Aston Martin Lagonda Global (AML) Q4 2024 earnings summary

Executive summary

• 2024 marked a period of intensive product development and portfolio transformation, with a fully refreshed core lineup, including launches of DB12, Vantage, Vanquish, and several ultra-exclusive Specials like Valkyrie, Valour, and Valiant.

• Significant improvements in customer experience, retail network, and brand positioning, supported by strategic investments and operational excellence.

• The company received the King's Award for Innovation and Enterprise, and a new Royal Warrant, reinforcing its iconic British brand status.

• Despite operational achievements, 2024 financial performance fell short of targets due to supply chain disruptions, FX headwinds, and macroeconomic weakness, especially in China.

• Valhalla, the first series-production mid-engined PHEV supercar, is set for H2 2025 deliveries, marking the start of the electrification journey.

Financial highlights

• Full-year 2024 wholesales decreased by 9% to 6,030 units, mainly due to supply chain issues and weaker Chinese market; Q4 volumes rose 8% year-over-year.

• Revenue declined 3% year-over-year to £1.58 billion, with record ASP of £245,000 (+6%), driven by Specials and personalisation.

• Adjusted EBITDA fell 11% to £271 million, with margin down to 17.1%; adjusted EBIT loss was £82.8m.

• Gross margin decreased by 220 basis points to 36.9%, affected by lower volumes, higher costs, and FX headwinds.

• Free cash outflow for 2024 was £392 million, with a modest positive free cash flow of £2 million in Q4; net debt increased to £1.16 billion.

Outlook and guidance

• 2025 is expected to deliver materially improved financial performance, with positive adjusted EBIT and free cash flow in H2.

• FY 2025 guidance: mid-single-digit percentage wholesale volume growth, gross margin c.40%, and capital investment c.£400m.

• Medium-term (2027/28) targets reaffirmed: revenue c.£2.5bn, mid-40s% gross margin, adjusted EBIT c.£400m, and net leverage below 1.0x.

• Quarterly core wholesale volumes in 2025 expected to build progressively, with Valhalla deliveries supporting H2.

• Focus remains on extending the order book, cost optimization, and disciplined supply and demand management.