(Reuters) -Luxury carmaker Aston Martin on Monday warned of a deepening annual loss due to weaker than expected demand in North America and Asia Pacific and the impact of U.S. tariffs, sending shares 11% lower.
The company said that its annual loss will now exceed 110 million pounds ($147.81 million), marking a sharp deterioration from July, when Aston Martin first warned that tariffs had been “extremely disruptive” and forecast adjusted operating profit would roughly break even this year compared with earlier expectations of positive earnings.
The British carmaker said it was operating in a challenging environment, citing the U.S. tariff quota system, changes to ultra-luxury car taxes in China, and the growing risk of supply pressures following a cyber incident at larger UK peer Jaguar Land Rover.
Shares, which have lost nearly 30% of their value in the last twelve months, were down 6.4% at 76.1 pence as at 0724 GMT.
Aston Martin now expects 2025 volumes to fall by a mid-to-high single-digit percentage, and is cutting its capital spending plans, adding it no longer expects positive free cash flow generation in the second half of this year.
The quota-based U.S. tariff system Britain agreed with Washington has complicated financial planning, Aston Martin said, adding that it is seeking UK government support to protect small-volume manufacturers.
Aston Martin now expects full-year adjusted operating loss to be bigger than the lower end of market consensus of a 110 million pound ($147.83 million) loss, according to estimates compiled by the company.
Aston Martin delivered around 1,430 wholesale units in the third quarter, below its guidance of being broadly similar to the prior year’s 1,641 units.
The company also said deliveries of its Valhalla hypercar would start in the fourth quarter with around 150 units, behind prior expectations due to a timing delay linked to vehicle engineering and seeking regulatory approvals, though it expects a smooth delivery profile in 2026.
($1 = 0.7442 pounds)
(Reporting by Raechel Thankam Job and Yadarisa Shabong in Bengaluru; Editing by Subhranshu Sahu and Louise Heavens)
