Aston Martin Lagonda Global (AML) Q2 2024 earnings summary

Executive summary

• Successfully delivered two of four new models in H1 2024, with strong acclaim and demand, supporting a pivotal product transformation phase; DB12 sold out for 2024 with orders into 2025, and new Vantage and upgraded DBX707 launched on schedule.

• Unveiling of new V12 Vanquish and ultra-exclusive Valiant special set for Q4 2024, reinforcing luxury positioning; majority of Valiant deliveries planned for Q4.

• Leadership transition underway, with Adrian Hallmark joining as CEO in September 2024 to continue strategic momentum.

• Successful refinancing completed, securing improved terms and increased liquidity to support long-term growth.

Financial highlights

• H1 2024 revenue down 11% to £603m, with wholesales down 32% to 1,998 units due to planned portfolio transition and FX headwinds; gross margin improved 370bps to 39%.

• Adjusted EBITDA fell 23% YoY to £62m, margin at 10.3%; adjusted operating loss increased to £100m; net loss for H1 2024 was £208m.

• Free cash outflow was £313m in H1, reflecting higher working capital and investment in new models; net debt increased to £1,194m.

• Net leverage ratio at 4.2x; cash and available facilities at £247m as of June 2024.

Outlook and guidance

• 2024 guidance and medium-term targets reiterated: high single-digit wholesale volume growth, gross margin circa 40%, EBITDA margin expansion into low 20s, and positive free cash flow expected in H2 2024.

• Q3 2024 volumes to improve sequentially; Q4 expected to be the largest quarter for volumes and financial performance.

• Net leverage ratio targeted to fall to ~1.5x in FY 2024/25, with long-term goal below 1.0x.