Aston Martin Lagonda Global Holdings plc

Good day and welcome to the Aston Martin Lagonda Q3 2026 results. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. For operator assistance throughout the call, please press star 0. and finally I would like to advise all participants that this call is being recorded. Thank you. I'd now like to welcome Doug Lafferty CFO to begin the conference. Doug over to you.

Thank you, good morning everyone. Thanks for joining us as usual for the Q3 call. Realise it's a busy morning for everyone so I'll keep the introductory comments brief before we open up to the Q&A. Overall Q3 2026 year-to-date performance demonstrates continued progress against our strategic and financial objectives delivered improved profitability, significantly reduced free cash outflow, strengthened liquidity, and remain on track to deliver our four year guidance and outlet. In more detail, core retail demand continues to outpace wholesale volumes by over 20% year to date, demonstrating our ongoing focus on balancing production with underlying customer demand whilst maintaining a stable core order book. Year to date revenue increased 38% compared with the prior year period, supported primarily by the Valhalla Coupe deliveries which has also driven a 25% improvement in total ASP. Alongside this we've been working hard on executing the transformational efficiencies related to our derivative strategy and stock optimization with a declining trend on dealer support also reflected in core and overall ASP. We continue to expect to see core ASP growth of low to mid single digit percentage on a year over year basis. The launch of the DBX GT expands our SUV range and broadens customer choice within the segment. We've also continued to develop our highly successful specials program through the launch of Valen in August, as well as today's unveil of the Valhalla Spider. Building on the success of the Coupe, which is now nearly sold out, Valhalla Spider is an exclusive proposition with a strong order book already taking deliveries into Q4 next year. Together, these programs demonstrate the strength of the brand and our ability to continue creating highly desirable, ultra-luxury products across multiple segments that, when combined, give us a strong platform for the future. This all translates to gross margin improvement, which is one of the clearest indicators of the progress we are making during 2026. Driven by the contribution from Valhalla Coupe, together with the ongoing benefits of the transformation program, the year-to-date gross margin has materially improved to 35%. Compared to the prior year period, adjusted EBITDA increased by £125 million year to date, reflecting the stronger gross profit performance and growing operating leverage within the business. Adjusted EBIT also improved 22% year to date, despite a 48% increase in DNA linked to the Valhalla Coupe deliveries. We expect to see continued positive momentum across both adjusted EBITDA and adjusted EBIT in Q4. A key focus throughout 2026 has been on delivering a material improvement in free cash outflow, and year to date this has nearly halved when compared to the same period in 2025. This improvement mostly reflects the stronger operating performance together with lower capital expenditure. Looking ahead to the end of the year, and as I said back in July at the half year results, I wouldn't expect our full year free cash outflow to be a million miles away from where we were at the end of H1.

As a result of July's financing, we entered the final quarter of the year with a total liquidity position of around £320 million.