JLR has reported a year-on-year drop in profits for the third quarter of its 2025 fiscal year, despite bringing in record revenue and its best profit margin for the quarter in a decade.
The British manufacturer reported £523 million in profit before tax (PBT) and exceptional items and £375 million in profit after tax (PAT) between October and the end of December.
That was down compared with the £627m PBT and £592m PAT in the same period last year.
This was despite a record revenue for the quarter of £7.5 billion – up by £100m year on year – and a 10-year-high earnings before interest and tax (EBIT) margin of 9.0%.
A spokesperson for JLR told Autocar that the drop was due to foreign exchange revaluations, after a reduction in the value of the pound.
Warranty costs and discounting were also key factors.
However, as reported by Autocar Professional, JLR owner Tata expects that a weaker pound could actually benefit the company, should US president Donald Trump impose tariffs on foreign automotive exports.
JLR’s profit for the full year to date (from the start of May 2024 to the end of December) stands at £1.6bn – the best it has been by this point in the year for a decade.
The company attributed its otherwise successful quarter to an increase in volumes – wholesales were up 3% year on year to 104,427, while retail sales were down 3% to 106,334 – and an improved product mix.
Its most profitable models – the Range Rover, Range Rover Sport and Land Rover Defender – now comprise 70% of its wholesales.
JLR also benefited from a reduction in depreciation and amortisation from the end of production at its Castle Bromwich plant and from extending the life of its combustion-engined models.
The firm said it was “on track” to achieve its profitability and cash flow targets for its full 2025 fiscal year: an EBIT margin more than or equal to 8.5% and positive cash flow.
CEO Adrian Mardell said: “JLR has delivered a robust performance in the third quarter of our financial year and reached further milestones in our Reimagine strategy.
“Thanks to our people and partners, we achieved record Q3 revenue and our best EBIT margin in a decade and our electrification plans are progressing.
“We revealed the beautiful, reimagined Jaguar design vision – Type 00 – in Miami and later this year we will launch Range Rover Electric.”
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It's not a British manufacturer. It is wholly owned by Tata Motors - Indian. It doesn't even seek to show any 'Britishness' - ALL of its website photos show left-hand drive models, even on the GB webpage. And yet Renault, show right-hand drive models, by the way!
The drop in profits doesn't match the varience in exchange rates.
JLR are charginge far more for the Range Rover & Sport which will boost turnover, but the dropping of Jaguar will hurt returns. They're going to pay a high price for killing off Jaguar.
Their unwise EV strategy with their new brand is increasingly looking very unwise. Porsche reversing their EV strategy because of low sales. Bentley, who they said they'd be competing with, have lower sales. And the US look to be dropping their EV mandate with Trump. Should have kept Jaguar and run it through a hybrid period like all other sensible car manufacturers did.
Very roughly, and ignoring profits from aftersales, etc, that works out at just over £5,000 profit per vehicle pro rata assuming equal quarterly sales, which isn't half bad. Be interesting to know what the warranty costs per vehicle are, also what they are planning to do with Discovery.