UK: Aston Martin says profitability to improve this year after tough 2022

Aston Martin, a London-listed luxury carmaker, said it expects profitability to improve this year and to turn free cash flow positive in the second half as it begins deliveries of its next-generation sports cars in the third quarter.

The company has forecasted wholesale volumes of about 7,000 units for 2023, slightly below average market expectations of 7,134, but its outlook for an adjusted core profit margin of about 20% came in ahead of analysts’ average view.

Shares in the company jumped 7% to their highest level since July last year.

Aston Martin, whose models were favored by fictional British spy James Bond, has struggled with supply chain issues and higher costs. Last year, it brought on former Ferrari NV boss Amedeo Felisa as its new CEO in a bid to emulate the Italian carmaker’s success.

The company is seeking to become sustainably free cash flow positive from 2024, helped by a capital raising last year, through which Saudi Arabia’s Public Investment Fund (PIF) became its second-largest shareholder.