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Investing.com -- Aston Martin (LON:AML) has secured a financial boost of more than £125 million as it looks to strengthen its balance sheet amid ongoing losses and the impact of new U.S. tariffs, sending its shares up by over 8% on Monday.
The British luxury carmaker announced a £52.5 million investment from the Yew Tree Consortium, led by executive chairman Lawrence Stroll, alongside a planned sale of its stake in the Aston Martin Aramco (TADAWUL:2222) Formula One Team, which is expected to generate a premium to its £74 million book value.
The move comes as Aston Martin works to secure long-term stability after years of financial turbulence and positions itself for future growth.
“I am pleased to clearly demonstrate my unwavering support and commitment to Aston Martin,” Stroll said in a stock exchange filing on Monday.
“Since 2020, my Yew Tree Consortium partners and I have invested around £600 million into the company. This proposed investment further underscores my conviction in this extraordinary brand,” he added.
The fresh capital is expected to ease liquidity concerns as the company navigates ongoing financial challenges.
The company confirmed that its first-quarter trading for 2025 is in line with expectations, though full-year volume growth guidance was revised slightly due to the impact of new U.S. tariffs on luxury vehicles.
The tariffs, recently announced by the U.S. President Donald Trump as part of a broader protectionist trade policy, have raised concerns for automakers exporting to the U.S.
Aston Martin also confirmed that the proceeds from the investment and sale will be used to support future product innovation and business transformation efforts.
CEO Adrian Hallmark emphasized the importance of the funding for the company’s long-term goals.
“This renewed support from Lawrence and his Yew Tree Consortium partners underlines their immense confidence in our team and the future of the company,” he said.
“By strengthening the balance sheet, this investment provides additional headroom to support our future product innovation and business transformation activities,” he added.
Stroll’s consortium will increase its stake in Aston Martin to around 33% following the deal, with the potential to reach up to 35%.
The company is seeking shareholder approval to waive a requirement for a mandatory offer to buy out other investors due to the increased stake.
Aston Martin has struggled with financial instability in recent years, facing mounting losses and supply chain challenges.
However, the company has been repositioning itself in the ultra-luxury segment and rolling out new models.
It remains confident about hitting its long-term targets, including profitability and free cash flow generation in the second half of 2025.