Aston Martin is raising millions to invest in electrification, as well as in other areas, while its core profit is expected to fall short of 2023 levels.
British luxury carmaker Aston Martin Lagonda Global Holdings plc has joined the list of struggling European carmakers facing supply chain issues and lower-than-expected sales in China, dragging down their prospects.
Aston Martin shares fell to a two-year-low on Wednesday after the firm announced it was lowering its forecast for adjusted EBITDA, (earnings before interest, taxes, depreciation and amortization), to up to £280m (€336.2m) in the financial year of 2024, down from £305.9m (€367.3m) last year.
It was the second cut in the company’s full-year earnings guidance in nearly three months.
Now, the lower-than-expected profit is explained by a delay in the delivery of the company’s exclusive Valiant models. (The limited-edition car that was famously built for a personal commission by Formula One driver for the company Fernando Alonso with a starting price sitting around €2.37m).
The company now expects the delivery of only half of the planned 38 Valiant models in 2024, with the rest making it in “early 2025”.
The carmaker confirmed its financial targets for next year with an adjusted Ebitda of around £500m (€600m).
Meanwhile, Aston Martin announced plans to raise £210m (€252m) by issuing new debt as well as new shares, providing liquidity of around £500m (€600m) at the end of the year.
The fresh funds would “support capital investments related to the company’s electrification strategy, consistent with its plans to invest c. £2bn (€2.4bn, ed.) over the five year period between 2023 and 2027,” said the company’s statement.
Adrian Hallmark, recently appointed CEO of the carmaker, said: “Coupled with a forensic approach to cost management and quality, these efforts will deliver enhanced operational and financial performance in 2025 and beyond, as we progress towards our mid-term targets.”
Aston Martin launched four new models in 2024, however, the carmaker has faced supply chain disruptions and sharply decreasing sales in China in the first half of the year.
Investors’ confidence in the carmaker has been tumbling, the share price has fallen by more than 50% year-to-date.
Aston Martin’s full-year 2024 results will be announced on 26 February 2025.
