29th Oct 2025 09:47
(Alliance News) - Aston Martin Lagonda Global Holdings PLC said Wednesday it has tightened its investment plans in an effort to cut costs as the company's pretax loss widens and revenue tumbles.
The Gaydon, Warwickshire-based luxury car maker reported a 27% drop in revenue to GBP285.2 million from GBP391.6 million for the three months ended September 30.
The drop was driven by lower than expected wholesale volumes, which fell by 13% to 1,430 vehicles from 1,641.
Aston Martin reported pretax loss widening to GBP111.9 million from GBP12.2 million, which it said reflected the weaker volumes.
The company said losses were driven by a "challenging" global macroeconomic environment, including the impact of US tariffs and weak demand in China following changes to the country's ultra-luxury car taxes.
Aston Martin added that there is an "increased potential for supply chain pressures", referencing the cyber incident at Jaguar Land Rover Automotive PLC.
Aston Martin said it is has further reduced operations investment to GBP350 million this year.
In a trading update earlier this month, the company said it was on track for GBP375 million of investment, having already pulled back from a previous target of GBP400 million.
In another effort to cut costs and capital expenditure, Aston Martin said it has launched a review of its future product cycle plan.
Aston Martin expects that this will reduce capital investment in engineering and development to approximately GBP1.7 billion over the next five years, from approximately GBP2 billion.
In 2025, the company expects full-year earnings before interest and tax below the lower end of market consensus, which was for an adjusted Ebit loss of GBP110 million.
Aston Martin said it expects profitability and cash flow to improve in 2026.
It anticipates improvements in performance driven by contribution from Valhalla deliveries, which commenced this month, and cost reduction programmes.
Chief Executive Adrian Hallmark said: "Our core range of models, supported by recent new derivatives, has never been stronger. Valhalla, our first mid-engined plug-in hybrid, enhances this further and in October we reached a pivotal moment in delivering the first of these landmark supercars.
"We expect to ramp up Valhalla deliveries during the fourth quarter, which will be instrumental in driving improved sequential Q4 2025 financial performance. More importantly, the planned delivery of around 500 Valhallas in 2026, is expected to bolster our profitability and cash flow for the year ahead, in addition to ongoing cost efficiencies."
Lawrence Stroll, Aston Martin's executive chairman, said: "My confidence in the long-term prospects for this iconic British brand and commitment to the company remains unwavering."
Shares in Aston Martin fell 1.5% to 64.10 pence on Wednesday morning in London.
By Roya Shahidi, Alliance News reporter
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