Aston Martin Lagonda Global Holdings plc (LON:AML) has announced its preliminary results for the twelve months ended 31 December 2025
· Navigated a highly challenging trading environment whilst continuing to deliver operational milestones including product launches and operational transformation
· Immediate actions taken to reduce SG&A and CAPEX in FY 2025 partially offset the impact of external challenges and the Group’s disciplined approach to production and fewer high margin Specials
· FY 2025 core ASP increased 5% to £185k, reflecting inclusion of new core model derivatives
· Commenced production of Valhalla with first 152 deliveries in Q4 2025, supporting strong sequential quarterly performance and total ASP growth
· Improved cash collections in Q4 2025 resulted in modest positive free cash flow in Q4 2025 and year-end total liquidity of £250m, further enhanced by the proposed sale of the Aston Martin naming rights to AMR GP for a consideration of £50m in Q1 2026
· In FY 2026, expect material improvement in financial performance driven by an enhanced product mix, benefits from the ongoing transformation programme and disciplined approach to operations
| £m | FY 2025 | FY 2024 | % change | Q4 2025 | Q4 2024 | % change |
| Total wholesale volumes1 | 5,448 | 6,030 | (10%) | 2,096 | 2,391 | (12%) |
| Revenue | 1,257.7 | 1,583.9 | (21%) | 518.1 | 589.3 | (12%) |
| Gross profit | 369.8 | 583.9 | (37%) | 160.4 | 207.0 | (23%) |
| Gross margin (%) | 29.4% | 36.9% | (750 bps) | 31.0% | 35.1% | (410 bps) |
| Adjusted EBIT2 | (189.2) | (82.8) | (129%) | (17.1) | 38.7 | n/m |
| Operating (loss)/profit | (259.2) | (99.5) | (161%) | (68.4) | 33.3 | n/m |
| Loss before tax | (363.9) | (289.1) | (26%) | (111.2) | (60.2) | (85%) |
| Net debt2 | (1,380.3) | (1,162.7) | (19%) | (1,380.3) | (1,162.7) | (19%) |
1 Number of vehicles including Specials; 2 For definition of alternative performance measures please see Appendix
Adrian Hallmark, Aston Martin Chief Executive Officer commented:
“In 2025, we navigated a highly challenging trading environment whilst delivering on critical operational milestones. An unprecedented backdrop of geopolitical uncertainties and macroeconomic pressures, including heightened tariffs in the U.S. and China, weighed on our performance and ability to execute our plans effectively.
“Despite these external factors and, as guided, fewer high margin Special deliveries impacting our financial performance, we made progress on our business transformation journey. Whilst maintaining a disciplined approach to balancing production with demand, we also took the necessary, pro-active actions to invest in quality, lower operational costs and seek ongoing Capex efficiencies, which benefited 2025 and will support delivery in the coming years.
“The highlight of the year was undoubtedly the commencement of Valhalla deliveries in Q4, our first mid-engined PHEV supercar. Alongside this we expanded our thrilling core line-up with high-performance derivatives such as the DBX S, voted super SUV of the year by Top Gear Magazine and the Vanquish Volante with the Vanquish also being recognised as class leading and voted Car of the Year by Robb Report. As a result of our portfolio delivery and business transformation initiatives, we ended the year with positive momentum, achieving both strong sequential ASP growth and positive cash flow in Q4.
“Looking ahead, I remain confident that our strategy and upcoming products will position us strongly for future success. In FY 2026, we expect to deliver a material improvement in financial performance and continue delivering year-on-year improvements over the short-mid-term with a focus on margin expansion and cash flow generation.”
Aston Martin’s management team will host a video webcast presentation and live Q&A at 08:00 (GMT) today. Details can be found on page 12 of this announcement and online at: www.astonmartin.com/corporate/investors/results-and-presentations
2025 FULL YEAR FINANCIAL SUMMARY
· Delivered significantly stronger H2 2025 performance compared to H1 2025, reflecting the planned timing of new core derivatives and initial Valhalla deliveries:
– FY 2025 total wholesale volumes decreased 10% to 5,448 (FY 2024: 6,030) impacted by heightened challenges in the global macroeconomic environment, geopolitical uncertainties, the delivery of fewer Specials and a disciplined approach to balancing production and demand
– FY 2025 retails volumes outpaced wholesales
o Q4 2025 total wholesale volumes increased sequentially by 47% to 2,096 (Q3 2025:1,430) reflecting the planned timing of new core derivatives and initial Valhalla deliveries
· FY 2025 revenue decreased 21% to £1,258m (FY 2024: £1,584m) reflecting lower year-on-year total wholesale volumes and a decrease in total ASP:
– FY 2025 total ASP of £209k, down 15% (FY 2024: £245k) driven by a lower year-on-year number of Specials in preparation for commencement of Valhalla deliveries in Q4 2025
o Q4 2025 total ASP of £232k, was broadly flat year-on-year (Q4 2024: £236k) and increased by 30% sequentially (Q3 2025: £178k) driven by 152 Valhalla deliveries
– FY 2025 core ASP of £185k, up 5% (FY 2024: £177k) reflects benefits of new core model line up with contribution to core revenue from options broadly stable at c. 18% (FY 2024: c. 18%)
o Q4 2025 core ASP of £183k, up 5% (Q4 2024: £175k) reflects enhanced model mix with initial deliveries of DBX S and Vantage S derivatives as well as Vanquish V12 volumes
· FY 2025 gross profit decreased 37% to £370m (FY 2024: £584m) and gross margin decreased to 29% (FY 2024: 37%), reflecting the:
– Introduction of increased tariffs in both the U.S. and China
– Guided decrease in Specials deliveries and fewer core wholesales
– Impact of previously communicated additional warranty costs, increased dealer support and other investments made in product quality amounting to an increase of c. £65m compared with FY 2024
· Adjusted operating expenses (excl. D&A) decreased 16% to £262m (FY 2024: £313m), which aligns with the Group’s focus on optimising the cost base, as part of its ongoing transformation programme
· FY 2025 adjusted EBIT loss of £189m (FY 2024: loss £83m) reflects, as outlined above, lower gross profit, slightly offset by a decrease in adjusted D&A of 16% to £297m (FY 2024: £354m)
· FY 2025 operating loss increased to £259m (FY 2024: £100m loss)
· FY 2025 free cash outflow of £410m (FY 2024: £392m outflow) included:
– Net cash inflow from operating activities of £74m (FY 2024: £124m cash inflow), inclusive of a working capital inflow of £6m (FY 2024: £118m outflow)
– Net cash interest paid of £143m (FY 2024: £115m)
– Reduced capital expenditure year-on-year of £341m (FY 2024: £401m)
o Q4 2025 free cash inflow of £5m (Q4 2024: £2m)
· Total cash and available facilities (‘liquidity’) of £250m on 31 December 2025, stable on Q3 2025 (£248m) supported by Q4 2025 performance including improved cash collections at year end
– Further enhanced by the proposed sale of the Aston Martin naming rights to AMR GP for a consideration of £50m in cash in Q1 2026
· Net debt at 31 December 2025 of £1,380m (31 December 2024: £1,163m) reflects a decrease in the cash balance and increased drawing on the Revolving Credit Facility; adjusted net leverage ratio2 of 12.8x (31 December 2024: 4.3x); the business remains committed to deleveraging over the medium-term
The financial information contained herein is audited. All metrics and commentary in this announcement exclude adjusting items unless stated otherwise and certain financial data within this announcement have been rounded.
CHIEF EXECUTIVE OFFICER REVIEW
An unprecedented year of geopolitical uncertainties and macroeconomic challenges
Twelve months ago, at the start of my first full year as CEO, I communicated a strategy that built on the ongoing business transformation undertaken since 2020. It was one that sought to turn a high potential business with an iconic and globally recognised brand into a high performing one, becoming a sustainably profitable business, acknowledged and rewarded for displaying operational excellence and discipline. In 2025, we further evolved the strategy to capture six focus areas and have made positive progress on many fronts across the business. Despite this, unexpected challenges impacted our ability to fully execute on our plans this year which was reflected in the financial performance of the business. I believe we have a more robust 2026 plan in place, which better enables us to navigate a dynamic market environment.
In 2025, the global luxury automotive market faced one of its most turbulent years in recent times. Consumer demand was impacted by escalating geopolitical uncertainties and macroeconomic challenges, the most notable being the introduction of increased tariffs in both the United States and China. Instead of competing on innovation and brand strength, Aston Martin was forced to navigate an unpredictable policy landscape and supply chain challenges that ultimately impacted volumes, efficiency and margins. The year made one reality impossible to ignore: even the most resilient luxury brands are not insulated from geopolitical friction, and the headwinds created by these trade barriers have reshaped the competitive environment in ways that require us to adapt and take difficult decisions to ensure the long-term success of the business and to benefit all our stakeholders.
A thrilling and diverse line up of models
Despite this backdrop, what remains true is that Aston Martin today has one of the most thrilling and diverse line up of models in its 113-year history. This has been achieved thanks to the dedication and skills of the Company’s employees and significant investment over recent years.
In 2025, our focus remained on refreshing and expanding the core range of models. Over the 12-month period we commenced deliveries of seven new models or derivatives. Aston Martin has a long-standing tradition of applying the ‘S’ suffix to high-performance derivatives of core models, a tradition which we were proud to continue this year with the introduction of the Vantage S, DBX S and DB12 S. We now have convertible models for all our core range of sports cars and we celebrated the 60th Anniversary of the iconic Volante name, with the release of limited-edition Q by Aston Martin DB12 and Vanquish models. There will be more to come in 2026 as we keep the core range fresh for current and future customers.
Undoubtedly, the highlight of the year was the commencement of Valhalla deliveries in Q4 2025. Valhalla has been a monumental project for Aston Martin with the first 152 units wholesaled in 2025, and a further c. 500 units expected to be delivered in 2026. Uniquely designed from the ground up at our Gaydon Headquarters in the UK, this supercar, the first mid-engined PHEV the company has developed, is an important component of our future plans, with the financial benefits already evidenced in our Q4 2025 performance. The reception from customers and the media has been overwhelmingly positive, following extensive global driving events during Q4 2025, with much more to come in 2026.
Adapting the business to the current market environment
With the backdrop of this exquisite line up of models, we now need to further optimise the business to drive margin improvement as we strive to deliver profitability and positive free cash flow generation in the coming years. We need to achieve this in the context of a more challenging market backdrop, with evolving regulatory and tariff related requirements, whilst ensuring we are aligned with the demands of our customers.
In response to these market dynamics, and the impact on our expectations, we announced in October 2025 that we would take proactive steps to strengthen the Company’s overall position. This commenced with a review of our future product cycle plan with the dual aim of optimising costs and capital investment whilst continuing to deliver innovative products that meet customer demands and regulatory requirements.
We will continue to build on our current strengths of exquisitely designed, high performance sports cars, GTs and SUV’s across our range of V8 and V12 engines. This is at the heart of Aston Martin, and we need to embrace this whilst ensuring we drive for greater engine efficiency and reduced emissions as we build a business fit for the future. Changes to the cycle plan will not limit the opportunities for the business over the coming years, as they primarily shift out the timing of investment into our future electric vehicle platform. Due to these changes, our 5-year Capex plan from 2026 has reduced to c. £1.7bn from c. £2bn previously.
Having undertaken, at the start of 2025, a process to make organisational adjustments to ensure the business was appropriately resourced for its future plans, we had to take the difficult decision at the end of 2025 to implement further changes. This latest programme will ultimately see the departure of up to 20% of our valued workforce. Linked directly to this necessary action, we expect associated annualised operating expenditure and Capex savings of c. £40m of which the majority will be realised in FY 2026, with associated transformation cash costs expected to be c. £15m.
Strategic priorities to unlock our future potential
In 2025, alongside our product cycle plan review, we implemented a business transformation program spanning all areas of the organisation. Designed to drive top-line growth and operating efficiencies, the program is centered around six strategic focus areas that, combined, are expected to unlock our future potential:
· Market Demand – Following a demand-led strategy, operating as an ultra-luxury high performance brand, stimulating demand and delivering the ultimate in ultra-luxury experience.
Enhancing customer engagement and ultra-luxury customer experience included extensive global driving events in 2025, with a particular focus on the thrilling Valhalla PHEV supercar. Our recently created Private Office ensures our top 500 clients are assigned a primary Aston Martin contact supported by head office VIP specialists with a dedicated 2026 event plan. This will be further supported by the opening in 2026 of the Q London flagship in Berkeley Square, adding to the other ultra-luxury flagship at Q New York.
Throughout 2025, Aston Martin maintained its powerful association with Formula 1® and successfully completed the inaugural full-season campaign of the Valkyrie Hypercar in the World Endurance Championship®. We also seek to maximise brand value and commercial benefits to stimulate demand through our presence at the world’s most prestigious luxury and automotive events in addition to collaborating with our ultra-luxury brand partners.
The launch of our new online configurator in October 2025, drove significant increases in customer leads and opportunities growing by over 200% in the 9 weeks that followed, compared with the same period prior to the launch.
· Product Creation – Continue to enhance our exhilarating and compelling portfolio of sports cars, GTs, SUVs and Specials with an ongoing focus to further expand our personalisation offering.
As previously referenced, 2025 saw the launch of seven new core derivatives. This included our high performance ‘S’ derivatives, with the DBX S awarded Top Gear Magazine’s Super SUV of the year and the Vanquish Volante which Autocar Magazine called “Utterly divine… the prettiest car on sale”. Having our first series-production PHEV, Valhalla, available to customers was a tremendous milestone and provides opportunities for future developments.
Additionally, Aston Martin proudly commenced use of the Royal Warrant and became the first global automotive manufacturer to integrate Apple CarPlay Ultra into its models.
Looking to 2026, a key focus area will be growing the range of personalisation options for customers to choose from which supports future ASP growth and margin expansion.
· Culture & Change – Focused on building a collaborative and cross-functional way of working, in addition to attracting and retaining sector leading talent.
The Company will continue working towards achieving 30% of women in leadership positions by 2030, currently at 17%, and this year we launched Driving Change, an employee suggestion scheme with the key focus being cost optimisation.
Given the Group’s disciplined approach to operations, the Remuneration Committee has proposed a new Remuneration policy that seeks to better align incentives with delivering sustainable profitable growth and future value.
As part of the organisational changes announced in 2025, we provided a wealth of HR resources and online materials to support our colleagues during a difficult and uncertain time. To demonstrate that we are making changes throughout the organisation, my Executive Committee, a year ago comprising 11 members, will be nearly half the size by the end of Q1 2026. We recognise the importance of having a culture that ensures we respect one another, especially during this period of change, and unite behind our guiding tenet that no one builds an Aston Martin on their own.
· Quality – Delivering excellence in product quality and launch cycles, driving improvements to ensure the highest standards and consistencies across our portfolio as well as rigour and discipline in the planning and execution of our product launch cycles.
Improvements have been reflected in our right-first-time metric, having increased from 65% in the middle of 2024 to 95% by the second half of 2025. In addition, we have successfully launched seven new core derivatives and Valhalla, with the complexity of this programme establishing a new benchmark for our product launch cycles with key learnings transferable to future launches.
Having focused on product quality and warranty related investments, our customer satisfaction scores improved in FY 2025 compared with the prior year across all new core models.
· Operations – Driving a disciplined approach to our operations to future proof the Company in the face of a dynamic and challenging market environment.
Underpinned by our future product cycle plan, we continued to optimise product development processes to maximise cross-carline component sharing, reduce complexity and drive engineering efficiencies. We continued to optimise our production processes and facilities, receiving ISO50001 certification in 2025, highlighting our developments in efficient energy management at our Gaydon and St Athan sites.
Ensuring our people remain safe in the workplace is of paramount importance and we in 2025 reduced our accident frequency rate to 0.30 (FY 2024: 0.35), progressing towards our goal of zero accidents across the business.
· Cost Optimisation – Adjusting the cost base of the Company to ensure it is fit for the future and to drive further operating leverage as the Group’s overall financial performance improves.
Previously announced Capex and Opex reductions, £60m and £51m lower, respectively compared with FY 2024, have already helped the business to adapt to the dynamic and challenging market environment. We will continue to execute the transformation programme to drive greater efficiencies and position the business for sustainably profitable growth.
We expect FY 2026 SG&A to be a sustainable base, on an inflation adjusted basis, over the coming years, which will enable us to drive future operating leverage. Aligned with this is our disciplined approach to operations which includes effectively managing the balance between production and demand in addition to delivering a smoother production cadence from Q2 2026 onwards.
2026 – positive momentum across the business
As referenced at the Q3 2025 results, we have constructed our FY 2026 plans, in particular relating to wholesale volume expectations, with a prudent and disciplined mindset. This will enable us to continue to pursue our goal of driving production and operational efficiencies in line with our sales forecasts and optimised stock levels. In addition to the rigour and discipline instilled across the business to optimise costs, we will enhance the core portfolio with new derivatives, and we expect to deliver around 500 Valhalla’s, more than three times the number of units delivered in FY 2025. As a result, we expect to deliver materially improved financial performance and cash flow in FY 2026 compared with FY 2025.
As I look ahead, I firmly believe we have the right strategy and product cycle plan to position us well for the future. This path to unlocking our future potential is set to deliver sustainable profitable growth over the coming years which will create long term value for all our stakeholders.
OUTLOOK
Expect material improvement in FY 2026 financial performance driven by an enhanced product mix and benefits from the ongoing transformation programme and disciplined approach to operations
The global macroeconomic and geopolitical environment facing the wider automotive industry remains challenging. This dynamic landscape includes uncertainties over the economic impact from the unpredictable threat or introduction of additional U.S. tariffs, changes to China’s ultra-luxury car taxes and the continued reliance on a stable network of global suppliers.
Given this landscape, the Group will maintain its disciplined approach to operations, deliver benefits from its transformation programme including cost optimisation, focus on improved cash flow generation and liquidity management. Progress on these fronts will be underpinned by the Group’s recently revised future product cycle plan, which has the dual aim of optimising costs and capital investment whilst continuing to deliver innovative products that meet customer demands and regulatory requirements.
For UK automotive manufacturers, the introduction of a U.S. tariff quota mechanism in 2025 adds a further degree of complexity and limits the Group’s ability to accurately forecast quarterly from 2026 onwards. Under this mechanism, up to 100,000 UK vehicles can be imported into the U.S. at a 10% tariff in a calendar year, with volumes above that threshold subject to a 27.5% tariff. The quota is currently based on a “first come first served” basis with 25,000 UK made vehicles able to qualify for the lower tariff rate each quarter from Q1 2026. Where possible, the Group will try to optimise production schedules to reduce risk associated with the quota mechanism and prioritise working capital management.
The Group continues to engage with both the U.S. and UK governments to secure greater clarity and certainty on the specific automotive tariff. Whilst positive dialogue on this matter has been achieved directly with the U.S. 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.
Guidance for FY 2026:
· Total wholesale volumes in FY 2026 are expected to be similar to the prior year (FY 2025: 5,448), with retail volumes again outpacing wholesales, whilst financial performance will benefit from:
o An enhanced product mix including c. 500 Valhalla deliveries in FY 2026, with up to 100 expected in Q1 2026
o A more balanced production cadence on both core and Valhalla from Q2 2026 onwards
o Operational efficiencies as a result of the ongoing transformation programme
· Gross margin is expected to improve into the high 30s% (FY 2025: 29%), benefitting from more efficient production, an expanded range of core model derivatives, a full year of Valhalla deliveries and a continued focus on maximising the value in every vehicle sold
· Adjusted operating expenses (excluding D&A), with an ongoing focus on cost optimisation, is expected to remain below £300m (FY 2025: £262m), whilst delivering improved operating leverage
· Adjusted depreciation and amortisation is expected to be £375m-£400m, with the increase from FY 2025 (£297m) reflecting c. 500 Valhalla deliveries
· Adjusted EBIT margin is expected to materially improve (FY 2025: (15.0)%), towards breakeven
· Net interest is expected to be c. £150m3
· Capital investment in new product developments and technology access fees to support our growth strategy is expected to reduce to c. £300m (FY 2025: £341m) as part of the reduced c. £1.7bn Capex programme between FY 2026-FY 2030 (previously c. £2bn)
· Free Cash Outflow is expected to materially improve in FY 2026 compared with the prior year (£410m outflow) supported by an enhanced product mix and more balanced production cadence from Q2 2026 onwards. Following positive free cash flow in Q4 2025 due to the benefit of improved cash collections at year end, the Group expects the majority of free cash outflow for the year to occur in Q1 2026, with a material cumulative year-on-year improvement from Q2 onwards
Updated short-mid-term outlook:
The Group expects to continue delivering year-on-year improved financial performance over the short-mid-term, with a focus on margin expansion and cash flow generation, benefiting from the ongoing transformation programme initiatives and an enhanced product mix from the future portfolio of core and Special models.
3 Net cash interest assuming current exchange rates prevail for FY 2026
