Jaguar Land Rover reports resilient Q2 FY25 performance
With 25% increase in H1 profits
Jaguar Land Rover (JLR) has registered a resilient performance for the second quarter (Q2) of FY25, marking its eighth consecutive profitable quarter despite temporary production challenges due to aluminium supply shortages.
The British company reported revenue of £6.5 billion for the quarter, a 6% decline compared to Q2 FY24. However, year-to-date revenue remained flat at £13.7 billion.
JLR’s profit before tax and exceptional items (PBT) for Q2 was £398 million, down 10% from last year. This dip reflects the impact of the aluminium supply constraint, which limited production and caused some vehicle quality control delays, with a temporary hold placed on 6,029 units for further inspection. Despite these obstacles, the company’s first-half profit rose by 25%, reaching £1.1 billion year-on-year.
Adrian Mardell, CEO of JLR, said: “Our teams responded brilliantly to the aluminium shortages, enabling us to deliver clients as many orders as possible. We continue progressing on our Reimagine strategy, which drives our transformation toward a sustainable and electrified future.”
For the full financial year, JLR maintains its guidance of approximately £30 billion in revenue, with an expected EBIT margin of at least 8.5% and a favourable net cash position.
Strong global demand
Regarding product performance, JLR’s flagship models continue to see strong global demand. The recently launched Defender Octa has already attracted over 2,900 orders, retailing at £145,000.
Meanwhile, the new Range Rover Electric has amassed a waiting list of over 48,000 customers, and the luxury SUV continues to drive interest globally. The company also celebrated the successful launch of high-end variants like the Range Rover Sport SV Edition Two and the Range Rover SV Ranthambore Edition, the latter of which sold out its limited run of 12 units in India for £455,000 each.
JLR is accelerating its transition to electrification. More than £250 million has already been invested at its Halewood manufacturing facility in preparation for the production of electric vehicles.
This investment forms part of a more significant £500 million commitment to electrify its manufacturing capabilities. The company’s joint venture with Chery to develop a new Freelander brand continues to progress.
Sustainability remains a crucial focus for JLR, with efforts underway to reduce carbon emissions at its Halewood plant. Installing renewable energy equipment will help remove an estimated 40,000 tonnes of CO2 annually. The company is also reusing £16 million worth of equipment from its Castle Bromwich site, reinforcing its commitment to circular economy principles.
JLR expects production and wholesale volumes to increase significantly in the second half of the year as the aluminium supply situation stabilises. The company’s financial position remains strong, with a cash balance of £3.4 billion and net debt reduced by £1.0 billion year-on-year.
As the automotive giant moves into the second half of FY25, it remains well-positioned to meet its full-year targets and continue executing its Reimagine strategy. This strategy aims to redefine the luxury automotive experience, focusing on electrification, sustainability, and technological innovation.Bottom of Form
Featured image: Range Rover Sport SV Edition Two. Credit: JLR
Last Updated on 2 months by Arnold Pinto
