Aston Martin Lagonda Global (AML) Q1 2025 earnings summary

Executive summary

• Q1 2025 performance aligned with prior guidance, with disciplined production, stable wholesale volumes, and a focus on product mix and innovation.

• Retail sales outpaced wholesales by about 50%, reflecting strong demand and effective destocking.

• Product portfolio reinvigorated with three new core derivatives launched, supporting future growth.

• Valhalla supercar in final testing phase, with deliveries set for H2 2025 and a robust order book.

Financial highlights

• Revenue declined 13% year-over-year, mainly due to lower Specials volumes.

• Core ASP increased by 10%, driven by next-generation models and strong options uptake (18% of core revenue).

• Adjusted EBITDA declined to -GBP 4 million; adjusted EBIT down 13% to -GBP 65 million.

• Free cash outflow in Q1 2025 decreased to GBP 120 million, aided by an GBP 18 million net deposit inflow for Valhalla.

• Liquidity at quarter-end was around GBP 400 million, expected to rise by over GBP 125 million with proposed investments.

Outlook and guidance

• Guidance for 2025 remains unchanged, with a slight reduction in wholesale volume due to U.S. tariffs.

• Expectation to achieve positive adjusted EBIT for the full year and positive free cash flow in H2 2025.

• H2 2025 expected to be significantly stronger, driven by new model launches and Valhalla deliveries.

• Q2 volumes expected to be in line with prior year, with continued impact from fewer Specials and planned ERP rollout.

• Targeting over 40% gross margin from all new products, with benefits from increased personalization in H2 2025.