Citi sees Aston Martin Lagonda Global Holdings PLC (LSE:AML) making tangible operational progress, though the carmaker’s elevated debt pile remains the brake on a more bullish stance.
The broker hosted chief financial officer Doug Lafferty at its Autos Virtual Field Trip, where discussions focused on the improvement in first-quarter 2026 results and the prospect of further gains through the year.
Citi said revenues and earnings before interest and tax should benefit as deliveries of the Valhalla supercar ramp up in FY26.
“We continue to see real improvement in operational execution at AML,” analysts said, pointing to more proactive product management, more conservative wholesale and inventory management, and reductions in costs and capital expenditure.
Longer term, Citi said profitability should also be helped as Aston Martin launches new core models and special derivatives. But the broker said free cash flow, while expected to stabilise in FY26 after an outflow in the first quarter, remained set against a stretched balance sheet.
“AML's debt is already elevated, which remains the key risk for investors in our view,” Citi added.