Aston Martin Lagonda Global Holdings PLC (LSE:AML) shares fell 4.5% to 346.2p after it unveiled plans to quadruple profits within five years and start generating cash.
Fresh from striking a deal to buy batteries from US electric vehicle maker Lucid Group, the British luxury car manufacturer said it aims to make revenues of £2.5bn and £800mln of underlying profits (EBITDA) by 2027, compared to £1.4bn and £190mln respectively in 2022.
In a statement ahead of its investor day on Tuesday, the FTSE 250-listed group said it expects to invest circa £2bn between this year and 2027, including in its transition to electrification.
Most of this investment will be capital expenditures, but with around £200mln in technology access fees to the company's strategic suppliers and partners over the next five years, including the payments related to Lucid.
It estimates that widening the profit margins on its upcoming models and increasing car sales by pushing into electric vehicles from 2025 will help the business generate gross margins of 40%.
Aston Martin Lagonda executive chairman Lawrence Stroll said that over the past three years the company has been "completely rebuilt", with the brand "supercharged by our transformational partnership with the F1 team".
"With the heavy lifting now behind us, I have never been as confident in our future," he added.
The company confirmed it remains "on track" to achieve the targets for 2024/25 that it issued in 2020, aiming for £2bn of revenue and circa £500mln of adjusted EBITDA, expecting to "substantially" meet these levels next year and "likely to exceed them" in 2025.
Floated at 1,900p in 2019, shares in the company fell to an all-time low below 90p last October but have since climbed steadily higher.