Aston Martin Shares Fall to November Lows Amid Naming Rights Sale and Disappointing Update

Aston Martin Lagonda (LON: AML) shares fell sharply on Friday morning, dropping over 3% to their lowest level since November 2025.

This downturn follows the announcement of a less-than-stellar FY 2025 trading update.

The company intends to sell the right to use “Aston Martin” in the Formula 1 team's name and chassis name to AMR GP Holdings Limited for £50 million in cash. This agreement grants AMR GP the perpetual right to use the Aston Martin name within its F1 operations. While the sale bolsters liquidity, markets appear concerned about the long-term implications for brand association.

Aston Martin's FY 2025 trading update revealed challenges. The company cited heightened tariffs in the U.S. and fewer high-margin special deliveries as factors impacting financial performance. Despite these headwinds, AML emphasized progress in its business transformation journey, with a focus on cost efficiencies and model line expansion.

Headline Numbers:

• Wholesale Volumes: Total wholesale volumes reached 5,448 units, down from 6,030 in FY 2024. However, retail sales outpaced wholesale figures, indicating stronger demand.
• Gross Margin: The Group expects a FY 2025 gross margin of approximately 29.5%.
• Adjusted EBIT: Adjusted EBIT is projected to be slightly below the lower end of the analyst consensus range, with the lower end of the January 2026 analyst consensus at £(184m).
• Operating Expenses: Adjusted operating expenses (excluding depreciation and amortization) are expected to decrease by 16% to £262 million (FY 2024: £313 million), reflecting cost-cutting measures.
• Capital Expenditure: Capital expenditure was reduced to £341 million (FY 2024: £401 million).
• Liquidity: Total liquidity at the end of December 2025 remained broadly flat compared to Q3 2025 at £250 million, supported by positive free cash flow in Q4 2025.

The £50 million from the naming rights sale is expected to further enhance the Group's liquidity position. The company anticipates significant improvements in FY 2026 financial performance, driven by an enhanced product mix including approximately 500 Valhalla deliveries, ongoing benefits from the transformation program, and continued operational discipline.

Shareholder approval is required for the proposed transaction, classified as a “substantial property transaction” under the Companies Act 2006. Shareholders representing 54.27% of the company's issued share capital have already provided irrevocable undertakings to vote in favor of the resolution.

Driver Breakdown:

• Cost Efficiencies: Actions to reduce SG&A and capex are yielding tangible results.
• Product Mix: The launch of new models, particularly the Valhalla, is expected to drive future growth.
• Liquidity Boost: The naming rights sale provides a significant cash injection.

The Board of Directors, comprised of independent Directors, considers the Proposed Transaction fair and reasonable as far as shareholders of the Company are concerned and has been so advised by Goldman Sachs International.