Luxury car maker Aston Martin has reported a 3% decrease in revenue for the financial year (FY) 2024, totalling £1.58bn ($2bn), down from £1.63bn in FY 2023.
The luxury car manufacturer attributed the decline to lower volumes and foreign exchange (FX) headwinds.
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For Q4 2024, the firm’s revenue dropped by 1% to £589.3m compared to £593.3m in same period a year ago.
Gross profit for FY 2024 fell by 9% to £584m, with a gross margin decrease of 220 basis points to 37%.
This was due to the impact of portfolio transition, product mix phasing, volume, and foreign exchange headwinds, although partially offset by an increase in the volume of Specials.
The firm’s gross profit in Q4 2024 saw drop by 23% to £207m, with a gross margin of 35%, reflecting a mix of core vehicles and fewer Specials.
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By GlobalDataAdjusted EBITDA for FY 2024 was down 11% at £271m, in line with revised guidance following a volume revision, and an adjusted EBITDA margin of 17%.
Adjusted operating expenses, excluding depreciation and amortisation (D&A), decreased £20m to £313m, with the Q4 being £45m lower than the same period in the previous year.
The adjusted EBIT loss of £83m remained broadly flat compared to FY 2023, despite the gross profit impact, largely reflecting an 8% decrease in D&A to £354m.
The operating loss for FY 2024 decreased by 11% to £100m.
The company’s free cash outflow was £392m for FY 2024, including a Q4 inflow of £2m.
Net debt stood at £1,163m as of 31 December 2024, primarily due to higher gross debt from financing activities and the translational impact of foreign exchange movements.
Aston Martin said it is commencing a process to make organisational adjustments, which will result in reducing approximately 170 jobs, around 5% of the global workforce.
This action is expected to save about £25m annually in operating expenses, with around 50% of the savings realised in FY 2025 and associated transformation costs of approximately £10m.
Looking ahead to FY 2025, Aston Martin expects gross margin to improve to around 40%, benefiting from more efficient production, new models, and product innovation, including increased personalisation and options revenue growth.
Adjusted operating expenses are projected to reduce further to around £300m, with capital investment in new product developments and technology access fees expected to be around £400m.
For the medium-term outlook for FY 2027/28, the firm projects revenue of around £2.5bn, a gross margin in the mid-40s%, adjusted EBIT of around £400m, an adjusted EBIT margin of around 15%, and sustainably positive free cash flow.
Aston Martin CEO Adrian Hallmark said: “We have all the vital ingredients for success, with the support of strategic shareholders, the capability of world-class technical partners, a revitalised brand, talented people, and the strongest product portfolio in our 112-year history.
“This line-up is further strengthened by the upcoming Valhalla, our first mid-engined hybrid supercar, with deliveries starting in H2 2025. Moving forward, my priority is to drive operational excellence and discipline as we continue our transformation into a sustainably profitable company.
“We are committed to demonstrating that our strategy delivers long-term growth. This starts in 2025 where we expect materially improved financial performance to deliver positive adjusted EBIT for the full year and free cash flow in the second half of 2025.”
