Aston Martin Lagonda has warned that it will remain loss-making through 2025 after another year of weaker-than-expected sales and further delays to its flagship Valhalla hypercar, sending shares in the British luxury carmaker tumbling.
In an unscheduled trading update, the company said it now expects annual sales to fall by nearly 10 per cent and losses to exceed previous forecasts, abandoning earlier commitments to become cashflow positive this year.
Shares fell more than 8 per cent to 74.65p on Monday, wiping out recent gains built on hopes of a sustained turnaround under chief executive Adrian Hallmark, who joined the Warwickshire-based manufacturer last year from Bentley.
Aston Martin cited “heightened challenges in the global macroeconomic environment,” including the impact of US tariffs, shifting Chinese luxury taxes, and supply chain strains, as key factors behind the shortfall.
“As a result of the heightened challenges in the global macroeconomic environment, including the ongoing impact of tariffs, the company now expects total wholesale volumes in full-year 2025 to decline by a mid-to-high single-digit percentage compared with 2024,” the group said.
Deliveries to dealers between July and September totalled 1,430 vehicles, around 13 per cent below the same period last year, missing earlier guidance that sales would hold steady.
Weaker demand in North America and Asia-Pacific, particularly China, was compounded by a reduction in high-margin “special” editions, which typically boost profitability.
The company confirmed that deliveries of its £850,000 Valhalla hypercar — its most high-profile launch in years — have again been delayed, with just 150 units now expected to reach customers by the end of 2025, fewer than previously pledged.
The setback is a blow to Aston Martin’s strategy of using ultra-luxury models to drive margins and restore credibility among investors following years of financial turbulence.
The group now expects to post operating losses before interest and tax of around £110 million, in line with the most pessimistic analyst forecasts. Its projection for positive free cashflow in the second half of 2025 has also been scrapped.
Aston Martin said it continues to face headwinds from “uncertainties over the economic impact from US tariffs and the implementation of export quotas” affecting UK manufacturers, as well as “changes to China’s ultra-luxury car taxes.”
The company also acknowledged potential supply chain disruptions following the recent cyberattack at Jaguar Land Rover (JLR), which shares several suppliers with Aston Martin.
Several of those suppliers are reportedly under financial pressure after JLR’s temporary shutdowns, raising concerns over the stability of the UK’s premium automotive supply base.
In response, Aston Martin has initiated an “immediate review of spending” and a broader reassessment of its product cycle and future development plans, hinting that upcoming electric and hybrid projects could be delayed.
“The global macroeconomic environment facing the industry remains challenging,” the company said. “We are reviewing our future product cycle plan in response to market and regulatory dynamics.”
The update underscores the difficulties facing Hallmark’s turnaround efforts as Aston Martin grapples with persistent losses, high leverage, and uneven demand across its core markets.
The profit warning marks a sharp reversal from earlier optimism that Aston Martin was on track for recovery. The company’s shares have now fallen more than 80 per cent from their 2021 highs, and analysts warn that any further delays to key models or production disruption could threaten the timeline for stabilising the business.
With new electrification rules looming, trade tensions rising, and luxury demand softening in China, Aston Martin’s latest warning suggests its road back to profitability remains a long one.
Paul Jones
Harvard alumni and former New York Times journalist. Editor of Business Matters for over 15 years, the UKs largest business magazine. I am also head of Capital Business Media’s automotive division working for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.
