Home Business NewsBusinessAutomotive NewsAston Martin hit by falling sales and US tariffs

Aston Martin hit by falling sales and US tariffs

by Thea Coates Finance Reporter
20th Feb 26 10:28 am

Aston Martin Lagonda has warned profits will miss expectations after a bruising year of falling sales and pressure from US tariffs.

The iconic British car maker told investors its gross profit margins and adjusted earnings will come in “slightly below” the lower end of forecasts.

That means earnings are now expected to fall short of £184 million for 2025.

Bosses admitted they had faced a “highly challenging trading environment”.

The US — Aston Martin’s biggest market — imposed a 10% tariff on imports last year, down from an originally proposed 27.5%, but still a blow for the prestige brand.

At the same time, deliveries of its higher-margin “Special” models slowed.

Total wholesale volumes fell to 5,448 cars in 2025 — down from 6,030 the previous year.

In a bid to strengthen its finances, the company also announced it has sold the naming rights to its Formula One team to a related party.

The move is designed to shore up the balance sheet as it battles through the downturn.

The F1 outfit — currently branded the Aston Martin team — is owned by a consortium led by Canadian billionaire Lawrence Stroll, who has been spearheading efforts to revive the brand.

London-listed Aston Martin has been pushing ahead with a major transformation plan under Lawrence Stroll’s leadership, including targeted product innovations and market expansion strategies to address current market pressures.

The latest profit warning underscores the significant challenges the luxury manufacturer continues to face, reminding investors of the hurdles ahead and fostering a sense of cautious optimism.

Having already taken steps to conserve cash, including cutting back investment plans last October, Aston Martin aims to reassure investors of its proactive approach to navigating the downturn.

Investors will be watching closely as Aston Martin’s strategic initiatives aim to restore profitability and growth momentum in 2026, providing clearer guidance on the company’s future financial outlook.

Leave a Comment

You may also like

CLOSE AD

Sign up to our daily news alerts

[ms-form id=1]