-priced variants. Mar, speaking for Porsche AG at the regional briefing, said the group is accelerating the further development of its product strategy and streamlining management after a year in which return on sales was 1.1 per cent. The financial cleanup has human consequences. Porsche reported on Wednesday that its net profit slumped in 2025 and that it would slash further jobs as it absorbs billions of euros in costs linked to a shift back toward combustion engines. A related notice to investors, cited through Discovered coverage, described a 91% slump in profit that underlines how far the brand has fallen from its previous earnings power. From volume to value The new strategy leans hard into exclusivity. Porsche has framed its approach as Value over Volume, a shift that prioritizes higher transaction prices and richer option mixes even if total units fall. That philosophy is already visible in the 992.2 generation 911 range and the latest Porsche Taycan, which has been heavily upgraded for performance and technology but sold into a narrower, more affluent slice of the market. At the same time, Porsche has pulled back from some mid-engine sports car projects, prompting speculation that the company is clearing space in its lineup and budget for a single, ultra-expensive flagship that can sit above the 911 and carry Ferrari-level pricing. A new 918-style hypercar Into this context comes the plan for a new hypercar. Commentators close to the company say Porsche is considering a model positioned above the 911 as a successor to the legendary 918 Spyder, a car that would serve as both a technology showcase and a profit engine. A longer analysis of the same project describes how Porsche is planning a 918 successor and warns that such a car, while potentially lucrative per unit, must be carefully timed, given the group has just lost about $5 billion in operating profit. The logic is clear. A Ferrari rival priced well into seven figures can generate substantial margin from a relatively small production run, and it can radiate desirability across the rest of the range, from the 911 Turbo to the Cayenne. Porsche already has proof that extreme performance sells. The 2026 Porsche 911 Turbo S, for example, is marketed as quicker than the 918 Spyder and the Corvette ZR1X, with the Turbo S able to sprint to 60 mph in a time that puts it among the fastest gasoline cars ever tested. Video comparisons already pit the 2026 Porsche 911 Turbo S against the 2026 Ferrari ML Alfie, with Sep clips highlighting how close the two brands now are on outright pace even before a new hypercar arrives. Margin revival targets Behind the product fireworks sits a sober financial plan. A detailed quick summary of Porsche’s guidance says the company expects operating margin to recover to a range of 5.5% to 7.5% in 2026 after collapsing to about 1.1% in 2025 amid a sales slump and leadership change. An investor note on the Outlook describes the 2026 targets as a potential Credible Rebound or a Guidance Reset, arguing that the market is weighing whether Porsche can execute on its high-margin product push quickly enough. The company itself has been explicit that its 2026 outlook does not yet factor in the potential impact of recent developments in the Middle East, which could further complicate supply chains and demand. High stakes for a Ferrari fighter Within this financial and geopolitical uncertainty, a Ferrari rival hypercar looks both enticing and risky. A successful launch would reinforce Porsche’s claim that it builds the world’s most complete sports cars and could support the entire Value over Volume strategy. If the project stumbles, however, the optics would be harsh: a company that has just seen profits fall by 91% in some Discovered references choosing to pour resources into a halo toy instead of shoring up its core business. For now, the official messaging stays disciplined. The latest annual press conference materials stress disciplined capital allocation, a focus on high-margin segments, and a gradual rebuilding of returns rather than a single silver bullet. Yet the symbolism of a new 918 style flagship is hard to ignore. In the sports car world, nothing signals confidence like a machine designed to chase Ferrari on its own turf, and Porsche appears ready to make that bet as it fights to rescue its margins and its mystique. More from Fast Lane Only Unboxing the WWII Jeep in a Crate 15 rare Chevys collectors are quietly buying 10 underrated V8s still worth hunting down Police notice this before you even roll window down