Aston Martin Lagonda Global (LON:AML) Announces Earnings Results

Aston Martin Lagonda Global (LON:AML) released its quarterly earnings results on Wednesday. The company reported GBX (15.20) earnings per share for the quarter, Digital Look Earnings reports. Aston Martin Lagonda Global had a negative return on equity of 166.57% and a negative net margin of 36.66%.

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 Stock Up 0.8%

AML stock opened at GBX 36.24 on Friday. The firm has a market cap of £367.00 million, a price-to-earnings ratio of -0.76, a PEG ratio of 0.03 and a beta of 1.98. Aston Martin Lagonda Global has a 1-year low of GBX 34.84 and a 1-year high of GBX 86.80. The firm has a fifty day moving average price of GBX 39.82 and a two-hundred day moving average price of GBX 45.85. The company has a debt-to-equity ratio of 893.66, a current ratio of 0.93 and a quick ratio of 0.71.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on AML. Jefferies Financial Group reaffirmed a “hold” rating and set a GBX 41 price target on shares of Aston Martin Lagonda Global in a report on Thursday. Deutsche Bank Aktiengesellschaft reduced their price target on Aston Martin Lagonda Global from GBX 45 to GBX 40 and set a “hold” rating for the company in a report on Thursday. Finally, Citigroup raised 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 research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of GBX 48.50.

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.