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Jaguar Land Rover recorded the strongest annual profits of a decade as British luxury car manufacturers argue about the impact of US tariffs and the implementation of the controversial overhaul of the most well-known brands.
The company said on Tuesday it rose 15% to 15% to £2.5 billion with fixed income of £29 billion. The last quarter pre-tax and exceptional items ranged from £661 million to £875 million from the previous year. It also achieved its goal of net cash at £278 million.
The result is a strong set of results despite the widespread ride of the Jaguar brand redesign announced in November to address flag sales. The company dropped the brand’s big cat logo as part of the rebranding, and the marketing campaign featured car-free ads.
“JLR finished the year with strong annual and quarterly revenues, including providing a 10th consecutive revenue quarter and a zero net debt target.”
However, the company refrained from issuing forecasts for next year, following other automakers including Stellantis and Mercedes-Benz. JLR assessed the impact of the “global challenges” and said it would provide an update on Investor’s Day on June 16th.
The results follow last week’s trade agreement between the UK and the US. The deal secured concessions from British automakers, including cutting US import duties from the first 27.5% imposed by President Donald Trump last month.
The Coventry-based company said it will “continue to continue to engage with the UK government on details of the trade agreement.” In a revenue call, Mardell said he welcomed the UK government’s pledge to support the automotive sector “to Hilt” in the face of US tariffs and an agreement that would bring “more certainty” to the sector. However, he added that the company is “waiting for confirmation of the effective date” that the transaction will be implemented.
The trade deal announced by Prime Minister Kiel as visiting the JLR factory has provided relief to the UK’s wider automotive industry.
The group owned by Tata Motors, which also produces Range Rover and Land Rover Defender models, suspended car shipments for a month in April as they tried to tackle long-term tariff responses. The company generates almost a quarter of its US sales, but it does not have local manufacturing capabilities domestically. Mardel said Tuesday that the company “does not currently plan to build a car in the US.”
JLR refrains from issuing forecasts for next year, following other automakers including Stellantis and Mercedes-Benz © Richard Martin-Roberts/Getty Images
Aiming to bring Supply Chain and Operations to zero by 2039, JLR will reboot the Jaguar as an all-electric, ultra-luxury brand next year, selling the majority of its vehicles for over £100,000. For the tentative time, the Jaguar stopped selling new cars in the UK and stopped producing most gasoline models.
Sales of plug-in hybrid models increased by 21.7% over the year, JLR said, as consumers are using the hybrid model as a bridge to fully power them.
The company said last month it welcomed changes to the government’s Zero Emission Vehicle (ZEV) mandate.
In results on Tuesday, JLR said more than 32,000 people had “expressed interest” in the Jaguar’s upcoming electric GT model. The company also said the Electric Range Rover has a 62,000 waiting list.
The company expects investment spending to remain at £18 billion over five years, funded by operational cash flows.
