Image source: Getty Images
This season’s performance of the Formula 1 team that competes under the Aston Martin (LSE:AML) brand could be a metaphor for the shares of the luxury sports car manufacturer.
On the face of it, it has all the ingredients to win. A two-time world champion as one of its drivers, an exclusive partnership with Honda to supply engines, and Adrian Newey — possibly the greatest car designer in the sport’s history — as the team’s boss.
Yet after 17 races, it’s second-last in the constructors championship (with just seven points) and its two drivers are placed 17th and 21st out of 23.
Although the company sold its stake in the team in 2025, its success (or lack thereof) must surely impact brand perception?
It’s a similar story with Aston Martin’s share price. Despite making some beautiful sports cars, having a globally-recognised prestigious brand helped by James Bond, and a pedigree dating back to 1913, the company’s shares have gone nowhere since the middle of June.
Given that the group’s share price has fallen 99% since its IPO in October 2018, this period of relative stability is probably welcomed by shareholders.
But could a recovery be on the cards?
A challenging backdrop
At first glance, it’s difficult to see how. Just look at the list of potential issues that it’s currently facing:
- A soft luxury goods market.
- Increased ultra-luxury car tax rates in China.
- Tariffs and import quotas into the US.
- A requirement to electrify its fleet.
- Large borrowings.
- Supply-chain inflation that’s squeezing its margin.
Yet despite the doom and gloom, in some respects, its first-half results were encouraging.
Sales volumes, revenue, and gross profit were 21%, 38%, and 68% up, respectively, on the same period last year. Importantly, its gross profit margin recovered from 27.9% to 33.8%.
Much of this improvement was attributable to the delivery of 220 of its Valhalla mid-engine plug-in hybrid supercars during the period. Given their near-£1m price tag, this is no mean feat.
The group’s due to give its next update on 28 October. It will be interesting to see if these positive trends continue and kick start the group’s share price. It wasn’t that long ago — in February, in fact — that Aston Martin’s stock was changing hands for 60p or more. Today (16 October), I could buy one share for approximately 35p.
The group expects to continue delivering year-on-year improved financial performance over the short-midterm, with a focus on margin expansion and cash flow generation, benefiting from the ongoing transformation programme initiatives and an enhanced product mix from the future portfolio of core and Special models.
Company press release
A licence to make a killing?
But we’ve been here before. Aston Martin has a long history of over-promising and under-delivering.
Indeed, during the first half of 2026, its pre-tax loss deteriorated by 10% to £154.2m and its net debt increased by 12% to £1.54bn. It has a long way to go before its in the black. I hope I’m wrong – I remain a fan of the British icon – but I can’t see an easy path towards profitability.
Personally, I think there are too many obstacles facing the company to consider investing at the moment. Ultimately, I suspect it will end up being taken private. Instead, there’s a better buying opportunity that’s recently caught my attention.
What growth stock do we like better than Aston Martin Lagonda Global Plc right now?
One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential growth.
And the best bit is that you can see if for yourself, right now, absolutely free of charge!
No jargon. No hard sell. Just a clear look at a growth share idea we think is worth your time.
James Beard does not hold any positions in the companies mentioned.
This story originally appeared on Motley Fool
