Jaguar Land Rover reports major earnings impact from cyberattack

Core Insights - Jaguar Land Rover (JLR) experienced a 24% decline in revenue during the fiscal second quarter, primarily due to a cyberattack that disrupted automotive production for several weeks [1][2] - The cyberattack resulted in a significant impact on JLR's supply chain, prompting the company to expedite a $659 million financing solution to support partner companies [2] - The attack also led to a loss of $638 million before taxes and exceptional items, with $313 million attributed to the cyberattack and a voluntary cost-cutting program [5] Financial Performance - Fiscal second-quarter revenue fell to $6.45 billion (4.9 billion pounds) compared to the same period last year [1] - The company reported a total loss of $735 million (559 million pounds) for the quarter after taxes [5] Operational Impact - The cyberattack occurred during a critical period, affecting the final month of the fiscal quarter and coinciding with the launch of the 2026 model year for Range Rover [3] - Wholesale units dropped by 24% year-over-year, despite meeting expectations in July and August [3] Broader Economic Impact - The cyberattack cost the British economy approximately $2.5 billion and affected around 5,000 organizations [4] - U.K. officials supported a major loan package to stabilize the impact on JLR's supply chain [4] Industry Implications - The incident underscores the vulnerabilities in supply chains across Europe, highlighting the need for manufacturers to better monitor third-party risks and manage information sharing [6] - JLR was reportedly targeted by a social engineering attack linked to the same threat group responsible for a previous attack on Marks & Spencer [7]