8:34 am, October 30, 2025
Aston Martin Lagonda has slashed investment plans in an attempt to bring down costs as losses widened in the third quarter.
Earnings for Q3 showed the luxury sports carmaker pulled in £285.2m for the three months ended September 30, down 27% on the same period last year. Total revenue for year-to-date stands at £739.6m, down 26% on the same metric in 2024.
For the three months, losses before tax plummeted by 817% to £111.9m, while operating loss came to £56.1m, down 110% on Q3 20224.
In year-to-date, the company’s losses before tax stand at £252.7m, down 10% on the same period last year.
Gross margin fell by 780 base points to 29.0% in the three months.
The company said it is reviewing its strategy for future models as sales tumbled further in the face of pressure from US tariffs and weak demand in China.
Aston Martin Lagonda told shareholders it will cut its five-year investment commitment from £2bn to £1.7bn as it launched a review into costs and capital expenditure. It also said it is investing £350m into its operations this year, in the latest cut to its spending plans.
Earlier this month the company said it was on track for £375m of investment, having already pulled back from a previous £400m target.
The drop in revenues was driven by weaker wholesale volumes, which fell by 13% to 1,430 vehicles for the quarter. In year-to-date, Aston Martin has delivered 8% fewer vehicles (3,352) compared to the same period last year.
The weakness was driven by ‘heightened challenges in the global macroeconomic environment’ which weighed down on demand, as well as pressure from US tariffs.
Sales volumes were weaker than expected across ‘most regions’ during the quarter, as it reported that UK sales volumes slid by 32%.
The firm pointed towards an improvement in performance for the final quarter of the year, helped by deliveries of Valhalla, DBX S and Vantage S commencing.
But it stressed that there are continued challenges, including supply chain pressures linked to the cyber incident on rival JLR.
Adrian Hallmark, Aston Martin chief executive, said: ‘This year has been marked by significant macroeconomic headwinds, particularly the sustained impact of US tariffs and weak demand in China.
‘In response to these market dynamics, we have taken, and continue to take, proactive steps to strengthen our overall position.
‘Work is under way to review our future product cycle plan with the aim of optimising costs and capital investment whilst continuing to deliver innovative, class leading products to meet customer demands and regulatory requirements.’
Major shareholder and executive chairman Lawrence Stroll said his commitment and confidence in the long-term prospects of the business are ‘unwavering’.
