Aston Martin Lagonda has significantly lowered its 2025 wholesale volume guidance by a mid-to-high single-digit percentage and now anticipates adjusted EBIT to be below market consensus, with no positive free cash flow in H2 2025. This downgrade is primarily due to weaker demand in North America and Asia-Pacific, persistent U.S. tariff pressures, and delays in Valhalla supercar deliveries. Despite these immediate challenges and a difficult macroeconomic environment, the company expects sequential improvement in Q4 2025 and projects material profitability and free cash flow improvements in 2026.
Bitcoin price today: dips after record high above $125k; ETF inflows drive gains Investing.com -- Aston Martin Lagonda Global Holdings Plc (LON:AML) on Monday said it now expects total wholesale volumes for 2025 to fall by a mid-to-high single-digit percentage compared with 2024, citing weaker demand in North America and Asia-Pacific and continued tariff pressures. The British luxury carmaker delivered about 1,430 wholesale units in the third quarter of 2025, below the 1,641 units in the same period last year and below prior guidance that volumes would be broadly similar. The shortfall reflected weaker-than-expected demand in North America, impacted by tariffs, and in Asia-Pacific, including Greater China. Retail volumes in Q3 were in line with wholesales. Aston Martin said deliveries of its Valhalla supercar will begin in Q4 2025, with about 150 units expected. This is later than earlier forecasts, due to timing impacts from engineering completion and homologation approvals. The company flagged additional risks to delivery schedules from a potential U.S. federal government shutdown and uncertainty linked to the U.S. tariff quota system. The company launched new core derivatives in Q3, including the Vanquish Volante, and plans to begin deliveries of the new Vantage S and DBX S in Q4 2025, which the company said have received strong early media reviews. Aston Martin completed the sale of shares in AMR GP in Q3 2025, generating about £108 million in gross proceeds, and ended the quarter with total liquidity of about £250 million. The company now expects adjusted EBIT for 2025 to be below the lower end of market consensus, previously set at a loss of £110 million, and no longer expects positive free cash flow in H2 2025. Capital expenditure is now forecast at about £375 million, down from £400 million, while selling, general and administrative expenses are expected to fall by about 10% compared with 2024. Aston Martin said the global macroeconomic environment remains challenging, citing the impact of U.S. tariffs and the quota mechanism, changes to China’s ultra-luxury car taxes, and potential supply chain pressures, including risks from a recent cyber incident at a major U.K. automotive manufacturer. The company said it expects sequential improvement in Q4 2025, driven by increased core volumes and initial Valhalla deliveries. However, full-year volume guidance has been lowered, with most reductions related to North America and Asia-Pacific. Looking to 2026, Aston Martin expects profitability and free cash flow to improve materially, supported by consistent Valhalla deliveries and cost reduction programs. Management said it is reviewing future costs, capital expenditures, and the product cycle, with expected engineering and development investment of about £2 billion from 2025–2029. Aston Martin also said the introduction of the U.S. tariff quota mechanism limits its ability to forecast volumes for the year and potentially for future quarters. The company continues to engage with U.S. and U.K. governments to address these challenges. Is AML part of an AI-powered winning strategy? ProPicks AI evaluates AML alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias—it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%). Want to know if AML is currently featured in any ProPicks AI strategies, or if there are better opportunities in the same space? Aston Martin Lagonda has issued a significant downward revision to its 2025 outlook, signaling considerable short-term pressure on operations and profitability. The company now projects a mid-to-high single-digit percentage decline in 2025 wholesale volumes compared to 2024, a direct result of weakening demand in North America and Asia-Pacific, compounded by ongoing U.S. tariff issues. This revision follows a third quarter where wholesale units fell to 1,430 from 1,641 year-over-year, missing prior guidance. Financially, the impact is severe: adjusted EBIT for 2025 is now expected to fall below the consensus loss of £110 million, and the company has reversed its forecast for positive free cash flow in the second half of the year. The delay in deliveries of the critical Valhalla supercar to Q4 further exacerbates these challenges. While management has taken defensive measures, including reducing 2025 capex to £375 million and SG&A by 10%, and points to a sequentially stronger Q4 and a material recovery in 2026, the immediate outlook is defined by operational headwinds and a pushed-out recovery timeline.
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