Aston Martin Lagonda (LSE:AML) reported a 68% jump in first-half gross profit to £213m for the six months ended 30 June, with gross margin improving to 34% from 28% a year earlier.
The Warwickshire-based luxury carmaker's improvement was driven by more than 220 deliveries of its Valhalla hypercar, alongside a more balanced production cadence across its core model range.
Revenue rose 38% to £629m, up from £454m, as total wholesale volumes increased 21% to over 2,300 vehicles, in line with full-year guidance for volumes similar to 2025 levels including around 500 Valhalla deliveries.
Second-quarter free cash outflow narrowed sharply to £81m from £201m a year earlier, and the company said it approached free cash flow breakeven once a half-yearly interest payment is excluded.
Net debt rose to £1,545m from £1,380m at the end of December, though the adjusted net leverage ratio improved to 8.9 times from 12.8 times. A new £550m debt financing completed in July, comprising a £450m senior secured term loan and a £100m delayed draw facility, lifted pro forma liquidity to approximately £340m at the half-year point.
"H1 2026 demonstrates that we are on track to deliver material financial improvement this year compared with 2025", said chief executive Adrian Hallmark, adding the company expects "an even stronger second half" as transformation benefits and Specials deliveries continue.
Full-year guidance remains unchanged, targeting an adjusted EBITDA margin in the mid-teens percent and gross margin in the high-30s percent, though net financing costs guidance was nudged up to approximately £160m from £150m following the refinancing.
News Intelligence what this means for the company
Aston Martin's H1 2026 results show material operational progress: gross margin expanded to 34% (from 28% a year prior) on the back of 220+ Valhalla hypercar deliveries, revenue rose 38% to £629m, and free cash outflow narrowed sharply to £81m in Q2 from £201m a year earlier. The company secured £550m in fresh debt financing in July, lifting pro forma liquidity to ~£340m and allowing it to hold full-year guidance for mid-teens adjusted EBITDA margin and high-30s gross margin—though the board's ongoing review of capital structure signals material uncertainty about near-term funding and liquidity, a constraint that persists despite the refinancing.
The results validate the Valhalla ramp and margin expansion thesis, with free cash outflow narrowing toward breakeven (excluding interest). However, net debt rose to £1,545m and adjusted net leverage remains elevated at 8.9x; the refinancing buys runway but does not resolve the underlying cash burn or leverage profile, and the company's own disclosure of funding uncertainty tempers the operational momentum.
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