Aston Martin Lagonda Global Holdings PLC (LSE:AML) told investors on Wednesday that it expects a material improvement in its financial performance in 2026, later revealing plans to cut 20% of its workforce.
In London, the supercar brand's shares fell to a new all-time low just below 55p.
Aston Martin said it is planning the job cuts to try and make roughly £40 million of cost savings.
Alongside a profit warning last week, its second in six months, the company said it had started consulting on its latest round of redundancies.
Today, its intention was revealed to trim staff numbers by around 500, having last year cut 170 jobs.
"Having undertaken at the start of 2025 a process to make organisational adjustments to ensure the business was appropriately resourced for its future plans, we had to take the difficult decision at the end of 2025 to implement further changes," Aston Martin said.
"This latest programme will ultimately see the departure of up to 20% of our valued workforce."
Earlier, Aston Martin said it expected its top line to benefit from ramping up sales of the Valhalla supercar.
Wednesday's results for 2025, were weighed down by tariffs, fewer sales of high-margin Specials and higher quality-related spending.
Chief executive Adrian Hallmark described "a highly challenging" trading environment, whilst telling investors that management retained a disciplined approach, balacing production with demand, and took necessary pro-active actions.
"An unprecedented backdrop of geopolitical uncertainties and macroeconomic pressures, including heightened tariffs in the U.S. and China, weighed on our performance and ability to execute our plans effectively," he said.
"Despite these external factors and, as guided, fewer high margin Special deliveries impacting our financial performance, we made progress on our business transformation journey."
For the year to December 2025, Aston Martin revenue fell 21% to £1.26bn as wholesale volumes dropped 10% to 5,448 vehicles. Gross margin slipped to 29.4% from 36.9%, and adjusted EBITDA more than halved to £108m, while the adjusted EBIT loss widened to £189m.
Management said the year’s key operational milestone was the start of Valhalla production, with 152 deliveries in Q4 supporting a stronger finish to the year. Core pricing held up, with core ASP up 5% to £185k, although total ASP fell 15% to £209k due to the lower mix of Specials.
Cash remained a focal point. The group posted a £410m free cash outflow for FY2025, though it reported a £5m free cash inflow in Q4 and ended the year with £250m of liquidity. Net debt stood at £1.38bn.
For FY2026, Aston Martin guided to similar volumes but gross margin in the high 30%, capex reducing to around £300m, and adjusted EBIT margin moving towards breakeven, helped by an enhanced mix including around 500 Valhalla deliveries.
Adrian Hallmark added: "Looking ahead, I remain confident that our strategy and upcoming products will position us strongly for future success. In FY 2026, we expect to deliver a material improvement in financial performance and continue delivering year-on-year improvements over the short-mid-term with a focus on margin expansion and cash flow generation."
Hargreaves Lansdown said the full-year numbers were largely expected after last week’s profit warning, but argued that operational execution remains the critical pressure point. Analyst Aarin Chiekrie pointed to production delays that drove multiple downgrades and said asset sales and a planned up to 20% workforce reduction help near-term finances, but leave a tougher question: rebuilding volumes and the efficiency benefits that come with higher output.
** UPDATE: Details on job cuts added **