Jaguar Land Rover Automotive plc (JLR) reported its financial results for the three months ended December 31, 2025 (Q3 FY26), with performance impacted by previously indicated operational and market challenges. The company, however, stated that it is well positioned for a significantly improved performance in Q4 FY26.
Financial Performance – Q3 FY26
JLR reported revenue of £4.5 billion for Q3 FY26, representing a 39% year-on-year decline. Year-to-date (YTD) revenue stood at £16.0 billion, down 24% YoY.
The decline in revenue and wholesale volumes was primarily driven by the cyber incident, which resulted in a temporary production shutdown, with vehicle production returning to normal levels by mid-November, followed by time required to restore global vehicle distribution. Volumes were further impacted by the planned wind-down of legacy Jaguar models ahead of the new Jaguar launch, a deterioration in market conditions in China, and incremental US tariffs affecting exports to the US market.
Loss before tax and exceptional items amounted to £310 million in Q3 and £444 million YTD, compared with a profit of £523 million in Q3 FY25 and £1.6 billion YTD in the prior year.
The company reported an EBIT margin of (6.8)% for Q3 FY26, compared to 9.0% in Q3 FY25, while YTD EBIT margin declined to (2.9)%, from 7.8% in the previous year. The reduction in profitability reflects the impact of the cyber incident, US tariffs, lower Jaguar volumes, adverse market conditions in China, and increased variable marketing expenditure (VME).
Exceptional items during the quarter totalled £74 million, including £64 million related to the cyber incident.
Loss after tax for the quarter was £298 million, compared to a profit of £375 million in Q3 FY25. YTD loss after tax stood at £609 million, versus a profit of £1.2 billion in the prior year.
Cash Flow and Liquidity
Free cash outflow was £1.5 billion in Q3 FY26 and £3.1 billion YTD. The closing cash balance at December 31, 2025, was £1.9 billion.
Total liquidity stood at £6.6 billion, including:
- £1.7 billion undrawn revolving credit facility (RCF)
- £1.5 billion undrawn bridge facility
- £1.5 billion undrawn UK Export Finance (UKEF)-guaranteed commercial loan
Operational Highlights
- New Jaguar prototype passenger rides received an overwhelmingly positive response from global media.
- Range Rover SV Black, representing the brand’s most exclusive and luxurious expression, made its US debut at Design Miami.
- Defender demonstrated its unmatched off-road capability by winning the Dakar Rally Stock Class, securing first and second positions with Defender D7X-R vehicles in its debut year at the world’s toughest off-road event.
- Reinforcing its social commitment, JLR launched Create Possible, a free online education programme for teachers and students aged 11–14, aimed at supporting classrooms and addressing the UK’s STEM skills gap.
Commenting on the performance, P. B. Balaji, Chief Executive Officer, JLR, said: “Q3 was a challenging quarter for JLR, with performance impacted by the production shutdown following the cyber incident, the planned wind-down of legacy Jaguar models, and US tariffs. Thanks to the commitment of our teams, we returned vehicle production to normal levels by mid-November and are focused on rebuilding the business stronger.”
He added: “While the external environment remains volatile, we expect performance to improve significantly in the fourth quarter and have clear plans to manage global challenges. We have a resilient business and remain focused on transformation.”
Looking ahead, Balaji noted: “2026 will be an exciting year for JLR as we progress with our next-generation vehicles, including the launch of the Range Rover Electric and the unveiling of the first new Jaguar.”
Outlook
JLR reaffirmed its FY26 guidance, with:
- EBIT margin expected in the range of 0% to 2%
- Free cash outflow forecast at £2.2 billion to £2.5 billion
The company confirmed that investment spend of £18 billion over five years from FY24 remains unchanged, underlining its long-term commitment to electrification, modern luxury, and transformation amid ongoing economic, geopolitical, and policy challenges.
