Aston Martin has issued another profit warning and agreed to sell permanent naming rights to its Formula One team for £50 million as the British brand struggles with falling deliveries, rising debts and the impact of US tariffs.
The carmaker, majority owned by Canadian billionaire Lawrence Stroll, said 2025 profits would be worse than City forecasts, marking its fifth profit warning since September 2024.
Analysts had expected the company to report a loss of around £184 million when it reported full-year results next week.
Aston Martin delivered 5,448 vehicles last year, almost 10 percent fewer than in 2024, as U.S. sales were hit by a 25 percent tariff on imported cars imposed by former U.S. President Donald Trump. The group also missed its targets when it came to high-margin special models.
Shares fell as much as 4 percent in early trading before paring losses.
Cash reserves stand at around £250 million, broadly stable over the past six months but down from the £360 million at the start of 2025. The company’s mountain of debt has increased by around 70 percent since the beginning of 2024.
To bolster liquidity, Aston Martin has agreed to sell the permanent right to use its name in Formula 1 to its F1 team for £50 million. The team is operated by AMR GP Holdings, a separate company also controlled by Stroll, meaning the deal actually represents additional funding from its owner.
Since Stroll sits on both sides of the transaction and holds a 32 percent stake in Aston Martin, the deal requires shareholder approval. Investors representing more than half of the company, including Stroll’s Vehicle, Geely and Mercedes-Benz, have already indicated they will vote in favor.
A similar naming rights agreement was reached in 2024, granting the F1 team rights until 2055.
Since taking control in 2020, Stroll has sought to reposition the brand through new model launches and repeated capital raises. However, the turnaround was marked by continued losses, production setbacks and inventory problems.
The US tariff regime caused significant cost pressure in one of Aston Martin’s most important markets. A subsequent trade deal between Britain and the US reduced tariffs to 10 percent on up to 100,000 British-made cars from mid-2025, providing partial relief.
In October the company cut its investment plans by £300 million and cut development spending on new models, citing tariffs and subdued demand in China.
Despite the headwinds, Aston Martin described upcoming deliveries of its £850,000 Valhalla hypercar as a positive sign. Around 500 units are expected to be delivered in 2026, with more than half of the limited edition of 999 pieces having already been sold.
But with its share price down around 50 percent over the past year, Aston Martin’s efforts to restore profitability remain under intense scrutiny as the company navigates a volatile global automotive market.
