Britain’s biggest car maker Jaguar Land Rover delivers best Q1 revenue on record

Britain’s biggest car maker Jaguar Land Rover (JLR) have reported its financial results for the three months to 30 June 2024 (Q1 FY25) as being the best on record.

• Revenue was £7.3 billion, up 5% YoY, JLR’s highest Q1 revenue on record 
• Profit before tax and exceptional items (“PBT”) was £693 million, up 59% YoY 
• EBIT margin was 8.9%, up 0.3 percentage points YoY 
• Free cashflow was £230 million

The positive momentum in JLR’s financial performance continued in Q1 FY25 has been driven by higher wholesale volumes, investment in demand generation and a favourable pricing environment. 

Revenue for the quarter was £7.3 billion, the best Q1 revenue on record and up 5% versus Q1 FY24. Compared to Q4 FY24, revenue was down 7%, reflecting fewer production weeks in Q1 FY25 versus Q4 FY24.

Profit before tax and exceptional items (“PBT”) in the quarter was £693 million, up from £435 million a year ago. EBIT margin was 8.9%, up 0.3 percentage points compared to Q1 FY24. The higher profitability year‑on‑year reflects favourable volume, mix and material cost improvements, offset partially by increased marketing spend compared to a year ago. Profit after tax (“PAT”) in the quarter was £502 million, compared to a profit of £323 million in the same quarter a year ago.

ADRIAN MARDELL, CHIEF EXECUTIVE OFFICER said:

Thanks to the hard work and commitment of our people, JLR has delivered an outstanding set of results in the first quarter, with record revenues and an increase in year‑on‑year quarterly profits of nearly 60 per cent.

We are making great progress delivering our Reimagine strategy. Our Jaguar TCS Racing Formula E Team, pioneers in electric technology innovation, are winners of this year’s ABB FIA Formula E Team and Manufacturer’s World Championships. We are bringing the lessons learned from this success on the racetrack to our luxury electric vehicles and later this year we will unveil our first next generation luxury electric vehicle, Range Rover Electric, which has more than 41,000 customers on its waiting list.

Free cash flow for the quarter was £230 million. At the end of the quarter, the cash balance was £3.8 billion and net debt £1.0 billion, with gross debt of £4.8 billion. Our net debt position improved by £1.5 billion year‑on‑year, although it was £300m higher than Q4 FY24 due to the payment of an annual dividend of £387 million to our parent company TML Holdings Pte. Ltd (“TML”) and other non‑operating items of £96 million. Total liquidity was £5.3 billion, including the £1.5 billion undrawn revolving credit facility maturing 1 April 2026.

Looking ahead, JLR has said it is likely to witness constrained production in Q2 and Q3 reflecting the annual summer plant shutdown and floods at a key aluminium supplier. A JLR spokesperson said: “As we work towards mitigation and recovery, we will hold our guidance on our key full year financial deliverables of >8.5% EBIT and achieving net cash.”