Aston Martin slows US shipments as Trump tariff clarity awaited

Shares in Aston Martin Lagonda Global Holdings PLC (LSE:AML) rose 2% to 72p as it said it is currently limiting the number of cars exported to the US due to the impact of Donald Trump’s automotive tariffs, but said it still expects to hit its full-year targets for 2025.

The US was the sports car company's third biggest market last year.

CEO Adrian Hallmark said: "We are carefully monitoring the evolving US tariff situation and are currently limiting imports to the US while leveraging the stock held by our US dealers.

"We remain vigilant in monitoring events and will respond to changes in the operating environment as they materialise."

Trump imposed 25% tariffs on foreign cars and parts earlier this year but said yesterday that he would scale back some of these levies, following significant pressure from the automotive industry, which warned that the tariffs could raise vehicle prices, reduce sales, and threaten jobs in the sector

Otherwise, despite a weaker first quarter, Aston Martin reiterated its full-year financial targets, as it invests in product quality and prepares for a heavier-weighted second half of the year.

The sports car manufacturer reported a swing to an adjusted EBIT loss of £65 million compared to £57 million a year earlier, while adjusted EBITDA fell to negative £4 million.

Gross margin slipped to 28% from 37%, impacted by a fall in deliveries of Specials vehicles, such as its Vulcan, Valhalla, Valkyrie and Volante super and hypercars, and a £15 million one-off investment to enhance software.

Wholesale volumes were steady at 950 units, while retail volumes outpaced wholesales by around 50%, helping to extend the order book for core vehicles up to five months.

UK sales volumes rose 14% but were offset by weaker deliveries in China and parts of Europe.

Aston Martin maintained its guidance for modest volume growth and positive adjusted EBIT for the full year, along with free cash flow generation in the second half.

The company noted that deliveries of key models such as the Vantage Roadster, Vanquish Volante, and DBX S will begin in the second, third and fourth quarters, while Valhalla production is expected to start in the second half.

Despite acknowledging uncertainty from newly announced US tariffs, the company said its 2025 targets remain unchanged.

The Q2 performance is expected to show sequential improvement, though output will be temporarily limited by a planned three-week ERP system rollout at its Gaydon headquarters.

Liquidity stood at approximately £400 million at the quarter-end and is expected to rise by more than £125 million following completion of the Yew Tree Consortium investment and the sale of AMR GP shares.