Jaguar Land Rover (JLR) reports resilient Q2 FY25 performance, with H1 profit up 25% year-on-year, driven by high-demand models, cost improvements, and sustainability initiatives.

JLR Achieves Strong Q2 with 25% Year-on-Year Profit Growth in First Half

Jaguar Land Rover (JLR) reports resilient Q2 FY25 performance, with H1 profit up 25% year-on-year, driven by high-demand models, cost improvements, and sustainability initiatives.

Jaguar Land Rover (JLR) reported a resilient Q2 in FY25, marking its eighth consecutive profitable quarter despite production impacts from a temporary aluminium supply shortage.

Quarterly revenue reached £6.5 billion, a 6% decrease year-on-year, while first-half (H1) revenue remained steady at £13.7 billion. Despite challenges, H1 profit before tax surged by 25% YoY to £1.1 billion, supported by JLR’s prioritization of high-demand models and improvements in material costs.

Profit before tax (PBT) for Q2 was £398 million, down from £442 million in Q2 FY24, with an EBIT margin of 5.1%—2.2 percentage points lower year-on-year due to reduced wholesales and increased costs.

Free cash flow for the quarter was negative at £256 million, attributed to supply limitations and a temporary hold on over 6,000 vehicles for quality checks, though net debt reduced by £1 billion YoY to £1.2 billion. JLR maintains a robust liquidity position of £4.9 billion, including a recently refinanced £1.6 billion credit facility.

CEO Adrian Mardell noted that the company responded effectively to supply constraints, ensuring as many orders were fulfilled as possible, and affirmed that H2 production and wholesales are expected to recover as aluminium supply stabilizes.

Reimagine Transformation and Key Initiatives

Modern Luxury: JLR received over 2,900 orders for the new Defender OCTA and generated substantial interest in the upcoming Range Rover Electric, with 48,000 prospective clients on the waiting list. Meanwhile, exclusive models such as the Range Rover SV Ranthambore Edition in India, priced at £455,000, have sold out.
Enterprise Investment: With £250 million invested in electric vehicle production at the Halewood plant, JLR is progressing towards full EV production. Additionally, Wolverhampton’s EPMC facility now manufactures V8 engines to support JLR’s range of powertrain options, including ICE, PHEV, and BEV models.
Sustainability Efforts: JLR has advanced renewable energy projects at its Halewood facility, aiming to reduce CO2e emissions by 40,000 tonnes. Equipment reuse initiatives are also underway, with £16 million of assets repurposed from the Castle Bromwich site.

Looking forward, JLR’s full-year guidance remains unchanged, with revenue projected at £30 billion, an EBIT margin of at least 8.5%, and a positive net cash target.

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