British luxury carmaker Aston Martin Lagonda Global Holdings PLC is set to receive a significant financial boost of over £125 million (approximately $162 million) to address mounting financial pressure, according to multiple media reports on Monday.
The lion’s share of the new funding comes from Executive Chairman Lawrence Stroll, whose Yew Tree Consortium will purchase 75 million shares at 70 pence each, increasing its ownership stake from 27.7% to approximately 33%, with potential to rise further to 35%. The capital injection comes at a 7% premium to Friday’s closing share price and is intended to reassure investors amid recent restructuring efforts.
In parallel with the share issue, Aston Martin confirmed it plans to sell its minority stake in the Aston Martin Aramco Formula One Team, with expectations of fetching a price above its book value of £74 million. These two moves combined aim to stabilize the company’s balance sheet and unlock additional liquidity.
The stock responded positively, jumping 5.7% to 69 pence in early trading on Monday.
Carmaker Battles Mounting Debt and Shrinking Demand in Key Markets
However, the iconic brand—famous for producing the cars driven by James Bond on screen—continues to grapple with broader headwinds. Supply chain constraints, delivery delays, and waning demand in China have significantly impacted performance over recent years. Under Stroll’s leadership since 2020, the company has now raised capital six times in efforts to navigate ongoing instability.
Stroll, who has invested nearly £600 million in the company to date, framed the latest move as a vote of confidence. “This investment should greatly reassure shareholders,” he said, following the company’s recent decision to cut 5% of its global workforce—a measure expected to generate £25 million ($31.6 million) in annual savings, with roughly 50% of that figure to materialize in FY2025. The restructuring will incur a £10 million transformation cost.
Financial results for 2024 underscore the urgency for decisive action. Revenue fell 3% to £1.58 billion, while adjusted EBITDA declined 11% to £271 million, hitting the low end of guidance. Although operating losses narrowed to £99.5 million, net debt surged 43% to £1.16 billion.
Looking ahead, Aston Martin signaled reduced expectations for growth, citing the likely impact of new tariffs from the U.S.—its largest market. Previously forecasting mid-single-digit volume growth, the firm now anticipates only modest gains. The manufacturer generated one-third of its 2024 revenue in the U.S., more than the combined totals from the UK and Asia Pacific. Overall sales declined 9% year-on-year to 6,030 cars.
The shift in tone stems from a new round of tariffs introduced by the Trump administration, set to take effect this Wednesday. Among the measures is a 25% levy on all cars not manufactured in the United States. The administration argues that such tariffs could raise an additional $100 billion (€92.7 billion) annually in revenue for the U.S. government.
Fitch Ratings in its latest report on Monday noted that the 25% tariffs on auto imports to the U.S. would lead to higher prices and reduced demand. The agency expects automakers to increase prices “across the board,” although it acknowledged that the impact of Trump’s trade policies will vary for each brand and model.
For Aston Martin, the challenge is clear: navigate geopolitical headwinds, restructure internally, and reignite global demand—all while holding onto its brand legacy in an evolving auto industry.
Aston Martin at a Glance
Year founded: 1913 Headquarters: Gaydon, Warwickshire, England, UK Employees: 2,662 Revenue: £1,583.9 million (2024) Operating income: –£82.8 million Net income: –£323.5 million Traded as: LSE: AML (FTSE 250 component)
