Aston Martin Lagonda Global (AML) Q2 2025 earnings summary

Executive summary

• H1 2025 performance was impacted by fewer Specials, U.S. tariff disruptions, and a disciplined shift to value-driven growth, with retail volumes outpacing wholesales by over 40%.

• Core ASP increased 7% to £192,000, supported by new model launches, strong demand, and stable personalization at 18% of core revenue.

• Robust order book for core vehicles extends up to five months; Valhalla order book extends 12 months.

• U.S. tariffs and quota system created operational challenges, mitigated by trade agreements and price increases.

• Sale of AMR GP shares and U3 Consortium investment to enhance liquidity by over £110 million.

Financial highlights

• H1 2025 revenue declined 25% year-over-year to £454 million, mainly due to lower Specials volumes.

• Adjusted EBIT loss of £122 million, 22% lower year-over-year, driven by fewer Specials and higher warranty and quality costs.

• Gross margin fell to 27.9% from 38.6% in H1 2024, with gross profit down 46% to £127 million.

• Free cash outflow was £321 million, broadly stable year-over-year, with working capital outflow improving.

• Net debt increased to £1,378 million; total liquidity at period end was £228–230 million, set to rise by £110 million from AMR GP share sale.

Outlook and guidance

• H2 2025 expected to deliver significantly stronger results, with positive free cash flow and adjusted EBIT improving towards breakeven.

• Full-year gross margin expected to recover to prior year levels as new models and Valhalla deliveries ramp up.

• Adjusted operating expenses (ex-D&A) for 2025 to fall below £300 million.

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

• Plan to invest approximately £2bn over 2023-2027 in growth and electrification transition.