Porsche AG reaffirmed its full-year earnings guidance after first-half profitability rose, offering tentative signs that the sports-car maker’s turnaround is beginning to gain traction.

The Stuttgart-based company, which spun off from Volkswagen AG last year, said it expects operating return on sales to be between 17% and 19% for the full year. The company reported a 16.4% margin in the first half of 2023, up from 15.2% a year earlier. This increase was driven by a richer mix of vehicles, with demand for its most expensive models like the 911 and the Taycan electric sedan remaining strong.

Revenue increased 14% to €16.9 billion ($18.5 billion) in the first half, as deliveries climbed 10% to 149,448 vehicles. The company is focusing on selling higher-margin vehicles and has been successful in raising prices without significantly impacting demand. This strategy appears to be paying off, as the company continues to see strong performance despite global economic uncertainties.