Aston Martin Lagonda Global (LON:AML) executives used the company’s full-year 2025 results call to outline a year shaped by geopolitical and macroeconomic disruption—particularly tariffs in the U.S. and China—while emphasizing a product-led recovery plan centered on new derivatives and the ramp-up of the Valhalla plug-in hybrid supercar.
2025 described as a “highly challenging” year as tariffs and supply issues weighed on results
Chief Executive Officer Adrian Hallmark said the luxury automotive market faced “one of its most turbulent years in recent times,” citing “unprecedented” geopolitical uncertainty and macroeconomic pressure. Management highlighted tariff impacts in both the U.S. and China, plus uncertainty created by the U.S. “quota mechanism” that allocates volumes quarterly, complicating planning and forecasting.
Valhalla deliveries began in Q4; management targets ~500 units in 2026
The most prominent product update was the late-year launch of Valhalla, Aston Martin’s first mid-engine plug-in hybrid. Hallmark said the company produced and wholesaled the first 152 units in 2025, with “circa 500 units” expected to be delivered in 2026. He added that the order bank extends to the fourth quarter of 2026, with only “quite low numbers” left to sell.
In Q&A, management said the 2026 Valhalla build and shipment rate is “more related to production capacities” given the complexity of the vehicle and constraints in the supply base. Hallmark said there is “no major opportunity to do it quicker,” describing output as roughly “plus or minus a car a week.”
The company also previewed near-term media activity, noting that more than 50 global journalists were scheduled to drive the first full production versions in Spain, with reviews expected by the end of March.
Full-year 2025 financials: lower volumes, fewer specials, and higher costs drove a wider loss
Chief Financial Officer Doug Lafferty said 2025 results reflected fewer specials deliveries and the company’s disciplined approach to balancing production with demand. Wholesale volumes declined 10% year-over-year to 5,448 units, while retail volumes outpaced wholesales as Aston Martin managed channel inventory.
Revenue fell 21% to GBP 1.26 billion, which Lafferty attributed largely to lower core volumes and fewer specials versus 2024. Core average selling price (ASP) increased 5% to GBP 185,000, helped by an expanded range of derivatives, while total ASP was “broadly flat” due to the mix of specials. Personalization and bespoke options contributed 18% of core revenue, broadly in line with the prior year.
Adjusted EBIT fell to a loss of GBP 189 million. Management attributed the decline to lower specials volumes, dealer support to reduce aged stock, increased warranty costs and other investments in quality, and the impact of tariffs in the U.S. and China. Lafferty said these items amounted to an increase versus the prior year of around GBP 65 million. Q4 gross margin improved sequentially to 31% from 29% as volumes and specials increased, though warranty costs and dealer support continued to weigh.
Free cash flow outflow widened year-over-year by GBP 18 million to GBP 410 million, reflecting lower operating cash inflow and higher net cash interest paid of GBP 143 million, partly offset by a GBP 60 million reduction in capital expenditure. CapEx totaled GBP 341 million in 2025, below the prior year and consistent with revised guidance.
Liquidity and balance sheet actions; CapEx plan reduced by ~GBP 300 million over five years
Hallmark and Lafferty highlighted multiple balance sheet and liquidity actions during the year. Lafferty said year-end total liquidity was GBP 250 million, supported by improved cash collections in Q4, net proceeds of around GBP 106 million from the sale of shares in the Aston Martin Aramco Formula One Team investment, and a GBP 52.5 million investment from Lawrence Stroll’s Yew Tree Consortium.
Management also referenced a proposed sale of Aston Martin naming rights to AMR GP for GBP 50 million (expected in 2026). Net debt rose to GBP 1.38 billion, and adjusted net leverage increased to 12.8x, which the company expects to “materially improve over the coming years” as performance improves.
On investment plans, management said the company completed a review of its future product cycle plan, reducing the five-year CapEx plan from around GBP 2.0 billion to around GBP 1.7 billion. Hallmark described the approach as focusing first on extending existing core model lines before the next full refresh, using existing platform architecture as a “capital-efficient” strategy.
2026 outlook: improved cadence, margin recovery, and cash focus; inventory normalization targeted by Q2
Management guided to a “material improvement” in 2026 financial performance, driven by the enhanced product mix (including expected Valhalla deliveries), ongoing transformation initiatives, and a smoother production cadence from the second quarter onward. Lafferty said the company expects adjusted EBIT margin to “materially improve towards breakeven” and free cash outflow to improve, with “the majority of the cash outflow occurring in Q1 2026” and cumulative year-on-year improvement from Q2.
On inventory, Hallmark told Barclays that the company continued destocking in Q1 2026 and expects most of the year’s destocking to be completed in the first quarter. He said the aged stock profile is “radically improved,” with the company targeting “tens of units around the world” by the end of Q1 (which he defined as more than six months from being passed to sales, including shipping time). He said total stock in major markets should be balanced by the end of March, with retail and wholesale expected to match from Q2, while China may take until around the end of April for total stock to fully normalize.
Hallmark also said dealer support used in Q4 2025 to accelerate the sale of older cars “will not be recurring,” with support returning to more normal levels after Q1 2026.
In additional strategic commentary, Hallmark said Aston Martin does not believe customers “want” full battery-electric technology “right now,” and indicated the company will shift gradually from pure combustion engines to “incorporating electrical assistance,” emphasizing hybrid technology alongside more efficient combustion engines. He said all-electric drivetrains are planned to be added “incrementally” in the following decade as demand and regulation evolve.
On longer-term volume expectations, Hallmark said the company does not see a near-term path back to 8,000–10,000 units per year. Instead, he described core model sales of 5,500–6,000 per year as “conservative and achievable” in the midterm, with specials varying by year, including Valhalla volumes and other specials planned over the next several years.
About Aston Martin Lagonda Global (LON:AML)
Aston Martin’s vision is to be the world’s most desirable, ultra-luxury British brand, creating the most exquisitely addictive performance cars.
Founded in 1913 by Lionel Martin and Robert Bamford, Aston Martin is acknowledged as an iconic global brand synonymous with style, luxury, performance, and exclusivity. Aston Martin fuses the latest technology, time honoured craftsmanship and beautiful styling to produce a range of critically acclaimed luxury models including the Vantage, DB12, Vanquish, DBX and its first mid-engined plug-in hybrid, Valhalla.
