Aston Martin Shares Drop 10% on Fresh Profit Warning
The luxury carmaker has lowered its full-year forecast, citing uncertainty from US tariffs and softening global demand.
Shares in Aston Martin (AMGDF) are under pressure after its UK-listed parent company, Aston Martin Lagonda (AML), saw its stock plunge by 10% following a fresh profit warning. The iconic British luxury car manufacturer has been forced to slash its full-year forecast, citing significant uncertainty related to US tariffs and a slowdown in demand.
This marks the company's second profit warning this year, signaling deeper troubles for the automaker. Aston Martin announced that it now anticipates a larger full-year loss than previously expected and no longer expects to generate positive free cash flow in the second half of the year. The company pointed to a challenging macroeconomic environment and as primary drivers for the revision.
The core of the issue stems from a new US tariff quota system, which Aston Martin has criticized for adding complexity and hindering its ability to forecast accurately. regarding the economic impact of these trade policies, which are affecting its ability to manage sales volumes in the critical North American market.
In response to the tougher trading conditions, the company has launched an immediate and comprehensive review of its cost base and capital expenditure plans. Beyond the tariff headwinds, Aston Martin is also navigating other challenges, including changes to ultra-luxury car taxes in China and potential supply chain disruptions. reflects investor concern over the company's ability to navigate these combined pressures.
Despite the setbacks, the company is still banking on future models, with deliveries of its new Valhalla supercar expected to begin in the fourth quarter of 2025. However, even this timeline is fraught with risk, including potential delays related to US government homologation processes. The profit warning casts a shadow over the company's near-term prospects as it attempts to steer through a difficult period of geopolitical trade tensions and shifting global demand for luxury vehicles.