Aston Martin Warns of Negative Cash Flow in 2025 as Trade Tariffs and Economic Headwinds Bite
Aston Martin, the luxury British carmaker, is facing a challenging year. The company has warned of potential negative free cash flow in the second half of 2025, with US trade tariffs and global economic headwinds impacting demand in key markets like North America and the Asia Pacific.
The company's ambitious plans for its high-performance models have been scaled back. Aston Martin now expects to deliver around 150 Valhallas, significantly fewer than initially forecasted. Deliveries of the Valhalla, along with the Vantage S and DBX S models, are scheduled for the final quarter of 2025.
The company's financial outlook is bleak. Aston Martin shares have plummeted by nearly a third in the last year and over 80% in the past five years. The company is bracing for heavy losses this year, with full-year earnings expected to be at the lower end of market consensus, and underlying losses exceeding £110 million. Total wholesale volumes for all vehicles in 2025 are predicted to decline by a mid-high single-digit percentage compared to last year.
In response to these challenges, Aston Martin has called for more support from the UK government. The company has asked for active support in regulatory and policy areas, such as tax incentives, investment in charging infrastructure, and access to skilled workers. Aston Martin has also cut capital expenditure forecasts and is preparing to slash costs.
Aston Martin's future hangs in the balance as it grapples with global economic challenges and reduced demand. The company's plea for government support underscores the need for policy intervention to protect small volume manufacturers, which contribute significantly to the British automotive industry and local economies. As the company prepares for the launch of its new models later this year, all eyes are on Aston Martin's ability to navigate these turbulent waters.
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