Aston Martin Lagonda Global Holdings Stock Earnings Reports

Key points for investors: Aston Martin navigated a difficult 2025 marked by geopolitical uncertainty, tariffs (U.S. and China), and lower specials volume. Group wholesale volumes fell 10% to 5,448 and revenue fell 21% to GBP 1.26bn; adjusted EBIT was negative GBP 189m. Q4 was the strongest quarter, helped by the start of Valhalla deliveries (152 units in Q4 2025). Management expects circa 500 Valhalla deliveries in 2026. Core average selling price (ASP) rose ~5% to GBP 185,000; total ASP was broadly flat year-on-year due to specials mix. Gross margin improved sequentially to 31% in Q4 (FY margin impacted by fewer specials, warranty costs, dealer support and tariffs); management targets a minimum 40% gross margin for all new vehicles going forward and expects material margin and cash-flow improvement in 2026, with adjusted EBIT materially improving towards breakeven. Cash and liquidity: year-end total liquidity GBP 250m; net debt GBP 1.38bn and adjusted net leverage ~12.8x. Management strengthened the balance sheet via AMR GP share sale, investment from the Yew Tree Consortium, and a proposed GBP 50m sale of Aston Martin naming rights to AMR GP. CapEx plan was reduced by circa GBP 300m over five years (five-year plan ~GBP 1.7bn vs ~GBP 2bn prior) by focusing on derivative/ platform efficiency and delaying mass BEV investment; Lucid-related BEV timing and cash commitments are under discussion. Inventory/working capital: destocking was underway in Q1 2026, with management saying channel stock/aged stock will be largely normalized by end of Q1/April and retail should match wholesale from Q2. Cost actions: ongoing transformation including rightsizing (management targets ~20% reduction in people costs as part of SG&A optimization) and other cost/efficiency measures aimed at driving operating leverage from 2026. Volume guidance/strategy: management has reset near-term volume expectations and does not see a near-term return to 8–10k units; core volumes expected in the midterm in the ~5,500–6,000 range with specials around 250–500 per year. Product strategy: continue to extend and refresh core derivatives (S-derivatives) and hybrids (not full EVs yet), keep specials program, and phase-in BEV later in the decade when customer demand and battery tech align. Overall message: management expects a material financial improvement in 2026 driven by a better product mix (including Valhalla and other specials), margin improvement, CapEx discipline and cost optimisation, while acknowledging macro and tariff/quota risks remain.