British luxury carmaker Aston Martin Lagonda is grappling with financial setbacks as it lowers its 2024 earnings forecast while raising substantial funds to invest in electrification and other strategic initiatives.
The company announced on Wednesday that it now expects adjusted EBITDA for the 2024 financial year to reach up to £280 million (€336.2 million), down from £305.9 million (€367.3 million) in 2023. This marks the second revision of its full-year earnings guidance in three months.
Delays in Valiant Model Deliveries
One key factor affecting the company’s profit outlook is the delayed delivery of its exclusive Valiant models, a limited-edition car with a starting price of €2.37 million. Originally slated for delivery in 2024, Aston Martin now anticipates delivering only half of the planned 38 units next year, with the remainder delayed until early 2025.
The Valiant gained attention for being commissioned by Formula One driver Fernando Alonso, reflecting Aston Martin’s continued focus on high-end, bespoke models.
New Investments Amid Challenges
Despite these challenges, the automaker is forging ahead with a £210 million (€252 million) fundraising effort through new debt and equity issuance. The funds are part of a broader plan to maintain liquidity of approximately £500 million (€600 million) by year-end and to support Aston Martin’s £2 billion (€2.4 billion) investment in electrification between 2023 and 2027.
“These efforts, combined with disciplined cost management and a focus on quality, will deliver improved operational and financial performance in 2025 and beyond as we advance toward our mid-term targets,” said Adrian Hallmark, the company’s newly appointed CEO.
Supply Chain and Market Challenges
Aston Martin has faced significant supply chain disruptions and a notable decline in sales in China during the first half of 2024. While the company launched four new models this year, the challenges have weighed heavily on investor confidence, with shares dropping over 50% year-to-date to hit a two-year low this week.
The company remains optimistic about achieving an adjusted EBITDA of approximately £500 million (€600 million) in 2025 as it seeks to rebound from the current downturn.
Investor Sentiment
The automaker’s struggles reflect broader issues in the European luxury car market, where supply chain constraints and slowing demand in key regions like China have impacted several players.
Aston Martin’s full-year 2024 financial results are scheduled for release on February 26, 2025, with investors closely monitoring the company’s progress toward its electrification goals and financial recovery.
