AML Aston Martin Lagonda Global Holdings Plc

Aston Martin Lagonda Global Holdings plc

("Aston Martin", or "AML", or the "Company"; or the "Group")

Preliminary results for the twelve months ended 31 December 2024

                                                                                                                                                                                               

 

Record total ASP up 6% to £245k, driven by strong personalisation across new models and Specials demand

Focus on disciplined operational execution, continued business transformation and cost optimisation

Year-end total liquidity of £514m, in line with guidance, supporting delivery of strategy and future growth

Material improvement in 2025 financial performance expected to deliver positive adjusted EBIT in FY 2025 and free cash flow in H2 2025; unchanged 2027/28 mid-term targets

£m	FY 2024	FY 2023	% change	Q4 2024	Q4 2023	% change
Total wholesale volumes1	6,030	6,620	(9%)	2,391	2,222	8%
Revenue	1,583.9	1,632.8	(3%)	589.3	593.3	(1%)
Gross profit	583.9	639.2	(9%)	207.0	268.4	(23%)
Gross margin (%)	36.9%	39.1%	(220 bps)	35.1%	45.2%	(1,010 bps)
Adjusted EBITDA2	271.0	305.9	(11%)	158.1	174.8	(10%)
Adjusted EBIT2	(82.8)	(79.7)	(4%)	38.7	55.4	(30%)
Operating (loss)/profit	(99.5)	(111.2)	11%	33.3	34.1	(2%)
(Loss)/profit before tax	(289.1)	(239.8)	(21%)	(60.2)	20.0	(401%)
Net debt2	(1,162.7)	(814.3)	(43%)	(1,162.7)	(814.3)	(43%)

¹ Number of vehicles including Specials; ² For definition of alternative performance measures please see Appendix 

 

Adrian Hallmark, Aston Martin Chief Executive Officer commented:

"After a period of intense product launches, coupled with industry-wide and Company challenges, our focus now shifts to operational execution and delivering financial sustainability. I see great potential in Aston Martin, and our goal is to transition from a high-potential business to a high-performing one, better equipped to navigate future opportunities and uncertainties.

"We have all the vital ingredients for success, with the support of strategic shareholders, the capability of world-class technical partners, a revitalised brand, talented people, and the strongest product portfolio in our 112-year history. This line-up is further strengthened by the upcoming Valhalla, our first mid-engined hybrid supercar, with deliveries starting in H2 2025. Moving forward, my priority is to drive operational excellence and discipline as we continue our transformation into a sustainably profitable company.

"We are committed to demonstrating that our strategy delivers long-term growth. This starts in 2025 where we expect materially improved financial performance to deliver positive adjusted EBIT for the full year and free cash flow in the second half of 2025."

Lawrence Stroll, Aston Martin Executive Chairman commented:

"With the support of Aston Martin's strategic shareholders and the Board, we now move into 2025 under Adrian's leadership with a truly world-class range of new core models and the eagerly awaited launch of Valhalla. Our focus remains on the continued execution of our brand and product strategy, in addition to greater operational rigor, which will underpin progress towards our near- and medium-term financial targets, creating value for all our stakeholders."

 

Aston Martin's management team will host a video webcast presentation and live Q&A at 08:00 (GMT) today. Details can be found on page 9 of this announcement and online at: www.astonmartin.com/corporate/investors/results-and-presentations

 

2024  FULL YEAR FINANCIAL SUMMARY

·     Delivered significant H2 2024 wholesale volume growth, up 10% compared to H2 2023, reflecting the planned timing of new model launches. This supported strong growth in financial performance in H2 2024 compared with H1 2024, despite the revision to volumes impacting Q4 2024:

-  FY 2024 wholesale volumes decreased 9% to 6,030 (FY 2023: 6,620) impacted by the timing of new model launches, supply chain disruptions and weaker macroeconomic environment in China

-  Q4 2024 wholesale volumes increased 8% to 2,391 (Q4 2023: 2,222) reflecting deliveries from the entirely new core product range for the first time

·   FY 2024 revenue decreased 3% to £1,584m (FY 2023: £1,633m) reflecting the lower year on year volumes and FX headwinds as sterling strengthened against major currencies in FY 2024 compared to FY 2023. There was significant improvement in H2 2024 compared to H1 2024:

-  Record total ASP reflects significant contribution from Valkyrie, Valour and Valiant Specials:

§ FY 2024 total ASP of £245k, up 6% (FY 2023: £231k) driven by a higher year-on-year number of Specials

§ Q4 2024 total ASP of £236k, down 7% (Q4 2023: £255k) reflecting fewer Specials year-on-year

-  Core ASP declined, partly due to material FX headwinds, but included positive contribution from the new model range and options growth:

§ FY 2024 core ASP of £177k, down 6% (FY 2023: £188k) while contribution to core revenue from options increased 310 basis points to 18% (FY 2023: 15%)

§ Q4 2024 core ASP of £175k, down 11% (Q4 2023: £196k) reflecting a shift in the mix of models with significantly higher Vantage volumes compared to the prior year period due to the timing of new model launches

·     FY 2024 gross profit decreased 9% to £584m (FY 2023: £639m) and gross margin decreased by 220 basis points to 37% (FY 2023: 39%); reflecting impact of portfolio transition, phasing of product mix and volume, and FX headwinds, partially offset by increase in Specials volume:

-  Q4 2024 gross profit decreased by 23% to £207m (Q4 2023: £268m) and gross margin at 35% (Q4 2023: 45%) reflecting mix of core vehicles and fewer Specials

·     FY 2024 adjusted EBITDA² decreased 11% to £271m, in line with revised guidance following volume revision (FY 2023: £306m); adjusted EBITDA margin of 17% (FY 2023: 19%), reflecting lower core volumes during portfolio transition period:

-  FY 2024 adjusted operating expenses (excluding D&A) decreased £20m to £313m with Q4 2024 being £45m lower than Q4 2023

·    FY 2024 adjusted EBIT loss of £83m was broadly flat compared with the prior year (FY 2023: loss £80m) despite the impact of gross profit, largely reflecting a decrease in D&A of 8% to £354m (FY 2023: £386m); H2 2024 adjusted EBIT increased 143% year-on-year to £17m (H2 2023: £7m)

·      FY 2024 operating loss decreased by 11% to £100m (FY 2023: £111m loss)

·     FY 2024 free cash outflow² of £392m (FY 2023: £360m outflow) included Q4 2024 free cash inflow of £2m (Q4 2023: £63m outflow) with:  

-  Net cash inflow from operating activities of £124m (FY 2023: £146m cash inflow)

-  Net cash interest paid of £115m (FY 2023: £109m)

-  Broadly flat capital expenditure of £401m (FY 2023: £397m)

-  Working capital outflow of £118m (FY 2023: £86m outflow), primarily due to the unwinding of customer deposits (£178m outflow in FY 2024 compared with £66m outflow in 2023) on delivery of Specials, and a decrease in payables due to the earlier timing of payments in 2024. Inventories remained broadly flat, with a decrease in receivables following strong collections in Q4 2024.

·     Year-end liquidity (cash and available facilities) of £514m (31 December 2023: £393m), in line with guidance, including FY 2024 financing activities

·     Net debt at 31 December 2024 of £1,163m (31 December 2023: £814m) primarily reflecting higher gross debt following FY 2024 financing activities and translational impact of foreign exchange movements; adjusted net leverage ratio² of 4.3x (31 December 2023: 2.7x); remain committed to deleveraging over the medium-term

 

CHIEF EXECUTIVE OFFICER REVIEW

Delivered a highly acclaimed new range of core models 

Like many working within the ultra-luxury segment, I have admired the transformation of Aston Martin's brand and products from afar.  Since joining as CEO on 1 September 2024, I feel honoured to now have the opportunity to work with the Board, Executive Management team and the Company's employees as we enter a new chapter in Aston Martin's exciting future.

The Company has launched an entirely new and reinvigorated core range of models over an 18-month period. This ambitious endeavour demonstrates the team's unique drive, talent and entrepreneurial spirit. These new models have all received high acclaim from the world's leading automotive journalists and luxury media. They have praised the driveability, performance, handling, interiors and design of the new models. Importantly, this provides a key foundation upon which we can build a successful, sustainably profitable future with our reinvigorated portfolio appealing to our loyal existing customers in addition to attracting new enthusiasts to the brand.

The new range of core models commenced with the launch of DB12 in the second half of 2023. Showcasing our first-ever in-house bespoke infotainment system with enhanced performance compared to previous models, DB12 quickly received positive recognition and became a multi-award winner including the 'Car of the Year' accolade by Robb Report, who also named it the leading GT product in the world in their 2024 'Best of the Best' issue.

With the benchmark firmly set, the new Vantage was launched in February 2024 with EVO magazine titling it the "best Aston Martin in years". A true sportscar that underpins everything about our brand. Five-star reviews have also followed for the newly upgraded DBX707 luxury SUV, with its technologically advanced interior now matching its class-leading performance and driving dynamics. As reported by Hagerty: "The 2025 Aston Martin DBX707 is about as good as all-in-one personal vehicles get".

Finally, in September 2024 we launched our new V12 flagship, Vanquish, which replaced the highly regarded and iconic DBS. Successfully completing one of the most diverse, dynamic and desirable portfolios in the ultra-luxury segment. We commenced, as planned, with the first Vanquish deliveries to customers at the end of 2024, with the model proudly receiving Top Gear's 2024 'Super GT of the Year' award.

Exclusive Specials continue to demonstrate our unique market position

In addition to our segment-leading core portfolio, Specials continue to play a significant role, demonstrating the Company's ability to operate at the very highest levels of the ultra-luxury automotive segment. These highly sought after products are typically oversubscribed, attracting automotive collectors and enthusiasts from all over the world. Many automotive companies have tried to participate in this specialist sector of the market, but few have successfully delivered these unique programmes over a sustained period like Aston Martin has. This was something I observed and admired from outside of Aston Martin for decades, and now have the opportunity to shape this strategy as we move forward.

In 2024, we delivered some incredibly unique and ultra-exclusive Specials. The iconic Valkyrie programme, merging Formula One® technology with a road car, pushed the boundaries of performance with engineering to make the impossible, possible. Having broken the track record at Silverstone for a production car, in 2025 this era-defining hypercar will carry Aston Martin into the fight for overall victory in a return to the world famous 24 Hours of Le Mans. Also in 2024, we completed the delivery to customers of our 110-year anniversary Special, Valour. This was followed by Fernando Alonso's launch of Valiant at the 2024 Goodwood Festival of Speed. Customer deliveries of this ultra-exclusive 38 vehicle programme commenced at the end of 2024, with the remaining vehicles being delivered in early 2025.

The power of our brand and Formula One®

Bringing these phenomenal products to market aligns with the vision previously outlined by our Executive Chairman, to be the world's most desirable, ultra-luxury British performance brand. We have the potential to lead this segment thanks to our increasing brand power and alignment with world-class products and technology.

Since joining this year, I have travelled across the UK and to several of our other key markets. This included North America and China to meet with customers and dealer partners, and to Europe where I attended our global dealer conference. These important stakeholders repeatedly highlighted their passion for and strength of the Aston Martin brand. I also took note of their frustrations related to certain delays in new model deliveries while acknowledging that to be a true class leader in our segment we have to excel in all aspects of our customer experience, sales and marketing channels, and that we are actively addressing these points.

There is no doubt that awareness of the brand has been supported by the growing profile of Formula One® and our participation in the pinnacle of motorsport. This powerful marketing activity, which gives our customers, suppliers and dealers unrivalled access to race weekends, has been further elevated by the hugely successful Netflix series, Drive to Survive. One of the most watched shows on the streaming platform, the first episode of the 2024 season heavily featured Aston Martin, prominently positioning our brand and products to millions of viewers. Our association with Formula One® goes even further with Aston Martin providing the Official FIA Safety and Medical car of Formula 1® regularly showcasing the high-performance credentials of our Vantage and DBX707 models. Our racing DNA has been further underscored this year by the success of the new Vantage GT3 race car, with teams performing in a number of racing series around the world including the FIA World Endurance Championship where our partner team The Heart of Racing recorded a maiden victory at the Circuit of the America's in September 2024.

Elevating the customer experience and driving innovation

Capitalising on the growing appetite for personalisation and elevated customer experience within the luxury goods segment, our ultra-luxury retail strategy and bespoke service, Q by Aston Martin, has driven an increase in options revenue. In 2022, contribution to core revenue from options was around 13%, increasing to 15% in 2023 and to 18% in 2024. Further enhancing the sophisticated, tailored service our customers expect, we continued to benefit from the success of our Q New York flagship location, in addition to further investment being made by our dealer partners around the world. Aligned with our renewed corporate identity, the showroom in New York brings the highest levels of Q by Aston Martin services to North America. Customers can also utilise this intimately personal service at our UK headquarters in Gaydon and over time we will open further Q locations in key markets.

In parallel we continue to work with our dealer partners to optimise our network and upgrade facilities to truly offer an ultra-luxury experience. Whilst we made progress on this part of our strategy in 2024, I believe we still have plenty of opportunity to advance our dealer network over time, a proposition made easier now we have a full range of next generation models available in the market and with further innovation planned throughout the lifecycle of our products.

In our home UK market, Aston Martin Birmingham officially opened in October 2024 in a new landmark location, drawing design inspiration from Q New York. A new dealership in Leeds also followed the successful opening of Aston Martin Edinburgh. In Europe, new showrooms and boutique locations were opened in Baden-Baden, Nürnberg, Hamburg and Prague. Following the opening of a new landmark showroom inside the Peninsula Tokyo Hotel earlier in 2024, our presence in Asia was strengthened with the reopening of Aston Martin Seoul. Adding to the opening earlier in 2024 of Aston Martin Suwon, this marked a new era for Aston Martin in the growing South Korea market.

In May 2024, we were delighted to be among the first companies in the world to be awarded a Royal Warrant by appointment to His Majesty The King. The same month also saw Aston Martin honoured with The King's Award for Enterprise, solidifying Aston Martin's position as a symbol of British excellence. Awarded for innovation, this accolade came as we continued at pace to progress the most intense phase of product development in our history.

 

Unlocking our future potential

Aston Martin has made significant progress in transforming the business and its strategy since the Yew Tree Consortium investment in 2020, alongside our other strategic shareholders. I recognised when joining the Company there was huge potential still to be unlocked. This remains the case, but enhancing the performance of the business is not without its challenges. It will require a true team effort to overcome certain barriers and for some difficult decisions.

In September 2024, we, like many other global automotive peers at the time, had to update the market on two external factors that were impacting the Company's performance: Industry-wide supply chain disruptions and continued macroeconomic weakness in China. These factors resulted in a circa 1,000-unit reduction in wholesale volume guidance for 2024. Whilst it was unfortunate to have to make this adjustment, it was appropriate that we took decisive action. We experienced no further material changes in our supply chain for our core vehicles and while below the initial expectations set by the Company at the start of the year, we delivered broadly in line with our revised guidance for volumes, adjusted EBITDA and liquidity.

Since becoming CEO, I've extensively engaged with our teams across the business conducting operational reviews to fully understand where we are on our transformation journey. Whilst many of my positive reflections from outside the business have been reinforced, there are areas that would benefit from a renewed focus on operational excellence and strong discipline. In doing so we can create a sustainably profitable business model, providing the platform from which to deliver long-term growth. Today we are driving for improvements across four areas I previously highlighted towards the end of 2024. With some immediate results already, we would expect further benefits to materialise progressively from the second half of 2025 onwards:

1. Elevating awareness of our ultra-luxury brand in support of increased demand generation

Having successfully completed a series of global product launch events in 2023 and 2024, we are now focusing our investment more on regional and local marketing efforts. Following initial delays of some new models into certain markets, we expect these more targeted initiatives, and in some markets near relaunch-like activations, to stimulate demand and enhance the quality of our order book. With our order book for core vehicles extending up to five months, I would like for this to strengthen over time towards realistic luxury sector benchmarks. For our core V8 vehicles this should extend to a minimum of six months with the V12 Vanquish closer to nine months. For Specials, these limited ultra-exclusive programmes are typically fully allocated at launch while Valhalla orders already cover the first full year of production.

We will leverage the benefits of building deep understandings and strong relationships with our customers over many years, combined with an effective Salesforce CRM to create bespoke, tailored campaigns for our potential customer base. We are particularly excited about boosting activities in key regions like the USA, which still holds untapped growth potential, and in China where we have faced challenges recently but see a mid-term upside. Further elevating our ultra-luxury retail strategy and the Q by Aston Martin proposition will form another core part of this strategic pillar in addition to ongoing upgrades to our stores and dealer network.

2. Optimising our cost base and driving productivity enhancements

Whilst we began to make progress on the Group's adjusted operating expenses in FY 2024, adjusting our discretionary cost base, we need to deliver more improvements to support future financial performance and drive operating leverage. The business has grown over recent years to match previous ambitions. We now need to ensure we optimise our organisation structure to deliver the current business plan, with a focus on maximising the value of every vehicle sold, while driving productivity enhancements towards established industry benchmarks. We will develop these throughout the year ahead, with the goal of Aston Martin becoming a sector benchmark Company over time, and in doing so, realise high performance.

In 2025, despite inflationary and growth-related costs, we expect to deliver benefits through greater operational discipline, focused spend and rightsizing, which result in a continued reduction in adjusted operating expenses in FY 2025, most notably in the second half. Through a disciplined approach, we are committed to achieving this all while executing on our ongoing investment plans to support the Company's long-term growth aspirations.

We are commencing a process to make organisational adjustments, to ensure the business is appropriately resourced for its future plans. This will ultimately see the departure of around 170 valued colleagues, representing circa 5% of our global workforce. Linked directly to this difficult but necessary action, we expect annualised operating expenditure savings of circa £25m of which circa 50% will be realised in FY 2025 with associated transformation costs expected to be circa £10m.

3. Product innovation throughout the lifecycle

We will continue to ensure we offer our customers the most relevant, exciting and compelling vehicles in the sector. Instead of simply waiting for several years between full model refreshes, we intend to quicken the cycle plan, updating trims and derivatives periodically to keep the models fresh and relevant, maintaining the enviable status they now hold. Our ongoing programme of ultra-exclusive Specials will meet the needs of the collectors and enthusiasts who crave these rare vehicles.

To meet our growing customer needs, we are developing an even broader array of options to enrich the personalisation and content opportunities our customers can invest in. Benchmarking against other luxury brands, indicates that circa 100 relevant options are not yet available to Aston Martin customers, including for example titanium exhausts, carbon wheels and bespoke audio systems. Our intention is to commence the introduction of additional options in the second half of 2025, with the potential to further satisfy our customer's desires whilst simultaneously improving margins.

4. Delivering excellence in quality and product launch cycles

Our exceptional vehicles are the cornerstone of our brand. I am passionate about delivering the highest standards and consistency across our portfolio. We can enhance this through our relentless focus on quality and by refining our approach to product launch cycles. Instilling better rigour and discipline in the planning and execution of our product launch cycles, collaboration with our supply partners throughout the process to drive efficiencies, and always putting the customer at the centre of what we do, is what we must focus on. In 2025, our product launch execution is firmly focused on Valhalla, having completed the significant transformation of the core portfolio over the last 18 months. Our confidence in the vehicle and platform developed for Valhalla is reflected in the five years warranty and servicing now included in the sales price. 

In the past, the Company has been impacted by delays to launches, disappointing customers and impacting on its financial performance. Avoiding significant unnecessary costs and inefficiencies associated with delays and accelerated project timelines is just one example of the benefits from adopting this approach. We need to be realistic in our planning and timing of launches, monitoring key performance indicators throughout to ensure we meet deadlines in the future.

A significant milestone has been the investment in and roll out of our first bespoke infotainment system which, alongside other major developments to our next generation line up, now truly positions us in the ultra-luxury high performance sector. However, we will make further enhancements here too, benefiting from software upgrades that ensure the user experience is constantly optimised whilst following rigorous gateway processes and engineering protocols to ensure the highest standards are met.

These four areas will evolve as we embark on the final phase of our transformation, identifying further prospects and areas of improvement, and becoming a sustainably profitable Company. Our goal is to strengthen the position of the Company to not only better navigate future opportunities and uncertainties but to successfully create value for all our stakeholders as we progress towards our mid-term financial targets.

Looking ahead to future growth in 2025 and beyond

Having undertaken a complete portfolio transformation over the last 18 months, requiring significant efforts from across our teams, we move into 2025 with the expectation of operating in a more stable product environment. Importantly though, in support of our future growth aspirations, we remain committed to ongoing incremental product development, innovating models throughout the lifecycle to meet the requirements of our customers. The strictly limited DB12 Goldfinger Edition demonstrated the success of this strategy with overwhelming demand in 2024. This was followed in January 2025, by the launch of the highly anticipated new Vantage Roadster, some 12-months after the Coupe model was unveiled. We will continue along this path in the future.

One of our most eagerly awaited launches will take place later in 2025, with Valhalla, our first mid-engined Plug-in Hybrid Electric Vehicle (PHEV). This groundbreaking supercar is a great demonstration of a collaborative approach to development with our engineers and designers working with Aston Martin Performance Technologies who have provided tools, learnings and expertise from Formula One®. Given we are marrying new technologies in an Aston Martin for the first time, this has been a complex project. I have been heavily involved in overseeing its progress since joining, and will continue to closely monitor the programme, with initial customer deliveries due to commence in the second half of 2025. Already sold out for the first year's production, and exclusively limited to 999 units to be delivered over circa two and a half years, we expect Valhalla to make a significant contribution to our financial performance, supporting our target of generating positive free cash flow in the second half of 2025.

Simultaneously, we are developing alternatives to the Internal Combustion Engine with a blended drivetrain approach to our portfolio between 2025 and 2030, including PHEV and Battery Electric Vehicles (BEV), with a clear plan to have a line-up of electrified sports cars and SUVs. In response to customer feedback and evolving market dynamics, Aston Martin is prioritising the adoption of PHEV technology, beginning with Valhalla, before transferring the knowledge and technology across to our core model range. This will pave the way for the launch of Aston Martin's first BEV, planned for the latter part of this decade. This phased approach reflects the Company's strategy to offer a diverse range of powertrain options, including electric vehicles that will leverage our strategic partnerships and cutting-edge high-performance technologies, ensuring an unparalleled driving experience for customers.

We now have a full range of models that appeal to a broader and growing customer base, that want to own a truly inspiring, driver focused sports car, GT, SUV or V12. With a commitment to product development and innovation throughout the lifecycle of our core models, coupled with Valhalla and other Specials, I believe we have the ingredients to continue to drive demand and further enhance the quality of our order book. Progress here will also benefit from an engaged and supportive dealer network and the success of our ongoing marketing activities.

Volumes alone though will not define Aston Martin, with a ruthless focus on our demand-led approach, ensuring we offer customers the ultimate in luxury retail experience with enhanced personalisation opportunities that allows us to maximise the value in every vehicle. Our goal to create a sustainably profitable business model, will be further supported through our renewed drive for operational excellence and efficiencies across the business. This approach will underpin progress towards our 2027/28 mid-term financial targets, delivering sustainable positive adjusted EBIT and Free Cash Flow generation.

I'd like to thank the Board, the Executive Committee, all our employees, dealer partners and suppliers, who have given a huge amount of time and effort this year to shape the business and prepare it for the year ahead. Finally, to our customers for choosing to be part of this iconic brands history. Thank you for your commitment and loyalty. We look forward to continuing the journey with you all.

OUTLOOK

Material financial performance improvement in 2025 expected to deliver positive adjusted EBIT in FY 2025 and free cash flow in H2 2025; unchanged 2027/28 mid-term targets

Aston Martin expects to make significant improvements across all key financial performance metrics in 2025, compared to the prior year. The Company will benefit from its all-new range of core models in 2025. In addition, initial customer deliveries of Valhalla are expected to commence in H2 2025, with the majority of Valhalla 2025 volumes expected in Q4.

The Valhalla programme is well advanced with firm launch plans, but as with any major car launch risks exist in the run up to the start of production that could impact the timing of initial deliveries. Additionally, we remain alert to industry wide risk factors that present an element of uncertainty that could impact our plans. These include, but are not limited to changes in custom duties, supply chain disruptions and wider macroeconomic and political instability.

Quarterly core wholesales volumes in FY 2025 are expected to progressively build in a similar shape to FY 2024, with total volumes supported by Valhalla deliveries in the second half of the year. Directly linked to this volume phasing, financial performance, including free cash flow, is expected to sequentially improve quarter-on-quarter throughout the year. For Q1 2025, the Company expects volumes to be broadly in line with the prior year period although mix will be negatively impacted by fewer Special deliveries. Thereafter, performance is expected to progress, with a significantly stronger H2 2025 compared with H1 2025, primarily driven by Q4 2025. This will positively position the Company as it enters 2026.

Guidance for FY 2025:

·   Enhanced profitability and positive adjusted EBIT generation in FY 2025 will be supported by disciplined mid-single-digit percentage total wholesale volume growth, including contribution and mix from Valhalla. Our focus is on maximising the value in every vehicle sold and extending the order book with retails expected to consistently outpace wholesales.

·     Gross margin is expected to improve to c.40%, benefitting from more efficient production, the new models and product innovation throughout the lifecycle, including a drive towards increased personalisation and options revenue growth.

·    Adjusted operating expenses (excluding D&A) will reduce further to c.£300m (FY 2024: £313m), delivering operating leverage

·      Capital investment in new product developments and technology access fees to support our growth strategy is expected to be c. £400m.

·     Free Cash Outflow is expected to materially improve in FY 2025 compared with the prior year (£392m outflow). A sequential quarterly improvement in free cash outflow from Q1 to Q3 is expected to progress towards positive free cash flow generation in Q4 2025 driving positive free cash flow generation in H2 2025.

·      Following the financing activities in FY 2024, we expect net interest of c. £145m³.

·      Depreciation and amortisation is expected to be c. £375m. 

The Group's medium-term outlook for FY 2027/28 remains:

·      Revenue: c. £2.5 billion

·      Gross margin: mid-40s%

·      Adjusted EBIT: c. £400 million⁴

·      Adjusted EBIT margin: c. 15%⁴

·      Free cash flow: to be sustainably positive

·      Net leverage ratio: below 1.0x

·      Expect to invest: c. £2bn over FY 2023-2027 in long-term growth and transition to electrification

 

3 Net cash interest assuming current exchange rates prevail for FY 2025

4 Updated to reflect alignment with FY 2025 guidance on positive adjusted EBIT generation, with previous mid-term targets unchanged: adjusted EBITDA of c. £800 million and adjusted EBITDA margin of c. 30%.

 

The financial information contained herein is audited.

All metrics and commentary in this announcement exclude adjusting items unless stated otherwise and certain financial data within this announcement have been rounded.

 

Enquiries

 

Investors and Analysts

James Arnold                        Head of Investor Relations                                                +44 (0) 7385 222347

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Ella South                              Investor Relations Analyst                                               +44 (0) 7776 545420

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Media

Kevin Watters                      Director of Communications                                             +44 (0) 7764 386683

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Paul Garbett                         Head of Corporate & Brand Communications                +44 (0) 7501 380799

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FGS Global

James Leviton and Jenny Bahr                                                                                     +44 (0) 20 7251 3801

 

Results Presentation

                                                                                                               

·      There will be a video presentation and Q&A for today at 08.00am GMT: https://app.webinar.net/z8vxnP8nW2A

·      The presentation and Q&A can be accessed live via the corporate website: https://www.astonmartin.com/corporate/investors/results-and-presentations

·      A replay facility will be available on the website later in the day

 

No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this release. This release contains certain forward-looking statements, which are based on current assumptions and estimates by the management of Aston Martin. Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements.

 

These risks may include, for example, changes in the global economic situation, and changes affecting individual markets and exchange rates.

 

Aston Martin provides no guarantee that future development and future results achieved will correspond to the forward-looking statements included here and accepts no liability if they should fail to do so. Aston Martin undertakes no obligation to update these forward-looking statements and will not publicly release any revisions that may be made to these forward-looking statements, which may result from events or circumstances arising after the date of this release.

 

This release is for informational purposes only and does not constitute or form part of any invitation or inducement to engage in investment activity, nor does it constitute an offer or invitation to buy any securities, in any jurisdiction including the United States, or a recommendation in respect of buying, holding or selling any securities.

 

2024 FINANCIAL REVIEW

Wholesale volume summary

Number of vehicles	FY 2024	FY 2023	% change	Q4 2024	Q4 2023	% change
Total wholesale	6,030	6,620	(9%)	2,391	2,222	8%
Core (excluding Specials)	5,812	6,469	(10%)	2,331	2,139	9%
By region:
UK	1,086	1,141	(5%)	422	367	15%
Americas	1,928	2,037	(5%)	816	620	32%
EMEA ex. UK	1,796	1,994	(10%)	695	727	(4%)
APAC	1,220	1,448	(16%)	458	508	(10%)
By model:
Sport/GT	3,925	3,530	11%	1,509	1,440	5%
SUV	1,887	2,939	(36%)	822	699	18%
Specials	218	151	44%	60	83	(28%)

Note: Sport/GT includes Vantage, DB11, DB12, DBS and Vanquish

 

Aston Martin's performance in FY 2024 reflects the Company's transition to an all-new model portfolio which positions the company well for future success. Product transformation continued throughout the year as prior models were ramped down in preparation for the launch of the new Vantage, upgraded DBX707 and V12 Vanquish. As guided, the year was one of two halves, with H2 2024 wholesale volumes of 4,032 benefiting from the ramp up of the new models, with wholesale volumes up 10% compared to the prior year period (H2 2023: 3,666), and increasing 102% sequentially compared with H1 2024 (1,998).

FY 2024 wholesale volumes overall were down 9% at 6,030 (FY 2023: 6,620):

·     Sport/GT wholesales of 3,925 increased 11% (FY 2023: 3,530), with DB12 wholesales throughout the year supported by new Vantage and Vanquish wholesales in H2 2024.

·   SUV wholesales of 1,887 decreased by 36% (FY 2023: 2,939), reflecting, as reported, a strategic transitional ramp down in prior model volumes in H1 2024 ahead of the ramp up of upgraded DBX707 wholesales in H2 2024. This resulted in H2 2024 volumes being broadly in line with the prior year period (H2 2024: 1,380; H2 2023: 1,392).

·     Specials wholesales of 218 (FY 2023: 151), reflect the Valkyrie and Valour programmes in addition to the initial customer deliveries of Valiant.

In addition to the new model launches, in September 2024 the Company announced that industry-wide supply chain disruptions and continued macroeconomic weakness in China were impacting performance. These factors resulted in a circa 1,000-unit reduction in wholesale volume guidance for 2024, mostly impacting Q4 2024. Despite the reduction, Q4 2024 wholesale volumes of 2,391 increased 8% compared to the prior year period (Q4 2023: 2,222).

Aston Martin's volumes across geographies remained well balanced. In line with the overall performance, wholesale volumes across all regions were down compared to FY 2023 due to the product portfolio transition. The Americas and EMEA, excluding UK, were the largest regions in FY 2024, collectively representing 62% of total wholesales. While China remains a market with significant long-term growth opportunities, the trend there continued with volumes decreasing by 49% compared with FY 2023, driven by a combination of market dynamics and the timing of new model deliveries commencing only towards the end of the year. FY 2024 wholesale volumes in APAC, excluding China, were up 2%. In Q4 2024, while UK and Americas volumes increased compared with Q4 2023, APAC and EMEA, excluding UK, both decreased due to the market dynamics and timing of new model arrivals into market, respectively.

 

Revenue and ASP summary

£m	FY 2024	FY 2023	% change	Q4 2024	Q4 2023	% change
Sale of vehicles	1,477.9	1,531.9	(4%)	564.5	566.6	(0%)
Total ASP (£k)	245	231	6%	236	255	(7%)
Core ASP (£k)	177	188	(6%)	175	196	(11%)
Sale of parts	84.4	80.0	6%	19.8	20.7	(4%)
Servicing of vehicles	11.0	9.8	12%	2.2	2.9	(24%)
Brand and motorsport	10.6	11.1	(5%)	2.8	3.1	(10%)
Total revenue	1,583.9	1,632.8	(3%)	589.3	593.3	(1%)

FY 2024 revenue decreased by 3% to £1,584m (FY 2023: £1,633m). This reflected the volume impact of the planned portfolio transition, which resulted in H2 2024 revenue of £981m increasing 3% compared with the prior year period (H2 2023: £955m). In addition, FY 2024 revenue was impacted by foreign exchange headwinds as sterling strengthened against major currencies compared to the prior year:

·    FY 2024 total ASP: Increased 6% reflecting the richer mix resulting from deliveries of Specials including the Aston Martin Valkyrie Spider, Valour and Valiant limited edition models.

-  Total ASP in Q4 2024 (£236k) increased sequentially by 6% compared with total ASP in Q3 2024 (£222k), benefiting from higher deliveries of Specials. Compared with Q4 2023, total ASP in Q4 2024 decreased by 7%, reflecting lower volume of Specials and the impact of foreign exchange headwinds.

·      FY 2024 Core ASP: Decreased 6% due to material FX headwinds, as outlined above, partially offset by positive contribution from new model range and options growth, in addition to the prior year period mix benefitting from the contribution of V12 Vantage and DBS 770 Ultimate:

-  Continued strong demand for product personalisation drove an increase in contribution to core revenue from options, up 310 basis points to 18% compared to the prior year (FY 2023: 15%), reflecting the launch period of new models.

-  Core ASP in Q4 2024 (£175k) decreased by 11% compared with Q4 2023 (£196k), due to the shift in mix of models with significantly higher Vantage volumes compared to the prior year period due to the timing of new model launches

Income statement summary

£m		FY 2024	FY 2023	Q4 2024		Q4 2023
Revenue		1,583.9	1,632.8	589.3		593.3
Cost of sales		(1,000.0)	(993.6)	(382.3)		(324.9)
Gross profit		583.9	639.2	207.0		268.4
Gross margin %		36.9%	39.1%	35.1%		45.2%
Adjusted operating expenses		(666.7)	(718.9)	(168.3)		(213.0)
of which depreciation & amortisation		353.8	385.6	119.4		119.4
Adjusted EBIT2		(82.8)	(79.7)	38.7		55.4
Adjusting operating items		(16.7)	(31.5)	(5.4)		(21.3)
Operating (loss)/profit		(99.5)	(111.2)	33.3		34.1
Net financing expense		(189.6)	(128.6)	(93.5)		(14.1)
of which adjusting financing (expense)/ income		(16.9)	(36.5)	2.3		(8.2)
(Loss)/profit before tax		(289.1)	(239.8)	(60.2)		20.0
Tax (charge)/credit		(34.4)	13.0	(43.6)		13.2
(Loss)/profit for the period		(323.5)	(226.8)	(103.8)		33.2
Adjusted EBITDA2		271.0	305.9	158.1		174.8
Adjusted EBITDA margin		17.1%	18.7%	26.8%		29.5%
Adjusted loss before tax		(255.5)	(171.8)	(57.1)		49.5
EPS (pence)		(38.9)	(30.5)
Adjusted EPS (pence)	(34.8)		(21.4)

 

² Alternative Performance Measures are defined in Appendix

 

The lower revenue and volumes in FY 2024, were reflected in gross profit of £584m, decreasing 9% (FY 2023: £639m). In line with revised guidance, this resulted in a gross margin of 37% (FY 2023: 39%). Benefits from the ongoing portfolio transformation to next generation models and strong volumes of high margin Specials were offset by higher manufacturing, logistics and other costs largely associated with the expected volume ramp up in production in H2 2024. These planned cost increases were absorbed by fewer core vehicles in Q4 2024 than originally planned earlier in the year, following the volume reduction announced in September 2024. In addition, fewer Specials and the mix, including the slight shortfall in Valiant deliveries, and the phasing of core product mix impacted Q4 2024. This resulted in Q4 2024 gross profit decreasing 23%, with a gross margin of 35% compared with 45% in Q4 2023. The Company continues to target over 40% gross margin from current and future models, aligned with the Company's ultra-luxury strategy.

FY 2024 adjusted EBITDA was in line with revised guidance at £271m (FY 2023: £306m) decreasing by 11%, with adjusted EBITDA margin declining to 17% (FY 2023: 19%). This was primarily due to the lower core volumes during the portfolio transition period, partially offset by adjusted operating expenses (excluding D&A) decreasing by 6% and a higher number of Specials.

Adjusted EBIT was broadly flat in FY 2024 at £(83)m (FY 2023: £(80)m) with depreciation and amortisation decreasing to £354m (FY 2023: £386m).

FY 2024 adjusted net financing costs of £173m (FY 2023: £92m), increased primarily due to the year-on-year impact of US dollar debt revaluations. The £17m net adjusting finance charge (FY 2023: £37m) was due to redemption premiums associated with the refinancing of the senior secured notes, partially offset by gains on financial instruments recognised through the income statement.

The adjusted loss before tax increased to £256m (FY 2023: £172m loss), reflecting the increased adjusted net finance costs.

On a reported basis, FY 2024 operating loss of £100m decreased by 11`% (FY 2023: £111m loss) primarily due to reduced adjusting legal expenses, which was offset by the increase in net finance expenses resulting in an increased loss before tax of £290m (FY 2023: £240m loss).

The weighted average share count at 31 December 2024 was 832 million (31 December 2023: 748m), following the placing of new ordinary shares in November. 20 million shares in relation to the warrants remain outstanding and are exercisable until 2027, giving an adjusted EPS of (34.8)p (FY 2023: (21.4)p).

 

 

Cash flow and net debt summary

£m	FY 2024	FY 2023	Q4 2024	Q4 2023
Cash generated from operating activities	123.9	145.9	175.3	114.5
Cash used in investing activities (excl. interest)	(400.6)	(396.9)	(100.6)	(121.9)
Net cash interest paid	(114.9)	(109.0)	(72.5)	(55.8)
Free cash (outflow)/inflow	(391.6)	(360.0)	2.2	(63.2)
Cash inflow/(outflow) from financing activities and other investing activities (excl. interest)2	356.5	182.2	193.1	(80.6)
(Decrease)/increase in net cash	(35.1)	(177.8)	195.3	(143.8)
Effect of exchange rates on cash and cash equivalents	2.3	(13.1)	7.4	(7.6)
Cash balance	359.6	392.4	359.6	392.4
Available facilities	154.1	0.4	154.1	0.4
Total cash and available facilities ("liquidity")	513.7	392.8	513.7	392.8

² Alternative Performance Measures are defined in Appendix

Net cash inflow from operating activities was £124m in FY 2024 (FY 2023: £146m inflow). The year-on-year movement was primarily driven by a £35m decrease in adjusted EBITDA, as explained above, and a working capital outflow of £118m (FY 2023: £86m outflow). The largest drivers of working capital outflow were:

·      £178m decrease (FY 2023: £66m decrease) in deposits held, due to the increased volume of Specials delivered compared to the prior year period, a trend that is expected to normalise in FY 2025 following the completion of the recent Specials programmes and ahead of Valhalla deliveries commencing in H2 2025;

·    £13m increase in inventories (FY 2023: £12m decrease) as preparations for a significant Q4 2024 production ramp up were impacted by the change to volume guidance and a £34m decrease in payables (FY 2023: £51m increase);

·     which were partially offset by a decrease in receivables of £107m (FY 2023: £82m increase) following strong collections in Q4 2024

Capital expenditure of £401m was broadly in line with the prior year period (FY 2023: £397m). Investment is focused on the future product pipeline, including the next generation of models and development of the Company's electrification programme. Accelerated spend related to preparation for the launch of Valhalla in 2025, resulted in FY 2024 capital expenditure ahead of guidance.

Free cash outflow of £392m in FY 2024 (FY 2023: £360m outflow), was primarily due to the decrease in cash inflow from operating activities, as detailed above, and marginal increases to capital expenditure and net cash interest paid. As guided, free cash flow improved sequentially throughout the year, with Q4 2024 free cash inflow of £2m. This was supported in Q4 2024 by strong volumes and a positive working capital inflow of £24m, despite a £55m deposit unwind related to the high volume of Specials delivered, partially offset by net cash interest paid of £73m.

£m		31 Dec-24	31 Dec-23
Loan notes		(1,378.9)	(980.3)
Inventory financing		(38.4)	(39.7)
Bank loans and overdrafts		(8.4)	(89.4)
Lease liabilities (IFRS 16)		(96.6)	(97.3)
Gross debt		(1,522.3)	(1,206.7)
Cash balance		359.6	392.4
Net debt		(1,162.7)	(814.3)

Compared with 31 December 2023, gross debt increased to £1,522m (31 December 2023: £1,207m) as a result of the refinancing and private debt placing in FY 2024 and the translation impact related to year-on-year movements in exchange rates on dollar-denominated debt. In March 2024, following upgrades from leading credit agencies, the Group priced on improved terms senior secured notes of $960m at 10.000% and £400m at 10.375% due in 2029. Concurrently, existing lenders entered into a new super senior revolving credit facility agreement, increasing their binding commitments by circa £70m to £170m. In addition, circa £135m and circa £100m of private debt placings were completed in August and November 2024, respectively. Together with the circa £111m equity placing in November 2024, these financing activities provide the Company with the liquidity to continue delivering on its growth strategy.

In line with guidance, total cash and available facilities was £514m on 31 December 2024 increased compared to 31 December 2023 (£393m), reflecting the financing activities in FY 2024, as mentioned above.

Net debt of £1,163m at 31 December 2024 increased from £814m as at 31 December 2023 primarily due to the higher gross debt and a marginal decrease in the cash balance and the translation impact related to year-on-year movements in exchange rates. The adjusted net leverage ratio of 4.3x (31 December 2023: 2.7x; 31 December 2022: 4.0x) reflects the EBITDA performance during the portfolio transition period in FY 2024 and impact of the Q4 2024 volume guidance revision, in addition to the increase in net debt. Through disciplined strategic delivery and profitable growth in the future, the Group expects to deleverage in line with its medium-term target.

 

APPENDICES

Dealerships

	31 Dec-24	31 Dec-23
UK	20	20
Americas	45	44
EMEA ex. UK	55	54
APAC	43	45
Total	163	163
Number of countries	53	53

 

Alternative Performance Measure

£m	FY 2024	FY 2023
Loss before tax	(289.1)	(239.8)
Adjusting operating expense	16.7	31.5
Adjusting finance expense	35.7	36.5
Adjusting finance (income)	(18.8)	0.0
Adjusted EBT	(255.5)	(171.8)
Adjusted finance (income)	(7.1)	(74.3)
Adjusted finance expense	179.8	166.4
Adjusted EBIT	(82.8)	(79.7)
Reported depreciation	84.4	102.2
Reported amortisation	269.3	283.4
Loss/(profit) on disposal of fixed assets	0.1	0.0
Adjusted EBITDA	271.0	305.9

In the reporting of financial information, the Directors have adopted various Alternative Performance Measures (APMs). APMs should be considered in addition to IFRS measurements. The Directors believe that these APMs assist in providing useful information on the underlying performance of the Group, enhance the comparability of information between reporting periods, and are used internally by the Directors to measure the Group's performance.

-   Adjusted EBT is the loss before tax and adjusting items as shown on the Consolidated Income Statement

-      Adjusted EBIT is loss from operating activities before adjusting items

-    Adjusted EBITDA removes depreciation, loss/(profit) on sale of fixed assets and amortisation from adjusted EBIT

-      Adjusted operating margin is adjusted EBIT divided by revenue

-      Adjusted EBITDA margin is adjusted EBITDA (as defined above) divided by revenue

-     Adjusted Earnings Per Share is loss after income tax before adjusting items, divided by the weighted average number of ordinary shares in issue during the reporting period

-    Net Debt is current and non-current borrowings in addition to inventory financing arrangements, lease liabilities, less cash and cash equivalents and cash held not available for short-term use

-   Adjusted net leverage is represented by the ratio of Net Debt to the last twelve months ('LTM') Adjusted EBITDA

-      Free cash flow is represented by cash inflow/(outflow) from operating activities less the cash used in investing activities (excluding interest received and cash generated from disposals of investments) plus interest paid in the year less interest received.

 

 

About Aston Martin Lagonda:

Aston Martin's vision is to be the world's most desirable, ultra-luxury British brand, creating the most exquisitely addictive performance cars.

Founded in 1913 by Lionel Martin and Robert Bamford, Aston Martin is acknowledged as an iconic global brand synonymous with style, luxury, performance, and exclusivity. Aston Martin fuses the latest technology, time honoured craftsmanship and beautiful styling to produce a range of critically acclaimed luxury models including Vantage, DB12, Vanquish, DBX707 and its first hypercar, the Aston Martin Valkyrie. Aligned with its Racing. Green. sustainability strategy, Aston Martin is developing alternatives to the Internal Combustion Engine with a blended drivetrain approach between 2025 and 2030, including PHEV and BEV, with a clear plan to have a line-up of electrified sports cars and SUVs.

Based in Gaydon, England, Aston Martin Lagonda designs, creates, and exports cars which are sold in more than 50 countries around the world. Its sports cars are manufactured in Gaydon with its luxury DBX707 SUV range proudly manufactured in St Athan, Wales. The company is on track to deliver net-zero manufacturing facilities by 2030.

Lagonda was founded in 1899 and came together with Aston Martin in 1947 when both were purchased by the late Sir David Brown, and the company is now listed on the London Stock Exchange as Aston Martin Lagonda Global Holdings plc.

 

 

Consolidated Statement of Comprehensive Income
for the year ended 31 December 2024

		2024			2023
	Notes	Adjusted £m	Adjusting items* £m	Total £m	Adjusted £m	Adjusting items* £m	Total £m
Revenue	3	1,583.9	-	1,583.9	1,632.8	-	1,632.8
Cost of sales		(1,000.0)	-	(1,000.0)	(993.6)	-	(993.6)
Gross profit		583.9	-	583.9	639.2	-	639.2
Selling and distribution expenses		(135.4)	-	(135.4)	(143.8)	-	(143.8)
Administrative and other operating expenses		(531.3)	(16.7)	(548.0)	(575.1)	(31.5)	(606.6)
Operating loss	4	(82.8)	(16.7)	(99.5)	(79.7)	(31.5)	(111.2)
Finance income	6	7.1	18.8	25.9	74.3	-	74.3
Finance expense	7	(179.8)	(35.7)	(215.5)	(166.4)	(36.5)	(202.9)
Loss before tax		(255.5)	(33.6)	(289.1)	(171.8)	(68.0)	(239.8)
Income tax (charge)/credit	8	(34.4)	-	(34.4)	13.0	-	13.0
Loss for the year		(289.9)	(33.6)	(323.5)	(158.8)	(68.0)	(226.8)
Loss attributable to:
Owners of the Group				(323.5)			(228.1)
Non-controlling interests				-			1.3
				(323.5)			(226.8)
Other comprehensive income
Items that will never be reclassified to the Income Statement
Remeasurement of Defined Benefit liability				10.2			(0.1)
Change in fair value of investments in equity instruments				51.4			-
Taxation on items that will never be reclassified to the Income Statement	8			(11.9)			-
Items that are or may be reclassified to the Income Statement
Foreign currency translation differences				0.8			(4.0)
Fair value adjustment - cash flow hedges				-			0.7
Amounts reclassified to the Income Statement - cash flow hedges				(3.6)			(5.4)
Taxation on items that may be reclassified to the Income Statement	8			0.9			1.2
Other comprehensive income/(loss) for the year, net of income tax				47.8			(7.6)
Total comprehensive loss for the year				(275.7)			(234.4)
Total comprehensive (loss)/income for the year attributable to:
Owners of the Group				(275.7)			(235.7)
Non-controlling interests				-			1.3
				(275.7)			(234.4)
Earnings per ordinary share
Basic loss per share	9			(38.9p)			(30.5p)
Diluted loss per share	9			(38.9p)			(30.5p)

All operations of the Group are continuing.

* Adjusting items are defined in note 2 with further detail shown in note 5.