Aston Martin Lagonda Global (AML) Q3 2024 earnings summary

Executive summary

• Launched the Vanquish in September, completing the most diverse product portfolio in company history, with initial deliveries expected before year-end.

• Positive media reviews for the new V12 Vanquish reinforce the brand's position in the ultra-luxury, high-performance segment.

• Focus remains on maximizing commercial potential, strengthening the order book, and enabling greater customer personalization.

• Order book extends well into Q1 2025, with regional sales and test drive activities increasing.

• Year-to-date 2024 average selling price rose 14% to £250k, supported by strong demand for Specials and increased personalization revenue.

Financial highlights

• Q3 results in line with revised 2024 guidance; on track to deliver full-year targets.

• Q3 2024 revenue increased 8% YoY to £391.6m; YTD 2024 revenue down 4% to £994.6m due to planned portfolio transition and FX headwinds.

• Wholesale volumes up 14% YoY in Q3 to 1,641 units, revenue up 8%, and gross profit up 7%; gross margin stable at 36.8%.

• Q3 EBITDA flat versus prior year due to production delays; adjusted operating loss and loss before tax improved.

• Cash and available facilities increased by £64 million in Q3 to £311 million, aided by a £135 million private debt placing.

Outlook and guidance

• On track to meet full-year 2024 revised guidance and 2025 targets, including £500 million EBITDA.

• FY 2024 gross margin expected modestly below 40%; adjusted EBITDA margin in the high teens; H2 2024 free cash flow to remain negative but improve sequentially.

• 2025 growth driven by full-year production of refreshed DBX, new Vanquish, and launch of Valhalla.

• Significant improvement in free cash outflow expected in Q4, with year-end liquidity projected around £300 million.

• Targeting a sustainable business model with focus on revenue growth, gross margin, and cash generation; volume target around 8,000 units.