Aston Martin Lagonda Global LON: AML said first-half 2026 financial performance improved as deliveries of its Valhalla mid-engine plug-in hybrid supercar and higher core-model volumes lifted revenue, gross profit and cash flow.
Chief Executive Officer Adrian Hallmark said the company remained on track to meet its full-year guidance, citing an improved product mix, transformation-program benefits and tighter operating discipline. The company also announced a new £550 million debt financing last week, which management said provides added liquidity and flexibility for current and future product plans.
“Our half-year one, 2026 results today demonstrate that we are on track to deliver material improvements,” Hallmark said.
Revenue rises as Valhalla deliveries begin
Total wholesale volume rose 21% year over year to 2,331 vehicles in the first half, according to Chief Financial Officer Doug Lafferty. Core wholesale volumes increased 11%, while the company delivered more than 220 Valhalla vehicles during the period.
Revenue increased 38% to £629 million, primarily reflecting higher wholesales and a richer specials mix from Valhalla. Total average selling price rose 17% to £241,000. Valhalla’s average selling price was more than £1.1 million, or about £1.15 million, Hallmark said during the question-and-answer session.
Retail volume outpaced wholesale volume by more than 30% as Aston Martin worked to bring dealer inventory into closer balance with demand. Hallmark said the company had made substantial progress in reducing stock but that the sell-down was slower than anticipated, with inventory roughly 70 to 80 vehicles above its original midyear target. He said the remaining issue was primarily DBX inventory in the U.S.
For the full year, Aston Martin continues to expect wholesale volume to be similar to 2025 levels, including around 500 Valhalla deliveries.
- Sport and GT models represented 67% of first-half wholesales.
- SUV volume rose 7% year over year and represented 23% of the total mix.
- Specials represented 10% of wholesales, compared with 1% a year earlier, driven by Valhalla deliveries.
Hallmark said orders for Valhalla currently extend into the back end of the fourth quarter. He also pointed to customer drive events, the upcoming Monterey Car Week and the scheduled autumn opening of a London flagship store in Berkeley Square as initiatives intended to support awareness and demand.
Margins improve, though company remains loss-making
Gross profit increased 68% to £213 million, and gross margin rose to 34% from 28% a year earlier. Lafferty attributed the improvement to Valhalla, increased core volume and transformation-program benefits.
Adjusted EBIT improved 10% year over year but remained negative at £109 million. The increased gross profit was partly offset by a 45% increase in depreciation and amortization to £172 million, associated with higher Valhalla deliveries. Adjusted net operating expenses excluding depreciation and amortization increased 16%, partly because the prior-year period included an £11 million benefit tied to the revaluation uplift of secondary warrants associated with the sale of the AMR GP investment.
Management maintained its full-year expectation for gross margin to improve into the high 30% range. Lafferty said the second half should benefit from a normalization of dealer support, a stronger mix of S derivatives, additional Valhalla deliveries and lower quality- and warranty-related costs.
Core average selling price declined 5% in the first half because of targeted dealer support aimed at reducing aged stock. However, Lafferty said the company still expects core average selling prices to rise toward 5% for the full year. Excluding variable marketing, he said core average selling price in the first half was broadly in line with the prior year, with some potential foreign-exchange impact.
Hallmark said Aston Martin expects lower variable marketing spending as dealer inventories normalize, while recent quality improvements should reduce future costs and provisions. He added that option uptake was strong on Valhalla and newer S models, which should enrich the mix of vehicles produced later in the year.
Cash outflow narrows and financing boosts liquidity
Free cash outflow improved to £198 million from £321 million in the first half of 2025. The improvement reflected higher operating cash generation and £120 million of capital expenditure, down £50 million from a year earlier, partly offset by £75 million of increased net cash interest paid.
After adjusting for £73 million of net cash interest paid in the second quarter, free cash flow approached breakeven for the quarter, Lafferty said. The company expects full-year free cash flow to be “not a million miles away” from its first-half position, with a material year-over-year improvement supported by improved EBITDA, lower capital expenditure, product mix and a more balanced production cadence.
First-half working capital was a £45 million outflow. Lafferty said the company expects working capital to be broadly flat in the remainder of the year, potentially with a small outflow in the third quarter as inventory builds ahead of the fourth quarter.
Aston Martin ended June with £145 million of total liquidity and £1.5 billion of net debt, resulting in an adjusted net leverage ratio of 8.9 times. The new £550 million financing includes a £450 million senior secured term loan and a £100 million delayed-draw term loan. The transaction lifted pro forma liquidity as of June 30 to about £340 million, excluding the delayed-draw facility.
The company raised its full-year net cash interest guidance to about £160 million from about £150 million to reflect the financing’s impact. Lafferty said the £100 million delayed-draw loan is committed subject to certain undisclosed conditions, while a separate junior £100 million facility is available for potential future use.
Outlook unchanged amid external risks
Management reiterated its operational guidance and short- to midterm outlook, while noting continued macroeconomic and geopolitical uncertainty. Lafferty cited the conflict in the Middle East and U.S. tariffs as factors the company is monitoring for possible effects on consumer confidence, demand and supply chains.
Hallmark said the company had managed the direct effects of those developments to date and was focused on continuing the operational improvements in the second half of 2026.
About Aston Martin Lagonda Global (LON:AML)
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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