Aston Martin Lagonda has secured a fresh £125 million capital injection as executive chairman Lawrence Stroll and his Yew Tree Consortium deepen their financial backing of the iconic but loss-making British carmaker.
The latest round of fundraising comes from two sources: the £74 million sale of Aston Martin’s stake in Stroll’s privately owned Formula 1 team, and £52.5 million raised through the issue of new shares to the Yew Tree investors. After expenses, the company netted £125 million from the transaction.
The move increases the Yew Tree Consortium’s stake in Aston Martin Lagonda from 28% to 33%, taking its total investment in the company to over £650 million — nearly matching Aston’s current market value of around £660 million, despite a recent uptick in its share price.
Aston Martin shares rose 7.3 per cent on Monday afternoon to 70p, reflecting renewed investor confidence in the wake of the announcement.
However, the transaction pushes Yew Tree above the 30% ownership threshold, which under City rules typically triggers a mandatory takeover offer. The company is expected to apply for a waiver from the Takeover Panel to avoid such an obligation.
The move comes amid ongoing financial turbulence for Aston Martin, which has been through more than £4.1 billion in equity and debt raises since its 2018 IPO. Despite raising substantial capital, the carmaker has racked up cumulative losses of £1.6 billion over the past five years.
Stroll, 65, defended the fresh capital injection, stating: “I did not have to do this and the company does not need the money. This is an elegant way of strengthening the balance sheet and for me to demonstrate my personal, emotional and financial commitment to the company.”
He added that the move was partly motivated by his frustration with market speculation around a potential “highly dilutive” equity raise. Stroll also responded to critics questioning his engagement, saying: “Nothing could be further from the truth,” adding that while he has delegated more day-to-day operational control to Adrian Hallmark, the former Bentley CEO who joined as Aston Martin chief executive last September, his commitment remains unwavering.
Hallmark is currently overseeing a 5% reduction in the company’s 3,400-strong workforce as part of a cost-cutting drive focused on operations in Warwickshire and South Wales.
The fundraising also comes just days after the US announced 25% tariffs on imported cars — a potential blow to Aston Martin, which exports around 30% of its vehicles to the US. The company warned the tariffs may reduce its projected “high single digit” sales growth to “low single digit” for the year.
Other major shareholders in Aston Martin include Saudi Arabia’s PIF and Geely, each holding 15%, and Mercedes-Benz with an 8% stake.
Despite the mounting challenges, Stroll hinted that a full buyout of Aston Martin by Yew Tree remains a possibility “Never say never. That’s an option, a consideration. But I still see a considerable financial upside in the company.”
With rising tariffs, continued restructuring, and growing competition in the luxury EV space, Aston Martin’s next chapter hinges on whether this latest injection of capital — and leadership — can finally drive the brand back to profitability.
Read more:
Aston Martin secures £125m boost as Lawrence Stroll deepens investment