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Aston Martin Lagonda Global Holdings PLC on Monday reported a lower full-year outlook for 2025, hurt by US tariff uncertainty and weakened demand. The Gaydon, Warwickshire-based luxury car maker now expects total wholesale volumes for the full year to decline by mid-high single-digit percentage from 6,030 in 2024. This was due to ‘the heightened challenges in the global macroeconomic environment, including the ongoing impact of tariffs,’ it said. ‘This revision reflects the group’s continued focus on maintaining a disciplined approach to balancing core wholesales and retail demand in the current trading environment.’ Shares in Aston Martin were down 9.0% at 74.00 pence in London on Monday morning. The stock is down 34% over the past year. Aston Martin also expects adjusted earnings before interest and tax ‘to be below the lower end of the range of market consensus...driven by the weaker volumes and pressure on the gross margin per vehicle’, the minimum estimate currently being a £110 million loss, ‘and no longer expects positive free cash flow generation in [the second half]’. The carmaker reported £82.8 million in adjusted loss before interest and tax in 2024. Deliveries of the company’s new Valhalla ‘supercar’ are expected to begin in the fourth quarter of 2025, with around 150 deliveries forecast for the three-month period. The carmaker noted that, while this was behind prior expectations, ‘it reflects a timing impact, with a smooth delivery profile expected in 2026’. The Valhalla cars entered production during the third quarter, with a gradual ramp up in volumes planned through to the end of the year. The company noted further risks to Valhalla’s delivery schedule for the remainder of the year, with the current US federal government shutdown potentially impacting final US homologation timing, and ongoing uncertainty created by US tariffs. In the third quarter, Aston Martin Lagonda delivered around 1,430 wholesale units, below the previous guidance ‘due to weaker than expected demand including in both North America, with the continuing tariff impact, and APAC (including greater China)’. Third-quarter retail volumes were in line with wholesales. Full-year capital expenditure is now expected to reduce to around £375 million, lower than a prior estimate of around £400 million, while selling, general and administrative expenses are anticipated to decline by around 10% from £313 million in 2024. ‘For UK automotive manufacturers, the introduction of a US tariff quota mechanism adds a further degree of complexity and limits the group’s ability to accurately forecast for this financial year end and, potentially, quarterly from 2026 onwards,’ said Aston Martin. ‘The group continues to engage with both the US and UK governments to secure greater clarity and certainty. Whilst positive dialogue on this matter has been achieved directly with the US government, the company continues to seek more proactive support from the UK government to protect the interests of small volume manufacturers, like Aston Martin, who provide thousands of jobs, making an important contribution to local economies and to the wider UK automotive supply chain.’ Aston Martin is due to release its third-quarter results on October 29. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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