Latest news with #AdrianHallmark
Yahoo
a day ago
- Automotive
- Yahoo
Wall Street Just Put a $3.2 Billion Price Tag on This Underperforming F1 Team--Here's Why
Investor demand for Formula 1 assets continues to heat up. Aston Martin Lagonda (AMGDF) has signed a binding letter of intent to sell a minority stake in its Formula One team at a valuation of around 2.4 billion ($3.2 billion). The buyer hasn't been named yet, and the deal is still in processbut CEO Adrian Hallmark confirmed the numbers. For a team currently sitting eighth out of ten in the Constructors' Championship, the pricing speaks volumes about how investors view the long-term commercial upside of the sport. Warning! GuruFocus has detected 4 Warning Signs with AMGDF. The valuation marks a sharp step-up from previous deals. In 2023, Canadian billionaire Lawrence Stroll sold a stake in the team to Arctos Partners at a 1 billion valuation. A follow-up round led by HPS Investment Partners and Accel pushed that figure to 1.8 billion. This latest deal could mark a new high watermark. Formula 1's surging popularitythanks in part to Netflix's Drive to Surviveis opening the floodgates for capital. And even for a team not yet winning titles, the narrative is compelling enough to draw serious money. Aston Martin isn't just banking on branding. It's betting on a turnaround. The team has signed top engineering talent like Adrian Newey and is eyeing 2026's new power unit regulations as a chance to reset the competitive order. For now, it's still trailing the front-runners, but the direction of travel matters. Investors appear willing to look past short-term rankings to capture what could be a structural growth story, where momentum, vision, and a long game often outweigh near-term performance. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Automotive
- Yahoo
Aston Martin pares outlook as US tariffs weigh
British luxury carmaker Aston Martin Lagonda on Wednesday revised down its full-year outlook as US President Donald Trump's tariffs weigh on operations. The group narrowed its losses after tax to £148.8 million ($198.8 million) in the first half of the year, from £207.8 million in the period a year earlier. However, it expects full-year adjusted underlying earnings to improve only "towards breakeven", having previously forecast growth. Revenues dropped 25 percent to £454.4 million in the first six months of the year. Shares in Aston Martin slid more than five percent on London's second-tier FTSE 250. Automakers have been among the companies hit hardest by Trump's tariffs onslaught as he tries to bring auto production back to the United States. Aston Martin limited imports to the United States in April and May while awaiting a trade agreement between London and Washington. It resumed shipments in June after the deal slashed tariffs on UK car exports to 10 percent from 27.5 percent, on a limit of 100,000 vehicles annually. Aston Martin's chief executive Adrian Hallmark on Wednesday urged the UK government "to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10 percent rate". The company added that it expected to sell its minority stake in the Aston Martin Aramco Formula One team for £110 million in the third quarter. "Aston Martin has spent decades proving that it is easier to make cars than money," said Steve Clayton, head of equity funds at Hargreaves Lansdown. He added that "the group's operational performance should benefit from their ongoing restructuring efforts". Aston Martin said in February that it would cut about five percent of its workforce as weak Chinese demand contributed to widened losses in 2024. ajb/bcp/js Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
France 24
2 days ago
- Automotive
- France 24
Aston Martin pares outlook as US tariffs weigh
The group narrowed its losses after tax to £148.8 million ($198.8 million) in the first half of the year, from £207.8 million in the period a year earlier. However, it expects full-year adjusted underlying earnings to improve only "towards breakeven", having previously forecast growth. Revenues dropped 25 percent to £454.4 million in the first six months of the year. Shares in Aston Martin slid more than five percent on London's second-tier FTSE 250. Automakers have been among the companies hit hardest by Trump's tariffs onslaught as he tries to bring auto production back to the United States. Aston Martin limited imports to the United States in April and May while awaiting a trade agreement between London and Washington. It resumed shipments in June after the deal slashed tariffs on UK car exports to 10 percent from 27.5 percent, on a limit of 100,000 vehicles annually. Aston Martin's chief executive Adrian Hallmark on Wednesday urged the UK government "to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10 percent rate". The company added that it expected to sell its minority stake in the Aston Martin Aramco Formula One team for £110 million in the third quarter. "Aston Martin has spent decades proving that it is easier to make cars than money," said Steve Clayton, head of equity funds at Hargreaves Lansdown. He added that "the group's operational performance should benefit from their ongoing restructuring efforts". Aston Martin said in February that it would cut about five percent of its workforce as weak Chinese demand contributed to widened losses in 2024.
Reuters
2 days ago
- Automotive
- Reuters
Aston Martin warns on profit as US tariffs, stagnant Chinese demand bite
July 30 (Reuters) - British luxury carmaker Aston Martin (AML.L), opens new tab issued a profit warning on Wednesday citing a hit from U.S. import tariffsand prolonged suppressed Asian demand linked to China's economic slowdown, sending the company's shares down as much as 7%. It forecast adjusted operating profit to roughly break even this year, compared with its earlier expectation of positive earnings, as it also expects a hit from a stronger pound and investments in software. U.S. President Donald Trump's tariffs had been "extremely disruptive" in the second quarter, Aston Martin executives said during a call with journalists. A trade deal Britain agreed with Washington last month establishes a quota-based U.S. tariff system for imported British cars. The first-come-first-served system allows 25,000 UK-made cars per quarter to qualify for a 10% tariff with additional imports facing a 27.5% levy. The company said the quota mechanism had complicated financial planning for 2025 and possibly into 2026. "We continue to actively engage the UK government to urge them to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10% rate on an ongoing basis," CEO Adrian Hallmark said. Aston Martin resumed auto shipments to the U.S. in June after earlier curbs aimed at clearing inventories and has incrementally raised prices in response to the tariffs, it said. U.S. tariffs have pummelled global automakers, forcing companies like GM (GM.N), opens new tab, Volkswagen ( opens new tab, Hyundai ( opens new tab, Porsche (P911_p.DE), opens new tab, and Mercedes-Benz ( opens new tab to book billions of dollars of losses, issue profit warnings, slash forecasts, and raise prices. Aston Martin also warned that demand in the Asia-Pacific region, which accounts for more than a quarter of its revenue, would remain suppressed in the near term. Sales in a "very stagnant" Chinese market, where a slowing economy is leading consumers to tighten their belts, were broadly flat in the first half of the year. "The guidance reduction is understandable in the face of current FX headwinds, investments in business and lower volumes until Q4," Bernstein analysts said in a note. Shares of the brand, which is associated with fictional secret agent James Bond, pared some earlier losses to trade 3.6% lower at 75.9 pence by 0951 GMT.
The Independent
2 days ago
- Automotive
- The Independent
Aston Martin cuts earnings outlook amid US tariff hit
Luxury carmaker Aston Martin Lagonda has cut its full-year outlook after revealing widened first half losses as trade tariff woes took their toll. The group saw shares fall over 3% in morning trading on Wednesday after saying it now expects full-year underlying earnings to 'improve towards breakeven', having previously guided for profit growth. Aston's stock has lost half its value in the past year over concerns about the impact of US President Donald Trump's tariff war. The profit alert comes after Aston Martin revealed the impact of a difficult first half, with operating losses widening to £134.7 million for the six months to June 30 from £106.1 million a year earlier. Revenues tumbled 34% to £220.5 million in the second quarter and were down 25% overall in the first half. The group limited shipments to the US in the second quarter after Mr Trump imposed a 25% tariff on car imports in April. It then resumed shipments in June as the UK reached an agreement with the US for a lower 10% tariff on UK-made cars for the first 100,000 vehicles per manufacturer. Anything above that threshold will be hit with a 27.5% duty. Adrian Hallmark, chief executive of Aston Martin, said: 'The evolving and disruptive US tariff situation was unhelpful to our operations in the second quarter.' He added: 'We continue to actively engage the UK Government to urge them to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10% rate on an ongoing basis.' The tariff disruption saw the firm's wholesale sales by volume fall 8% in the second quarter to 972. The results come amid a significant overhaul at Aston Martin as it seeks to shore up its long-term finances. In February, the group said it plans to sell its minority stake in the Aston Martin Aramco Formula One team and confirmed that Lawrence Stroll's Yew Tree Consortium would invest a further £52.5 million to grow its stake in the business. Aston Martin said the deal to sell a stake in the Formula One racing team was nearing completion and would be worth around £110 million.
