Aston Martin Lagonda Global Holdings plc (LSE:AML) reported a 36% increase in third-quarter revenue to £388.7 million, supported by deliveries of its Valhalla Coupe and a higher average selling price, while maintaining its financial guidance for 2026.
The British luxury car manufacturer recorded third-quarter gross profit of £145.5 million, up 76% from £82.8 million a year earlier. Gross margin increased to 37.4% from 29.0%, reflecting changes in the product mix and benefits from the company’s operational transformation programme.
Adjusted EBITDA rose to £69.9 million from £10.7 million, while the operating loss narrowed to £26.4 million from £56.1 million.
Wholesale volumes were broadly unchanged at 1,431 vehicles, compared with 1,430 in the corresponding period last year. The total included 127 deliveries of the Valhalla Coupe.
For the first nine months of 2026, revenue increased 38% to £1.02 billion, while free cash outflow declined to £225.2 million from £415.0 million.
Aston Martin also reported liquidity of approximately £322 million following the completion of a debt financing arrangement in July, although net debt increased to £1.57 billion.
Third-Quarter Revenue Increases 36%
Aston Martin generated revenue of £388.7 million during the three months ended 30 September 2026, compared with £285.2 million in the corresponding period of 2025.
Vehicle sales contributed £356.3 million, an increase of 39% from £255.5 million.
Revenue from parts rose 2% to £23.0 million, while vehicle servicing revenue increased 41% to £4.8 million.
Brand and motorsport activities generated £4.6 million, up 24% from £3.7 million.
The company attributed the increase in overall revenue primarily to its product mix, including deliveries of higher-priced Special models.
Total wholesale volumes remained largely unchanged, indicating that the revenue increase was driven mainly by the composition and pricing of vehicles delivered rather than an increase in total units.
Nine-Month Revenue Reaches £1.02 Billion
For the nine months ended 30 September 2026, Aston Martin reported revenue of £1,017.3 million, compared with £739.6 million in the prior-year period.
The 38% increase was supported by higher deliveries of Special models, particularly the Valhalla Coupe.
Vehicle sales revenue increased 40% to £919.5 million from £654.7 million.
Parts revenue rose 7% to £72.1 million, while servicing revenue increased 37% to £12.5 million.
Brand and motorsport revenue reached £13.2 million, compared with £8.5 million a year earlier, representing growth of 55%.
The company’s nine-month results also reflected changes to its manufacturing operations and cost structure.
Average Selling Price Rises 25% Year-to-Date
Aston Martin reported a 25% increase in its total average selling price for the first nine months of 2026.
The average price rose to £243,000 per vehicle from £194,000 in the corresponding period last year.
During the third quarter, the total average selling price increased 39% to £247,000 from £178,000.
The company said the increase was primarily attributable to deliveries of the Valhalla Coupe, which contributed to a higher proportion of Special models in the sales mix.
The average selling price for core vehicles, excluding Specials, was £185,000 for the nine-month period, compared with £186,000 a year earlier.
In the third quarter, core average selling price increased 7% to £190,000 from £177,000.
This also represented a 3% increase from the second-quarter average of £184,000.
Aston Martin said targeted dealer support to reduce older inventory continued to affect year-to-date core pricing, although it expects inventory levels to move towards normalised levels during the second half.
Vehicle personalisation contributed approximately 17% of core revenue during the first nine months, broadly unchanged from the previous year.
Wholesale Volumes Remain Stable at 1,431 Vehicles
Aston Martin reported total wholesale deliveries of 1,431 vehicles in the third quarter, compared with 1,430 in the corresponding period last year.
Core wholesale volumes, excluding Specials, declined 9% to 1,304 vehicles from 1,428.
Special model deliveries increased to 127 vehicles from two a year earlier.
The company said the decline in core wholesale volumes reflected its planned production schedule, which became more balanced from the second quarter onwards.
Core wholesale volumes were broadly stable compared with the 1,270 vehicles delivered in the second quarter.
Aston Martin also reported that core retail volumes continued to exceed wholesale volumes by more than 20% during the first nine months.
Management said this reflected its approach to aligning production and dealer supply with customer demand.
The core vehicle order book remained stable.
Nine-Month Wholesale Deliveries Increase 12%
Total wholesale volumes for the first nine months of 2026 reached 3,762 vehicles, an increase of 12% from 3,352 in the corresponding period last year.
Core wholesale deliveries increased 2% to 3,410 vehicles from 3,332.
Special model deliveries reached 352 vehicles, compared with 20 a year earlier.
The increase in Specials was primarily attributable to approximately 350 Valhalla Coupe deliveries during the period.
Sport and GT models accounted for 2,493 wholesale deliveries, up 4% from 2,394.
SUV deliveries declined 2% to 917 vehicles from 938.
Aston Martin maintained its expectation that total wholesale volumes for 2026 will be similar to the 5,448 vehicles delivered in 2025.
The full-year forecast includes approximately 500 Valhalla Coupe deliveries.
UK and Americas Record Higher Wholesale Volumes
Aston Martin reported different regional wholesale trends during the third quarter.
UK deliveries increased 26% to 314 vehicles from 250 a year earlier.
Americas volumes rose 11% to 480 vehicles from 433.
However, deliveries in Europe, the Middle East and Africa, excluding the UK, declined 20% to 373 vehicles.
Asia Pacific wholesale volumes decreased 5% to 264 vehicles.
For the first nine months, all four geographic regions recorded increases.
Americas deliveries rose 22% to 1,317 vehicles, while UK volumes increased 17% to 736.
Europe, the Middle East and Africa, excluding the UK, recorded growth of 6% to 1,064 vehicles.
Asia Pacific deliveries increased 1% to 645 vehicles.
The Americas remained Aston Martin’s largest wholesale market by volume during the nine-month period.
Valhalla Coupe Deliveries Contribute to Revenue Growth
Aston Martin delivered a further 127 Valhalla Coupes during the third quarter, bringing the year-to-date total to approximately 350 vehicles.
The model contributed to the increase in total average selling prices and the improvement in gross margin.
The company expects approximately 500 Valhalla Coupe deliveries during 2026.
Aston Martin said nearly all remaining Valhalla Coupes have been ordered, with deliveries expected to be completed by the end of the first half of 2027.
The Valhalla is the company’s first mid-engined plug-in hybrid electric vehicle.
Its contribution to the sales mix has been a principal factor in the company’s financial performance during 2026.
Aston Martin Introduces Valhalla Spider and Valen
Aston Martin announced the Valhalla Spider, an open-top version of the Valhalla Coupe.
Deliveries are expected to begin in the third quarter of 2027.
The company said its existing order book for the model extends into the fourth quarter of 2027.
Aston Martin also launched the Valen during the third quarter of 2026.
The company describes Valen as the world’s most powerful front-engined production car.
Deliveries of Valen are scheduled to commence in the second quarter of 2027.
The new models expand Aston Martin’s Specials programme, which includes limited-production vehicles alongside its core model range.
The company also recently introduced the DBX GT, expanding its SUV portfolio.
Aston Martin expects additional derivatives to follow as part of its product development programme.
Gross Profit Increases 76% in Third Quarter
Aston Martin reported third-quarter gross profit of £145.5 million, compared with £82.8 million a year earlier.
The 76% increase reflected higher revenue and changes in the vehicle sales mix.
Gross margin increased to 37.4% from 29.0%, an improvement of 840 basis points.
For the first nine months, gross profit increased 71% to £358.0 million from £209.4 million.
The nine-month gross margin improved to 35.2% from 28.3%, an increase of 690 basis points.
Aston Martin attributed the improvement to increased Special model deliveries and benefits from its operational transformation programme.
These benefits included lower manufacturing costs and reduced expenditure associated with product quality and customer satisfaction initiatives compared with the previous year.
The company said the improvements were partly offset by targeted dealer support and foreign exchange movements.
Adjusted EBITDA Reaches £69.9 Million
Aston Martin reported third-quarter adjusted EBITDA of £69.9 million, compared with £10.7 million in the corresponding period last year.
The adjusted EBITDA margin increased to 18.0% from 3.8%.
For the first nine months, adjusted EBITDA reached £132.6 million, compared with £7.7 million a year earlier.
The nine-month adjusted EBITDA margin increased to 13.0% from 1.0%.
The company attributed the increase to higher gross profit, partly offset by higher adjusted operating expenses.
Adjusted operating expenses excluding depreciation and amortisation increased 12% to £225 million during the first nine months, compared with £202 million a year earlier.
Aston Martin said this expenditure remained consistent with its full-year expectations.
Operating Loss Narrows to £26.4 Million
Aston Martin reported a third-quarter operating loss of £26.4 million, compared with a loss of £56.1 million in the corresponding period of 2025.
The reduction of approximately 53% reflected the increase in gross profit.
Adjusted EBIT remained negative at £24.9 million, compared with a £50.6 million loss a year earlier.
For the first nine months, the reported operating loss narrowed to £82.9 million from £190.8 million.
Adjusted EBIT improved to a loss of £133.8 million from £172.1 million.
The nine-month reported operating result included £47.7 million of adjusting other income associated with the sale of Aston Martin Formula One naming rights to AMR GP.
The company also recorded higher depreciation and amortisation expenses, reflecting increased deliveries of Special models.
Adjusted depreciation and amortisation rose 48% to £266.4 million during the nine-month period, compared with £179.8 million a year earlier.
Pretax Loss Falls to £77.1 Million in Third Quarter
Aston Martin reported a third-quarter loss before tax of £77.1 million, compared with £111.9 million in the corresponding period last year.
The loss after tax narrowed to £78.8 million from £131.8 million.
For the first nine months, the pretax loss decreased to £231.3 million from £252.7 million.
The reported loss after tax was £231.9 million, compared with £280.5 million a year earlier.
However, the nine-month adjusted loss before tax increased to £283.0 million from £237.0 million.
The difference reflected higher adjusted financing costs and the treatment of adjusting items.
Aston Martin reported nine-month net financing expenses of £148.4 million, compared with £61.9 million in the prior-year period.
The increase included the impact of non-cash US dollar debt revaluations and additional interest associated with the company’s new financing arrangements.
Financing Costs Increase Following Debt Refinancing
Aston Martin reported adjusted net financing costs of approximately £149 million for the first nine months of 2026, compared with £65 million a year earlier.
The increase partly reflected an £11 million foreign exchange loss arising from non-cash revaluation of US dollar-denominated debt.
In the corresponding period of 2025, the company recorded a £58 million gain from these movements.
Additional interest expenses also arose from the £450 million senior secured term loan arranged in July 2026.
The higher financing costs contributed to the increase in the adjusted pretax loss despite improvements in operating performance.
Aston Martin expects net cash interest of approximately £160 million for the full year, assuming current exchange rates prevail.
This compares with £143 million in 2025.
Free Cash Outflow Declines to £27.6 Million in Third Quarter
Aston Martin reported third-quarter free cash outflow of £27.6 million, compared with £94.0 million in the corresponding period last year.
The reduction of approximately 71% reflected improved operating cash generation and lower investment expenditure.
Cash generated from operating activities reached £47.5 million during the quarter, compared with an outflow of £8.4 million a year earlier.
Cash used in investing activities, excluding interest, was £73.8 million, compared with £83.4 million.
Net cash interest paid during the quarter totalled £1.3 million.
For the first nine months, free cash outflow declined to £225.2 million from £415.0 million.
The company expects a material year-on-year improvement in free cash flow for 2026 as a whole.
Operating Cash Flow Turns Positive for Nine-Month Period
Aston Martin generated £45.2 million of cash from operating activities during the first nine months of 2026.
This compares with an operating cash outflow of £89.4 million in the corresponding period last year.
The improvement of approximately £135 million was primarily attributable to higher adjusted EBITDA.
Working capital movements resulted in a £63 million cash outflow, compared with £45 million a year earlier.
The principal movements included a £25 million increase in inventories and a £23 million increase in receivables.
Deposits held declined by £21 million, reflecting the delivery of Special models.
These movements were partly offset by a £7 million increase in payables.
Aston Martin said the timing of production and deliveries contributed to the changes in working capital.
Capital Expenditure Declines to £194 Million
Aston Martin reported capital expenditure of £194 million during the first nine months of 2026, compared with £254 million in the prior-year period.
Investment remained focused on future vehicle development and related technologies.
The company expects capital investment of approximately £300 million for the full year, compared with £341 million in 2025.
Aston Martin has also reduced its planned capital expenditure programme for 2026 to 2030 to approximately £1.7 billion.
The previous programme had been approximately £2.0 billion.
The revised investment plan forms part of the company’s efforts to manage expenditure while continuing product development.
The company expects lower capital investment and improved operating cash generation to contribute to reduced free cash outflow.
Liquidity Reaches £321.6 Million Following July Financing
Aston Martin reported cash and available liquidity of £321.6 million at 30 September 2026.
This compares with £247.8 million at the same point in 2025.
The company completed a £550 million debt financing arrangement in July 2026.
The financing comprises a £450 million senior secured term loan and a £100 million delayed draw term loan.
The facilities carry interest at 6.75 percentage points above the prevailing SONIA base rate and mature in July 2031.
Investment funds and accounts managed by HPS Investment Partners were identified as lead lenders.
The financing also permits an additional £100 million of junior debt capacity.
Aston Martin said the arrangement provides financial flexibility for its operational and investment plans.
Net Debt Increases to £1.57 Billion
Aston Martin reported net debt of £1,572.3 million at 30 September 2026.
This compares with £1,380.3 million at 31 December 2025 and £1,381.0 million at 30 September 2025.
Gross debt increased to £1,895.4 million from £1,631.6 million at the end of 2025.
The increase primarily reflected the new senior secured term loan and non-cash foreign exchange movements, partly offset by repayment and cancellation of the group’s revolving credit facility.
Despite the higher debt balance, Aston Martin reported an improvement in its adjusted net leverage ratio.
The ratio declined to 6.7 times from 12.8 times at the end of 2025.
The company attributed the reduction to higher adjusted EBITDA over the preceding 12 months, partially offset by the increase in net debt.
Full-Year Wholesale Volume Guidance Maintained
Aston Martin maintained its expectation that wholesale deliveries for 2026 will be similar to the 5,448 vehicles reported in 2025.
The forecast includes approximately 500 Valhalla Coupe deliveries.
The company expects retail volumes to continue exceeding wholesale volumes.
Management also anticipates a more balanced production schedule across core and Special models during the remainder of the year.
The group expects its product mix and operational transformation programme to contribute to improved financial performance.
However, Aston Martin said it continues to monitor economic and geopolitical conditions affecting the global automotive industry.
Gross Margin Expected to Reach High-30% Range
Aston Martin maintained its expectation that full-year gross margin will increase into the high-30% range.
This compares with a gross margin of approximately 29% in 2025.
The company expects the improvement to reflect increased Valhalla Coupe deliveries, changes in its core model portfolio and manufacturing efficiencies.
Adjusted operating expenses excluding depreciation and amortisation are expected to remain below £300 million for the full year.
Adjusted depreciation and amortisation are forecast at between £375 million and £400 million.
Aston Martin also expects its adjusted EBIT margin to improve towards breakeven from a negative 15.0% in 2025.
These expectations remain dependent on the company’s planned vehicle deliveries, production performance and operating conditions.
Global Trade and Economic Conditions Remain Under Review
Aston Martin identified several external factors that could affect its operations and customer demand.
These include potential changes to US tariffs, adjustments to China’s taxes on ultra-luxury vehicles and the stability of international supply chains.
The company also referred to geopolitical uncertainty associated with the conflict in the Middle East.
Management said it had limited the direct operational impact of these developments during 2026 but continues to monitor potential effects on demand and customer confidence.
Aston Martin also noted that the US tariff quota mechanism introduced for UK automotive manufacturers in 2025 has increased the complexity of quarterly forecasting.
The company said there had been no changes to that mechanism during the reporting period.
CEO Adrian Hallmark Comments on Financial Performance
Adrian Hallmark, Chief Executive Officer of Aston Martin, commented on the company’s nine-month results and product development programme.
“Our year-to-date 2026 performance demonstrates tangible and consistent progress towards the financial transformation of Aston Martin. Valhalla deliveries, and the benefits of our transformation programme, have lifted gross margin to 35%, while free cash outflow almost halved as we move towards our goal of cash generation. We expect this momentum to continue into Q4 and beyond, in line with our unchanged full year 2026 guidance and outlook.
“Our product line-up has also strengthened. The new DBX GT brings a more elegant, quiet-luxury character to our SUV range and two new models have elevated our Specials programme: Valen, launched in Q3 as the world’s most powerful front-engined production car, and the Valhalla Spider, unveiled today, which builds on the success of the groundbreaking mid-engined PHEV Valhalla Coupe. Together, they give us a strong platform for the future.”
Outlook for the Remainder of 2026
Aston Martin expects further improvement in financial performance during the final quarter of 2026, supported by its product mix and operational transformation programme.
The company maintained its wholesale volume guidance and expects approximately 500 Valhalla Coupe deliveries during the year.
Full-year gross margin is forecast to reach the high-30% range, while the adjusted EBIT margin is expected to move towards breakeven.
Capital expenditure is expected to decline to approximately £300 million, and free cash outflow is forecast to improve materially compared with the £410 million outflow recorded in 2025.
The company continues to target margin improvement and cash generation over the short to medium term.
However, Aston Martin remains exposed to changes in global demand, financing costs, international trade conditions and supply chain developments.
More About Aston Martin Lagonda
Aston Martin Lagonda Global Holdings plc is a London-listed manufacturer of luxury sports cars and sport utility vehicles.
Founded in 1913, Aston Martin designs and manufactures vehicles including the Vantage, DB12, Vanquish and DBX.
Its product portfolio also includes limited-production Special models, including the Valhalla plug-in hybrid supercar.
The company is headquartered in Gaydon, England, where its sports cars are manufactured, while DBX production takes place in St Athan, Wales.
Aston Martin sells vehicles in more than 50 countries and continues to develop its product range through new models, derivatives and electrified powertrain technologies.
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