Aston Martin Shareholders Back Turnaround as Job Cuts Bite

Aston Martin shareholders approve all 27 AGM resolutions, supporting 600 job cuts and a strategic shift to high-margin models, as net debt stands at £1.46 billion.

Aston Martin’s shareholders have thrown their weight behind management’s restructuring push, approving all 27 resolutions at the company’s annual general meeting. The overwhelming mandate arrives as the luxury carmaker simultaneously presses ahead with 600 job cuts — roughly a fifth of its workforce — to slash costs and tackle a debt pile that continues to weigh on the balance sheet.

The vote of confidence was resounding. The 2025 annual report sailed through with 99.96 percent approval, while investors greenlit a new share buyback program and authorized the issuance of up to £33.4 million in new equity. That authorization remains valid until the 2027 AGM, giving the board a long runway to execute its transformation.

The operational picture is showing early signs of improvement. Aston Martin trimmed its first-quarter operating loss to £8.9 million, helped by deliveries of 102 units of the Valhalla supercar. The model, priced at £850,000 per unit with 500 planned for production, is central to the company’s strategy of shifting toward higher-margin vehicles. Gross margins climbed to 35 percent as a result.

Yet the broader financial strain remains acute. Net debt stands at £1.46 billion, against liquidity of roughly £230 million. To shore up the cash position, major shareholder Lawrence Stroll has stepped in with a £50 million bridge loan via an investment vehicle. The adjusted pre-tax loss narrowed to £56.9 million in the first quarter, compared with £64.5 million a year earlier.

CEO Adrian Hallmark is tackling the cost base head-on. The planned reduction of 600 jobs — equivalent to about one-fifth of the workforce — is designed to address operational weaknesses and volatile demand. First-quarter sales totaled 939 vehicles, with weakness in the British home market offset by gains in the Americas.

Investors took the news in stride. Shares climbed more than 8 percent on Wednesday to €0.52, recovering from the year’s low of €0.42. Still, the stock remains nearly 29 percent in the red since January. Analysts rate the shares a consensus “hold,” with attention now fixed on free cash flow, which management expects to improve markedly by year-end.

Beyond the core business, Aston Martin is exploring new revenue streams. A feasibility study is underway to determine whether customers will be able to purchase vehicles using crypto assets — a potential addition for models like the new DB12 S.

On the track, the Formula 1 team faces a tougher road. Technical upgrades won’t arrive until after the summer break, leaving driver Fernando Alonso bracing for a difficult stretch. The sporting side, however, takes a back seat to the financial turnaround now underway. With the AGM vote locking in strategic direction through 2027, management has both the mandate and the financial flexibility to push ahead with its transformation into a high-margin luxury powerhouse.