REG - Aston Martin Lagonda - Q1 results for three months ended 31 March 2026
Today 07:00
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RNS Number : 2963C Aston Martin Lagonda Glob.Hldgs PLC 29 April 2026
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 2026
________________________________________________________
· Delivered Q1 2026 performance in line with guidance; core retail
volumes significantly ahead of wholesale volumes in addition to a further 102
Valhalla deliveries
· Enhanced product mix driving 17% increase in total ASP combined
with transformation benefits delivers material gross margin improvement to 35%
· Agreed new £50m committed facility with certain members of the
Yew Tree Consortium which in addition to the completed sale of the Aston
Martin F1 naming rights to AMR GP enhances pro forma liquidity at the end of
Q1 2026 to c. £230m
· FY 2026 guidance unchanged whilst remaining mindful of the
broader macroeconomic and geopolitical backdrop
£m Q1 2026 Q1 2025 % change
Total wholesale volumes(1) 939 950 (1%)
Revenue 270.4 233.9 16%
Gross Profit 93.9 65.2 44%
Gross Margin (%) 34.7% 27.9% 680 bps
Adjusted EBIT(2) (56.9) (64.5) 12%
Operating loss (8.9) (67.3) 87%
Loss before tax (65.5) (79.6) 18%
Net debt(2) (1,459.2) (1,267.4) (15%)
(1) Number of vehicles including Specials; (2) For definition of alternative
performance measures please see Appendix
Adrian Hallmark, Aston Martin Chief Executive commented:
"Q1 2026 confirms that we are on track to deliver material financial
improvement this year. In line with our full year guidance, Q1 2026 total
wholesale volumes were similar to the prior year, while gross margin increased
into the mid-30s driven by Valhalla deliveries and the benefits of our
transformation programme.
"Whilst we remain mindful of the uncertain global macroeconomic and
geopolitical context, including the current conflict in the Middle East, we
are focused on executing our strategy and achieving our unchanged 2026 full
year guidance. Further financial improvement is expected through the rest of
the year as we benefit from our expanding core model range, continued Valhalla
deliveries following terrific recent five-star driving reviews and ongoing
operational discipline."
Aston Martin's CFO, Doug Lafferty, will host an analyst Q&A call at 8:30am
(BST) today:
· Register and join the conference call via the following link:
https://app.webinar.net/gYwyW2BWOlk (https://app.webinar.net/gYwyW2BWOlk)
· Results material can be accessed via the corporate website:
https://www.astonmartin.com/corporate/investors/results-and-presentations
(https://www.astonmartin.com/en/corporate/investors/results-and-presentations)
· A replay facility will be available on the website later in the
day
Wholesale volume summary
Number of vehicles Q1 2026 Q1 2025 % change
Total wholesale 939 950 (1%)
Core (excluding Specials) 836 936 (11%)
By region:
UK 131 176 (26%)
Americas 354 319 11%
EMEA ex. UK 267 258 3%
APAC 187 197 (5%)
By model:
Sport/GT 658 725 (9%)
SUV 178 211 (16%)
Specials 103 14 n/m
Note: Current year Sport/GT includes Vantage, DB12, DBS and Vanquish
As guided at FY 2025 results, Q1 2026 total wholesale volumes of 939 were
similar to the prior year period (Q1 2025: 950), with core retail volumes
outpacing core wholesale volumes by over 50%, as the Company continued to
maintain a disciplined approach to managing the balance between production and
demand at the start of 2026.
Aston Martin expects to continue to realise benefits from its expanding range
of core models and Specials. Having commenced deliveries of the DBX S and
Vantage S models in Q4 2025, DB12 S deliveries recently commenced. In
addition, further Valhalla units will be delivered in FY 2026 as part of the
c. 500 units guided to in total for the year. Currently, the core orderbook
remains stable while current Valhalla orders take deliveries into Q4 2026.
Aston Martin's overall volumes remained well balanced across all regions in Q1
2026, with the Americas and EMEA excluding UK collectively representing 66% of
total wholesales. Volumes in the UK decreased 26%, and in the Americas
increased 11% reflecting the timing of deliveries of new core derivatives and
Specials in Q4 2025.
Revenue and Average Selling Price (ASP) summary
£m Q1 2026 Q1 2025 % change
Sale of vehicles 237.8 205.7 16%
Total ASP (£k) 252 216 17%
Core ASP (£k) 179 193 (7%)
Sale of parts 24.4 21.9 11%
Servicing of vehicles 3.9 3.8 3%
Brand and motorsport 4.3 2.5 72%
Total revenue 270.4 233.9 16%
Q1 2026 total revenue of £270m increased by 16% (Q1 2025: £234m), primarily
due to the increase in Specials volumes compared to the prior year period.
Benefitting from the delivery of 102 Valhalla units, total ASP increased 17%
compared to the prior year period. Core ASP decreased by 7% compared to the
prior year period, reflecting targeted dealer support to reduce aged stock, as
previously guided. Demand for unique product personalisation continued to
drive a consistent c. 18% contribution to core revenue.
Income statement summary
£m Q1 2026 Q1 2025
Revenue 270.4 233.9
Cost of sales (176.5) (168.7)
Gross profit 93.9 65.2
Gross margin % 34.7% 27.9%
Adjusted operating expenses (150.8) (129.7)
of which depreciation & amortisation 80.2 60.1
Adjusted EBIT(2) (56.9) (64.5)
Adjusting operating items 48.0 (2.8)
Operating loss (8.9) (67.3)
Net financing expense (56.6) (12.3)
of which adjusting financing income 0.8 3.0
Loss before tax (65.5) (79.6)
Tax credit/(charge) 2.5 (0.4)
Loss for the period (63.0) (80.0)
Adjusted EBITDA(2) 23.2 (4.4)
Adjusted EBITDA margin % 8.6% (1.9%)
Adjusted loss before tax (114.3) (79.8)
2 Alternative Performance Measures are defined in Appendix
Gross profit increased 44% to £94m (Q1 2025: £65m) supported by higher
revenue as a result of the increase in Specials deliveries, including a
greater number in the Americas region, and transformation benefits including
lower manufacturing costs and investments in product quality and customer
satisfaction which were elevated in the prior year period relating to software
enhancements. This resulted in gross margin improving to 35% (Q1 2025: 28%).
Adjusted EBITDA increased by £28m in Q1 2026 to £23m (Q1 2025: £(4)m),
reflecting the higher gross profit, with adjusted EBITDA margin increasing to
9% (Q1 2025: (2)%).
Adjusted EBIT increased by 12% in Q1 2026 to £(57)m (Q1 2025: £(65)m), again
benefiting from the higher gross profit, partially offset by the 33% increase
in adjusted depreciation and amortisation to £80m (Q1 2025: £60m), primarily
reflecting the increased deliveries of Specials.
Adjusted net financing costs of £57m (Q1 2025: £15m), increased primarily
due to the year-on-year non-cash impact of US dollar debt revaluations. Q1
2026 net adjusting finance income of £1m (Q1 2025: £3m) relates to movements
in the fair value of outstanding warrants.
The adjusted loss before tax increased to £114m (Q1 2025: £80m loss),
reflecting the increase in adjusted net finance costs.
Cash flow and net debt summary
£m Q1 2026 Q1 2025
Cash used in operating activities (53.2) (31.1)
Cash used in investing activities (excl. interest) (61.0) (89.8)
Net cash interest (paid)/received (2.6) 0.6
Free cash outflow (116.8) (120.3)
Cash inflow/(outflow) from financing and other investing activities (excl. 42.1 (4.9)
interest)(2)
Decrease in net cash (74.7) (125.2)
Effect of exchange rates on cash and cash equivalents 2.2 (1.3)
Cash balance 177.4 233.1
Available facilities 0.3 154.1
Total cash and available facilities ("liquidity") 177.7 387.2
2 Alternative Performance Measures are defined in Appendix
Net cash outflow from operating activities increased by £22m in Q1 2026 to
£53m (Q1 2025: £31m outflow), largely driven by a working capital outflow of
£63m (Q1 2025: £21m outflow), partially offset by a £28m increase in
adjusted EBITDA, as explained above. The largest drivers of working capital
outflow were:
· £42m increase in inventories (Q1 2025: £20m increase), ahead of
the ramp up of DB12 S deliveries and increased Valhalla deliveries in Q2 2026
· £14m increase in receivables (Q1 2025: £6m decrease), following
the improved cash collection at year end 2025, as previously referenced
· £10m decrease in deposits held (Q1 2025: £18m increase) as
Valhalla deliveries continued, partially offset by an inflow of Valhalla
deposits
· The above outflows were partially offset by a £4m increase in
payables (Q1 2025: £26m decrease) associated with timing of payments related
to future product rollout plans
Capital expenditure of £61m was below the comparative period (Q1 2025:
£90m), with investment focused on the future product pipeline in line with
the revised business plan.
As previously guided, free cash outflow is expected to materially improve in
FY 2026 compared with the prior year (£410m outflow) supported by an enhanced
product mix and more balanced production cadence from Q2 2026 onwards. Free
cash outflow in Q1 2026 of £117m marginally improved compared to the prior
year period (Q1 2025: £120m outflow), with reduced capital expenditure
largely offsetting the working capital outflow.
Total cash and available facilities were £178m on 31 March 2026 (31 December
2025: £250m), with the free cash outflow partially offset by the gross
proceeds of £50m associated with the completed sale in Q1 2026 of the Aston
Martin F1 naming rights to AMR GP.
The Group has agreed a new £50m committed facility with certain members of
the Yew Tree Consortium (Yew Tree Overseas Limited and Saint Alexander S.à
r.l), which enhances pro forma total liquidity to c. £230m at the end of Q1
2026. The facility is subject to customary closing conditions, including
compliance with all relevant Listing Rule obligations.
£m 31-Mar-26 31-Dec-25 31-Mar-25
Loan notes (1,345.9) (1,329.8) (1,356.0)
Inventory financing (38.3) (39.6) (39.3)
Bank loans and overdrafts (165.3) (170.4) (8.5)
Lease liabilities (IFRS 16) (92.2) (91.8) (96.7)
Gross debt (1,641.7) (1,631.6) (1,500.5)
Cash balance 177.4 249.9 233.1
Cash not available for short term use 5.1 1.4 -
Net debt (1,459.2) (1,380.3) (1,267.4)
Compared with 31 December 2025, gross debt marginally increased to £1,642m
(31 December 2025: £1,632m) largely as a result of the FX impact on the loan
notes. Net debt of £1,459m at 31 March 2026 increased from £1,380m as at 31
December 2025 primarily due to a decrease in the cash balance and the increase
in gross debt. The adjusted net leverage ratio of 10.8x (31 March 2025: 5.1x)
reflects the increase in net debt. The Group expects to deleverage over the
medium term through sequentially improved financial performance and
disciplined strategic delivery.
OUTLOOK
Expect to deliver material improvement in FY 2026 financial performance driven
by an enhanced product mix and benefits from the ongoing transformation
programme and disciplined approach to operations
The global macroeconomic and geopolitical environment facing the wider
automotive industry remains challenging. This dynamic landscape includes
uncertainties over the economic impact from the unpredictable threat or
introduction of additional U.S. tariffs, changes to China's ultra-luxury car
taxes and the continued reliance on a stable network of global suppliers. The
recent conflict in the Middle East has presented the latest macroeconomic and
geopolitical uncertainty, and whilst there has been no material direct impact
to the business in Q1 2026, the Group continues to monitor the evolving
situation and its potential impact on global demand, customer confidence and
supply chains.
Given this landscape, the Group will maintain its disciplined approach to
operations, deliver benefits from its transformation programme including cost
optimisation, focus on improved cash flow generation and liquidity management.
Progress on these fronts will be underpinned by the Group's recently revised
future product cycle plan, which has the dual aim of optimising costs and
capital investment whilst continuing to deliver innovative products that meet
customer demands and regulatory requirements.
For UK automotive manufacturers, the introduction of a U.S. tariff quota
mechanism in 2025 adds a further degree of complexity and limits the Group's
ability to accurately forecast quarterly from 2026 onwards. This was evidenced
in Q1 2026 as the Group was required to carefully manage U.S. imports at the
end of the period. The Group continues to engage with both the U.S. and UK
governments to secure greater clarity and certainty on the specific automotive
tariff.
Under this mechanism, up to 100,000 UK vehicles can be imported into the U.S.
at a 10% tariff in a calendar year, with volumes above that threshold subject
to a 27.5% tariff. The quota is currently based on a "first come first
served" basis with 25,000 UK made vehicles able to qualify for the lower
tariff rate each quarter from Q1 2026. Where possible, the Group will try to
optimise production schedules to reduce risk associated with the quota
mechanism and prioritise working capital management.
Guidance for FY 2026 remains unchanged:
· Total wholesale volumes in FY 2026 are expected to be similar to the
prior year (FY 2025: 5,448), with retail volumes again outpacing wholesales,
whilst financial performance will benefit from:
o An enhanced product mix including c. 500 Valhalla deliveries in FY 2026
o A more balanced production cadence on both core and Valhalla from Q2 2026
onwards
o Operational efficiencies as a result of the ongoing transformation
programme
· Gross margin is expected to improve into the high 30s% (FY 2025: 29%),
benefitting from more efficient production, an expanded range of core model
derivatives, a full year of Valhalla deliveries and a continued focus on
maximising the value in every vehicle sold
· Adjusted operating expenses (excluding D&A), with an ongoing focus
on cost optimisation, is expected to remain below £300m (FY 2025: £262m),
whilst delivering improved operating leverage
· Adjusted depreciation and amortisation is expected to be
£375m-£400m, with the increase from FY 2025 (£297m) reflecting c. 500
Valhalla deliveries
· Adjusted EBIT margin is expected to materially improve (FY 2025:
(15.0)%), towards breakeven
· Net interest is expected to be c. £150m(3)
· Capital investment in new product developments and technology
access fees to support our growth strategy is expected to reduce to c. £300m
(FY 2025: £341m) as part of the reduced c. £1.7bn Capex programme between FY
2026-FY 2030 (previously c. £2bn)
· Free Cash Outflow is expected to materially improve in FY 2026
compared with the prior year (£410m outflow) supported by an enhanced product
mix and more balanced production cadence from Q2 2026 onwards. Following
positive free cash flow in Q4 2025 due to the benefit of improved cash
collections at year end, the Group expects the majority of free cash outflow
for the year to occur in Q1 2026, with a material cumulative year-on-year
improvement from Q2 onwards
Short-mid-term outlook:
The Group expects to continue delivering year-on-year improved financial
performance over the short-mid-term, with a focus on margin expansion and cash
flow generation, benefiting from the ongoing transformation programme
initiatives and an enhanced product mix from the future portfolio of core and
Special models.
3 Net cash interest assuming current exchange rates prevail for FY 2026
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
Maddie Herborn Investor Relations Analyst
+44 (0) 7345 000730
madeleine.herborn@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/gYwyW2BWOlk (https://app.webinar.net/gYwyW2BWOlk)
· The Q&A can be accessed live via the corporate website:
https://www.astonmartin.com/corporate/investors/results-and-presentations
(https://www.astonmartin.com/en/corporate/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 2026 Q1 2025
Loss before tax (65.5) (79.6)
Adjusting operating (income)/expense (48.0) 2.8
Adjusting finance income (0.8) (3.0)
Adjusted EBT (114.3) (79.8)
Adjusted finance income (1.2) (27.1)
Adjusted finance expense 58.6 42.4
Adjusted EBIT (56.9) (64.5)
Reported depreciation 19.9 17.2
Reported amortisation 60.2 42.9
Adjusted EBITDA 23.2 (4.4)
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 adjusted 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, gross proceeds from disposals of investments and net proceeds from
the disposal of internally generated assets) 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 Vantage, DB12, Vanquish, DBX707 and its
first mid-engined plug-in PHEV, Valhalla. Aligned with its Racing. Green.
sustainability strategy, Aston Martin is developing alternatives to the
Internal Combustion Engine through a blended drivetrain approach, and plans 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 DBX707 SUV range proudly
manufactured in St Athan, Wales. The company is on track to deliver net-zero
manufacturing facilities by 2030.
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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