Aston Martin Released A Fresh Profit Alert

Shares in Aston Martin dropped by as much as 10% on Monday after the British luxury carmaker issued a new profit warning, pointing to difficulties in the industry and uncertainty regarding tariffs.

The company said it expects its total wholesale volume to fall by a “mid-high single-digit percentage” in 2025, down from last year’s 6,030 units.

Aston Martin also stated that it no longer expects to generate positive free cash flow in the second half of the year and has launched an urgent review of future costs and capital expenditures.

Analysts had expected the company to post an earnings before interest and tax (EBIT) loss of 110 million pounds ($147.8 million), according to estimates compiled by the company.

“The global macroeconomic environment facing the industry remains challenging,” the automaker said in a statement. “These include uncertainties about the economic impact of US tariffs and the implementation of the quota mechanism, changes in Chinese taxes on ultra-luxury cars, and increased potential for pressures on the supply chain.”

As part of the US-UK trade deal reached in May, the two countries agreed to cap tariffs on 100,000 UK-made cars a year at 10%.

Aston Martin said the quota mechanism “adds a level of complexity and limits the Group’s ability to forecast accurately for the end of this financial year and, potentially, quarterly from 2026 onwards.”

• Read More: Things Are Not Going Well For Aston Martin