The Aston Martin share price is largely unchanged despite another disappointing set of results
Earlier in October, when the Aston Martin Lagonda (LSE:AML) share price was hovering around the 75p mark, I read an online exchange of views about the future direction of the luxury sports car maker.
One of those involved in the conversation wrote: âSure, the Rolls-Royce share price was 75p five years agoâ. The implication being that Aston Martin’s share price could follow that of the aerospace and defence groupâs and grow exponentially by October 2030.
Whether the author was being slightly tongue-in-cheek or wildly optimistic, itâs impossible to tell. But reading todayâs (29 October) earnings release for the three months ended 30 September (Q3 25), it looks to me as though any sustained increase in the groupâs market-cap is unlikely any time soon.
Having said that, by 8.45am, it share price was up 0.5% at 65p. But I know it’s the long term that really counts.
Some numbers to consider
Investors have been digesting the news that 1,430 vehicles were delivered during the period compared to 1,641 a year earlier. In percentage terms, the group now expects a âmid-to-high single digitâ decline in wholesale volumes in FY25 versus the 6,030 sold in 2024.
The Q3 25 loss before tax was £111.9m. It hasnât reported an annual profit since 2018 and it looks as though this yearâs going to be no different. Inevitably, this has weakened the group’s cash position. Compared to the end of 2024, net debt’s now £164.5m (13.5%) higher.
Todayâs update follows a series of disappointments since the group became a listed company in October 2018. When the group made its stock market debut, it was valued at £4.33bn. Today, itâs down to £658m.
And yet it produces some of the most beautiful cars, has an iconic brand, impressive heritage, and is synonymous with engineering excellence. Incredibly, it claims that 90% of the 110,000 cars itâs manufactured since 1913 are still on the road.
Impressively, the marque still holds the record for the most expensive British car sold at auction. In 2017, a 1956 DBR1, winner of Le Mans in 1959, sold for $22.55m (£17m at todayâs exchange rate).
What next?
But the groupâs clearly in a difficult position. And to be honest, if I was running the company, I wouldnât know what to do. Itâs taken âimmediate actionsâ to reduce capital expenditure and cut overheads. But its options are limited. Selling more of a product with an average retail price of £194,000 is difficult. Deliveries of its £850,000 Valhalla supercar started this month so that should help.
But with supply-chain inflation being a persistent problem, itâs going to be hard to increase its margin. For the first nine months of FY25, the groupâs reported a gross profit margin of 28.3%. By comparison, Ferrariâs was 49.9% in 2024.
And thereâs nothing it can do about what it describes as âsignificant macroeconomic headwindsâ with US tariffs affecting sales in North America and weak demand in China.
Overall, it would be far too risky for me to invest in Aston Martin. Anecdotally, there appears to be a lot of goodwill shown towards the company and its brand. Any sign of an improvement and its share price could do well. But judging by todayâs earnings release, I think this could be a long way off.
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James Beard has positions in Rolls-Royce Plc. The Motley Fool UK has recommended Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
