Jaguar Land Rover shrugs off supply problems to record eighth profitable quarter in a row
Midlands car maker JLR recorded a profit for the second quarter of the financial year despite being hit by disruptions in aluminium supply.
The firm, who employ over 1,000 people at their electric propulsion manufacturing centre near Wolverhampton, described their performance as "resilient" as first half profits increased by 25 per cent year on year.
Revenue for quarter two(Q2), spanning the three months to September 30, was £6.5 billion, down 6% versus the same period in 2024. Pre-tax profits fell from £442 million for the same period in 2024 to £398 million.
However first-half profit before tax rose to £1,099 million despite revenue flat-lining year-on-year at £13.7 billion.
The firm said an 11% drop in revenue compared to the previous quarter reflected lower wholesale volumes as a result of "supply disruptions from a key aluminium supplier" which restricted production in the quarter, as well as a temporary hold placed on 6,029 vehicles to allow for additional quality control checks.
“JLR has delivered a resilient performance in Q2, resulting in a 25 per cent increase in first half profits year-on-year," said Adrian Mardell, Chief Executive Officer.
“Our teams responded brilliantly to the aluminium supply shortages we experienced in the quarter, so we could deliver as many orders as possible to clients.
“We continue to make good progress delivering our Reimagine strategy. We have invested £250m so far to prepare our Halewood UK plant for electric vehicle production and with strong global demand for our products, we are well positioned to deliver on our commitments again this financial year.”
Free cash flow for the quarter was £(256) million, again reflecting constrained production and wholesale volumes. At the end of the quarter, the cash balance was £3.4 billion and net debt £1.2 billion, with gross debt of £4.6 billion. Net debt improved by £1 billion year-on-year, although it was £200m higher than the first quarter due to the operating cash outflow in the period.
The firm says that looking ahead, both production and wholesale volumes are expected to pick up strongly" in the second half of the financial year as the aluminium supply situation normalises.
"For the full year, our guidance is unchanged, with revenue of circa £30 billion, EBIT margin ≥8.5% EBIT and achieving a positive net cash position," added a spokesperson.
