Aston Martin Lagonda Global (LON:AML) Releases Quarterly Earnings Results

Key Points

• First-half performance improved: Revenue rose 38% to £629 million, wholesale volumes increased 21% to 2,331 units, and gross margin expanded to 34%. Management reaffirmed its full-year 2026 guidance.
• Valhalla is strengthening the product mix: Aston Martin delivered more than 220 plug-in hybrid supercars in the first half and expects around 500 deliveries for the full year, with the order book extending into late Q4.
• Financial pressure remains significant: Free cash outflow narrowed, but net debt reached £1.5 billion, adjusted leverage stood at 8.9x, and H1 adjusted EBIT was a £109 million loss. Analysts maintained a consensus “Hold” rating, while shares rose 2.9% in mid-day trading.

Aston Martin Lagonda Global (LON:AML - Get Free Report) released its earnings results on Wednesday. The company reported GBX (15.20) earnings per share (EPS) for the quarter, Digital Look Earnings reports. Aston Martin Lagonda Global had a negative net margin of 38.50% and a negative return on equity of 121.47%.

Here are the key takeaways from Aston Martin Lagonda Global's conference call:

• H1 financial performance improved: Revenue rose 38% to £629 million, wholesale volumes increased 21% to 2,331 units, and gross margin expanded to 34% from 28%. Management reaffirmed its full-year 2026 guidance, including gross margin reaching the high 30% range.
• Valhalla deliveries are supporting the product mix: More than 220 units of the £1.1 million-plus plug-in hybrid supercar were delivered in H1, with around 500 expected for the full year. Management said the order book extends into late Q4 and that upcoming launches and events could support further demand.
• Cash flow and operational metrics are trending better: Free cash outflow narrowed to £198 million from £321 million a year earlier, while quality and customer-satisfaction measures improved. Excluding £73 million of Q2 net cash interest payments, quarterly free cash flow was close to breakeven.
• Dealer support and aged inventory remain a near-term issue: Core ASP declined 5% year over year because of elevated support to reduce aged stock, and the inventory reduction was somewhat slower than planned. Management expects support levels, quality costs, and marketing spending to normalize in H2, helping margins recover.
• Leverage and financing costs remain substantial: Net debt increased to £1.5 billion, with adjusted net leverage at 8.9x, while H1 adjusted EBIT was still a £109 million loss. The new £550 million financing lifts pro forma liquidity to roughly £340 million but raises full-year net cash interest guidance to approximately £160 million.

Aston Martin Lagonda Global Trading Up 2.9%

Shares of LON:AML traded up GBX 1.04 during mid-day trading on Wednesday, reaching GBX 37.48. The company had a trading volume of 1,379,740 shares, compared to its average volume of 9,221,510. Aston Martin Lagonda Global has a one year low of GBX 34.84 and a one year high of GBX 86.80. The company's 50-day moving average price is GBX 40.17 and its 200-day moving average price is GBX 46.25. The firm has a market cap of £379.56 million, a price-to-earnings ratio of -0.78, a PEG ratio of 0.03 and a beta of 1.98.

Wall Street Analysts Forecast Growth

AML has been the topic of a number of recent analyst reports. Jefferies Financial Group reiterated a "hold" rating and set a GBX 50 price target on shares of Aston Martin Lagonda Global in a report on Wednesday, May 20th. Citigroup upped their price objective on Aston Martin Lagonda Global from GBX 45 to GBX 55 and gave the company a "neutral" rating in a research note on Friday, May 15th. Four investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, Aston Martin Lagonda Global has a consensus rating of "Hold" and a consensus target price of GBX 62.

Aston Martin Lagonda Global Company Profile

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 the Vantage, DB12, Vanquish, DBX and its first mid-engined plug-in hybrid, Valhalla.

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