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Aston Martin Lagonda Global (AML) investor relations material
Aston Martin Lagonda Global Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Navigated a challenging environment with geopolitical and macroeconomic pressures, including new tariffs in the U.S. and China, impacting volumes and margins.
H2 2025 performance improved significantly over H1, driven by new core derivatives, initial Valhalla deliveries, and transformation program benefits.
Achieved key milestones such as the start of Valhalla deliveries, expansion of the core lineup, and significant awards for new models.
Maintained disciplined production aligned with demand, resulting in retail volumes outpacing wholesales and improved inventory health.
Transformation initiatives and cost optimization measures implemented, including a 20% reduction in people costs and SG&A restructuring.
Financial highlights
FY 2025 revenue was GBP 1.26 billion, down 21% year-over-year due to lower core volumes and fewer Specials deliveries.
Wholesale volumes fell 10% to 5,448 units; retail volumes outpaced wholesales.
Core average selling price (ASP) rose 5% to GBP 185,000, while total ASP declined 15% due to fewer Specials.
Adjusted EBIT decreased to -GBP 189 million, reflecting lower gross profit, higher warranty costs, and tariff impacts.
Gross margin declined year-over-year but improved sequentially in Q4 to 31% from 29%.
Free cash outflow increased to GBP 410 million, with improved working capital and reduced CapEx.
Net debt rose to GBP 1.38 billion; adjusted net leverage ratio at 12.8x.
Outlook and guidance
Expect material improvement in financial performance for 2026, driven by enhanced product mix, especially 500 Valhalla deliveries.
Targeting adjusted EBIT margin improvement toward breakeven and gross margin in the high 30s% on new vehicles.
Free cash outflow expected to improve, with most outflow in Q1 2026 and stabilization from Q2 onward.
Core volumes expected to remain at 5,500–6,000 units annually, with 250–500 specials per year.
Capex for FY 2026 guided at approximately GBP 300 million, down from GBP 341 million in FY 2025.
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