For the six months, group recorded an adjusted operating loss of £121.5 million, a 22% increase from the £99.8 million loss last year
LONDON: Aston Martin Lagonda Global Holdings plc reported a widening of interim losses, as anticipated, driven by reduced deliveries of high-value special edition vehicles and operational disruption stemming from the implementation of new US tariffs. However, the luxury carmaker emphasised a disciplined approach to production and pointed to a significant order book and imminent new model launches to fuel a recovery in the second half.
For the six months ended 30 June 2025 (H1’25), the Group recorded an adjusted operating loss (EBIT) of £121.5 million, a 22% increase from the £99.8 million loss reported in H1’24. Revenue fell 25% to £454.4 million, primarily reflecting the planned reduction in deliveries of limited-run “Specials” like the Valkyrie, completed ahead of the Q4 launch of the new Valhalla plug-in hybrid supercar. Gross profit halved to £126.6 million, with the gross margin declining to 27.9% from 38.6% a year earlier. This margin pressure stemmed from the lower Specials volume and a £20 million increase in warranty and product quality investments, including software and infotainment upgrades which have recently boosted customer satisfaction.
Despite the challenging first half, Chief Executive Adrian Hallmark struck a note of cautious optimism. “As guided, H1 2025 wholesale volumes were broadly in line with the prior year,” he stated. Hallmark highlighted a robust 7% increase in the core average selling price (ASP) to £192,000, driven by strong demand for personalisation – contributing 18% to core revenue – and new models like the V12 Vanquish. He also noted that retail sales significantly outpaced wholesale volumes by over 40%, demonstrating controlled inventory management.
The evolving US tariff situation proved a significant headwind in the second quarter. Aston Martin adjusted production and halted imports to the US during April and May while awaiting confirmation of a UK-US trade agreement, relying on existing dealer inventory. Shipments resumed in June following the agreement’s implementation on June 30th, which introduced a quota system allowing up to 100,000 UK-made vehicles annually into the US at a 10% tariff, with volumes above that threshold facing a 27.5% rate. Hallmark expressed concern over the “first come, first served” quarterly allocation mechanism starting in 2026, urging the UK government to seek “fair access for the whole UK car industry” to the lower rate. The short timeframe after the June 30th implementation also limited H1 US wholesale opportunities.
Regionally, sales in the Americas and EMEA (excluding UK) comprised 62% of total H1 wholesale volumes. UK volumes rose 28%, offset by a 20% decline in EMEA due to model transition timing. Asia-Pacific saw a 9% decline, with China broadly flat amidst a “continued weak macroeconomic environment” suppressing demand.
Financially, the Group reported a reduced adjusted loss before tax of £130 million (H1’24: £188m loss), largely due to lower net financing costs, including favourable foreign exchange movements on dollar-denominated debt. Net debt increased to £1.38 billion. Liquidity stood at approximately £230 million at period-end, set to increase by around £110 million following the forthcoming sale of the company’s stake in the AMR GP holding company.
Outlook: Banking on New Models and H2 Ramp-Up
Aston Martin reiterated its expectation for a “significantly stronger” second-half performance, driven by the full launch of new core models – the Vantage Roadster (Q2 deliveries), Vanquish Volante (Q3), DBX S, and Vantage S (both Q4) – alongside initial deliveries of the Valhalla and Valkyrie LM specials. Quarterly improvement is expected to begin in Q3, with Q4 being the primary driver.
However, the company slightly revised its full-year 2025 guidance due to currency fluctuations, increased investment in software/infotainment, and actions to support dealers in China by reducing stock. While still expecting “modest” wholesale volume growth for FY2025 and a material improvement in free cash outflow (targeting positive FCF in H2, driven by Q4), gross margin is now anticipated to be broadly in line with FY2024 (38.6%), and adjusted EBIT is expected to “improve towards breakeven”. Adjusted operating expenses (excluding depreciation and amortisation) are projected below £300 million, with capital investment remaining around £400 million.
The Group acknowledged ongoing uncertainty from the US tariff quota mechanism’s complexity and potential global headwinds but reaffirmed its ambitious medium-term targets for FY2027/28: £2.5 billion revenue, mid-40s% gross margin, £400 million adjusted EBIT, and sustainably positive free cash flow. The success of its new core model offensive, starting in earnest in H2 2025, will be critical to navigating immediate challenges and achieving those longer-term goals.