Aarin Chiekrie, equity analyst at Hargreaves Lansdown, argues Aston Martin’s financial performance may be turning a corner after first‑quarter revenue rose 16% to £270.4mn, underlying operating losses improved 12% to £56.9mn and the group kept full‑year guidance while forecasting materially improved free cash outflows.
Chiekrie points to a shift in the sales mix towards higher‑priced specials such as the Valhalla, which lifted average selling prices and gross margins, but she notes the luxury sports‑car maker has continued to generate free cash outflows and that net debt rose as inventories were built to support a planned production ramp‑up.
She also flags external risks that could unsettle the recovery, noting the Middle East conflict has not yet hit the first quarter but that sustained higher oil could squeeze supply chains and warning the US tariff regime, 10% for the first 25,000 UK cars exported each quarter, rising to 27.5% beyond that, is a persistent headwind given about a third of revenue comes from the US.
“The group’s confident that this will help free cash outflows turn a corner and improve materially by the end of the year as more of its high‑priced specials roll off the production line,” Chiekrie added.
