REG - Aston Martin Lagonda - Preliminary Results FY2025
Wed 07:00
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RNS Number : 2503U Aston Martin Lagonda Glob.Hldgs PLC 25 February 2026
Aston Martin Lagonda Global Holdings plc
("Aston Martin", or "AML", or the "Company"; or the "Group")
Preliminary results for the twelve months ended 31 December 2025
· Navigated a highly challenging trading environment whilst
continuing to deliver operational milestones including product launches and
operational transformation
· Immediate actions taken to reduce SG&A and CAPEX in FY 2025
partially offset the impact of external challenges and the Group's disciplined
approach to production and fewer high margin Specials
· FY 2025 core ASP increased 5% to £185k, reflecting inclusion of
new core model derivatives
· Commenced production of Valhalla with first 152 deliveries in Q4
2025, supporting strong sequential quarterly performance and total ASP growth
· Improved cash collections in Q4 2025 resulted in modest positive
free cash flow in Q4 2025 and year-end total liquidity of £250m, further
enhanced by the proposed sale of the Aston Martin naming rights to AMR GP for
a consideration of £50m in Q1 2026
· In FY 2026, expect material improvement in financial performance
driven by an enhanced product mix, benefits from the ongoing transformation
programme and disciplined approach to operations
£m FY 2025 FY 2024 % change Q4 2025 Q4 2024 % change
Total wholesale volumes(1) 5,448 6,030 (10%) 2,096 2,391 (12%)
Revenue 1,257.7 1,583.9 (21%) 518.1 589.3 (12%)
Gross profit 369.8 583.9 (37%) 160.4 207.0 (23%)
Gross margin (%) 29.4% 36.9% (750 bps) 31.0% 35.1% (410 bps)
Adjusted EBIT(2) (189.2) (82.8) (129%) (17.1) 38.7 n/m
Operating (loss)/profit (259.2) (99.5) (161%) (68.4) 33.3 n/m
Loss before tax (363.9) (289.1) (26%) (111.2) (60.2) (85%)
Net debt(2) (1,380.3) (1,162.7) (19%) (1,380.3) (1,162.7) (19%)
(1) Number of vehicles including Specials; (2) For definition of alternative
performance measures please see Appendix
Adrian Hallmark, Aston Martin Chief Executive Officer commented:
"In 2025, we navigated a highly challenging trading environment whilst
delivering on critical operational milestones. An unprecedented backdrop of
geopolitical uncertainties and macroeconomic pressures, including heightened
tariffs in the U.S. and China, weighed on our performance and ability to
execute our plans effectively.
"Despite these external factors and, as guided, fewer high margin Special
deliveries impacting our financial performance, we made progress on our
business transformation journey. Whilst maintaining a disciplined approach to
balancing production with demand, we also took the necessary, pro-active
actions to invest in quality, lower operational costs and seek ongoing Capex
efficiencies, which benefited 2025 and will support delivery in the coming
years.
"The highlight of the year was undoubtedly the commencement of Valhalla
deliveries in Q4, our first mid-engined PHEV supercar. Alongside this we
expanded our thrilling core line-up with high-performance derivatives such as
the DBX S, voted super SUV of the year by Top Gear Magazine and the Vanquish
Volante with the Vanquish also being recognised as class leading and voted Car
of the Year by Robb Report. As a result of our portfolio delivery and business
transformation initiatives, we ended the year with positive momentum,
achieving both strong sequential ASP growth and positive cash flow in Q4.
"Looking ahead, I remain confident that our strategy and upcoming products
will position us strongly for future success. In FY 2026, we expect to deliver
a material improvement in financial performance and continue delivering
year-on-year improvements over the short-mid-term with a focus on margin
expansion and cash flow generation."
Aston Martin's management team will host a video webcast presentation and live
Q&A at 08:00 (GMT) today. Details can be found on page 12 of this
announcement and online at:
www.astonmartin.com/corporate/investors/results-and-presentations
(http://www.astonmartin.com/corporate/investors/results-and-presentations)
2025 FULL YEAR FINANCIAL SUMMARY
· Delivered significantly stronger H2 2025 performance compared to
H1 2025, reflecting the planned timing of new core derivatives and initial
Valhalla deliveries:
- FY 2025 total wholesale volumes decreased 10% to 5,448 (FY 2024: 6,030)
impacted by heightened challenges in the global macroeconomic environment,
geopolitical uncertainties, the delivery of fewer Specials and a disciplined
approach to balancing production and demand
- FY 2025 retails volumes outpaced wholesales
o Q4 2025 total wholesale volumes increased sequentially by 47% to 2,096 (Q3
2025:1,430) reflecting the planned timing of new core derivatives and initial
Valhalla deliveries
· FY 2025 revenue decreased 21% to £1,258m (FY 2024: £1,584m)
reflecting lower year-on-year total wholesale volumes and a decrease in total
ASP:
- FY 2025 total ASP of £209k, down 15% (FY 2024: £245k) driven by a lower
year-on-year number of Specials in preparation for commencement of Valhalla
deliveries in Q4 2025
o Q4 2025 total ASP of £232k, was broadly flat year-on-year (Q4 2024:
£236k) and increased by 30% sequentially (Q3 2025: £178k) driven by 152
Valhalla deliveries
- FY 2025 core ASP of £185k, up 5% (FY 2024: £177k) reflects benefits of
new core model line up with contribution to core revenue from options broadly
stable at c. 18% (FY 2024: c. 18%)
o Q4 2025 core ASP of £183k, up 5% (Q4 2024: £175k) reflects enhanced
model mix with initial deliveries of DBX S and Vantage S derivatives as well
as Vanquish V12 volumes
· FY 2025 gross profit decreased 37% to £370m (FY 2024: £584m)
and gross margin decreased to 29% (FY 2024: 37%), reflecting the:
- Introduction of increased tariffs in both the U.S. and China
- Guided decrease in Specials deliveries and fewer core wholesales
- Impact of previously communicated additional warranty costs, increased
dealer support and other investments made in product quality amounting to an
increase of c. £65m compared with FY 2024
· Adjusted operating expenses (excl. D&A) decreased 16% to
£262m (FY 2024: £313m), which aligns with the Group's focus on optimising
the cost base, as part of its ongoing transformation programme
· FY 2025 adjusted EBIT loss of £189m (FY 2024: loss £83m) reflects,
as outlined above, lower gross profit, slightly offset by a decrease in
adjusted D&A of 16% to £297m (FY 2024: £354m)
· FY 2025 operating loss increased to £259m (FY 2024: £100m loss)
· FY 2025 free cash outflow of £410m (FY 2024: £392m outflow)
included:
- Net cash inflow from operating activities of £74m (FY 2024: £124m cash
inflow), inclusive of a working capital inflow of £6m (FY 2024: £118m
outflow)
- Net cash interest paid of £143m (FY 2024: £115m)
- Reduced capital expenditure year-on-year of £341m (FY 2024: £401m)
o Q4 2025 free cash inflow of £5m (Q4 2024: £2m)
· Total cash and available facilities ('liquidity') of £250m on 31
December 2025, stable on Q3 2025 (£248m) supported by Q4 2025 performance
including improved cash collections at year end
- Further enhanced by the proposed sale of the Aston Martin naming rights to
AMR GP for a consideration of £50m in cash in Q1 2026
· Net debt at 31 December 2025 of £1,380m (31 December 2024:
£1,163m) reflects a decrease in the cash balance and increased drawing on the
Revolving Credit Facility; adjusted net leverage ratio(2) of 12.8x (31
December 2024: 4.3x); the business remains committed to deleveraging over the
medium-term
The financial information contained herein is audited. All metrics and
commentary in this announcement exclude adjusting items unless stated
otherwise and certain financial data within this announcement have been
rounded.
CHIEF EXECUTIVE OFFICER REVIEW
An unprecedented year of geopolitical uncertainties and macroeconomic
challenges
Twelve months ago, at the start of my first full year as CEO, I communicated a
strategy that built on the ongoing business transformation undertaken since
2020. It was one that sought to turn a high potential business with an iconic
and globally recognised brand into a high performing one, becoming a
sustainably profitable business, acknowledged and rewarded for displaying
operational excellence and discipline. In 2025, we further evolved the
strategy to capture six focus areas and have made positive progress on many
fronts across the business. Despite this, unexpected challenges impacted our
ability to fully execute on our plans this year which was reflected in the
financial performance of the business. I believe we have a more robust 2026
plan in place, which better enables us to navigate a dynamic market
environment.
In 2025, the global luxury automotive market faced one of its most turbulent
years in recent times. Consumer demand was impacted by escalating geopolitical
uncertainties and macroeconomic challenges, the most notable being the
introduction of increased tariffs in both the United States and China. Instead
of competing on innovation and brand strength, Aston Martin was forced to
navigate an unpredictable policy landscape and supply chain challenges that
ultimately impacted volumes, efficiency and margins. The year made one reality
impossible to ignore: even the most resilient luxury brands are not insulated
from geopolitical friction, and the headwinds created by these trade barriers
have reshaped the competitive environment in ways that require us to adapt and
take difficult decisions to ensure the long-term success of the business and
to benefit all our stakeholders.
A thrilling and diverse line up of models
Despite this backdrop, what remains true is that Aston Martin today has one of
the most thrilling and diverse line up of models in its 113-year history. This
has been achieved thanks to the dedication and skills of the Company's
employees and significant investment over recent years.
In 2025, our focus remained on refreshing and expanding the core range of
models. Over the 12-month period we commenced deliveries of seven new models
or derivatives. Aston Martin has a long-standing tradition of applying the 'S'
suffix to high-performance derivatives of core models, a tradition which we
were proud to continue this year with the introduction of the Vantage S, DBX S
and DB12 S. We now have convertible models for all our core range of sports
cars and we celebrated the 60(th) Anniversary of the iconic Volante name, with
the release of limited-edition Q by Aston Martin DB12 and Vanquish models.
There will be more to come in 2026 as we keep the core range fresh for current
and future customers.
Undoubtedly, the highlight of the year was the commencement of Valhalla
deliveries in Q4 2025. Valhalla has been a monumental project for Aston Martin
with the first 152 units wholesaled in 2025, and a further c. 500 units
expected to be delivered in 2026. Uniquely designed from the ground up at our
Gaydon Headquarters in the UK, this supercar, the first mid-engined PHEV the
company has developed, is an important component of our future plans, with the
financial benefits already evidenced in our Q4 2025 performance. The reception
from customers and the media has been overwhelmingly positive, following
extensive global driving events during Q4 2025, with much more to come in
2026.
Adapting the business to the current market environment
With the backdrop of this exquisite line up of models, we now need to further
optimise the business to drive margin improvement as we strive to deliver
profitability and positive free cash flow generation in the coming years. We
need to achieve this in the context of a more challenging market backdrop,
with evolving regulatory and tariff related requirements, whilst ensuring we
are aligned with the demands of our customers.
In response to these market dynamics, and the impact on our expectations, we
announced in October 2025 that we would take proactive steps to strengthen the
Company's overall position. This commenced with a review of our future product
cycle plan with the dual aim of optimising costs and capital investment whilst
continuing to deliver innovative products that meet customer demands and
regulatory requirements.
We will continue to build on our current strengths of exquisitely designed,
high performance sports cars, GTs and SUV's across our range of V8 and V12
engines. This is at the heart of Aston Martin, and we need to embrace this
whilst ensuring we drive for greater engine efficiency and reduced emissions
as we build a business fit for the future. Changes to the cycle plan will not
limit the opportunities for the business over the coming years, as they
primarily shift out the timing of investment into our future electric vehicle
platform. Due to these changes, our 5-year Capex plan from 2026 has reduced to
c. £1.7bn from c. £2bn previously.
Having undertaken, at the start of 2025, a process to make organisational
adjustments to ensure the business was appropriately resourced for its future
plans, we had to take the difficult decision at the end of 2025 to implement
further changes. This latest programme will ultimately see the departure of up
to 20% of our valued workforce. Linked directly to this necessary action, we
expect associated annualised operating expenditure and Capex savings of c.
£40m of which the majority will be realised in FY 2026, with associated
transformation cash costs expected to be c. £15m.
Strategic priorities to unlock our future potential
In 2025, alongside our product cycle plan review, we implemented a business
transformation program spanning all areas of the organisation. Designed to
drive top-line growth and operating efficiencies, the program is centered
around six strategic focus areas that, combined, are expected to unlock our
future potential:
· Market Demand - Following a demand-led strategy, operating as an
ultra-luxury high performance brand, stimulating demand and delivering the
ultimate in ultra-luxury experience.
Enhancing customer engagement and ultra-luxury customer experience included
extensive global driving events in 2025, with a particular focus on the
thrilling Valhalla PHEV supercar. Our recently created Private Office ensures
our top 500 clients are assigned a primary Aston Martin contact supported by
head office VIP specialists with a dedicated 2026 event plan. This will be
further supported by the opening in 2026 of the Q London flagship in Berkeley
Square, adding to the other ultra-luxury flagship at Q New York.
Throughout 2025, Aston Martin maintained its powerful association with Formula
1® and successfully completed the inaugural full-season campaign of the
Valkyrie Hypercar in the World Endurance Championship®. We also seek to
maximise brand value and commercial benefits to stimulate demand through our
presence at the world's most prestigious luxury and automotive events in
addition to collaborating with our ultra-luxury brand partners.
The launch of our new online configurator in October 2025, drove significant
increases in customer leads and opportunities growing by over 200% in the 9
weeks that followed, compared with the same period prior to the launch.
· Product Creation - Continue to enhance our exhilarating and
compelling portfolio of sports cars, GTs, SUVs and Specials with an ongoing
focus to further expand our personalisation offering.
As previously referenced, 2025 saw the launch of seven new core derivatives.
This included our high performance 'S' derivatives, with the DBX S awarded Top
Gear Magazine's Super SUV of the year and the Vanquish Volante which Autocar
Magazine called "Utterly divine… the prettiest car on sale". Having our
first series-production PHEV, Valhalla, available to customers was a
tremendous milestone and provides opportunities for future developments.
Additionally, Aston Martin proudly commenced use of the Royal Warrant and
became the first global automotive manufacturer to integrate Apple CarPlay
Ultra into its models.
Looking to 2026, a key focus area will be growing the range of personalisation
options for customers to choose from which supports future ASP growth and
margin expansion.
· Culture & Change - Focused on building a collaborative and
cross-functional way of working, in addition to attracting and retaining
sector leading talent.
The Company will continue working towards achieving 30% of women in leadership
positions by 2030, currently at 17%, and this year we launched Driving Change,
an employee suggestion scheme with the key focus being cost optimisation.
Given the Group's disciplined approach to operations, the Remuneration
Committee has proposed a new Remuneration policy that seeks to better align
incentives with delivering sustainable profitable growth and future value.
As part of the organisational changes announced in 2025, we provided a wealth
of HR resources and online materials to support our colleagues during a
difficult and uncertain time. To demonstrate that we are making changes
throughout the organisation, my Executive Committee, a year ago comprising 11
members, will be nearly half the size by the end of Q1 2026. We recognise the
importance of having a culture that ensures we respect one another, especially
during this period of change, and unite behind our guiding tenet that no one
builds an Aston Martin on their own.
· Quality - Delivering excellence in product quality and launch
cycles, driving improvements to ensure the highest standards and consistencies
across our portfolio as well as rigour and discipline in the planning and
execution of our product launch cycles.
Improvements have been reflected in our right-first-time metric, having
increased from 65% in the middle of 2024 to 95% by the second half of 2025. In
addition, we have successfully launched seven new core derivatives and
Valhalla, with the complexity of this programme establishing a new benchmark
for our product launch cycles with key learnings transferable to future
launches.
Having focused on product quality and warranty related investments, our
customer satisfaction scores improved in FY 2025 compared with the prior year
across all new core models.
· Operations - Driving a disciplined approach to our operations to
future proof the Company in the face of a dynamic and challenging market
environment.
Underpinned by our future product cycle plan, we continued to optimise product
development processes to maximise cross-carline component sharing, reduce
complexity and drive engineering efficiencies. We continued to optimise our
production processes and facilities, receiving ISO50001 certification in 2025,
highlighting our developments in efficient energy management at our Gaydon and
St Athan sites.
Ensuring our people remain safe in the workplace is of paramount importance
and we in 2025 reduced our accident frequency rate to 0.30 (FY 2024: 0.35),
progressing towards our goal of zero accidents across the business.
· Cost Optimisation - Adjusting the cost base of the Company to
ensure it is fit for the future and to drive further operating leverage as the
Group's overall financial performance improves.
Previously announced Capex and Opex reductions, £60m and £51m lower,
respectively compared with FY 2024, have already helped the business to adapt
to the dynamic and challenging market environment. We will continue to execute
the transformation programme to drive greater efficiencies and position the
business for sustainably profitable growth.
We expect FY 2026 SG&A to be a sustainable base, on an inflation adjusted
basis, over the coming years, which will enable us to drive future operating
leverage. Aligned with this is our disciplined approach to operations which
includes effectively managing the balance between production and demand in
addition to delivering a smoother production cadence from Q2 2026 onwards.
2026 - positive momentum across the business
As referenced at the Q3 2025 results, we have constructed our FY 2026 plans,
in particular relating to wholesale volume expectations, with a prudent and
disciplined mindset. This will enable us to continue to pursue our goal of
driving production and operational efficiencies in line with our sales
forecasts and optimised stock levels. In addition to the rigour and discipline
instilled across the business to optimise costs, we will enhance the core
portfolio with new derivatives, and we expect to deliver around 500
Valhalla's, more than three times the number of units delivered in FY 2025. As
a result, we expect to deliver materially improved financial performance and
cash flow in FY 2026 compared with FY 2025.
As I look ahead, I firmly believe we have the right strategy and product cycle
plan to position us well for the future. This path to unlocking our future
potential is set to deliver sustainable profitable growth over the coming
years which will create long term value for all our stakeholders.
OUTLOOK
Expect 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.
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. 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.
The Group continues to engage with both the U.S. and UK governments to secure
greater clarity and certainty on the specific automotive tariff. 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.
Guidance for FY 2026:
· 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,
with up to 100 expected in Q1 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
Updated 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
2025 FINANCIAL REVIEW
Wholesale volume summary
Number of vehicles FY 2025 FY 2024 % change Q4 2025 Q4 2024 % change
Total wholesale 5,448 6,030 (10%) 2,096 2,391 (12%)
Core (excluding Specials) 5,266 5,812 (9%) 1,934 2,331 (17%)
By region:
UK 1,032 1,086 (5%) 404 422 (4%)
Americas 1,868 1,928 (3%) 788 816 (3%)
EMEA ex. UK 1,580 1,796 (12%) 572 695 (18%)
APAC 968 1,220 (21%) 332 458 (28%)
By model:
Sport/GT 3,549 3,925 (10%) 1,155 1,509 (23%)
SUV 1,717 1,887 (9%) 779 822 (5%)
Specials 182 218 (17%) 162 60 170%
Note: Sport/GT includes Vantage, DB11, DB12, DBS and Vanquish
Aston Martin's performance in FY 2025 reflects the heightened challenges in
the global macroeconomic and geopolitical environments impacting demand
including the ongoing effect of tariffs, in addition to the delivery of fewer
Specials. FY 2025 total wholesale volumes were down 10% at 5,448 (FY 2024:
6,030), with retail volumes outpacing wholesales, as the Group maintained a
disciplined approach to managing the balance between production and demand.
As expected, Q4 2025 was the strongest period in 2025. The Group benefitted
from both an expanded range of core models including initial deliveries of DBX
S, Vantage S and Volante 60(th) anniversary limited editions, and the first
152 deliveries of the Valhalla supercar, Aston Martin's first mid-engined
PHEV. As a result, Q4 2025 total wholesale volumes of 2,096 increased
sequentially, up 47% on the previous quarter (Q3 2025: 1,430).
During this period of continued product evolution, the orderbook for core
vehicles has remained broadly unchanged, extending for up to five months. An
extensive global programme of Valhalla customer driving events continued
throughout Q4 2025 with further events scheduled in 2026. This provides
current and prospective customers with the first opportunity to experience the
exceptional performance of Aston Martin's first series production mid-engined
PHEV supercar, with current Valhalla orders taking deliveries into Q4 2026.
Volumes remained relatively well-balanced across the Group's four regions. In
line with the overall performance in FY 2025, wholesale volumes across all
regions were down compared to FY 2024 due to the reasons outlined above. In
addition, the timing of various model transitions and deliveries across the
regions over the past year also impacted volumes when compared to the prior
year period. The Americas and EMEA, excluding UK, were again the largest
regions in FY 2025, collectively representing 63% of total wholesales. While
China remains a market with long-term growth potential, demand there remained
extremely subdued in line with other luxury automotive peers, due to a weak
macroeconomic environment and changes to the luxury car tariff effective from
July 2025. FY 2025 wholesale volumes in APAC, excluding China, were also
weaker than expected, down 25%. Volumes in the Group's home market, the UK,
were reasonably robust, representing 19% of total wholesale volumes.
Revenue and ASP summary
£m FY 2025 FY 2024 % change Q4 2025 Q4 2024 % change
Sale of vehicles 1,142.7 1,477.9 (23%) 488.0 564.5 (14%)
Total ASP (£k) 209 245 (15%) 232 236 (2%)
Core ASP (£k) 185 177 5% 183 175 5%
Sale of parts 90.3 84.4 7% 23.0 19.8 16%
Servicing of vehicles 12.1 11.0 10% 3.0 2.2 36%
Brand and motorsport 12.6 10.6 19% 4.1 2.8 46%
Total revenue 1,257.7 1,583.9 (21%) 518.1 589.3 (12%)
FY 2025 revenue decreased by 21% to £1,258m (FY 2024: £1,584m). This was due
to the impact of fewer core volumes and, as expected, lower Special deliveries
compared to the prior year. While total ASP decreased by 15%, again reflecting
fewer Specials, FY 2025 and Q4 2025 core ASP both increased 5% compared to the
prior year period, benefitting from the expanded range of core derivatives.
Demand for unique product personalisation continued to drive strong
contribution to core revenue in FY 2025 of c. 18%, broadly in line with prior
year period.
Income statement summary
£m FY 2025 FY 2024 Q4 2025 Q4 2024
Revenue 1,257.7 1,583.9 518.1 589.3
Cost of sales (887.9) (1,000.0) (357.7) (382.3)
Gross profit 369.8 583.9 160.4 207.0
Gross margin % 29.4% 36.9% 31.0% 35.1%
Adjusted operating expenses (559.0) (666.7) (177.5) (168.3)
of which depreciation & amortisation 297.3 353.8 117.5 119.4
Adjusted EBIT(2) (189.2) (82.8) (17.1) 38.7
Adjusting operating items (70.0) (16.7) (51.3) (5.4)
Operating (loss)/profit (259.2) (99.5) (68.4) 33.3
Net financing expense (104.7) (189.6) (42.8) (93.5)
of which adjusting financing income/(expense) 4.2 (16.9) 1.2 2.3
Loss before tax (363.9) (289.1) (111.2) (60.2)
Tax (charge) (129.1) (34.4) (101.3) (43.6)
Loss for the period (493.0) (323.5) (212.5) (103.8)
Adjusted EBITDA(2) 108.1 271.0 100.4 158.1
Adjusted EBITDA margin 8.6% 17.1% 19.4% 26.8%
Adjusted loss before tax (298.1) (255.5) (61.1) (57.1)
EPS (pence) (50.2) (38.9)
Adjusted EPS (pence) (43.5) (34.8)
(2) Alternative Performance Measures are defined in Appendix
The lower FY 2025 revenue, as a result of the decrease in Specials deliveries
and core volumes, also impacted gross profit, which decreased to £370m (FY
2024: £584m), resulting in a gross profit margin of 29% (FY 2024: 37%). This
includes the impact of U.S. tariff increases and the previously communicated
warranty costs, dealer support and other investments made in product quality
amounting to an increase of c. £65m compared with FY 2024. Q4 2025 gross
margin increased sequentially to 31% (Q3 2025: 29%), supported by core volumes
and Specials, whilst ongoing warranty costs and dealer support to reduce aged
stock, still impacted the period.
Adjusted EBITDA decreased by £163m in FY 2025 to £108m (FY 2024: £271m)
with adjusted EBITDA margin declining to 9% (FY 2024: 17%). This reflects the
lower gross profit and a £(15)m FX impact, which was partially offset by a
16% decrease in adjusted operating expenses (excluding D&A) to £262m (FY
2024: £313m). This aligns with the Group's focus on optimising the cost base,
as part of its ongoing transformation programme and to drive future operating
leverage through disciplined cost management from 2026 onwards. Adjusted
operating expenses included the previously announced £11m benefit from the
revaluation uplift of the secondary warrant option associated with the
disposal of the Group's AMR GP investment.
Adjusted EBIT decreased in FY 2025 to £(189)m (FY 2024: £(83)m) with
adjusted depreciation and amortisation decreasing by 16% to £297m (FY 2024:
£354m), primarily reflecting fewer Specials.
Adjusted net financing costs of £109m (FY 2024: £173m), decreased primarily
due to the £71m year-on-year gain of non-cash U.S. dollar debt revaluation
due to the weaker U.S. dollar (FY 2025: £57m gain, FY 2024: £(14)m loss). FY
2025 net adjusting finance income of £4m relates to movements in the fair
value of outstanding warrants. The prior year net adjusting finance expense of
£17m comprised of a £35m redemption premium associated with the refinancing
of senior secured notes partially offset by a £18m gain in the fair value of
outstanding warrants.
The adjusted loss before tax increased to £298m (FY 2024: £256m loss),
largely reflecting the weaker volumes and adjusted EBIT.
On a reported basis, FY 2025 operating loss of £259m (FY 2024: £100m loss)
increased primarily due to the decrease in adjusted EBIT and increase in
adjusting items, largely relating to the net impairment of capitalised
development spend of £38m as part of a full review of the future product
cycle plan. This was partially offset by the decrease in net finance expenses
resulting in a 26% increase in loss before tax at £364m (FY 2024: £289m
loss).
The weighted average share count at 31 December 2025 was 982 million (31
December 2024: 832m), following the placing of new ordinary shares in May
2025. 20 million shares in relation to the warrants remain outstanding and are
exercisable until 2027, giving an adjusted EPS of (43.5)p (FY 2024: (34.8)p).
Cash flow and net debt summary
£m FY 2025 FY 2024 Q4 2025 Q4 2024
Cash generated from operating activities 74.1 123.9 163.5 175.3
Cash used in investing activities (excl. interest) (341.0) (400.6) (87.0) (100.6)
Net cash interest paid (143.0) (114.9) (71.4) (72.5)
Free cash (outflow)/inflow (409.9) (391.6) 5.1 2.2
Cash inflow/(outflow) from financing activities and other investing activities 305.1 356.5 (2.8) 193.1
(excl. interest)(2)
(Decrease)/increase in net cash (104.8) (35.1) 2.3 195.3
Effect of exchange rates on cash and cash equivalents (4.9) 2.3 0.2 7.4
Cash balance 249.9 359.6 249.9 359.6
Available facilities 0.4 154.1 0.4 154.1
Total cash and available facilities ("liquidity") 250.3 513.7 250.3 513.7
( )
(2) Alternative Performance Measures are defined in Appendix
FY 2025 net cash inflow from operating activities decreased by £50m to £74m
(FY 2024: £124m), largely reflecting a £163m decrease in adjusted EBITDA, as
explained above, partially offset by improved working capital with a £6m
inflow (FY 2024: £118m outflow). The drivers of the FY 2025 working capital
inflow were:
· £13m decrease in payables (FY 2024: £34m decrease), more than
offset by:
o £15m decrease in inventories (FY 2024: £13m increase), due to deliveries
of new core derivatives and Valhalla in Q4 2025
o £3m increase in deposits held (FY 2024: £178m decrease), due to Valhalla
deposit collections offsetting the deposit outflow from Special deliveries
o £2m decrease in receivables (FY 2024: £107m decrease) following improved
cash collections at year end
Capital expenditure of £341m was below the comparative period (FY 2024:
£401m), in line with the Group's revised guidance, (original guidance at the
start of the year: c. £400m) reflecting initial benefits of the cost and
Capex reductions announced at Q3 2025. 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, through a
continued focused on utilising existing platform architecture for internal
combustion engine vehicles, in line with regulatory trends and customer
demand.
FY 2025 free cash outflow increased by £18m compared to the comparative
period to £410m (FY 2024: £392m outflow), primarily due to the decrease in
cash inflow from operating activities and increased net cash interest paid,
partially offset by the decrease in capital expenditure.
£m 31 Dec-25 31 Dec-24
Loan notes (1,329.8) (1,378.9)
Inventory financing (39.6) (38.4)
Bank loans and overdrafts (170.4) (8.4)
Lease liabilities (IFRS 16) (91.8) (96.6)
Gross debt (1,631.6) (1,522.3)
Cash balance 249.9 359.6
Cash not available for short term use 1.4 -
Net debt (1,380.3) (1,162.7)
Compared with 31 December 2024, gross debt increased to £1,632m (31 December
2024: £1,522m) as a result of an increase in bank loans and overdrafts. This
was partially offset by a non-cash FX gain on $-denominated loan notes of
£57m (FY 2024: £14m loss).
Total cash and available facilities ('liquidity') was £250m on 31 December
2025, marginally improving on Q3 2025 (Q3 2025: £248m) given the strong
performance in Q4 2025 and improved cash collections at year end. The
reduction in total liquidity from 31 December 2024, largely reflects the
£410m free cash outflow in the year, as described above, partially offset by
the c. £106m inflow of net proceeds following the completed sale of AMR GP
shares and £52.5m investment from the Yew Tree Consortium. This is to be
further enhanced by the proposed sale of the Aston Martin naming rights to AMR
GP for a consideration of £50m in cash in Q1 2026.
Net debt at 31 December 2025 of £1,380m (31 December 2024: £1,163m) reflects
a decrease in the cash balance and increased drawing on the Revolving Credit
Facility. The adjusted net leverage ratio of 12.8x (31 December 2024: 4.3x)
reflects the increase in net debt and decline in adjusted EBITDA.
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
Results
Presentation
· There will be a video presentation and Q&A for today at
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· The presentation and Q&A can be accessed live via the
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https://www.astonmartin.com/corporate/investors/results-and-presentations
(https://www.astonmartin.com/corporate/investors/results-and-presentations)
· A replay facility will be available on the website later in the
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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. 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 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 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.
APPENDICES
Dealerships
31 Dec-25 31 Dec-24
UK 18 20
Americas 44 45
EMEA ex. UK 56 55
APAC 38 43
Total 156 163
Number of countries 53 53
Alternative Performance Measure
£m FY 2025 FY 2024
Loss before tax (363.9) (289.1)
Adjusting operating expense 70.0 16.7
Adjusting finance expense - 35.7
Adjusting finance (income) (4.2) (18.8)
Adjusted EBT (298.1) (255.5)
Adjusted finance (income) (61.7) (7.1)
Adjusted finance expense 170.6 179.8
Adjusted EBIT (189.2) (82.8)
Reported depreciation 88.9 84.4
Adjusted amortisation 208.3 269.3
Loss/(profit) on disposal of fixed assets 0.1 0.1
Adjusted EBITDA 108.1 271.0
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 repurchase arrangements 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 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.
Consolidated Statement of Comprehensive Income for the year ended 31 December
2025
2025 2024
Notes Adjusted Adjusting Total Adjusted Adjusting Total
£m items* £m £m items* £m
£m £m
Revenue 3 1,257.7 - 1,257.7 1,583.9 - 1,583.9
Cost of sales (887.9) - (887.9) (1,000.0) - (1,000.0)
Gross profit 369.8 - 369.8 583.9 - 583.9
Selling and distribution expenses (108.6) - (108.6) (135.4) - (135.4)
Administrative and other operating expenses (450.4) (70.0) (520.4) (531.3) (16.7) (548.0)
Operating loss 4 (189.2) (70.0) (259.2) (82.8) (16.7) (99.5)
Finance income 6 61.7 4.2 65.9 7.1 18.8 25.9
Finance expense 7 (170.6) - (170.6) (179.8) (35.7) (215.5)
Loss before tax (298.1) (65.8) (363.9) (255.5) (33.6) (289.1)
Income tax charge 8 (129.1) - (129.1) (34.4) - (34.4)
Loss for the year (427.2) (65.8) (493.0) (289.9) (33.6) (323.5)
(Loss)/profit attributable to:
Owners of the Group (493.2) (323.5)
Non-controlling interests 0.2 -
(493.0) (323.5)
Other comprehensive income
Items that will never be reclassified to the Income Statement
Remeasurement of Defined Benefit liability - 10.2
Change in fair value of investments in equity instruments 25.1 51.4
Taxation on items that will never be reclassified to the Income Statement 8 (6.3) (11.9)
Items that are or may be reclassified to the Income Statement
Foreign currency translation differences (1.6) 0.8
Fair value adjustment - cash flow hedges 14.4 -
Amounts reclassified to the Income Statement - cash flow hedges (11.8) (3.6)
Taxation on items that may be reclassified to the Income Statement 8 (0.7) 0.9
Other comprehensive income for the year, net of income tax 19.1 47.8
Total comprehensive loss for the year (473.9) (275.7)
Total comprehensive (loss)/income for the year attributable to:
Owners of the Group (474.1) (275.7)
Non-controlling interests 0.2 -
(473.9) (275.7)
Earnings per ordinary share
Basic loss per share 9 (50.2p) (38.9p)
Diluted loss per share 9 (50.2p) (38.9p)
Consolidated Statement of Changes in Equity as at 31 December 2025
Group Share Share premium Merger reserve Capital redemption reserve Capital reserve Translation reserve Hedge reserves Retained earnings Non-controlling interest Total
capital £m £m £m £m £m £m £m £m Equity
£m £m
At 1 January 2025 93.6 2,192.6 143.9 9.3 6.6 3.3 (1.9) (1,707.2) 12.7 752.9
Total comprehensive loss for the year
(Loss)/profit for the year - - - - - - - (493.2) 0.2 (493.0)
Other comprehensive income
Foreign currency translation differences - - - - - (1.6) - - - (1.6)
Fair value movement - cash flow hedges - - - - - - 14.4 - - 14.4
Amounts reclassified to the Consolidated Income Statement - cash flow hedges - - - - - - (11.8) - - (11.8)
Remeasurement of Defined Benefit liability - - - - - - - - - -
Fair value movement of investments in equity instruments - - - - - - - 25.1 - 25.1
Tax on other comprehensive income (note 8) - - - - - - (0.7) (6.3) - (7.0)
Total other comprehensive (loss)/income - - - - - (1.6) 1.9 18.8 - 19.1
Total comprehensive (loss)/income for the year - - - - - (1.6) 1.9 (474.4) 0.2 (473.9)
Transactions with owners, recorded directly in equity
Issuance of new shares (note 11) 7.5 - 43.7 - - - - - - 51.2
Issue of shares to Share Incentive Plan (note 11) 0.1 - - - - - - (0.1) - -
Debit for the year under equity-settled share-based payments - - - - - - - (0.9) - (0.9)
Tax on items credited to equity (note 8) - - - - - - - (0.1) - (0.1)
Total transactions with owners 7.6 - 43.7 - - - - (1.1) - 50.2
At 31 December 2025 101.2 2,192.6 187.6 9.3 6.6 1.7 - (2,182.7) 12.9 329.2
Consolidated Statement of Changes in Equity as at 31 December 2024
Group Share Share premium Merger reserve Capital redemption reserve Capital reserve Translation reserve Hedge reserves Retained earnings Non-controlling interest Total
capital £m £m £m £m £m £m £m £m Equity
£m £m
At 1 January 2024 82.4 2,094.5 143.9 9.3 6.6 2.5 0.8 (1,437.7) 20.8 923.1
Total comprehensive loss for the year
Loss for the year - - - - - - - (323.5) - (323.5)
Other comprehensive income
Foreign currency translation differences - - - - - 0.8 - - - 0.8
Fair value movement - cash flow hedges - - - - - - - - - -
Amounts reclassified to the Consolidated Income Statement - cash flow hedges - - - - - - (3.6) - - (3.6)
Remeasurement of Defined Benefit liability - - - - - - - 10.2 - 10.2
Fair value movement of investments in equity instruments - - - - - - - 51.4 - 51.4
Tax on other comprehensive income (note 8) - - - - - - 0.9 (11.9) - (11.0)
Total other comprehensive income/(loss) - - - - - 0.8 (2.7) 49.7 - 47.8
Total comprehensive income/(loss) for the year - - - - - 0.8 (2.7) (273.8) - (275.7)
Transactions with owners, recorded directly in equity
Issuance of new shares (note 11) 11.1 98.1 - - - - - - - 109.2
Issue of shares to Share Incentive Plan (note 11) 0.1 - - - - - - (0.1) - -
Dividend paid to non-controlling interest - - - - - - - - (8.1) (8.1)
Credit for the year under equity-settled share-based payments - - - - - - - 4.8 - 4.8
Tax on items credited to equity (note 8) - - - - - - - (0.4) - (0.4)
Total transactions with owners 11.2 98.1 - - - - - 4.3 (8.1) 105.5
At 31 December 2024 93.6 2,192.6 143.9 9.3 6.6 3.3 (1.9) (1,707.2) 12.7 752.9
Consolidated Statement of Financial Position at 31 December 2025
Notes 31 December 2025 31 December 2024
£m £m
Non-current assets
Intangible assets 1,644.8 1,659.1
Property, plant and equipment 351.5 351.4
Investments in equity interests - 50.9
Other financial assets - 23.2
Right-of-use lease assets 64.3 69.9
Trade and other receivables 10.5 7.3
Deferred tax asset - 126.4
2,071.1 2,288.2
Current assets
Inventories 277.7 303.0
Trade and other receivables 201.7 209.7
Other financial assets 3.0 1.0
Investments in equity instruments - asset held for sale 2.1 -
Cash and cash equivalents 10 249.9 359.6
734.4 873.3
Total assets 2,805.5 3,161.5
Current liabilities
Borrowings 10 7.4 -
Trade and other payables 652.1 658.2
Income tax payable 4.3 5.7
Other financial liabilities 2.4 10.6
Lease liabilities 10 12.4 9.4
Provisions 38.6 19.7
717.2 703.6
Non-current liabilities
Borrowings 10 1,492.8 1,387.3
Trade and other payables 134.9 151.5
Lease liabilities 10 79.4 87.2
Other financial liabilities - 23.2
Provisions 29.9 27.1
Employee benefits 22.1 28.7
1,759.1 1,705.0
Total liabilities 2,476.3 2,408.6
Net assets 329.2 752.9
Capital and reserves
Share capital 11 101.2 93.6
Share premium 11 2,192.6 2,192.6
Merger reserve 11 187.6 143.9
Capital redemption reserve 9.3 9.3
Capital reserve 6.6 6.6
Translation reserve 1.7 3.3
Hedge reserves - (1.9)
Retained earnings (2,182.7) (1,707.2)
Equity attributable to owners of the Group 316.3 740.2
Non-controlling interests 12.9 12.7
Total shareholders' equity 329.2 752.9
Consolidated Statement of Cash Flows for the year ended 31 December 2025
Notes 2025 £m 2024 £m
Operating activities
Loss for the year (493.0) (323.5)
Adjustments to reconcile loss for the year to net cash inflow from operating
activities
Tax charge on operations 8 129.1 34.4
Net finance costs 6, 7 104.7 189.6
Depreciation of property, plant and equipment 4 78.0 74.3
Depreciation of right-of-use lease assets 4 10.9 10.1
Amortisation of intangible assets 4 251.0 269.3
Loss on sale/scrap of property, plant and equipment 4 0.1 0.1
Difference between pension contributions paid and amounts recognised in the (8.0) (12.1)
Consolidated Income Statement
Decrease/(increase) in inventories 14.8 (12.8)
Decrease in trade and other receivables 1.8 106.7
Increase in trade and other payables (13.4) (33.8)
Increase/(decrease) in advances and customer deposits 2.6 (177.7)
Movement in provisions 23.7 2.7
Movements in translation reserve and other exchange related items (1.3) 0.3
Movements in hedging position and foreign exchange derivatives (2.1) 2.2
Increase in other derivative contracts (11.4) -
Movements in deferred tax relating to RDEC credit (6.5) (9.8)
Movement in LTIP Reserve (1.0) 4.8
Cash generated from operations 80.0 124.8
Increase in cash held not available for short-term use (1.4) -
Income taxes paid 8 (4.5) (0.9)
Net cash inflow from operating activities 74.1 123.9
Cash flows from investing activities
Interest received 4.8 7.1
Payments to acquire property, plant and equipment (69.6) (88.7)
Cash outflow on technology and development expenditure (271.4) (311.9)
Gross proceeds from disposal of investments in equity instruments 108.5 18.7
Net cash used in investing activities (227.7) (374.8)
Cash flows from financing activities
Interest paid (147.8) (122.0)
Proceeds from equity share issue 11 52.5 111.2
Proceeds from financial instrument utilised during refinancing transactions 6 - 0.7
Dividend paid to non-controlling interest - (8.0)
Principal element of lease payments (10.0) (9.5)
Proceeds from inventory repurchase arrangement 37.8 75.4
Repayment of inventory repurchase arrangement (40.0) (80.0)
Proceeds from new borrowings 161.1 1,394.6
Repayment of existing borrowings - (1,084.9)
Premium paid upon redemption of borrowings - (35.7)
Transaction fees paid on issuance of shares (3.2) (1.7)
Transaction fees paid on financing activities (1.6) (24.3)
Net cash inflow from financing activities 48.8 215.8
Net decrease in cash and cash equivalents (104.8) (35.1)
Cash and cash equivalents at the beginning of the year 359.6 392.4
Effect of exchange rates on cash and cash equivalents (4.9) 2.3
Cash and cash equivalents at the end of the year 249.9 359.6
1. Basis of accounting
Aston Martin Lagonda Global Holdings plc (the "Company") is a company
incorporated in England and Wales and domiciled in the UK. The Group Financial
Statements consolidate those of the Company and its subsidiaries (together
referred to as the "Group").
The Group Financial Statements have been prepared and approved by the
Directors in accordance with UK adopted international accounting standards.
The Group Financial Statements have been prepared under the historical cost
convention except where the measurement of balances at fair value is required
as explained below. The Financial Statements are prepared in millions to one
decimal place, and in sterling, which is the Company's functional currency.
The financial information set out does not constitute the Company's financial
statements for the years ended 31 December 2025 or 2024 but is derived from
those financial statements. Financial statements for 2024 have been delivered
to the registrar of companies, and those for 2025 will be delivered in due
course. The auditors have reported on those accounts. Their reports for both
years ended 31 December 2025 and 31 December 2024 were not qualified. Their
reports did not contain a statement under Section 498(2) or (3) of the
Companies Act 2006.
Climate change
In preparing the Consolidated Financial Statements, management have considered
the impact of climate change, particularly in the context of the disclosures
included in the Strategic Report this year and the sustainability goals,
including the stated Racing. Green. targets. Climate change is not expected to
have a significant impact on the Group's going concern assessment to 30 June
2027 nor the viability of the Group over the next five years following
consideration of the below points.
- The Group has modelled various scenarios to take account of the
risks and opportunities identified with the impact of climate change to assess
the financial impact on its business plan and viability.
- The Group is developing alternatives to the Internal Combustion
Engine ('ICE') with a blended drivetrain approach between 2026 and 2030 which
includes electrically boosted and assisted combustion drivetrains. Whilst
the Group has targeted a reduction in 5-year capital investment to £1.7bn
from £2.0bn, owing in part to the rephasing of Battery Electric Vehicle
('BEV') Technology investment, the Group intends to review the implementation
of an efficient electrification strategy for the future.
- The Group has a Strategic Cooperation Agreement with Mercedes-Benz
AG. The agreement provides the Company with access to a wide range of
world-class technologies for the current generation of luxury vehicles and
future derivatives.
- The Group has a supply agreement with Lucid Group, Inc.,
which will help drive the Group's electrification strategy and long-term
growth.
- The Group is leading a six-partner collaborative research and
development project, Project ELEVATION, which was awarded £9.0m of government
funding through the Advanced Propulsion Centre, further supplementing the
research and development of its innovative modular BEV platform.
- The Group's first hybrid supercar, Valhalla, entered production
in 2025 with initial deliveries in Q4.
Consistent with the above, management have further considered the impact of
climate change on a number of key estimates within the Financial Statements
and has not found climate change to have a material impact on the conclusions
reached.
Climate change considerations have been factored into the Directors'
impairment assessments of the carrying value of non-current assets (such as
capitalised development cost intangible assets) through usage of a pre-tax
discount rate which reflects the individual nature and specific risks relating
to the business and the market in which the Group operates.
In addition, the forecast cash flows used in both the impairment assessments
of the carrying value of non-current assets and the assessment of the
recoverability of deferred tax assets, reflect the current energy cost
headwinds and future costs to achieve the Group's near and long-term
emission reductions set out in its Racing. Green. targets. The forecasts also
consider forecast volumes for both existing and future car lines given current
order books and the assessment of changing customer preferences in the context
of climate change considerations.
Going concern
The Group meets its day-to-day working capital requirements and medium term
funding requirements through a mixture of $1,050.0m Senior Secured Notes
("SSNs") at 10.0% and £565.0m of SSNs at 10.375% both of which mature in
March 2029, a Revolving Credit Facility ("RCF") (£170.0m) which matures on 31
December 2028, facilities to finance inventory, a bilateral RCF, working
capital loans in China and a wholesale vehicle financing facility. Under the
RCF, the Group is required to comply with a leverage covenant tested quarterly
from March 2027, where the drawn amount less unrestricted Group cash is
greater than 40% of the facility amount. Leverage is calculated as the ratio
of adjusted EBITDA to net debt (calculated as the SSNs and RCF, less the
unrestricted Group cash, after certain accounting adjustments are made). Of
these adjustments, the most significant is to account for lease liabilities
under "frozen GAAP", i.e. under IAS 17 rather than IFRS 16.
The Group has complied with its covenant requirements for the year ended 31
December 2025. Given the ongoing macro-economic and industry volatility the
Group has pro-actively agreed an amendment to the terms of its RCF with its
lending banks. This results in the next financial covenant test being March
2027 and we expect to remain compliant with our covenant requirements for the
Going Concern period.
The directors have developed trading and cash flow forecasts for the period
from the date of approval of these financial statements through to 30 June
2027 (the "going concern review period"). These forecasts show that the Group
has sufficient financial resources to meet its obligations as they fall due
and to comply with covenants for the going concern review period. The
forecasts include the receipt in March 2026 of the irrevocably committed
proceeds of £50m from AMR GP Limited.
The forecasts reflect the Group's ultra-luxury performance-oriented strategy,
balancing supply with demand and the actions taken to improve cost efficiency
and gross margin. The forecasts include the costs of the Group's
environmental, social and governance ("ESG") commitments and make assumptions
in respect of future market conditions and, in particular, wholesale volumes,
average selling price, the launch of new models, and future operating costs.
The nature of the Group's business is such that there can be variation in the
timing of cash flows around the development and launch of new models. In
addition, the availability of funds provided through the vehicle wholesale
finance facility changes as the availability of credit insurance and sales
volumes vary, in total and seasonally. The forecasts take into account these
factors to the extent which the Group directors consider them to represent
their best estimate of the future based on the information that is available
to them at the time of approval of these Financial Statements.
The Group directors have considered a severe but plausible downside scenario
that includes considering the realisation of material risks, including the
impact of a 25% reduction in Valhalla volumes, 15% reduction in DBX volumes
and a 10% reduction in sports volumes from forecast levels, operating costs
higher than the base plan, incremental working capital requirements such as
reduced deposit inflows or increased deposit outflows and the impact of the
strengthening of the sterling-dollar exchange rate.
The Group plans to make continued investment for growth in the period and,
accordingly, funds generated through operations are expected to be reinvested
in the business mainly through new model development and other capital
expenditure.
To a certain extent such expenditure is discretionary and, in the event of
risks occurring, including but not limited to a crisis management incident or
a severe but plausible downside, which could have a particularly severe effect
on the Group, actions to constrain capital spending, as well as working
capital management, reduction in marketing expenditure and the continuation of
strict and immediate expense control would be taken to safeguard the Group's
financial position.
In addition, the Group also considered the circumstances which would be needed
to exhaust the Group's liquidity over the assessment period, a reverse stress
test (without mitigating actions). This would indicate that towards the end of
the Going Concern period total core vehicle volumes (DBX and GT/Sports) would
need to reduce by more than 10% from forecast levels to result in having no
liquidity, and 4% to result in a breach of covenants. The likelihood of
management not taking substantial controllable mitigating actions over such a
long period (such as reducing capital spending to preserve liquidity and
covenant compliance) together with these circumstances occurring is considered
remote.
Accordingly, after considering the forecasts, appropriate sensitivities,
current trading and available facilities, the directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the Going Concern period to 30 June 2027 and to comply with its
financial covenants and, therefore, the directors continue to adopt the going
concern basis in preparing the Financial Statements.
2. Accounting policies
Adjusting items
An adjusting item is disclosed separately in the Consolidated Statement of
Comprehensive Income where the quantum, nature or volatility of such items
would otherwise distort the underlying trading performance of the Group,
including where they are not expected to repeat in future periods. The tax
effect is also included.
The Directors exercise judgement in determining the items which are included
in the alternative performance measures where an IFRS measurement is adjusted
in a manner which the Directors believe provide additional insight into the
performance of the Group. Additional detail on how the alternative performance
measures are calculated and benefit the users of the accounts is set out in
note 14.
Details in respect of adjusting items recognised in the current and prior year
are set out in note 5.
3. Segmental reporting
Operating segments are defined as components of the Group about which separate
financial information is available and is evaluated regularly by the chief
operating decision-maker in assessing performance. The Group has only one
operating segment, the automotive segment, and therefore no separate segmental
report is disclosed. The automotive segment includes all activities relating
to design, development, manufacture and marketing of vehicles, including
consulting services; as well as the sale of parts, servicing and automotive
brand activities from which the Group derives its revenues.
Revenue 2025 2024
£m £m
Analysis by category
Sale of vehicles 1,142.7 1,477.9
Sale of parts 90.3 84.4
Servicing of vehicles 12.1 11.0
Brands and motorsport 12.6 10.6
1,257.7 1,583.9
Revenue 2025 2024
£m £m
Analysis by geographical location
United Kingdom 261.9 262.1
The Americas1 426.2 629.2
Rest of Europe, Middle East and Africa2 374.4 434.7
Asia Pacific3 195.2 257.9
1,257.7 1,583.9
1. Within The Americas geographical segment, material revenue of
£386.8m (2024: £591.0m) is generated in the United States of America
2. Within Rest of Europe, Middle East and Africa geographical segment,
material revenue of £112.5m (2024: £137.7m) is generated in Germany
3. Within Asia Pacific geographical segment, material revenue of £80.4m
(2024: £111.8m) is generated in Japan
4. Operating loss
The Group's operating loss is stated after charging/(crediting):
2025 2024
£m £m
Depreciation and impairment of property, plant and equipment 74.9 78.5
Depreciation released from/(absorbed into) into inventory under standard 3.1 (4.2)
costing
Loss on sale/scrap of property, plant and equipment 0.1 0.1
Depreciation of right-of-use lease assets 10.9 10.1
Amortisation and impairment of intangible assets 243.6 282.7
Amortisation (absorbed into)/released from inventory under standard costing 7.4 (13.4)
Depreciation, amortisation and impairment charges included in administrative 340.0 353.8
and other operating expenses
Increase in trade receivable loss allowance - administrative and other 0.9 1.3
operating expenses
Research and development expenditure tax credit (24.6) (23.8)
Other grant income* (1.2) (1.1)
Net foreign currency differences 5.7 8.0
Cost of inventories recognised as an expense 651.9 826.0
Write-down of inventories to net realisable value 9.8 4.2
Increase in fair value of other derivative contracts (11.4) -
Lease payments (gross of sub-lease receipts)
Plant, machinery and IT equipment** 0.3 0.3
Sub-lease receipts Land and buildings (0.5) (0.5)
Auditor's remuneration:
Audit of these Financial Statements 0.3 0.3
Audit of Financial Statements of subsidiaries pursuant to legislation 0.5 0.5
Audit-related assurance 0.1 0.1
Research and development expenditure recognised as an expense 12.9 21.2
* Other grant income reflects income recognised in the Consolidated
Income Statement in relation to an award from the Advanced Propulsion Centre
towards the Group's research and development into a modular battery electric
vehicle platform.
** Election taken by the Group to not recognise right-of-use lease assets
and equivalent lease liabilities for short-term and low-value leases.
2025 2024
£m £m
Total research and development expenditure 239.4 333.3
Capitalised research and development expenditure (226.5) (312.1)
Research and development expenditure recognised as an expense 12.9 21.2
5. Adjusting items
2025 2024
£m £m
Adjusting operating expenses:
ERP implementation costs1 (8.1) (10.0)
Legal settlement income2 0.3 2.9
Legal settlement and costs2 (3.2) (8.1)
Director settlement and change costs(8) - (1.5)
Employee restructuring costs(3) (18.7) -
Impairment of assets(4)
Development costs (42.7) -
Research and development expenditure tax credit deferral unwind 4.6 -
Transaction fees paid on the disposal of investments in equity instruments(5) (2.2) -
(70.0) (16.7)
Adjusting finance income:
Gain on financial instruments recognised at fair value through Consolidated 4.2 18.1
Income Statement(6)
Gain on financial instrument utilised during refinance transactions(9) - 0.7
Adjusting finance expenses:
Premium paid on the early redemption of Senior Secured Notes(9) - (35.7)
4.2 (16.9)
Total adjusting items before tax (65.8) (33.6)
Tax charge on adjusting items7 - -
Adjusting items after tax (65.8) (33.6)
Summary of 2025 adjusting items
1. In the year ended 31 December 2025, the Group incurred further
implementation costs for a cloud-based Enterprise Resource Planning (ERP)
system for which the Group will not own any intellectual property. £8.1m
(2024: £10.0m) of costs have been incurred in the period under the service
contract and expensed to the Consolidated Income Statement during the business
readiness phase of the project. The project continued a phased rollout during
2025 with the second of two manufacturing sites going live to complement
previous rollouts which included HR, ordering and dealer management,
purchasing, and the first of two manufacturing sites. Due to the infrequent
recurrence and the quantum of costs during the implementation phase, these
have been separately presented as adjusting non-recurring costs. The cash
impact of this item is a working capital outflow at the time of invoice
payment.
2. During the year ended 31 December 2025, the Group incurred legal
costs in relation to a number of disputes and claims with entities ultimately
owned by a former significant shareholder of the Group. The Group has incurred
legal costs of £3.2m (2024: £8.1m) associated with its defence of such
claims and pursuit of its counterclaims. AMMENA, Aston Martin's distributor in
the Middle East, North Africa and Turkey region has brought various claims,
which the Group denies.
Certain aspects of these claims, and Aston Martin's counterclaims, were heard
in a confidential arbitration in September 2024. The Tribunal made a partial
award in November 2024. In May 2025 the counterparty was granted permission to
appeal a specific part of the award in a further proceeding at the High Court
which took place in September 2025. The High Court found in favour of the
Group and awarded certain of its legal costs to the value of £0.3m. In line
with the associated costs relating to the legal matter, which have been
considered as non-recurring in nature above, the associated judgment income
has been deemed as non-recurring in nature.
Separately, on 1 March 2024 a court order was issued quantifying the amounts
payable to the Group from the judgment of a case involving claims against a
retail dealership, which is ultimately owned by entities that are shareholders
in one of the Group's subsidiary entities, including for unpaid debts relating
to two agreements from 2015 and 2016. The Group was awarded certain of its
legal costs, including some on an indemnity basis. Following challenge by the
counterparty, the overall amount received by the Group was £2.9m. All
remaining amounts due in relation to this dispute have now been resolved.
Given that the Group had incurred costs in previous years in relation to the
same matter which were considered non-recurring in nature due to being related
to historic disputes with former shareholders and not related to the ongoing
business of the Group, the associated judgment income has also been treated as
non-recurring in nature.
Whilst disputes and legal proceedings pending are often in the normal course
of the Group's business, in all these cases the opposing party has links to
companies that were former significant shareholders of the Group. On that
basis the Group has classified these costs as non-recurring in nature.
The cash impact of legal settlement costs are a working capital outflow at the
time of invoice payment, the cash impact of legal settlement incomes have been
realised in the same year in which the incomes have been recognised. The Group
has continued to disclose a contingent liability in respect of ongoing claims
with former significant shareholders of the Group (note 13).
3. On 26 February 2025 it was announced that the Group was commencing a
process to make organisational adjustments which ultimately saw the departure
of around 100 valued colleagues from the Group. On 6 October 2025 the Group
issued a Trading Update which highlighted challenges in the global
macroeconomic environment due to economic uncertainties surrounding the
economic impact of 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. In response, the Group commenced an immediate review
of cost and capital expenditure. As part of this review, it was announced that
the business would commence a further global consultation process on proposals
to reduce the workforce by up to 20 percent. The Group has accordingly
recognised a provision of £18.7m in relation to incurred and expected
restructuring costs across the course of the year ended 31 December 2025. As
at 31 December 2025 £5.2m of costs have been realised, with the remaining
£13.5m expected to be settled in 2026.
4. In response to the aforementioned Trading Update issued by the Group on
6 October 2025, a full review of the future product cycle plan was performed
with revised capital expenditure targets put in place. As part of the review
and to deliver lower overall capital expenditure over the coming 5-year
period, specific vehicle programmes with previously capitalised development
spend have been discontinued, resulting in an impairment of £42.7m (2024:
nil) of capitalised development spend. There is no cash impact of this
adjustment.
Research and development tax relief in the form of the Research and
Development Expenditure Credit ("RDEC") is recognised in the Consolidated
Income Statement over the periods in which the qualifying expenditure giving
rise to the RDEC claim is recognised. Certain expenses within the scope of
RDEC are capitalised as part of the Group's development costs. Where this is
the case, the Group defers the income associated with the claim to deferred
income and releases it to the Consolidated Income Statement in line with the
amortisation profile of the associated asset. Given £4.6m (2024: nil) of RDEC
claims made by the Group related to development spend which has now been
impaired as part of the Group's product cycle plan, the associated one-time
impact of the unwind of previously deferred RDEC income has also been treated
as non-recurring in nature. There is no cash impact of this adjustment.
5. On 29 September 2025 the Group completed the sale of the significant
portion of its shareholding in AMR GP Holdings Limited having early exercised
an option to subscribe for additional equity for a fixed value. The Group
recognised £2.2m of fees in the Consolidated Income Statement in relation to
the transaction which, due to the unique nature and quantum of the transaction
which is not expected to recur, have been presented as adjusting non-recurring
costs. The cash impact of the transaction was incurred in the year ended 31
December 2025.
6. The Group issued Second Lien SSNs during the year ended 31 December
2020 which included detachable warrants classified as a derivative option
liability initially valued at £34.6m. The movement in fair value of the
liability in the year ended 31 December 2025 resulted in a gain of £4.2m
(2024: gain of £18.1m) being recognised in the Consolidated Income Statement.
There is no cash impact of this adjustment.
7. In 2025, nil tax has been recognised as an adjusting item (2024: nil
tax) which is not in line with the standard rate of income tax for the Group
of 25% (2024: 25%). This is on the basis that the adjusting items generate net
deferred tax assets (specifically unused tax losses and interest amounts
disallowed under the corporate interest restriction legislation). These have
not been recognised to the extent that sufficient taxable profits are not
forecast against which the unused tax losses and interest amounts disallowed
under the corporate interest restriction legislation would be utilised.
Summary of 2024 adjusting items
8. On 22 March 2024 it was announced that Amedeo Felisa would be
retiring from the business, and Adrian Hallmark would be joining the Group as
Chief Executive Officer. In addition, Marco Mattiacci, the Group's Chief
Commercial Officer, left the Group on 31 December 2024. The total costs
associated with these changes was £1.5m, all of which represents severance
costs and payments in lieu of notice. Due to the nature and quantum, these
items have been separately presented. The cash impact of such changes is a
working capital movement in 2025.
9. During the year ended 31 December 2024 the Group undertook a
refinancing exercise whereby new Senior Secured Notes of $960.0m at 10.0% and
£400.0m at 10.375% repayable 31 March 2029 were issued, and all outstanding
First Lien and Second Lien Senior Secured Notes issued by the Group were
repaid. To facilitate the repayment of the outstanding Secured Notes, the
Group placed a forward currency contract to purchase US dollars. Due to
favourable movements in the exchange rates, a gain of £0.7m was recognised in
the Consolidated Income Statement at the transaction date. The cash impact of
this gain was realised at the point of refinancing. Additionally, in repaying
the notes prior to their redemption date, a redemption premium of £35.7m was
incurred, of which the cash impact was incurred in the year ended 31 December
2024.
6. Finance income
2025 2024
£m £m
Bank deposit and other interest income 4.7 7.1
Foreign exchange gain on borrowings not designated as part of a hedging 57.0 -
relationship
Finance income before adjusting items 61.7 7.1
Adjusting finance income items:
Foreign exchange gain on financial instrument utilised during refinance - 0.7
transactions
Gain on financial instruments recognised at fair value through Consolidated 4.2 18.1
Income Statement
Total adjusting finance income 4.2 18.8
Total finance income 65.9 25.9
7. Finance expense
2025 2024
£m £m
Bank facilities, overdrafts and senior secured notes 160.1 151.4
Interest on lease liabilities 4.0 4.2
Net interest expense on the net Defined Benefit liability 1.4 2.0
Interest on contract liabilities held 1.1 3.7
Foreign exchange loss on borrowings not designated as part of a hedging - 14.1
relationship
Effect of discounting on long-term liabilities 4.0 4.4
Finance expense before adjusting items 170.6 179.8
Adjusting finance expense items:
Premium paid on the early redemption of Senior Secured Notes - 35.7
Total adjusting finance expense - 35.7
Total finance expense 170.6 215.5
8. Taxation
2025 2024
£m £m
UK corporation tax on result 0.1 0.1
Overseas tax 3.0 5.4
Prior period movement 0.1 (0.1)
Total current income tax charge 3.2 5.4
Deferred tax charge
Origination and reversal of temporary differences 125.9 27.1
Prior period movement - 1.8
Effect of change in deferred tax rate - 0.1
Total deferred tax charge 125.9 29.0
Total income tax charge in the Consolidated Income Statement 129.1 34.4
Tax relating to items (credited)/charged to other comprehensive income
Deferred tax
Actuarial movement on Defined Benefit plan - 2.5
Fair value adjustment on investments in equity interests (9.4) 9.4
Fair value adjustment on cash flow hedges 0.7 (0.9)
(8.7) 11.0
Current tax
Fair value adjustment on investments in equity interests 15.7 -
7.0 11.0
Tax relating to items charged in equity - deferred tax
Effect of equity settled share-based payment charge 0.1 0.4
(a) Reconciliation of the total income tax charge
The tax charge (2024: charge) in the Consolidated Statement of Comprehensive
Income for the year is higher (2024: higher) than the standard rate of
corporation tax in the UK of 25% (2024: 25%). The differences are reconciled
below:
2025 2024
£m £m
Loss from operations before taxation (363.9) (289.1)
Loss from operations before taxation multiplied by standard rate (91.0) (72.3)
of corporation tax in the UK of 25% (2024: 25%)
Difference to total income tax charge due to effects of:
Expenses not deductible for tax purposes 2.0 1.4
Income not taxable for tax purposes (2.9) -
Movement in unprovided deferred tax 76.7 70.0
Net prior year deferred tax assets no longer recognised 142.5 29.9
Adjustments in respect of prior periods 0.1 1.7
Effect of change in deferred tax rate - 0.1
Difference in overseas tax rates 0.1 0.1
Investments in equity instruments 8.1 3.5
Other (6.5) -
Total income tax charge 129.1 34.4
(b) Tax paid
Total net tax paid during the year was £4.5m (2024: £0.9m).
(c) Factors affecting future tax charges
Pillar Two legislation has been enacted or substantively enacted in certain
jurisdictions in which the Group operates. The legislation has been effective
for the Group's financial year commencing 1 January 2024. The Group has
performed an assessment of the Group's potential exposure to Pillar Two income
taxes.
The assessment of the potential exposure to Pillar Two income taxes is based
on the most recent tax filings, country-by-country reporting and financial
statements for the constituent entities in the Group. Based on the assessment,
the Pillar Two Transitional Safe Harbour provisions are expected to apply in
each jurisdiction the Group operates in, and management is not aware of any
circumstance under which this might change. Therefore, there is no tax expense
associated with the Pillar Two legislation for the financial periods ended 31
December 2025 and 31 December 2024. The Group has applied the exemption in IAS
12 'Income Taxes' from recognising and disclosing information about deferred
tax assets and liabilities related to Pillar Two income taxes.
9. Earnings per ordinary share
Basic earnings per ordinary share is calculated by dividing the loss for the
year available for equity holders by the weighted average number of ordinary
shares in issue during the year. A total of 3,487,950 ordinary shares were
issued under the Group's share investment plan. As these shares are held in
trust on behalf of the Group's employees and the Group controls the trust they
have been excluded from the calculation of the weighted average number of
shares.
Continuing and total operations 2025 2024
Basic earnings per ordinary share
Loss available for equity holders (£m) (493.2) (323.5)
Basic weighted average number of ordinary shares (million) 982.4 832.4
Basic loss per ordinary share (pence) (50.2p) (38.9p)
Diluted earnings per ordinary share is calculated by adjusting basic earnings
per ordinary share to reflect the notional exercise of the weighted average
number of dilutive ordinary share awards outstanding during the year,
including the future technology shares and warrants detailed below. The
weighted average number of dilutive ordinary share awards outstanding during
the year are excluded when including them would be anti-dilutive to the
earnings per share value.
Continuing and total operations 2025 2024
Diluted earnings per ordinary share
Loss available for equity holders (£m) (493.2) (323.5)
Basic weighted average number of ordinary shares (million) 982.4 832.4
Diluted loss per ordinary share (pence) (50.2p) (38.9p)
2025 2024
Number Number
Diluted weighted average number of ordinary shares is calculated as:
Basic weighted average number of ordinary shares (million) 982.4 832.4
Adjustments for calculation of diluted earnings per share:1
Long-term incentive plans - -
Issue of unexercised ordinary share warrants - -
Weighted average number of diluted ordinary shares (million) 982.4 832.4
1 The number of ordinary shares issued as part of the long-term
incentive plans and the potential number of ordinary shares issued as part of
the 2020 issue of share warrants have been excluded from the weighted average
number of diluted ordinary shares, as including them is anti-dilutive to
diluted earnings per share.
Detachable warrants to acquire shares in the Company were issued alongside
the Second Lien SSNs issued by the Group in December 2020, and subsequently
repaid in March 2024, can be exercised from 1 July 2021 through to 7 December
2027. As a consequence of the rights issue during the period ended 31
December 2022 the number of ordinary shares issuable via the options was
increased by a multiple of 6 to ensure the warrant holders' interests were
not diluted. As at 31 December 2025 66,159,325 warrant options, each entitled
to 0.3 ordinary shares (2024: 66,159,325 warrant options, each entitled to 0.3
ordinary shares), remain unexercised. The future exercise of warrants may have
a dilutive effect in future periods if the Group generates a profit.
Adjusted earnings per share is disclosed in note 14 to show performance
undistorted by adjusting items to assist in providing useful information on
the underlying performance of the Group and enhance the comparability of
information between reporting periods.
10. Net debt
The Group defines net debt as current and non-current borrowings in addition
to inventory repurchase arrangements and lease liabilities, less cash and cash
equivalents including cash held not available for short-term use.
2025 2024
£m £m
Cash and cash equivalents 249.9 359.6
Cash held not available for use in the short term 1.4 -
Inventory repurchase arrangement (39.6) (38.4)
Lease liabilities - current (12.4) (9.4)
Lease liabilities - non-current (79.4) (87.2)
Loans and other borrowings - current (7.4) -
Loans and other borrowings - non-current (1,492.8) (1,387.3)
Net debt (1,380.3) (1,162.7)
Movement in net debt
Net decrease in cash and cash equivalents (109.7) (32.8)
Add back cash flows in respect of other components of net debt:
New borrowings (161.1) (1,394.6)
Proceeds from inventory repurchase arrangement (37.8) (75.4)
Movement in cash not available for short-term use 1.4 -
Repayment of existing borrowings - 1,084.9
Repayment of inventory repurchase arrangement 40.0 80.0
Lease liability payments 10.0 9.5
Transaction fees 1.6 24.3
Increase in net debt arising from cash flows (255.6) (304.1)
Non-cash movements:
Foreign exchange gain/(loss) on secured loan 57.0 (14.1)
Interest added to debt (3.4) (4.6)
Unpaid transaction fees (1.6) 1.7
Borrowing fee amortisation (8.5) (18.5)
Lease liability interest charge (4.0) (4.2)
Lease modifications (3.8) (1.6)
New leases (1.8) (7.7)
Foreign exchange gain and other movements 4.1 4.7
Increase in net debt (217.6) (348.4)
Net debt at beginning of the year (1,162.7) (814.3)
Net debt at the end of the year (1,380.3) (1,162.7)
11. Share capital and other reserves
Allotted, called up and fully paid Number of Nominal Share Share Merger Capital redemption reserve
value
£m
shares
£ capital premium reserve
£m
£m
£m
Opening balance at 1 January 2024 823,663,785 82.4 2,094.5 143.9 9.3
Issuance of shares as part of vested long-term incentive plans1 78,050 0.1 0.0 - - -
Issuance of shares to SIP2 1,283,696 0.1 0.1 - - -
Non-pre-emptive Placing3 111,249,416 0.1 11.1 98.1 - -
Balance as at 31 December 2024 and 1 January 2025 936,274,947 93.6 2,192.6 143.9 9.3
Non-pre-emptive Placing4 75,000,000 0.1 7.5 - 43.7 -
Issuance of shares to SIP(5) 1,186,749 0.1 0.1 - - -
Closing balance at 31 December 2025 1,012,461,696 101.2 2,192.6 187.6 9.3
1. On 6 March 2024, the Company issued 78,050 ordinary shares
to satisfy the vesting of the 2021 Long Term Incentive Plan and buyout award.
The shares were issued at nominal value and resulted in the recognition of
<£0.1m of share capital and no impact upon share premium.
2. On 13 May 2024, the Company issued 1,283,696 ordinary
shares under the Company's Share Incentive Plan at nominal value. A transfer
from retained earnings of £0.1m took place, with £0.1m recognised in share
capital.
3. On 29 November 2024, the Company issued a total of
111,249,416 ordinary shares comprising 109,000,000 placing shares, 1,249,416
retail offer shares and 1,000,000 Director subscription shares by way of a
non-pre-emptive placing. The shares were issued at 100p, raising gross
proceeds of £111.2m, with £11.1m recognised as share capital and the
remaining £100.1m recognised as share premium. Transaction fees of £2.0m
were deducted from share premium of which £1.9m were paid during the year
ended 31 December 2025.
4. On 9 May 2025 the Company issued 75,000,000 ordinary shares
through a non-pre-emptive placing and retail offer. The shares were issued at
70p raising gross proceeds of £52.5m, with £7.5m recognised as share capital
and the remaining £45.0m recognised as merger reserve. Transaction fees of
£1.3m were deducted from the gross proceeds recognised in the merger reserve
and paid during the year ended 31 December 2025. The merger reserve is used
where more than 90% of the shares in a subsidiary are acquired and the
consideration includes the issue of new shares by the Company, thereby
attracting merger relief under the Companies Act 2006.
5. On 9 September 2025, the Company issued 1,186,749 ordinary
shares under the Company's Share Incentive Plan at nominal value. A transfer
from retained earnings of £0.1m took place, with £0.1m recognised in share
capital.
12. Related party transactions
Transactions between Group undertakings, which are related parties, have been
eliminated on consolidation and accordingly are not disclosed.
Transactions with Directors and related undertakings
Transactions during 2025
During the year ended 31 December 2025, a net marketing expense amounting to
£22.3m of sponsorship has been incurred in the normal course of business with
AMR GP Limited ("AMR GP"), an entity indirectly controlled by a member of the
Group's Key Management Personnel ("KMP"). AMR GP and its legal structure is
separate to that of the Group and the Group does not have control or
significant influence over AMR GP or its affiliates. £0.6m remains due from
AMR GP at 31 December 2025 relating to these transactions. Under the terms of
the sponsorship agreement the Group is required to provide one fleet vehicle
to each of the two AMR GP racing drivers free of charge. This arrangement is
expected to continue for the life of the contract and is not expected to
materially affect the financial position and performance of the Group. One of
the racing drivers is an immediate family member of one of the Group's KMP.
During the year ended 31 December 2025 the Group incurred expenses of £0.4m
due to AMR GP in relation to costs for supporting the sale of the significant
portion of the Group's investment holding in AMR GP. The incurred expenses
were settled out of the net proceeds of the share sale and therefore £nil of
the fees were outstanding as at 31 December 2025.
During the year ended 31 December 2025, AMR GP also purchased two used
vehicles for £0.3m from a Group company of which £nil was outstanding as at
31 December 2025. £0.1m of this was settled via part exchange of a used
vehicle.
In addition, the Group incurred costs of £3.1m associated with engineering
design on upcoming vehicle programmes from Aston Martin Performance
Technologies Limited ("AMPT") of which £1.2m is outstanding to AMPT at 31
December 2025. AMPT is an associated entity of AMR GP.
During the year ended 31 December 2025, the Group incurred a rental expense of
£1.4m from Michael Kors (USA), Inc., a Company which is owned by Capri
Holdings Limited. A member of the Group's KMP and Non-Executive Director is
also a member of Capri Holdings Limited KMP.
During the year ended 31 December 2025, the Group incurred expenses of £1.6m
from Lucid, Inc relating to the implementation work for the technology
purchased in 2023. £2.1m was outstanding as at 31 December 2025 relating in
part to previous financial years expense. An outstanding cash liability of
£73.3m relating to the technology supply arrangement entered in 2023 remains
as at 31 December 2025, all of which is due in 2026 or later. The supply
arrangement commits to an effective future minimum spend with Lucid on
powertrain components of £177.0m. The arrangement is considered a Related
Party Transaction owing to the substantial ownership of Lucid by the Public
Investment Fund ("PIF"). PIF are a substantial shareholder of the Group, and
two members of the Group's KMP and Non-Executive Directors are members of
PIF's KMP.
During the year ended 31 December 2025, the Group incurred costs of £0.2m for
safety testing services from companies within the Geely Holding Group of
companies of which £nil was outstanding as at 31 December 2025. A member of
the Group's KMP and Non-Executive Director is also a member of Zhejiang Geely
Holding Group Co., Limited KMP.
During the year ended 31 December 2025, Classic Automobiles Inc. purchased a
vehicle for £3.6m of which £1.1m was outstanding at 31 December 2025.
Classic Automobiles Inc. is controlled by a member of the Group's KMP.
During the year ended 31 December 2025, a member of the Group's KMP purchased
a vehicle for £0.2m of which £nil was outstanding at 31 December 2025.
Transactions during 2024
During the year ended 31 December 2024, a net marketing expense amounting to
£18.9m of sponsorship has been incurred in the normal course of business with
AMR GP Limited ("AMR GP"), an entity indirectly controlled by a member of the
Group's Key Management Personnel ("KMP"). AMR GP and its legal structure is
separate to that of the Group and the Group does not have control or
significant influence over AMR GP or its affiliates. £0.9m remained due from
AMR GP at 31 December 2024 relating to these transactions. Under the terms of
the sponsorship agreement the Group is required to provide one fleet vehicle
to each of the two AMR GP racing drivers free of charge. This arrangement is
expected to continue for the life of the contract and is not expected to
materially affect the financial position and performance of the Group. One of
the racing drivers is an immediate family member of one of the Group's KMP.
In addition, the Group incurred costs of £5.1m associated with engineering
design on two upcoming vehicle programmes from Aston Martin Performance
Technologies Limited ("AMPT") of which £1.3m is outstanding to AMPT at 31
December 2024. AMPT is an associated entity of AMR GP.
During the year ended 31 December 2024, Classic Automobiles Inc. purchased a
vehicle for £3.3m of which £nil was outstanding at 31 December 2024. Classic
Automobiles Inc. is controlled by a member of the Group's KMP.
During the year ended 31 December 2024, the Group incurred a rental expense of
£1.3m from Michael Kors (USA), Inc., a Company which is owned by Capri
Holdings Limited. A member of the Group's KMP and Non-Executive Director is
also a member of Capri Holdings Limited KMP.
During the year ended 31 December 2024, the Group incurred expenses of £3.8m
from Lucid, Inc relating to the implementation work for the technology
purchased in 2023. £0.6m was outstanding as at 31 December 2024. An
outstanding cash liability of £71.7m relating to the technology supply
arrangement entered in 2023 remained as at 31 December 2024, all of which is
due in 2025 or later. The supply arrangement commits to an effective future
minimum spend with Lucid on powertrain components of £177.0m. The arrangement
is considered a Related Party Transaction owing to the substantial ownership
of Lucid by the Public Investment Fund ("PIF"). PIF are a substantial
shareholder of the Group, and two members of the Group's KMP and Non-Executive
Directors are members of PIF's KMP.
During the year ended 31 December 2024, the Group incurred costs of £0.4m for
safety testing services from companies within the Geely Holding Group of
companies. A further £0.6m of expense was incurred relating to a feasibility
study for vehicle development. Owing to the nature of such a study, there is
no comparable market offering. A member of the Group's KMP and Non-Executive
Director is also a member of Zhejiang Geely Holding Group Co., Limited KMP.
£nil was outstanding as at 31 December 2024.
Terms and conditions of transactions with related parties
Sales and purchases between related parties were made at normal market prices
unless otherwise stated. Outstanding balances with entities other
than subsidiaries are unsecured and interest free and cash settlement is
expected within 60 days of invoice. Terms and conditions for transactions with
subsidiaries are the same, with the exception that balances are placed on
inter-company accounts. The Group has not provided or benefited from any
guarantees for any related party receivables or payables.
13. Contingent liabilities
In the normal course of the Group's business, claims, disputes, and legal
proceedings involving customers, dealers, suppliers, employees or others are
pending or may be brought against Group entities arising out of current or
past operations.
There is presently a dispute between the Group and the other shareholders of
one of its subsidiary entities, which is ongoing and from which a future
obligation may arise. The Group denies the claims made and is working to
resolve the matter.
14. Alternative performance measures
In the reporting of financial information, the Directors have adopted various
Alternative Performance Measures ("APMs"). The Directors exercise judgement in
determining the adjustments to apply to IFRS measurements in order to derive
suitable APMs. 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.
The key APMs that the Group focuses on are as follows:
i) Adjusted EBT is the profit/(loss)
before tax and adjusting items as shown in the Consolidated Income Statement.
ii) Adjusted EBIT is operating
profit/(loss) before adjusting items.
iii) Adjusted EBITDA removes depreciation,
profit/(loss) on sale of fixed assets and amortisation from adjusted EBIT.
iv) Adjusted operating margin is adjusted
EBIT divided by revenue.
v) Adjusted EBITDA margin is Adjusted
EBITDA (as defined above) divided by revenue.
vi) Adjusted earnings per share is
profit/(loss) after tax before adjusting items as shown in the Consolidated
Income Statement, divided by the weighted average number of ordinary shares in
issue during the reporting period.
vii) Net debt is current and non-current
borrowings in addition to inventory repurchase arrangements and lease
liabilities, less cash and cash equivalents and cash held not available for
short-term use as shown in the Consolidated Statement of Financial Position.
viii) Adjusted leverage is represented by the
ratio of net debt to the last 12 months (LTM) Adjusted EBITDA.
ix) 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.
The adjusted financial measures above (EBT, EBIT, EBITDA, operating margin,
EBITDA margin, and earnings per share) are also used by securities analysts
and investors to monitor progress of the business against its core operating
objectives after removing the separately disclosed adjusting items. EBITDA
gives an insight into the Group's operating performance by excluding investing
and financing activity. EBIT represents the returns available from the
business without financing charges and therefore can be used to model
potential shareholder returns were the capital structure of the Group to
change. Net debt provides a view of the total indebtedness of the Group which
includes certain liabilities presented in alternative captions of the
accounts, such as lease liabilities, in one single place to aid easier
understanding to users of the accounts. Adjusted leverage forms the basis for
the Group's covenant test, and therefore year on year progress in this metric
is useful to analysts and investors. Finally, free cash flow is used to
measure potential surplus cash flows from operating activities after
investment in future products and debt servicing which could be used by the
Group to repay debt, return to shareholders, or be used for other investing
activities.
Consolidated Income Statement
2025 2024
£m £m
Loss before tax (363.9) (289.1)
Adjusting operating expenses (note 5) 70.0 16.7
Adjusting finance income (notes 5, 6) (4.2) (18.8)
Adjusting finance expense (notes 5, 7) - 35.7
Adjusted loss before tax (EBT) (298.1) (255.5)
Adjusted finance income (note 6) (61.7) (7.1)
Adjusted finance expense (note 7) 170.6 179.8
Adjusted operating loss (EBIT) (189.2) (82.8)
Adjusted operating margin (15.0%) (5.2%)
Reported depreciation 88.9 84.4
Adjusted reported amortisation 208.3 269.3
Loss on sale/scrap of property, plant and equipment 0.1 0.1
Adjusted EBITDA 108.1 271.0
Adjusted EBITDA margin 8.6% 17.1%
Earnings per ordinary share
2025 2024
£m £m
Adjusted earnings per ordinary share
Loss available for equity holders (£m) (493.2) (323.5)
Adjusting items (note 5)
Adjusting items before tax (£m) 65.8 33.6
Tax on adjusting items (£m) - -
Adjusted loss (£m) (427.4) (289.9)
Basic weighted average number of ordinary shares (million) 982.4 832.4
Adjusted loss per ordinary share (pence) (43.5p) (34.8p)
Adjusted diluted earnings per ordinary share
Adjusted loss (£m) (427.4) (289.9)
Diluted weighted average number of ordinary shares (million) 982.4 832.4
Adjusted diluted loss per ordinary share (pence) (43.5p) (34.8p)
Net debt
2025 2024
£m £m
Opening cash and cash equivalents 359.6 392.4
Cash inflow from operating activities 74.1 123.9
Cash outflow from investing activities (227.7) (374.8)
Cash inflow from financing activities 48.8 215.8
Effect of exchange rates on cash and cash equivalents (4.9) 2.3
Cash and cash equivalents at 31 December 249.9 359.6
Borrowings (1,500.2) (1,387.3)
Inventory repurchase arrangement (39.6) (38.4)
Lease liabilities (91.8) (96.6)
Cash held not available for short-term use 1.4 -
Net debt (1,380.3) (1,162.7)
Adjusted EBITDA 108.1 271.0
Adjusted leverage 12.8x 4.3x
Free cash flow
2025 2024
£m £m
Net cash inflow from operating activities 74.1 123.9
Cash used in investing activities (excluding interest received and cash (341.0) (400.6)
generated from disposal of investments)
Interest paid less interest received (143.0) (114.9)
Free cash flow (409.9) (391.6)
15. Subsequent events
The Group announced on 20 February 2026 that, following an offer from AMR GP
Holdings Limited ("AMR GP"), it is proposing to sell the right to use Aston
Martin as part of the 'Aston Martin F1 Team' name and as a chassis name to AMR
GP in perpetuity, as well as certain related branding rights, in each case
limited to specified uses in the context of AMR GP's F1® operations, for
consideration of £50m in cash. In 2024, Aston Martin extended its long-term
Sponsorship Arrangement until at least 2045, with the Naming Arrangements for
AMR to use the 'Aston Martin' name in F1 until 2055 at the latest. There is no
impact of this subsequent event on the Group financial results for the period
ended 31 December 2025.
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