25th Feb 2026 10:19
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Wednesday said it navigated "a highly challenging trading environment" in 2025, citing heightened tariffs in the US and China, amid a fall in vehicles sold.
The Gaydon, Warwickshire-based luxury car said its pretax loss widened to GBP363.9 million in 2025 from GBP289.1 million in 2024.
Revenue dived 21% to GBP1.26 billion from GBP1.58 billion.
Total wholesale volumes fell 9.7% to 5,448 from 6,030 in 2024. The company expects total wholesale volumes in 2026 to be similar to 2025.
Its free cash outflow worsened to GBP409.9 million in 2025 from GBP391.6 million the year prior, though it notes it was free cash flow positive in the fourth quarter. It expects a "material improvement" in 2026, but does note tariffs toughen its outlook.
Notably, the company said it plans to reduce its workforce by up to a fifth.
Aston Martin said it expects to continue delivering year-on-year "improved" financial performance over the short-mid-term, with a focus on margin expansion and cash flow generation.
Chief Executive Officer Adrian Hallmark said: "In 2025, we navigated a highly challenging trading environment whilst delivering on critical operational milestones. An unprecedented backdrop of geopolitical uncertainties and macroeconomic pressures, including heightened tariffs in the U.S. and China, weighed on our performance and ability to execute our plans effectively.
Aston Martin said: "Having undertaken, at the start of 2025, a process to make organisational adjustments to ensure the business was appropriately resourced for its future plans, we had to take the difficult decision at the end of 2025 to implement further changes. This latest programme will ultimately see the departure of up to 20% of our valued workforce. Linked directly to this necessary action, we expect associated annualised operating expenditure and capital expenditure savings of around GBP40 million of which the majority will be realised in 2026, with associated transformation cash costs expected to be about GBP15 million."
The firm added: "The global macroeconomic and geopolitical environment facing the wider automotive industry remains challenging. This dynamic landscape includes uncertainties over the economic impact from the unpredictable threat or introduction of additional US tariffs, changes to China's ultra-luxury car taxes and the continued reliance on a stable network of global suppliers."
It continued: "The group continues to engage with both the US and UK governments to secure greater clarity and certainty on the specific automotive tariff. Whilst positive dialogue on this matter has been achieved directly with the US government, the company continues to seek more proactive support from the UK government to protect the interests of small volume manufacturers, like Aston Martin, who provide thousands of jobs, making an important contribution to local economies and to the wider UK automotive supply chain."
Aston Martin shares were down 1.5% at 56.05 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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