30th Apr 2025 11:51
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Wednesday reported that its loss narrowed during the first quarter despite its revenue falling 13%.
The Warwickshire, England-based car manufacturer reported a pretax loss of GBP79.6 million in the first quarter, narrowing from GBP138.8 million the previous year.
However, revenue fell 13% to GBP233.9 million from GBP267.7 million, owing to a decrease in Specials deliveries. Specials volumes reduced 69% to 14 from 45.
Vehicle sales fell 14% to GBP205.7 million, down from GBP239.6 million the prior year.
The narrowing of its loss was partly due to a decrease in net finance costs, which fell 85% to a GBP12.3 million from GBP80.1 million.
A reduction in adjusted operating expenses also contributed, as they fell 17% to GBP129.7 million from GBP156.8 million.
The firm added that it is "limiting imports" to the US in response to the US tariff regulations, with it relying on existing vehicle inventory already in the US instead of shipping large volumes of new cars, which would now face a 25% import tariff under new measures introduced by US President Donald Trump.
Chief Executive Officer Adrian Hallmark said: "We are carefully monitoring the evolving US tariff situation and are currently limiting imports to the US while leveraging the stock held by our US dealers.
"We remain vigilant in monitoring events and will respond to changes in the operating environment as they materialise."
In response to concerns around the effects of the US tariffs, the company slightly lowered its full-year sales forecast last month. Instead of aiming towards a mid single-digit percentage growth in 2025, Aston Martin are now expecting a "modest growth" compared with 2024 as it anticipates that the new tariff rules could reduce wholesale volumes.
Aston Martin said its guidance remains unchanged, "despite increased uncertainty", with it expecting to deliver positive adjusted earnings before interest and tax. It reported an adjusted Ebit loss for 2024 of GBP82.8 million and an adjusted Ebit loss of GBP64.5 million in the first quarter of 2025.
Aston Martin expects to deliver a "significantly stronger" second half performance, with this primarily driven by the fourth quarter of last year "benefiting from Valhalla and the contribution from new core derivatives". It said this "will positively position the company as it enters 2026."
In February, Aston Martin announced plans to sell its minority stake in the Aston Martin Aramco Formula One team. At the same time, it confirmed that Lawrence Stroll's Yew Tree Consortium would invest an additional GBP52.5 million to increase its ownership in the company.
The combined effect of these two moves is expected to boost Aston Martin’s liquidity to around GBP400 million.
The company added that it "remains on track" with its guidance to deliver a reduction in adjusted operating expenses, excluding depreciation and amortisation, in 2025 to around GBP300 million. Adjusted operating expenses excluding depreciation and amortisation totalled GBP313 million in 2024.
Aston Martin shares rose 1.9% to 71.22 pence on Wednesday morning in London.
By Olivia Mason-Myhill, Alliance News reporter
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