REG - Aston Martin Lagonda - Q3 results for the quarter ended 30 September 2025

Aston Martin Lagonda Global HoldingsAnnouncement

Yesterday 07:02

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RNS Number : 1990F  Aston Martin Lagonda Glob.Hldgs PLC  29 October 2025

Aston Martin Lagonda Global Holdings plc

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

Third quarter results for the three months ended 30 September 2025

 
 
 
 

·      Q3'25 performance reflects previously announced lower than
expected wholesale volumes

·      Valhalla deliveries commenced in October 2025

·      First deliveries of Valhalla, DBX S and Vantage S are expected to
drive sequential improvement in Q4'25 financial performance

·      Immediate actions taken to further reduce FY25 capex to c. £350m
and SG&A to c. £275m

·      Future product cycle plan under review targeting 5-year capex of
c. £1.7bn reduced from c. £2bn and driving operating leverage through
disciplined cost management

·      Continue to expect FY26 profitability and cash flow to materially
improve compared with FY25

 £m                          YTD 2025   YTD 2024   % change   Q3 2025    Q3 2024    % change
 Total wholesale volumes(1)  3,352      3,639      (8%)       1,430      1,641      (13%)
 Revenue                     739.6      994.6      (26%)      285.2      391.6      (27%)
 Gross profit                209.4      376.9      (44%)      82.8       144.0      (43%)
 Gross margin (%)            28.3%      37.9%      (960 bps)  29.0%      36.8%      (780 bps)
 Adjusted EBIT(2)            (172.1)    (121.5)    (42%)      (50.6)     (21.7)     (133%)

 Operating loss              (190.8)    (132.8)    (44%)      (56.1)     (26.7)     (110%)
 Loss before tax             (252.7)    (228.9)    (10%)      (111.9)    (12.2)     (817%)

 Net debt(2)                 (1,381.0)  (1,216.5)  (14%)      (1,381.0)  (1,216.5)  (14%)

(1) Number of vehicles including Specials; (2) For definitions of alternative
performance measures please see Appendix

 

Adrian Hallmark, Aston Martin Chief Executive commented:

"This year has been marked by significant macroeconomic headwinds,
particularly the sustained impact of US tariffs and weak demand in China. In
response to these market dynamics, we have taken, and continue to take,
proactive steps to strengthen our overall position. Work is underway to review
our future product cycle plan with the aim of optimising costs and capital
investment whilst continuing to deliver innovative, class leading products to
meet customer demands and regulatory requirements.

"Our core range of models, supported by recent new derivatives, has never been
stronger. Valhalla, our first mid-engined plug-in hybrid, enhances this
further and in October we reached a pivotal moment in delivering the first of
these landmark supercars. We expect to ramp up Valhalla deliveries during the
fourth quarter, which will be instrumental in driving improved sequential Q4
2025 financial performance. More importantly, the planned delivery of around
500 Valhallas in 2026, is expected to bolster our profitability and cash flow
for the year ahead, in addition to ongoing cost efficiencies."

Lawrence Stroll, Aston Martin Executive Chairman commented:

"2025 has brought several unexpected challenges at Aston Martin which the
Company, under Adrian's leadership, is actively adapting to. My confidence in
the long-term prospects for this iconic British brand and commitment to the
Company remains unwavering. The positive reception to all our new core models
and the groundbreaking Valhalla, which I've experienced first-hand, will help
propel Aston Martin forward in 2026 and beyond."

 

Aston Martin's CEO and CFO will host a Q&A at 8:30am (GMT) today. Details
can be found on page 6 of this announcement and online at
www.astonmartin.com/corporate/investors
(http://www.astonmartin.com/corporate/investors)

Wholesale volume summary

 Number of vehicles         YTD 2025  YTD 2024  % change  Q3 2025  Q3 2024  % change
 Total wholesale            3,352     3,639     (8%)      1,430    1,641    (13%)
 Core (excluding Specials)  3,332     3,481     (4%)      1,428    1,601    (11%)

 By region:
 UK                         628       664       (5%)      250      369      (32%)
 Americas                   1,080     1,112     (3%)      433      477      (9%)
 EMEA ex. UK                1,008     1,101     (8%)      469      427      10%
 APAC                       636       762       (17%)     278      368      (24%)

 By model:
 Sport/GT                   2,394     2,416     (1%)      999      1,043    (4%)
 SUV                        938       1,065     (12%)     429      558      (23%)
 Specials                   20        158       (87%)     2        40       (95%)

Note: Sport/GT includes Vantage, DB11, DB12, DBS and Vanquish

 

Q3 2025 total wholesale volumes of 1,430 were down 13% compared to the prior
year period (Q3 2024: 1,641). This was as a result of the heightened
challenges in the global macroeconomic environment impacting demand including
the ongoing effect of tariffs, in addition to the planned delivery of fewer
Specials. Retail volumes in Q3 2025 were in line with total wholesales.

Aston Martin expects to realise the benefits from its expanded range of new
core models and Specials in Q4 2025, and beyond. Core models now include
Vanquish Volante with deliveries commencing in Q3 2025 and DBX S, Vantage S
and Volante 60(th) anniversary limited edition models deliveries commencing in
Q4 2025 whilst DB12 S deliveries will commence in the first half of 2026. The
significant milestone of delivering the first of the 999 Valhallas was
achieved in October following homologation approvals being received in Europe.
The Group expects to deliver c. 150 Valhallas in Q4 2025, assuming no impact
from the current U.S. federal government shutdown or the U.S. tariff quota
system.

During this period of continued product evolution, the orderbook for core
vehicles has remained unchanged, extending for up to five months. An extensive
global programme of Valhalla customer driving events is underway in Q4 2025.
This will give current and prospective customers the first opportunity to
experience the exceptional performance of Aston Martin's first series
production mid-engined hybrid supercar, with over 50% already ordered by
customers.

As previously announced, volumes across most regions were weaker than expected
in Q3 2025. The timing of various model transitions and deliveries across the
regions over the past year also impacted Q3 2025 volumes when compared to the
prior year period. Demand in China remained extremely subdued in line with
other luxury automotive peers due to the ongoing weak macroeconomic
environment and changes to the luxury car tariff effective from the end of
July 2025.

Revenue and Average Selling Price (ASP) summary

 £m                                YTD 2025  YTD 2024  % change  Q3 2025  Q3 2024  % change
 Sale of vehicles                  654.7     913.4     (28%)     255.5    364.6    (30%)
          Total ASP (£k)           194       250       (22%)     178      222      (20%)
          Core ASP (£k)            186       178       4%        177      177      0%
 Sale of parts                     67.3      64.6      4%        22.6     21.8     4%
 Servicing of vehicles             9.1       8.8       3%        3.4      2.5      36%
 Brand and motorsport              8.5       7.8       9%        3.7      2.7      37%
 Total revenue                     739.6     994.6     (26%)     285.2    391.6    (27%)

YTD 2025 revenue decreased by 26% to £740m (YTD 2024: £995m), due to the
impact of fewer core volumes and, as expected, lower Special deliveries
compared to the prior year. While total ASP decreased by 22%, again reflecting
fewer Specials, core ASP increased 4%, benefitting from the next generation
core derivatives, including the flagship Vanquish and Vanquish Volante.
 Demand for unique product personalisation continued to drive strong
contribution to core revenue YTD 2025 of c. 18%, broadly in line with prior
year period.

Core ASP of £177k in Q3 2025 was lower sequentially (Q2 2025: £191k) due to
foreign exchange movements, with the U.S. dollar in particular weakening
compared to GBP sterling, and support for dealers.

Income statement summary

 £m                                              YTD 2025  YTD 2024  Q3 2025  Q3 2024
 Revenue                                         739.6     994.6     285.2    391.6
 Cost of sales                                   (530.2)   (617.7)   (202.4)  (247.6)
 Gross profit                                    209.4     376.9     82.8     144.0
    Gross margin %                               28.3%     37.9%     29.0%    36.8%

 Adjusted operating expenses                     (381.5)   (498.4)   (133.4)  (165.7)
 of which depreciation & amortisation            179.8     234.4     61.3     72.4
 Adjusted EBIT(2)                                (172.1)   (121.5)   (50.6)   (21.7)
 Adjusting operating items                       (18.7)    (11.3)    (5.5)    (5.0)
 Operating loss                                  (190.8)   (132.8)   (56.1)   (26.7)

 Net financing (expense)/income                  (61.9)    (96.1)    (55.8)   14.5
 of which adjusting financing income/ (expense)  3.0       (19.2)    0.5      3.1
 Loss before tax                                 (252.7)   (228.9)   (111.9)  (12.2)
 Tax (charge)/ credit                            (27.8)    9.2       (19.9)   0.1
 Loss for the period                             (280.5)   (219.7)   (131.8)  (12.1)

 Adjusted EBITDA(2)                              7.7       112.9     10.7     50.7
    Adjusted EBITDA margin(2)                    1.0%      11.4%     3.8%     12.9%
 Adjusted loss before tax(2)                     (237.0)   (198.4)   (106.9)  (10.3)

2 Alternative Performance Measures are defined in Appendix

The lower YTD 2025 revenue, as a result of the decrease in Specials deliveries
and core volumes, also impacted gross profit, which decreased to £209m (YTD
2024: £377m), resulting in a gross profit margin of 28% (YTD 2024: 38%). This
includes the impact of the previously communicated warranty costs and other
investments made in product quality. The volume impact was reflected in the Q3
2025 gross margin of 29% (Q3 2024: 37%), as was the previously announced
support for dealers in China, ongoing support across other regions and foreign
exchange movements compared to the prior year period.

Adjusted EBITDA decreased by £105m YTD 2025 to £8m (YTD 2024: £113m) with
adjusted EBITDA margin declining to 1% (YTD 2024: 11%). This reflects the
lower gross profit, which was partially offset by a 24% decrease in adjusted
operating expenses (excluding D&A). This aligns with the Group's focus on
optimising the cost base, as part of its ongoing transformation programme.
Operating expenses include the £11m benefit from the revaluation uplift of
the secondary warrant option offset by c. £3m fees associated with the
disposal of the Group's AMR GP investment. The Group now expects to reduce FY
2025 adjusted operating expenses (excluding D&A) to c. £275m (FY 2024:
£313m) and to drive further operating leverage through disciplined cost
management from 2026 onwards.

Adjusted EBIT decreased by 42% YTD 2025 to £(172)m (YTD 2024: £(122)m) with
depreciation and amortisation decreasing by 23% to £180m (YTD 2024: £234m),
primarily reflecting fewer Specials.

Adjusted net financing costs of £65m (YTD 2024: £77m), decreased primarily
due to the £17m year-on-year impact of non-cash U.S. dollar debt revaluation
due to the weaker U.S. dollar. YTD 2025 net adjusting finance income of £3m
relates to movements in the fair value of outstanding warrants. The prior year
net adjusting finance expense of £19m comprised of an £18m redemption
premium associated with the refinancing of senior secured notes and a £1m
movement in fair value of outstanding warrants.

The adjusted loss before tax increased to £237m (YTD 2024: £198m loss),
largely reflecting the weaker volumes and adjusted EBIT.

Cash flow and net debt summary

 £m                                                                          YTD 2025  YTD 2024  Q3 2025  Q3 2024
 Cash (used in)/generated from operating activities                          (89.4)    (51.4)    (8.4)    20.5
 Cash used in investing activities (excl. interest)                          (254.0)   (300.0)   (83.4)   (99.9)
 Net cash interest paid                                                      (71.6)    (42.4)    (2.2)    (1.8)
 Free cash outflow(2)                                                        (415.0)   (393.8)   (94.0)   (81.2)
 Cash inflow from financing and other investing activities (excl. interest)  307.9     163.4     216.9    69.6
 (Decrease)/increase in net cash                                             (107.1)   (230.4)   122.9    (11.6)
 Effect of exchange rates on cash and cash equivalents                       (5.1)     (5.1)     0.9      (4.2)
 Cash balance                                                                247.4     156.9     247.4    156.9
 Available facilities                                                        0.4       154.1     0.4      154.1
 Total cash and available facilities ("liquidity")                           247.8     311.0     247.8    311.0

2 Alternative Performance Measures are defined in Appendix

YTD 2025 net cash outflow from operating activities increased by £38m to
£89m (YTD 2024: £51m outflow), largely reflecting a £105m decrease in
adjusted EBITDA, as explained above, offset by a reduced working capital
outflow of £45m (YTD 2024: £142m outflow). The largest drivers of the YTD
2025 working capital outflow were:

·     A £78m increase in inventories (YTD 2024: £108m increase) ahead
of commencing delivery of new core derivatives and Valhalla and a £10m
decrease in payables (YTD 2024: £8.4m increase)

·    which were partially offset by a £43m increase (YTD 2024: £123m
decrease) in deposits held, due to Valhalla deposit collections more than
offsetting the deposit outflow from other Special deliveries and flat
receivables (YTD 2024: £80m decrease)

Capital expenditure of £254m was below the comparative period (YTD 2024:
£300m) and as part of its immediate review on cost and capex, the Group now
expects FY 2025 to be c. £350m. This compares with the original guidance of
c. £400m at the start of the year and c. £375m as at the Q3 Trading Update.
Further, the Group is undertaking actions related to its future product cycle
plan that will enable the Group to target a reduction in 5-year capex from c.
£2bn to c. £1.7bn. Further details on this will be shared at its 2025 Full
Year Results.

YTD 2025 free cash outflow increased by £21m compared to the comparative
period to £415m (YTD 2024: £394m outflow), due to the increase in cash
outflow from operating activities as detailed above and the increase in net
cash interest more than offsetting the reduction in capital expenditure.

 

 

 £m                                         30-Sep-25  31-Dec-24  30-Sep-24
 Loan notes                                 (1,326.5)  (1,378.9)  (1,227.4)
 Inventory financing                        (38.8)     (38.4)     (39.8)
 Bank loans and overdrafts                  (170.1)    (8.4)      (8.3)
 Lease liabilities (IFRS 16)                (94.4)     (96.6)     (97.9)
 Gross debt                                 (1,629.8)  (1,522.3)  (1,373.4)
 Cash balance                               247.4      359.6      156.9
 Cash not available for short term use      1.4        0.0        0.0
 Net debt                                   (1,381.0)  (1,162.7)  (1,216.5)

Compared with 31 December 2024, gross debt increased to £1,630m (31 December
2024: £1,522m) as a result of drawing on the Revolving Credit Facility.

Total cash and available facilities were £248m on 30 September 2025
marginally improved compared with £228m on 30 June 2025, with the free cash
outflow in the period more than offset by the c. £106m inflow of net proceeds
following the completed sale of AMR GP shares.

Net debt of £1,381m at 30 September 2025 increased from £1,163m as at 31
December 2024 primarily due to a decrease in the cash balance and increase in
banks loans and overdrafts. The adjusted net leverage ratio of 8.3x (30
September 2024: 4.2x) reflects the increase in net debt and YTD decline in
adjusted EBITDA.

Outlook: Now reflects immediate actions taken following Q3 Trading Update (on
6 October 2025)

The global macroeconomic environment facing the wider automotive 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.
The Group 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).

As previously reported, the Group expects FY 2025 adjusted EBIT to be below
the lower end of the range of market consensus available prior to the 6
October 2025 Trading Update (consensus adjusted EBIT low end range: £(110)m).
This was driven by the weaker volumes and pressure on the gross margin per
vehicle. The Group expects sequential gross margin improvement in Q4 2025
resulting in FY 2025 gross margin in the low 30s%.

FY 2025 capex is now expected to reduce to c. £350m (previously c. £375m as
at the Q3 Trading Update, and c. £400m as at the start of the year) with a
further reduction in adjusted operating expenses (excluding D&A) to c.
£275m (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. However, the Group expects free cash outflow to improve sequentially in
Q4 2025, including an increase in receivables at the end of the period due to
the expected timing of vehicle sales.

The Group expects FY 2026 profitability and cash flow to materially improve
compared with FY 2025. This will be driven by the contribution from Valhalla
deliveries from the start of the year (expected to be c. 500 units in total in
FY 2026) in addition to driving improved operating leverage.

As part of the immediate actions on costs and capital expenditure, a review of
the future product cycle plan is underway. It is expected that this will
result in lower capital investment in engineering and development than
previously guided down from c. £2bn to c. £1.7bn over the coming 5-year
period.

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 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/eVW3obWRBLN
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fapp.webinar.net%2FeVW3obWRBLN&data=05%7C02%7Cmadeleine.herborn%40astonmartin.com%7C3aa39aff73a145a0940e08ddde516290%7C63ab48267a7348169bc13934580f4485%7C1%7C0%7C638911163378085233%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=Y8ZQT18YqkdY%2BEPtw7nX2AAxlA1fk7tOMnjSuS9msPg%3D&reserved=0)

·     The Q&A can be accessed live via the corporate website:
https://www.astonmartin.com/en/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                                         YTD 2025  YTD 2024
 Loss before tax                            (252.7)   (228.9)
 Adjusting operating expense                18.7      11.3
 Adjusting finance expense                  0.0       35.7
 Adjusting finance income                   (3.0)     (16.5)
 Adjusted EBT                               (237.0)   (198.4)
 Adjusted finance income                    (62.3)    (46.9)
 Adjusted finance expense                   127.2     123.8
 Adjusted EBIT                              (172.1)   (121.5)
 Reported depreciation                      54.8      55.4
 Reported amortisation                      124.9     179.0
 Loss/(profit) on disposal of fixed assets  0.1       0.0
 Adjusted EBITDA                            7.7       112.9

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 mid-engined plug-in hybrid, 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 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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