Aston Martin shares skid 10% as luxury carmaker warns tariffs, weak demand will dent profit

Core Viewpoint - Aston Martin has warned of a significant annual loss exceeding 110 million pounds ($147.81 million) due to weaker demand in North America and Asia Pacific, compounded by the impact of US tariffs, leading to a 10% drop in shares [1][2][5]. Group 1: Financial Performance - The annual loss is a sharp deterioration from earlier forecasts, where the company expected to break even in adjusted operating profit [2][5]. - Aston Martin's shares have decreased nearly 30% in value over the past 12 months, with current trading at 73.1 pence [4]. - The company now anticipates a mid-to-high single-digit percentage decline in 2025 volumes and has revised its capital spending plans, indicating no positive free cash flow generation in the second half of this year [4][5]. Group 2: Market Challenges - The company is facing a challenging environment due to the US tariff quota system, changes in ultra-luxury car taxes in China, and potential supply pressures following a cyber incident at Jaguar Land Rover [3][8]. - Aston Martin delivered approximately 1,430 wholesale units in the third quarter, which is below the guidance of being similar to the previous year's 1,641 units [8]. Group 3: Product Development - Deliveries of the Valhalla hypercar are expected to start in the fourth quarter with around 150 units, delayed due to vehicle engineering and regulatory approval processes, but a smooth delivery profile is anticipated in 2026 [9].