Aston Martin Issues Profit Warning Amid US Tariffs and Sales Decline
The luxury car manufacturer Aston Martin has issued a stark profit warning, revealing that its earnings for 2025 are expected to fall below £184 million. This announcement comes as the company faces significant challenges from declining sales and increased US tariffs, which have severely impacted its financial performance.
Financial Struggles and Market Pressures
Aston Martin Lagonda, listed on the London stock exchange, informed shareholders on Friday that its gross profit margins and adjusted earnings before interest and tax are projected to be slightly below the lower end of analyst expectations. The Warwickshire-based firm attributed this downturn to a highly challenging trading environment throughout the year, marked by mounting pressure from US tariffs and a notable decline in deliveries of its higher-margin Special model vehicles.
Total wholesale volumes dropped to 5,448 units in 2025, down from 6,030 the previous year, underscoring the sales slump. The US, which remains Aston Martin's largest market, was hit by a 10% tariff last year, reduced from an initially planned 27.5%, but still enough to exacerbate the company's financial woes.
Strategic Moves to Bolster Finances
In response to these difficulties, Aston Martin has taken several steps to strengthen its financial position. Last October, the company scaled back its investment plans, and on Friday, it revealed a £50 million agreement to sell the naming rights of its Aston Martin F1 Team to associated party AMR GP Holdings. Under this deal, AMR will retain use of the Aston Martin name in Formula 1 through to 2055, a move executives confirmed would enhance the company's liquidity.
This sale is part of broader efforts led by Canadian billionaire Lawrence Stroll to turn around the company's fortunes. Despite making headway on its transformation strategy, Aston Martin highlighted the scale of the challenges ahead, emphasizing the ongoing impact of external economic factors.
Company Background and Operations
Aston Martin is headquartered in Gaydon, Warwickshire, with key manufacturing bases in St Athan, South Wales, and Newport Pagnell. The firm continues to navigate a volatile market, balancing innovation and cost-cutting measures to regain stability. As it moves forward, the luxury car maker remains focused on adapting to global trade dynamics and consumer demand shifts, aiming to recover from this profit warning and rebuild its earnings trajectory in the coming years.
