Aston Martin has warned that 2025 will be another loss-making year, after its finances were knocked by US tariffs, sluggish demand in China and a delay to deliveries of its new Valhalla supercar.
The British luxury car maker had predicted as recently as April that it would achieve a landmark profit in 2025 after years of persistent losses. Even after the surprise increase in US tariffs caused a pause to deliveries in the second quarter, it was still guiding investors to a breakeven result.
However, it's now saying its losses for 2025 are likely to hit £110 million, based on the calculation for earnings before interest and taxes (EBIT).
“The global macroeconomic environment facing the industry remains challenging,” it warned in a stock exchange filing on 6 October.
Aston Martin said sales to dealers this year would be lower by between 5% and 10% on last year’s figure of 6030, having previously said it expected sales to be up by around 5%.
It said it planned to deliver 150 of the 999 Valhallas in the fourth quarter of this year, which it said was “behind prior expectations”. The supercar is key to Aston Martin’s turnaround and promised eventual returned to profitability.
Aston Martin didn’t give a reason for the delay to Valhalla deliveries, although car makers across the spectrum are currently finding it hard to keep to launch schedules as software becomes more integral to cars.
It said it will carry out an “immediate” review of future cost and capital expenditures as it fights to reach profitability, suggesting further job losses on the back of the 170 announced earlier this year.
The review could lead to the delay or cancellation of future models, after Aston Martin warned that it would assess “future product cycle plan in response to market and regulatory dynamics”.
Aston Martin was one of the first luxury car makers to heavily revise plans for electric models, with new CEO Adrian Hallmark saying in February that its first EV would come at “the end of the decade” after initially promising 2026 – itself a revision from 2024.
It could also delay its planned roll-out of plug-in hybrids as its core market of the US rolls back requirements for car makers to reduce their CO2 emissions.
Aston Martin warned in the stock exchange filing about various headwinds, including the health of suppliers in the UK affected by JLR’s extended shutdown following a cyber attack; and the July lowering of the price threshold for China's 10% luxury car tax, which could affect its cheaper models.
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