Aston Martin goes down in London, sales down and more red than expected in 2025
The company no longer expects to generate positive free cash flow in the second half of this year, volumes expected to decrease
Giuliana Licini
(Il Sole 24 Ore Radiocor) - Aston Martin's stock violently skidded on the London Stock Exchange after warning that the yearly loss will be larger than expected due to lower-than-expected demand in North America and Asia-Pacific and the impact of US tariffs. The stock of the British luxury carmaker slumped as much as 11% in the early stages of the session. Looking back at the beginning of the year, the share price has fallen about 30%.
In a market update, Aston Martin said that the adjusted EBIT for the 2025 financial year will be worse than "the lower end of the market consensus range", or a loss of £110m. This is a further cut from July's revision, when the company had projected a breakeven, reflecting 'extremely destabilising' US tariffs, while previously expecting a positive result.
Aston Martin also no longer expects to generate positive free cash flow in the second half of this year and total operating volume is expected to decline by "a high single digit" from 6,030 cars in 2024. The British carmaker explained that it operates 'in a difficult macro-economic environment, including uncertainties over the economic impact of US tariffs and the introduction of a quota mechanism, changes in taxation on the ultra-luxury car in China, and the risk of increased supply pressures following the recent cyber incident' at UK rival Jaguar Land Rover.
The impact of Uk-US tariffs
The US tariff rates system, negotiated between the UK and Washington, has complicated financial planning, Aston Martin explained, adding that it is seeking interaction with the US and GB governments for 'greater clarity and certainty'. The company calls for 'more pro-active support from the UK government to protect the interests of low-volume manufacturers'.
The carmaker points out that it delivered around 1,430 vehicles to dealers in the third quarter, below its target of remaining close to the 1,641 units recorded in the same period last year. Aston Martin also specified that deliveries of its Valhalla supercar will begin in the fourth quarter with around 150 units, a delay compared to initial expectations due to difficulties with the vehicle's design and regulatory approvals. Regular deliveries are expected in 2026.
