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2026-02-20 17:14:10
[Aston Martin Issues Full-Year Profit Warning, Tariffs and Slowing Demand Become Double Headwinds] ⑴ British luxury sports car manufacturer Aston Martin issued a profit warning, expecting an adjusted EBIT loss of between £139 million and £184 million for 2025, slightly below the lower end of analysts' forecasts. This earnings forecast reflects the complex challenges facing the high-end consumer market. ⑵ The company had initially expected to achieve profitability and positive cash flow for the full year, but was forced to withdraw its guidance during the year. The business environment was described as extremely challenging, with tariffs being one of the core dragging factors. ⑶ US trade policies pose direct financial pressure. The US government imposed a 10% tariff on the first 100,000 British-made cars, with the rate surging to 27.5% for any excess. As a key export market, the tariff costs in the US market eroded Aston Martin's profit margins. ⑷ Total wholesale sales in 2025 are expected to fall to 5,448 units, down from 6,030 units in the previous year. Although retail performance was slightly better, reduced deliveries of high-profit limited-edition models put pressure on gross margins. The full-year gross margin is expected to be around 29.5%, lower than previously anticipated. (5) To boost liquidity, the company proposed selling part of the naming rights and related brand interests of the F1 team for £50 million, which will be submitted to the shareholders' meeting for approval. This asset monetization measure indicates that cash flow management remains a current priority, even with progress in product portfolio optimization and cost reduction. (6) Full-year cost reduction efforts resulted in a 16% decrease in adjusted operating expenses to £262 million in 2025, with capital expenditures projected at £341 million, below the lowered target range. (7) Looking ahead to 2026, the company expects the delivery of approximately 500 Valhalla supercars, the effectiveness of the transformation plan, and operational rigor to drive substantial improvement in performance. However, changes in the tariff environment and demand in key markets remain key variables determining the pace of recovery.
