REG - Aston Martin Lagonda - Q3 2025 Trading Update and revised outlook

Aston Martin Lagonda Global HoldingsAnnouncement

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RNS Number : 1696C  Aston Martin Lagonda Glob.Hldgs PLC  06 October 2025

06 October 2025

Aston Martin Lagonda Global Holdings plc

("Aston Martin", or "AML", or the "Company"; or the "Group")

Q3 2025 Trading Update and revised outlook

 

This announcement contains inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation No. 596/2016 as it forms part
of UK law by virtue of the European Union (Withdrawal) Act 2018. The person
responsible for releasing this announcement on behalf of the Company is Liz
Miles, Company Secretary.

 

Aston Martin today provides the following Q3 2025 Trading Update and a
revision to FY 2025 guidance ahead of its Q3 2025 Results on 29(th) October
2025.

As a result of the heightened challenges in the global macroeconomic
environment, including the ongoing impact of tariffs, the Company now expects
total wholesale volumes in FY 2025 to decline by mid-high single digit
percentage when compared to the prior year (FY 2024; 6,030). This revision
reflects the Group's continued focus on maintaining a disciplined approach to
balancing core wholesales and retail demand in the current trading
environment.

Additionally, the company confirms that it expects Valhalla deliveries to
commence in Q4 2025, with c.150 deliveries forecast in the period. Whilst this
is behind prior expectations, it reflects a timing impact, with a smooth
delivery profile expected in 2026.

Management has initiated an immediate review of future cost and capital
expenditure but not withstanding this now expects FY 2025 adjusted EBIT to be
below the lower end of the range of market consensus (consensus adjusted EBIT
low end: £(110)m) and no longer expects positive free cash flow generation in
H2 2025.

 

Q3 2025 Trading Update

The Group delivered c. 1,430 wholesale units in Q3 2025, below the previous
guidance of being broadly similar to the prior year period (Q3 2024: 1,641).
The shortfall was due to weaker than expected demand including in both North
America, with the continuing tariff impact, and APAC (including greater
China). Q3 2025 retail volumes were in line with wholesales. Q3 2025 financial
performance will reflect the impact from fewer than expected wholesale volumes
combined with the expected negative mix impact of fewer Special deliveries.

Aston Martin has continued with its launch of new core derivatives, with
customer deliveries for the new Vanquish Volante commencing during Q3 2025. In
Q4 2025 the Group expects to commence deliveries of the new Vantage S and DBX
S, which has received exceptional initial media reviews.

Valhalla entered production in Q3 2025, with a gradual ramp up in volumes
planned through to the end of the year. Initial customer deliveries are still
expected to commence during Q4 2025, albeit on a marginally delayed timeline
linked to completion of vehicle engineering and the finalisation of mandatory
homologation approvals. Due to this timing issue, the Group expects to reduce
the number of Valhalla wholesales in Q4 2025 to c. 150.  Additional risks to
the delivery schedule for FY 2025 remain, associated with the current U.S.
federal government shutdown potentially impacting final U.S. homologation
timing and the ongoing uncertainty created by the U.S. tariff quota system.

Aston Martin completed the sale of shares in AMR GP in Q3 2025, receiving
gross proceeds of c. £108m. This supports the Group's total liquidity, which
ended the period at c. £250m.

 

Updated outlook

The global macroeconomic environment facing the industry remains challenging.
This includes uncertainties over the economic impact from U.S. tariffs and the
implementation of the quota mechanism, changes to China's ultra-luxury car
taxes and the increased potential for supply chain pressures, particularly
following the recent cyber incident at a major UK automotive manufacturer.

Q4 2025 is expected to deliver improved sequential financial performance
supported by increased core volumes driven by new derivatives in addition to
the accretive financial contribution from the initial deliveries of Valhalla.
However, the Group no longer expects to meet its previous FY 2025 wholesale
volume guidance given Q3 2025 performance and a revised expectation for Q4
2025 wholesales. The latter revision reflects the Group's continued focus on
maintaining a disciplined approach to balancing core wholesales and retail
demand in the current challenging macroeconomic environment. The Group now
expects total wholesale volumes in FY 2025 to decline by mid-to-high single
digit percentage compared to the prior year (FY 2024: 6,030) with the majority
of the volume adjustment related to the North America and APAC (including
Greater China) regions.

The Group expects FY 2025 adjusted EBIT to now be below the lower end of the
range of market consensus (consensus adjusted EBIT low end: £(110)m) driven
by the weaker volumes and pressure on the gross margin per vehicle. FY 2025
capex is now expected to reduce to c. £375m (previously c. £400m) and
SG&A remains on track to decline by c. 10% compared to the prior year (FY
2024: £313m). Notwithstanding these actions, the Group no longer expects to
meet its prior guidance of positive free cash flow generation in H2 2025, but
does expect free cash flow generation to improve sequentially in Q4 2025.

The Group expects FY 2026 profitability and free cash flow generation to
materially improve compared with FY 2025. This will be driven by consistent
contribution from Valhalla deliveries in addition to ongoing cost reduction
programmes benefiting SG&A.

An immediate review of future cost and capital expenditures has been initiated
by the management team. This will also include a review of the future product
cycle plan in response to market and regulatory dynamics. It is expected that
this will result in lower capital investment in engineering and development
than previously guided (FY 2025 to FY 2029: c. £2bn).

For UK automotive manufacturers, the introduction of a U.S. tariff quota
mechanism adds a further degree of complexity and limits the Group's ability
to accurately forecast for this financial year end and, potentially, quarterly
from 2026 onwards.

The Group continues to engage with both the U.S. and UK governments to secure
greater clarity and certainty. Whilst positive dialogue on this matter has
been achieved directly with the U.S. government, the Company continues to seek
more proactive support from the UK government to protect the interests of
small volume manufacturers, like Aston Martin, who provide thousands of jobs,
making an important contribution to local economies and to the wider UK
automotive supply chain.

The Group will provide more detail at its Q3 Results on 29(th) October 2025.

 

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

 

 

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, 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.

Cautionary statement

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.

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