Aston Martin warns on profits amid 'highly challenging' environment
Aston Martin Lagonda Global Holdings PLC on Friday issued a profit warning as it noted the impact of ‘heightened tariffs’ in the US.
The Gaydon, Warwickshire-based luxury car maker said it expects to report a gross margin for 2025 of around 29.5%, down from 36.9% in 2024.
Aston Martin also anticipates adjusted earnings before interest and tax ‘slightly below’ the lower end of the analyst expectations of a £184 million loss, widening from an £82.8 million loss.
The company described the trading environment in 2025 as ‘highly challenging’, as it noted the impact US tariffs and fewer high margin Special deliveries.
Aston Martin said it delivered total wholesale volumes of 5,488, down 9.7% from 6,030.
The car maker noted that its actions to reduce selling, general and administrative expenses, as well as capital expenditure, are seen resulting in a 16% decline in adjusted operating expenses to £262 million from £313 million. It said this is excluding depreciation and amortisation.
Capital expenditure is expected at £341 million, down 15% from £401 million.
Aston Martin has been advancing turnaround efforts under Canadian billionaire Lawrence Stroll.
Aston Martin also proposed the sale of naming and branding rights for use as part of the Aston Martin F1 Team to AMR GP Holdings Ltd for a £50 million cash consideration. This follows an offer from AMR, it said.
It expects this deal to enhance its liquidity position.
Shares in Aston Martin fell 1.9% to 58.46 pence on Friday morning in London.
Looking ahead, Aston Martin said it expects a ‘material improvement’ in its 2026 financial performance. This expectation is driven by a combination of an enhanced product mix, ongoing benefits from its transformation programme and a ‘continued disciplined approach to operations’.
Aston Martin’s 2025 results are scheduled to be released on Wednesday next week.
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