Weak pound causes JLR profit drop despite record Q3 revenue
JLR has reported a year-on-year drop in profits for the third quarter of its 2025 fiscal year, despite bringing in record revenue and its best profit margin for the quarter in a decade.
The British manufacturer reported £523 million in profit before tax (PBT) and exceptional items and £375 million in profit after tax (PAT) between October and the end of December.
That was down compared with the £627m PBT and £592m PAT in the same period last year.
Related articles
- 'A lot of things need to change' – new Polestar boss on brand reboot
- How Trump plans to transform the American car industry
- Movers and shakers: the latest job changes in the car industry
- Electric van start-up Canoo files for bankruptcy
- Kia braces for tariffs in the US as Trump takes presidency
This was despite a record revenue for the quarter of £7.5 billion – up by £100m year on year – and a 10-year-high earnings before interest and tax (EBIT) margin of 9.0%.
A spokesperson for JLR told Autocar that the drop was due to foreign exchange revaluations, after a reduction in the value of the pound.
Nonetheless, JLR’s profit for the full year to date (from the start of May 2024 to the end of December) stands at £1.6bn – the best it has been by this point in the year for a decade.
The company attributed its otherwise successful quarter to an increase in volumes – wholesales were up 3% year on year to 104,427, while retail sales were down 3% to 106,334 – and an improved product mix.
Its most profitable models – the Range Rover, Range Rover Sport and Land Rover Defender – now comprise 70% of its wholesales.
JLR also benefited from a reduction in depreciation and amortisation from the end of production at its Castle Bromwich plant and from extending the life of its combustion-engined models.
The firm said it was “on track” to achieve its profitability and cash flow targets for its full 2025 fiscal year: an EBIT margin more than or equal to 8.5% and positive cash flow.
CEO Adrian Mardell said: “JLR has delivered a robust performance in the third quarter of our financial year and reached further milestones in our Reimagine strategy.
“Thanks to our people and partners, we achieved record Q3 revenue and our best EBIT margin in a decade and our electrification plans are progressing.
“We revealed the beautiful, reimagined Jaguar design vision – Type 00 – in Miami and later this year we will launch Range Rover Electric.”
Join our WhatsApp community and be the first to read about the latest news and reviews wowing the car world. Our community is the best, easiest and most direct place to tap into the minds of Autocar, and if you join you’ll also be treated to unique WhatsApp content. You can leave at any time after joining – check our full privacy policy here.
Latest business news
Weak pound causes JLR profit drop despite record Q3 revenue
Weak pound causes JLR profit drop despite record Q3 revenue UK won't hit 2030 ZEV targets without help, says Renault UK boss UK won't hit 2030 ZEV targets without help, says Renault UK boss 'A lot of things need to change' – new Polestar boss on brand reboot 'A lot of things need to change' – new Polestar boss on brand reboot How Trump plans to transform the American car industry How Trump plans to transform the American car industry Electric car sales in EU drop as governments withdraw subsidies Electric car sales in EU drop as governments withdraw subsidies
View all business news