Aston Martin Lagonda Global (AML) Q3 2025 earnings summary

Executive summary

• Q3 2025 performance was impacted by lower than expected wholesale volumes and macroeconomic headwinds, but operational turnaround and manufacturing KPIs reached industry norms, with Valhalla deliveries commencing and over 50% of lifetime units sold or deposited.

• Sequential improvement in Q4 2025 is expected, driven by new model launches including Valhalla, DBX S, and Vantage S.

• Immediate actions have been taken to reduce FY25 capex to approximately £350m and SG&A to around £275m, with cost optimization and dealer support to address tariffs and weak China demand.

• FY26 profitability and cash flow are expected to materially improve, supported by ramped-up Valhalla deliveries and ongoing cost efficiencies.

Financial highlights

• Q3 2025 wholesale volumes were 1,430, down 13% year-over-year, with revenue declining 27% to £285m; YTD revenue down 26% to £740m.

• Q3 2025 gross profit fell 43% to £83m, with gross margin dropping to 29% from 37% in Q3 2024.

• Year-to-date adjusted EBITDA fell by GBP 105 million to GBP 8 million; adjusted EBIT loss widened to -GBP 172 million.

• Net debt increased to £1,381m at 30 September 2025, up 14% year-over-year.

• Free cash outflow in Q3 was GBP 94 million; YTD 2025 free cash outflow was £415m, with total liquidity at Q3 end of £248m.

Outlook and guidance

• Q4 2025 is expected to show sequential financial improvement, supported by new core derivatives and Valhalla deliveries.

• FY 2025 adjusted operating expenses targeted at GBP 275 million, down from GBP 313 million in 2024.

• Five-year CapEx plan reduced to GBP 1.6–1.7 billion, prioritizing efficiency without harming future prospects.

• Plan to deliver around 500 Valhallas in 2026, supporting materially improved financial performance.

• Liquidity target remains GBP 200–300 million through next year.