Aston Martin Revenue Tops Estimates as SUV Exceeds Half of Sales
Aston Martin Lagonda Global Holdings Plc reported better-than-expected sales for the first quarter as the British luxury-car maker gets a boost from its first-ever SUV.
Revenue soared 153% to 244.4 million pounds ($340 million), beating analysts’ average estimate for 196.7 million pounds. The DBX sport utility vehicle accounted for 55% of the vehicles sold to dealers in the first three months of the year.
Aston Martin racked up significant losses after going public in 2018 and has spent the last year restructuring itself after a rescue by Canadian billionaire Lawrence Stroll. The 61-year-old fashion mogul has injected much-needed cash and forged closer ties with Daimler AG’s Mercedes-Benz to ensure the company survives tumultuous times for the auto industry.
The carmaker has said it plans to expand its portfolio of SUVs as well as introduce hybrid and electric powertrains. In October, Aston Martin reached an agreement for Mercedes to supply hybrid and electric components to the U.K. company, building on an engine tie-up that started in 2013. Mercedes will boost its stake in the carmaker from 2.6% to as much as 20% over three years.
Deliveries of the 158,000-pound DBX began midway through last year. Average vehicle selling prices improved significantly in the first quarter, driven by strong demand from China and de-stocking of older models. Aston Martin will begin shipping the new Valkyrie hypercar in the second half of the year.