From Yahoo Finance: 2025-06-02 09:56:00

Fitch Ratings maintains Aston Martin’s ‘B-‘ issuer default rating with a Negative Outlook, citing liquidity risk and weak free cash flow in 2024. Despite recent capital injection and relief from US tariffs, financial pressure persists.

Executive chairman Lawrence Stroll contemplates taking Aston Martin private, calling the market valuation a “joke.” Yew Tree consortium’s stake will rise to 33% post £52.5 million capital raise.

Fitch highlights Aston Martin’s struggle to improve financial performance, citing a larger-than-expected free cash flow deficit in 2024. Despite a £125 million capital boost, achieving profitability remains challenging.

Aston Martin aims to be EBIT-profitable in 2025 but faces challenges like falling car sales, pre-tax losses, and supply chain constraints. US exposure adds complexity, with 37% of revenue from the US in 2024.

New UK-US trade agreement reduces tariffs on UK car imports to 10%, easing concerns for Aston Martin. Accelerated US-bound shipments in Q1 2025 aim to offset near-term tariff effects.

Aston Martin resets strategy under CEO Adrian Hallmark to prioritize profit over volume with high-margin models. Fitch warns of profitability dependence on effective execution and shareholder support amidst external risks.

Fitch’s warning on Aston Martin’s rating headroom reflects the company’s need for effective execution and resilience to external risks. Profitability relies on support, demand, and timely new launches.



Read more at Yahoo Finance: Aston Martin faces pressure from Fitch