JLR ends financial year on a high, ready to plug into an electric future
Jaguar Land Rover Automotive, the luxury car marque, has today (May 13) published strong financial results for the year ended March 31, 2025.
The group, which has manufacturing plants in Halewood, Merseyside, and at Castle Bromwich and Solihull in the West Midlands, achieved a ten-year high for pre-tax and exceptionals profits which hit £2.5bn for the year, a 15% increase, on flat revenues of £29bn.
The EBIT (earnings before interest and tax) margin was 8.5% for the year, again, the best achievement in a decade.
The group, which last month temporarily paused exports to the US in the face of fierce new tariffs by President Donald Trump, said the increase in profitability year‑on‑year reflects higher volumes and a reduction in depreciation and amortisation, partially offset by an increase in variable marketing expense.
Profit after tax for the full year was £1.8bn compared with £2.6bn in 2024, which was down year‑on‑year as a deferred tax asset (DTA) of £1bn was recognised in Q4 FY24 and DTA of £696m was recognised in Q4 FY25.
Free cash flow was £1.5bn for the full year. The group successfully ended the year having achieved its key Reimagine strategy target of being net cash positive. Total liquidity was £6.3bn, including the £1.7bn undrawn revolving credit facility.
JLR also said it welcomed the Government’s changes to the ZEV Mandate which will support its compliance and investment profiles in the short to medium term, ahead of significant changes to the group’s EV (electric vehicle) product availability.
Last month, at the start of the new financial year, JLR implemented a series of short term actions to address the immediate impact of trade tariffs introduced by the US administration on the global automotive sector.
On May 8, the group welcomed the positive announcement of a US‑UK trade deal. This reduces US trade tariffs on UK auto exports to the US from 27.5% to 10%, within a quota of 100,000 vehicles.
This deal brings greater certainty for the sector and stakeholders. JLR said it will continue to engage with the UK Government on the detail of the trade deal, adding its priority is to ensure it delivers for its global clients and protects EBIT through delivery of transformation and efficiency initiatives.
Yesterday (May 13), CEO Adrian Mardell refused to rule out producing cars in America in a bid to avoid the US tariffs, although he added the group has no plans to move production over the Atlantic.
He told The Telegraph: “We had, and currently have, no cause to build cars in the US at this time, but we cannot discount that it could be the case at some point.”
Looking ahead, the group said it expects investment spend to remain at £18bn over a five‑year period and funded by operational cash flows.
It continues to evaluate the impact of global challenges and will provide an update at an investor day on June 16.
During the reporting period the group tested new EV production lines at its Solihull plant in readiness for Range Rover Electric production.
The vehicle’s development programme continues, with winter testing in Arjeplog, Sweden, as its waiting list exceeds 61,000.
The group said the installation of new electric Jaguar production lines is further evidence of the Solihull plant’s transformation which now includes a new body-in-white facility, where the vehicle’s frame is assembled.
The Halewood site unveiled a new £3m academy to train current and new staff in electrification and agile skills.
Chief executive, Adrian Mardell, said: “JLR has ended the year with strong annual and quarterly earnings, including delivering our tenth consecutive profitable quarter and our net debt zero target.
“We have achieved record sales of Defender, revealed the stunning Jaguar Type 00 and we are preparing to launch the wonderful Range Rover Electric.
“This strong and consistent performance, the commitment of our people, partners and clients and the appeal of our luxury brands will support our response to current global economic challenges including the evolving global trading environment."
Source: The Business Desk Neil Hodgson