Aston Martin is selling its F1 team naming rights and cutting hundreds of jobs as the carmaker scrambles for cash
Aston Martin Lagonda, the storied British luxury automaker, is offloading the naming rights to its Formula 1 team for £50 million, while slashing up to 20% of its workforce, in a desperate bid to shore up its finances amid mounting losses and a ‘highly challenging trading environment’.
The moves come as the company released its preliminary full-year results for 2025 on Wednesday (25 February), painting a grim picture of declining sales, widening deficits, and escalating debt that have plagued the brand despite its high-profile motorsport ties and ultra-luxury lineup.
Naming rights deal
The deal involves transferring the perpetual rights to use the Aston Martin name in Formula 1, including as part of the team name Aston Martin F1 Team and on chassis, to AMR GP Holdings, the entity operating the F1 squad.
The transaction, valued at £50 million in cash, is set to close in the first quarter of 2026, pending shareholder approval due to its related-party nature. Chairman Lawrence Stroll indirectly controls AMR GP, making this another instance of internal support for the struggling carmaker.
While the F1 team already held rights to the name through a sponsorship agreement until 2055, the new arrangement grants them in perpetuity. In effect, the £50 million payment represents a fresh cash injection into the struggling automaker from Stroll-controlled interests, following similar manoeuvres in recent years.
Previously, the F1 team held naming rights through a sponsorship agreement extending until at least 2055. This new perpetual arrangement not only injects much-needed cash into Aston Martin’s coffers but also secures long-term brand stability for the racing operation, insulating it from potential upheavals on the road-car side.
For Aston Martin, the payment represents a critical boost to its year-end liquidity, which stood at £250 million as of 31 December 2025, flat from the third quarter but down sharply from £360 million at the start of the year.
Up to 560 positions at risk
As part of broader organisational changes, Aston Martin has launched a global consultation process to reduce its workforce by up to 20%, impacting as many as 560 employees from its approximately 2,800-strong global headcount.
The restructuring is projected to deliver annualized savings of around £40 million in operating expenses and capital expenditures, with most benefits kicking in during 2026.
However, it comes with upfront costs. The company estimates £15 million in transformation expenses and has already booked a £18.7 million provision for incurred and anticipated restructuring charges as of year-end 2025.
These layoffs are embedded in a six-pillar transformation program focusing on market demand, product creation, culture and change, quality, operations, and cost optimisation.
CEO Adrian Hallmark said the measures are essential for driving efficiencies, margin expansion, and cash flow, emphasising progress despite external headwinds.
Analysts see the cuts as a necessary but painful step, though they raise questions about morale and innovation at a company already grappling with talent retention in a competitive luxury auto sector.
What the financials say
Today’s preliminary results for the fiscal year ended 31 December 2025, underscore the depth of Aston Martin’s woes, with nearly every key metric deteriorating amid weak global demand and external pressures.
- Revenue and Volumes: Revenue plunged 21% to £1,258 million from £1,584 million in 2024, driven by a 10% drop in wholesale volumes to 5,448 vehicles (down from 6,030). The decline was exacerbated by fewer deliveries of high-margin “Specials” models and a deliberate strategy to balance production with softening demand in core markets.
- Profitability Metrics: Gross profit tumbled 37% to £370 million, with the gross margin contracting to 29.4% from 36.9%. This was hit by an estimated £65 million in additional costs from U.S. and China tariffs, warranty provisions, dealer support, and quality investments. Adjusted EBIT widened to a loss of £189.2 million (from £82.8 million), while the operating loss ballooned to £259.2 million (from £99.5 million). The adjusted operating margin sank to -15.0% from -5.2%, and adjusted EBITDA halved to £108.1 million with an 8.6% margin (down from 17.1%).
- Losses and Earnings: Pre-tax losses grew 26% to £363.9 million (from £289.1 million), with adjusted pre-tax losses at £298.1 million. Adjusted loss per ordinary share worsened to -43.5 pence from -34.8 pence.
- Cash Flow and Balance Sheet: Free cash flow showed an outflow of £410 million (slightly worse than £392 million in 2024), though the fourth quarter managed a modest £5 million inflow thanks to better collections. Net debt surged 19% to £1,380.3 million, pushing the adjusted net leverage ratio to an alarming 12.8x from 4.3x—highlighting the company’s growing indebtedness relative to its shrinking EBITDA. Cash and available facilities ended the year at £250 million, underscoring precarious liquidity.
- Pricing Dynamics: While core average selling price (ASP) rose 5% to £185,000, reflecting new model derivatives, the total ASP fell 15% to £209,000 due to the reduced mix of premium Specials.
The results triggered another profit warning, the latest in a series since late 2024, with 2025’s adjusted operating loss exceeding prior market expectations.
Shares dropped more than 4% in early trading, reflecting investor skepticism about the company’s turnaround prospects.
