Aston Martin Shares: Analyst ‘Quite Concerned’ After FY25 Trading Update

Aston Martin (LON: AML) shares continued to decline after the company’s latest update, with Hargreaves Lansdown analysts warning that the group’s latest profit caution highlights a business facing mounting operational and financial strain.

The broker’s analyst Aarin Chiekrie said the luxury carmaker’s “road to redemption looks increasingly challenging,” citing declining deliveries, tariff risks, and ongoing cash burn.

Chiekrie noted that the second half of 2025 was supposed to improve thanks to shipments of the high-priced Valhalla supercar.

However, the ramp-up has been slower than originally planned, and with the model only half sold, the analyst flagged “room for further disappointments” if demand fails to improve.

The group’s proposed £50 million sale of Formula 1 naming rights offers a short-term liquidity boost but is “not a viable longer-term plan,” the firm added. The update revealed wholesale volumes fell to 5,448 units, while adjusted EBIT is set to land slightly below consensus.

Tariffs remain a key threat. The broker warned that U.S. duty rules represent “a significant trip hazard,” with roughly one-third of Aston Martin’s revenue generated in the market. Any shipment above quarterly thresholds could face a steep 27.5% tariff, eroding profitability.

High borrowing costs are also weighing heavily. Hargreaves Lansdown stated that “double-digit interest rates show that lenders need to be compensated heavily for the high level of risk,” while the company’s ongoing negative cash flow poses further danger.

While the firm sees potential upside if management can execute on its 2026 plans, Chiekrie concluded that he is “quite concerned given the recent tariffs, struggling demand, production delays, and high rate of cash burn,” warning profit expectations may fall from here.