Gaydon, UK, 8 August 2025: Jaguar Land Rover Automotive plc (“JLR”) today reports its financial results for the three months to 30 June 2025 (Q1 FY26):
Reimagine transformation continues:
Modern Luxury
Electrification / Sustainability
Jaguar Land Rover Automotive plc today reports its financial results for the three months to 30 June 2025 (Q1 FY26)
JLR’s revenue for the quarter was £6.6 billion, down 9.2% versus Q1 FY25. Wholesale volumes and revenues in the quarter were impacted by the application of 27.5%* US trade tariffs on UK‑ and EU‑produced cars exported to the US, and the planned wind down of legacy Jaguar vehicles ahead of the launch of new Jaguar. US trade tariffs also had a direct and material impact on profitability and cash flow in the period.
On 8 May 2025 we welcomed the positive announcement of a UK‑US trade deal which reduces tariffs on UK auto exports to the US from 27.5%* to 10%, within a quota of 100,000 UK vehicle exports per annum. This trade deal will reduce the significant financial impact of US tariffs going forward.
On 27 July 2025 an EU‑US trade deal was announced, which will reduce US tariffs on EU‑produced vehicles exported to the US from 27.5%* to 15%. In due course, this trade deal will also reduce the financial impact of US tariffs on our business.
Profit before tax and exceptional items (“PBT”) in the quarter was £351 million, down from £693 million a year ago, with EBIT margin at 4.0%. Profit after tax (“PAT”) in the quarter was £248 million, compared to PAT of £502 million in the same quarter a year ago. The decrease in profitability year‑on‑year was impacted by the introduction of US tariffs and FX headwinds in the period.
Free cash flow for the quarter was £(758) million, with a closing cash balance of £3.3 billion. Additionally, an annual dividend of £448 million was paid to our parent company, TML Holdings Pte. Ltd (“TML”). Total liquidity was £5.0 billion, including the £1.7 billion undrawn revolving credit facility.
Looking ahead, we remain focused on delivering our Reimagine Strategy and expect investment spend to remain at £18 billion over the five‑year period starting in 2024, funded by operating cash flows. Guidance for FY26 remains unchanged, with EBIT margin in the range of 5% to 7%, improving year‑on‑year for FY27 and FY28, and with FY26 free cash flow close to zero.
*Note: New incremental US tariffs of 25% were applied to UK‑ and EU‑produced vehicles exported to the US in the accounting period Q1 FY26. These 25% tariffs were additional to the existing tariffs the US charges on imports of car and car parts, known as the US’s most‑favoured nation tariff, at 2.5%. This meant that the new base rate tariff on UK‑ and EU‑ produced vehicles exported to the US in the period was 27.5%.