Aston Martin to invest £2bn over the next five years

Aston Martin has revealed it will invest around £2bn over the next five years, as it looks to secure long-term growth and complete its transition to electrification.

The luxury car manufacturer has earmarked £1.8bn of capital expenditure as well as £200m in tech access fees to partners such as its £182m strategic supply agreement with Lucid Group, to create high performance electric vehicles. The deal means Lucid Group will become a 3.7% shareholder.

Aston Martin says it is likely to exceed its target £2bn of revenue and £500m adjusted EBITDA by 2045/25 and has set targets of £2.5bn of revenue for 2027/28 and an EBITDA of £800m.

Revenues for the first half of the year have increased by 25% to £677m, which Aston Martin says is due to higher volumes and strong pricing dynamics, as well as higher Aston Martin Valkyrie programme deliveries. It saw gross profit grow by 26% year-on-year to £236m.

It reported an operating loss of £93m, compared to £90m loss in the previous period. It says this was driven by a £36m increase in depreciation and amortisation charges, principally related to higher Aston Martin Valkyrie production and deliveries, as well as the launch of new products such as DBX707, V12 Vantage and DBS770 Ultimate.

Inflation has also added pressure on its figures as well as higher general costs.

Lawrence Stroll, Executive Chairman commented: “Although we may only be halfway through the year, 2023 has already proven to be a remarkable year in which Aston Martin has shone brighter than ever.

“In May we launched DB12, marking the start of our new generation of front engine sports cars that will further reposition Aston Martin as an ultra-luxury, high-performance brand, with timeless design combining with the latest technology and the most thrilling driving experience…

“At the end of June, we also provided a significant update on our electrification strategy and plans to create a singular, Aston Martin BEV platform, with world-class suppliers complementing our extraordinary in-house engineering and design teams.

“Our electrification journey will start with Valhalla, our first PHEV supercar, and we plan to expand our PHEV range into our core vehicles which will bridge the customer journey from ICE to full BEV”.