REG - Aston Martin Lagonda - 1st Quarter Results
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RNS Number : 7084G Aston Martin Lagonda Glob.Hldgs PLC 30 April 2025
Aston Martin Lagonda Global Holdings plc
("Aston Martin", or "AML", or the "Company"; or the "Group")
First quarter results for the three months ended 31 March 2025
Q1 2025 performance in line with guidance, including the impact of Specials
volume and mix
Continued product innovation supporting growth in H2 2025 with three new core
derivatives launched and Valhalla deliveries due to commence in H2 2025
Total liquidity of c.£400m expected to be enhanced by over £125m following
completion of proposed Yew Tree Consortium investment and sale of AMR GP
shares
2025 guidance unchanged, expecting to deliver positive adjusted EBIT for the
full year and positive FCF in H2 2025
£m Q1 2025 Q1 2024 % change
Total wholesale volumes(1) 950 945 1%
Revenue 233.9 267.7 (13%)
Gross Profit 65.2 99.7 (35%)
Gross Margin (%) 27.9% 37.2% (930 bps)
Adjusted EBIT(2) (64.5) (57.1) (13%)
Operating loss (67.3) (58.7) (15%)
Loss before tax (79.6) (138.8) 43%
Net debt(2) (1,267.4) (1,044.2) (21%)
(1) Number of vehicles including Specials; (2) For definition of alternative
performance measures please see Appendix
Adrian Hallmark, Aston Martin Chief Executive commented:
"As guided, Q1 wholesale volumes were in line with the prior year and retail
volumes materially outpaced wholesales, reflecting our disciplined approach to
production and stock optimisation. Core average selling price increased by
10%, demonstrating the positive impact of our recently launched range of
ultra-luxury high performance models.
"We are carefully monitoring the evolving U.S. tariff situation and are
currently limiting imports to the U.S. while leveraging the stock held by our
U.S. dealers. We remain vigilant in monitoring events and will respond to
changes in the operating environment as they materialise.
"In the year ahead, we will complement the core portfolio through the delivery
of further derivatives including the DBX S, which expands our SUV range and
offers customers even more power, reduced weight and a more assertive design.
We are now in the final testing phase of the groundbreaking supercar,
Valhalla, our first mid-engined Plug in Hybrid Electric Vehicle, with
deliveries set to commence in H2. Alongside our drive for continued
improvements across key areas of the business, the new core derivates and
Valhalla are expected to support future growth and delivery of our 2025 key
financial targets."
Aston Martin's CEO and CFO will host a Q&A at 8:30am (BST) today. Details
can be found on page 6 of this announcement and online at
www.astonmartinlagonda.com/investors
(http://www.astonmartinlagonda.com/investors)
Wholesale volume summary
Number of vehicles Q1 2025 Q1 2024 % change
Total wholesale 950 945 1%
Core (excluding Specials) 936 900 4%
By region:
UK 176 154 14%
Americas 319 303 5%
EMEA ex. UK 258 283 (9%)
APAC 197 205 (4%)
By model:
Sport/GT 725 650 12%
SUV 211 250 (16%)
Specials 14 45 (69%)
Note: Sport/GT includes Vantage, DB11, DB12, DBS and Vanquish
As guided at FY 2024 results, Q1 2025 total wholesale volumes of 950 were in
line with the prior year period (Q1 2024: 945), as the Company focused on a
disciplined approach to production and stock optimisation at the start of
2025. In addition, retail volumes significantly outpaced wholesale volumes by
c. 50%.
Aston Martin expects to continue to benefit from its now full range of new
core models and from future derivatives of these vehicles. Derivatives will
include Vantage Roadster with deliveries commencing in Q2 2025, Vanquish
Volante with deliveries commencing in Q3 2025 and as announced today, the new
DBX S with deliveries commencing in Q4 2025. This expanded range of models is
expected to enhance the quality and duration of the order book over time.
Currently, the orderbook is stable for core vehicles and extends for up to
five months.
Aston Martin's overall volumes remained well balanced across all regions in Q1
2025, with the Americas and EMEA excluding UK collectively representing 61% of
total wholesales. Volumes in APAC (excluding China) were flat, with volumes in
China decreasing by 27% compared with Q1 2024 driven by continued market
dynamics outlined in 2024. UK wholesale volumes increased by 14% which was
offset by a 9% decline in EMEA due to the timing of model transitions and
deliveries.
Revenue and Average Selling Price (ASP) summary
£m Q1 2025 Q1 2024 % change
Sale of vehicles 205.7 239.6 (14%)
Total ASP (£k) 216 253 (15%)
Core ASP (£k) 193 176 10%
Sale of parts 21.9 20.9 5%
Servicing of vehicles 3.8 3.6 6%
Brand and motorsport 2.5 3.6 (31%)
Total revenue 233.9 267.7 (13%)
Q1 2025 total revenue of £234m decreased by 13% (Q1 2024: £268m), primarily,
as guided, due to the decrease in Specials volumes compared to the prior year
period. Benefitting from the next generation core range of vehicles including
Vanquish, core ASP increased 10% while total ASP decreased by 15%, again
reflecting fewer Specials. Demand for unique product personalisation continued
to drive strong contribution to core revenue of 18%, in line with the prior
year period.
Income statement summary
£m Q1 2025 Q1 2024
Revenue 233.9 267.7
Cost of sales (168.7) (168.0)
Gross profit 65.2 99.7
Gross margin % 27.9% 37.2%
Adjusted operating expenses (129.7) (156.8)
of which depreciation & amortisation 60.1 77.0
Adjusted EBIT(2) (64.5) (57.1)
Adjusting operating items (2.8) (1.6)
Operating loss (67.3) (58.7)
Net financing expense (12.3) (80.1)
of which adjusting financing income/(expense) 3.0 (26.7)
Loss before tax (79.6) (138.8)
Tax charge (0.4) (0.1)
Loss for the period (80.0) (138.9)
Adjusted EBITDA(2) (4.4) 19.9
Adjusted EBITDA margin (1.9%) 7.4%
Adjusted loss before tax (79.8) (110.5)
2 Alternative Performance Measures are defined in Appendix
The lower revenue as a result of the decrease in Specials deliveries impacted
gross profit. In addition, gross profit was impacted by c.£15m as the Company
chose to invest further in delivering on its excellence in product quality and
customer satisfaction. The investment predominantly relates to enhancing the
software of all next generation cars in the market to ensure optimal user
experience, with all associated costs reflected in Q1 2025. As a result,
gross profit decreased to £65m (Q1 2024: £100m), resulting in a gross margin
of 28% (Q1 2024: 37%). The Company continues to target over 40% gross margin
from all new products, aligned with its ultra-luxury high performance
strategy, which includes the benefits from increased personalisation
opportunities with an enhanced range of options becoming available from the
second half of the year onwards.
Adjusted EBITDA decreased by £24m in Q1 2025 to £(4)m (Q1 2024: £20m) with
adjusted EBITDA margin declining to (2)% (Q1 2024: 7%). This reflects the
lower gross profit, which was partially offset by a 13% decrease in adjusted
operating expenses (excluding D&A). This aligns with the Groups focus on
optimising the cost base, as part of its ongoing transformation programme,
seeking to deliver operating leverage. The Group's previously announced
organisational adjustments, to ensure the business is appropriately resourced
for its future plans, are progressing as planned. The Group remains on track
with its guidance to deliver a reduction in adjusted operating expenses
(excluding D&A) in FY 2025 to c.£300m.
Adjusted EBIT decreased by 13% in Q1 2025 to £(65)m (Q1 2024: £(57)m) with
depreciation and amortisation decreasing by 22% to £60m (Q1 2024: £77m),
primarily reflecting fewer Specials.
Adjusted net financing costs of £15m (Q1 2024: £53m), decreased primarily
due to the year-on-year impact of US dollar debt revaluations. Q1 2025 net
adjusting finance income of £3m relates to movements in the fair value of
outstanding warrants. The prior year period net adjusting finance expense of
£27m comprised of a redemption premium associated with the refinancing of
senior secured notes, partially offset by movements in fair value of
outstanding warrants.
The adjusted loss before tax reduced to £80m (Q1 2024: £111m loss), largely
reflecting the decrease in adjusted net finance costs.
Cash flow and net debt summary
£m Q1 2025 Q1 2024
Cash used in operating activities (31.1) (61.5)
Cash used in investing activities (excl. interest) (89.8) (86.3)
Net cash interest received/(paid) 0.6 (42.6)
Free cash outflow (120.3) (190.4)
Cash (outflow)/inflow from financing and other investing activities (excl. (4.9) 27.9
interest)(2)
Decrease in net cash (125.2) (162.5)
Effect of exchange rates on cash and cash equivalents (1.3) (0.3)
Cash balance 233.1 229.6
Available facilities 154.1 165.6
Total cash and available facilities ("liquidity") 387.2 395.2
2 Alternative Performance Measures are defined in Appendix
Net cash outflow from operating activities decreased by £30m in Q1 2025 to
£31m (Q1 2024: £62m outflow), largely driven by a reduced working capital
outflow of £21m (Q1 2024: £74m outflow), partially offset by a £24m
decrease in adjusted EBITDA, as explained above. The largest drivers of
working capital outflow were:
· £26m decrease in payables following reduction from peak
production volumes in Q4 2024 (Q1 2024: £59m decrease)
· £20m increase in inventories (Q1 2024: £25m increase) ahead of
commencing new core derivatives and Valhalla production
· which were partially offset by an £18m increase (Q1 2024: £33m
decrease) in deposits held, due to Valhalla deposit collections more than
offsetting the deposit outflow from Valiant deliveries and a decrease in
receivables of £6m (Q1 2024: £43m decrease) following collections relating
to Q4 2024 wholesales
Capital expenditure of £90m was broadly in line with the comparative period
(Q1 2024: £86m), with investment focused on the future product pipeline.
Free cash outflow decreased by £70m to £120m in Q1 2025 (Q1 2024: £190m
outflow), due to the decrease in cash outflow from operating activities as
detailed above, and the prior year including the early cash interest payment
of £43m in Q1 2024 as part of the Company's refinancing exercise last year.
£m 31-Mar-25 31-Dec-24 31-Mar-24
Loan notes (1,356.0) (1,378.9) (1,140.5)
Inventory financing (39.3) (38.4) (38.0)
Bank loans and overdrafts (8.5) (8.4) 0.0
Lease liabilities (IFRS 16) (96.7) (96.6) (95.3)
Gross debt (1,500.5) (1,522.3) (1,273.8)
Cash balance 233.1 359.6 229.6
Net debt (1,267.4) (1,162.7) (1,044.2)
Compared with 31 December 2024, gross debt marginally decreased to £1,501m
(31 December 2024: £1,522m) reflecting the translation benefit of sterling
strengthening compared to the US dollar in relation to the Company's U.S.
Dollar denominated loan notes. As expected, total cash and available
facilities were £387m on 31 March 2025 (31 December 2024: £514m, 31 March
2024: £395m) prior to the expected liquidity benefit of over £125m
associated with the proposed investment from Yew Tree Consortium and the
proposed sale of the Group's investment in the Aston Martin Aramco Formula
One™ Team, as announced on 31 March 2025.
Net debt of £1,267m at 31 March 2025 increased from £1,163m as at 31
December 2024 primarily due to a decrease in the cash balance. The adjusted
net leverage ratio of 5.1x (31 March 2024: 3.5x) reflects the increase in net
debt and Q1 decline in adjusted EBITDA, as the Group prepares to deliver a
significantly stronger second half performance. Through disciplined strategic
delivery and profitable growth in the future, the Group expects to deleverage
in line with its medium-term target.
Outlook: FY 2025 guidance remains unchanged (since volume update on 31 March
2025)
Whilst potential ramifications on the global economy from the recently
announced U.S. tariffs remain uncertain, Aston Martin still expects to make
significant improvements across all key financial performance metrics in 2025,
compared to the prior year. The Group expects to deliver a significantly
stronger H2 2025 performance compared with H1 2025, primarily driven by Q4
2025, benefiting from Valhalla and the contribution from new core derivatives.
This will positively position the Company as it enters 2026.
As announced on 31 March 2025, initial analysis regarding the impact on
wholesale volumes from the imposition of additional U.S. tariffs, resulted in
a slight reduction to guidance with the Group now expecting to deliver modest
wholesale volume growth in FY 2025 compared with the prior year (previous
guidance: mid-single digit percentage growth). Focus remains on maximising the
value in every vehicle sold and extending the order book with retails expected
to outpace wholesales for the year.
Despite the increased uncertainty, the Group's key financial targets for the
year, being positive adjusted EBIT for the full year and free cash flow
generation in H2, are unchanged.
In Q2 2025, the Company expects to deliver quarterly sequential improvement in
performance despite the anticipated impact of U.S. tariffs. Total wholesale
volumes are expected to be broadly in line with the prior year period although
mix will again be negatively impacted by fewer Special deliveries. The mix
effect will be reflected in the financial performance compared to Q2 2024,
which also includes the impact from the Group's planned Enterprise Resource
Planning roll out at its Gaydon Headquarters which will limit production for
around 3 weeks. Q2 2025 free cash outflow is expected to be broadly in line
with the prior year period, despite including the semi-annual loan note
interest payment which in the prior year was paid earlier in Q1 as part of the
refinancing exercise.
The Company continues to monitor global events closely, in particular relating
to the impact of recent U.S. tariffs and will remain agile as the external
environment continues to evolve. Additionally, the Company remains alert to
wider risk factors that present an element of uncertainty that could impact
the Group's plans. These include, but are not limited to, further changes in
customs duties (tariffs), political and macroeconomic volatility, including
fluctuations in key foreign exchange rates, supply chain disruptions and
delays to major car lunches such as Valhalla.
The financial information contained herein is unaudited.
All metrics and commentary in this announcement exclude adjusting items unless
stated otherwise and certain financial data within this announcement have been
rounded.
Enquiries
Investors and Analysts
James Arnold Head of Investor
Relations
+44 (0) 7385 222347
james.arnold@astonmartin.com
Ella South Investor
Relations Analyst
+44 (0) 7776 545420
ella.south@astonmartin.com
Media
Kevin Watters Director of
Communications
+44 (0) 7764 386683
kevin.watters@astonmartin.com
FGS Global
James Leviton and Jenny Bahr
+44 (0) 20 7251 3801
Q&A details
· There will be a Q&A today at 08:30am BST:
https://app.webinar.net/d8jpzldz5y7 (https://app.webinar.net/d8jpzldz5y7)
· The Q&A can be accessed live via the corporate website:
https://www.astonmartinlagonda.com/investors/results-and-presentations
(https://www.astonmartinlagonda.com/investors/results-and-presentations)
· A replay facility will be available on the website later in the
day
No representations or warranties, express or implied, are made as to, and no
reliance should be placed on, the accuracy, fairness or completeness of the
information presented or contained in this release. This release contains
certain forward-looking statements, which are based on current assumptions and
estimates by the management of Aston Martin Lagonda Global Holdings plc
("Aston Martin Lagonda"). Past performance cannot be relied upon as a guide to
future performance and should not be taken as a representation that trends or
activities underlying past performance will continue in the future. Such
statements are subject to numerous risks and uncertainties that could cause
actual results to differ materially from any expected future results in
forward-looking statements. These risks may include, for example, changes in
the global economic situation, and changes affecting individual markets and
exchange rates.
Aston Martin Lagonda provides no guarantee that future development and future
results achieved will correspond to the forward-looking statements included
here and accepts no liability if they should fail to do so. Aston Martin
Lagonda undertakes no obligation to update these forward-looking statements
and will not publicly release any revisions that may be made to these
forward-looking statements, which may result from events or circumstances
arising after the date of this release.
This release is for informational purposes only and does not constitute or
form part of any invitation or inducement to engage in investment activity,
nor does it constitute an offer or invitation to buy any securities, in any
jurisdiction including the United States, or a recommendation in respect of
buying, holding or selling any securities.
Alternative Performance Measure
£m Q1 2025 Q1 2024
Loss before tax (79.6) (138.8)
Adjusting operating expense 2.8 1.6
Adjusting finance expense 0.0 35.7
Adjusting finance income (3.0) (9.0)
Adjusted EBT (79.8) (110.5)
Adjusted finance income (27.1) (2.7)
Adjusted finance expense 42.4 56.1
Adjusted EBIT (64.5) (57.1)
Reported depreciation 17.2 20.7
Reported amortisation 42.9 56.3
Adjusted EBITDA (4.4) 19.9
In the reporting of financial information, the Directors have adopted various
Alternative Performance Measures (APMs). APMs should be considered in addition
to IFRS measurements. The Directors believe that these APMs assist in
providing useful information on the underlying performance of the Group,
enhance the comparability of information between reporting periods, and are
used internally by the Directors to measure the Group's performance.
- Adjusted EBT is the loss before tax and adjusting items as shown on
the Consolidated Income Statement
- Adjusted EBIT is loss from operating activities before adjusting
items
- Adjusted EBITDA removes depreciation, loss/(profit) on sale of fixed
assets and amortisation from adjusted EBIT
- Adjusted operating margin is adjusted EBIT divided by revenue
- Adjusted EBITDA margin is adjusted EBITDA (as defined above)
divided by revenue
- Adjusted Earnings Per Share is loss after income tax before adjusting
items, divided by the weighted average number of ordinary shares in issue
during the reporting period
- Net Debt is current and non-current borrowings in addition to inventory
financing arrangements, lease liabilities, less cash and cash equivalents and
cash held not available for short-term use
- Adjusted net leverage is represented by the ratio of Net Debt to the
last twelve months ('LTM') Adjusted EBITDA
- Free cash flow is represented by cash inflow/(outflow) from
operating activities less the cash used in investing activities (excluding
interest received and cash generated from disposals of investments) plus
interest paid in the year less interest received.
About Aston Martin Lagonda:
Aston Martin's vision is to be the world's most desirable, ultra-luxury
British brand, creating the most exquisitely addictive performance cars.
Founded in 1913 by Lionel Martin and Robert Bamford, Aston Martin is
acknowledged as an iconic global brand synonymous with style, luxury,
performance, and exclusivity. Aston Martin fuses the latest technology, time
honoured craftsmanship and beautiful styling to produce a range of critically
acclaimed luxury models including the Vantage, DB12, Vanquish, DBX and its
first hypercar, the Aston Martin Valkyrie. Aligned with its Racing. Green.
sustainability strategy, Aston Martin is developing alternatives to the
Internal Combustion Engine with a blended drivetrain approach between 2025 and
2030, including PHEV and BEV, with a clear plan to have a line-up of
electrified sports cars and SUVs.
Based in Gaydon, England, Aston Martin Lagonda designs, creates, and exports
cars which are sold in more than 50 countries around the world. Its sports
cars are manufactured in Gaydon with its luxury DBX SUV range proudly
manufactured in St Athan, Wales.
Lagonda was founded in 1899 and came together with Aston Martin in 1947 when
both were purchased by the late Sir David Brown, and the company is now listed
on the London Stock Exchange as Aston Martin Lagonda Global Holdings plc.
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