Aston Martin Lagonda Global (AML) Trading Update summary

Leadership vision and strategic priorities

• New CEO expresses strong confidence in the brand's vision and potential, emphasizing operational excellence and value generation as key priorities.

• Focus on leveraging a refreshed, diverse product portfolio and the brand's pricing power to drive growth.

• Formula One involvement is seen as a major asset for brand awareness and image.

• Commitment to sustainable growth, high margins, and enhanced customer engagement through personalization.

• Operational review underway to identify immediate opportunities and risks.

Strategic realignment and operational update

• Wholesale volumes for 2024 reduced by approximately 1,000 units due to supply chain disruptions and weak demand in China, a high single-digit percentage decline from 2023.

• Production cadence adjusted to optimize efficiency and align with a demand-led strategy.

• Late component arrivals from suppliers are causing delays in vehicle completion and delivery.

• CEO Adrian Hallmark emphasized the need for decisive action to adjust production plans amid supply and demand challenges.

• Executive Chairman Lawrence Stroll reaffirmed confidence in the company's long-term ultra-luxury strategy and leadership.

2024 guidance update and operational realignment

• FY 2024 wholesale volumes now forecast to decline by a high single-digit percentage versus 2023, reversing previous growth expectations.

• Gross margin for 2024 expected to be modestly below 40%, with Adjusted EBITDA margin in the high teens.

• Free cash flow will remain an outflow in H2 2024, though improved versus H1.

• Q3 2024 wholesale volumes and adjusted EBITDA expected below current market expectations.

• Production volumes for Q4 have been realigned to mitigate supply chain risks and avoid excessive costs.