Aston Martin Lagonda (LSE:AML) on Wednesday revealed a sharp improvement in performance, thanks to its new Valhalla super-car.
The luxury sports car maker reported revenue up 38% to £1,017.3m for the nine months to 30 September, with gross profit climbing 71% to £358m as gross margin improved to 35.2% from 28.3% a year earlier.
Aston Martin said it delivered around 350 Valhalla Coupe as part of within total wholesale volumes of 3,762 vehicles, up 12% year-on-year, alongside benefits from its ongoing transformation programme.
In the third quarter alone, revenue rose 36% to £388.7m and gross profit jumped 76% to £145.5m, taking quarterly gross margin to 37.4% from 29.0% a year earlier, even as core wholesale volumes (excluding Specials) fell 9% to 1,304 units, which the company attributed to a more balanced production cadence against strong prior-year comparatives.
Free cash outflow for the nine months narrowed to £225.2m from £415m a year earlier, with the third-quarter outflow down to £27.6m from £94m, as higher adjusted EBITDA and lower capital expenditure offset ongoing investment.
Net debt rose to £1,572.3m at 30 September from £1,380.3m at the end of December, reflecting a new £450m senior secured term loan completed in July, though the adjusted net leverage ratio improved to 6.7x from 12.8x on higher trailing-twelve-month adjusted EBITDA.
On a reported basis, operating loss narrowed to £82.9m from £190.8m a year earlier, helped by the higher gross profit and an adjusting gain on the sale of Aston Martin F1 naming rights to AMR GP, while loss before tax narrowed to £231.3m from £252.7m.
Adjusted net financing costs rose to £149m from £65m, mainly due to an £11m loss on non-cash US dollar debt revaluation, against a £58m gain in the prior year, plus additional interest on the new term loan.
"Our year-to-date 2026 performance demonstrates tangible and consistent progress towards the financial transformation of Aston Martin," said chief executive Adrian Hallmark, adding that gross margin had lifted to 35% while free cash outflow almost halved as the company moves towards its goal of cash generation.
Hallmark also pointed to a strengthened product line-up, citing the new DBX GT, the Valen launched in the third quarter as what the company describes as the world's most powerful front-engined production car, and the Valhalla Spider, unveiled alongside these results, with deliveries of the Spider set to begin in the third quarter of 2027.
The £550m debt financing completed in July, comprising the £450m senior secured term loan and a £100m delayed draw facility with lead lenders managed by HPS Investment Partners, priced at 6.75% over SONIA and maturing in July 2031, left the group with total liquidity of approximately £320m at 30 September.
Read more about Aston Martin Lagonda Global
That refinancing follows a July announcement that Aston Martin was in discussions with potential financing providers as the board reviewed the group's capital structure and strategic alternatives.
Full-year guidance remains unchanged: total wholesale volumes are expected to be similar to 2025's 5,448 units, including around 500 Valhalla Coupe deliveries, gross margin is expected to improve into the high-30s percent, and adjusted EBIT margin is expected to improve materially toward breakeven.
Net cash interest is guided at approximately £160m for the year, while capital investment is expected to fall to approximately £300m as part of a reduced roughly £1.7bn capital expenditure programme for 2026 to 2030, down from a previously guided £2bn.
The company said it remains mindful of the broader macroeconomic and geopolitical backdrop, including the unpredictable threat of additional US tariffs, changes to China's ultra-luxury car taxes and the conflict in the Middle East, though it said the direct impact on the business has so far been limited.