Aston Martin plans to quadruple profit by 2028 but shares fall as luxury car maker keeps quiet on sales targets
- Aston Martin targets £2.5bn in revenues and £800m EBITDA by 2028
- On track to become free cash flow positive from 2024
- But firm did not mention its wholesale volumes targets
Aston Martin Lagonda has told shareholders it plans to quadruple profits and nearly double revenues within five years as its electric vehicles push gathers pace.
The company, which yesterday struck a deal with US firm Lucid Motors to develop electric cars, is targeting revenues of £2.5billion by 2028, compared to the £1.4billion it achieved last year.
It is also eying adjusted profit before interest, tax depreciation and amortisation (EBITDA) of £800million, more than four times higher than the £190.2million it made in 2022.
![Targets: Aston Martin is aiming to quadruple profit by 2028 (Pictured: Aston Martin's limited-edition DBS 770 Ultimate, whose 499 examples are all sold out)](https://i.dailymail.co.uk/1s/2023/06/27/14/72582757-12238671-image-m-2_1687874087913.jpg)
Targets: Aston Martin is aiming to quadruple profit by 2028 (Pictured: Aston Martin's limited-edition DBS 770 Ultimate, whose 499 examples are all sold out)
Over the medium-term, the maker of James Bond cars stuck to its previous forecasts of £2billion in revenues and £500million adjusted profit by 2025.
'The company expects to substantially achieve these financial targets in 2024 and, with continued strong momentum, is likely to exceed them in 2025,' it told investors on Tuesday.
Aston Martin losses more than doubled to £495million last year after spending heavily on new models and supply chain problems.
But it said it is on track to further improve its balance sheet and become free cash flow positive from 2024.
It also expects to invest around £2billion over the next five years in the transition to electric vehicles and long-term growth.
Aston Martin is set to launch its first fully electric car in 2025, and a fully electrified GT/Sport and SUV range by 2030.
Chairman Lawrence Stroll said: 'I am extremely proud of the major industrial turnaround we have completed in the last three years, which has completely rebuilt this iconic company.'
Stroll also told the Financial Times that Aston Martin could 'one day' make 17,000 cars per year.
Last year, the company sold 6,400 cars, and predicted sales to rise to around 7,000 this year.
It had previously forecast annual wholesale volumes of around 10,000 units by 2025, but in March it said it would see 'significantly lower volumes' than previously expected.
In today's statement, it did not mention sales volumes - which analysts said was the reason for Aston Martin shares falling 10 per cent in afternoon trading.
'The dropping of an important figure such as a sales target is unlikely to be an accident by any means and that could play a part in spooking investors' confidence in a company whose track record of meeting the targets is weak at its best,' said AJ Bell investment director, Russ Mould.
Aston Martin shares fell more than 10 per cent to 325p, having surged yesterday after the company announced the deal with Lucid Motors.
However, they have risen by about 125 per cent so far this year.
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