Shares of British luxury vehicle manufacturer Aston Martin (LSE: AML) fell sharply on Monday after the firm slashed its outlook for the second time this year.
Notably, the stock plunged as much as 11% at one point. As of press time, AML shares were trading at £76.05, down over 6% for the day. Year-to-date, the stock has dropped roughly 30%.
The decline followed the company’s announcement that it no longer expects to meet its full-year volume guidance, projecting a mid-to-high single-digit decline in total 2025 wholesale volumes compared to last year’s 6,030 units.
Third-quarter deliveries also fell 13% year-over-year to 1,430 vehicles, missing prior expectations of flat performance.
Negative cash flow expectations
At the same time, Aston Martin scrapped plans for positive free cash flow in the second half of the year and began an immediate review of future costs and capital expenditure.
The company now expects adjusted EBIT to fall below the low end of market forecasts, with analysts estimating losses of around £110 million ($148 million).
According to management, the downgrade reflects a challenging macroeconomic environment and uncertainties tied to new U.S. tariffs, China’s ultra-luxury car tax changes, and ongoing supply chain risks.
Despite hopes for a stronger fourth quarter, supported by new model launches and the first 150 deliveries of its Valhalla supercar, investors reacted swiftly to the company’s grim near-term outlook.
Featured image via Shutterstock
