Financial Performance and Profitability
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JLR Group Revenue (Q1 FY 2026): £6.6 billion (~$8.8 billion USD), down 9.2% year-over-year
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Profit Before Tax and Exceptional Items: £351 million (~$468 million USD), down 49.4% YoY, impacted by U.S. tariffs and currency headwinds
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EBIT Margin: 4.0% for Q1 FY 2026, within guidance range of 5–7% for full year
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Free Cash Flow: Negative £758 million (~$1 billion USD), reflecting investment and working capital needs
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Wholesale Volumes: 87,286 units in Q1 FY 2026, down 10.7% YoY due to tariff impacts and legacy Jaguar model phase-out
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Retail Sales: 94,420 units, down 15.1% YoY
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Major Financial Drivers: Elevated U.S. tariffs reduced exports and profitability; recent UK–US and EU–US trade deals announced to reduce tariffs starting mid-2025 and later in 2025 respectively
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Capital Expenditure: £3.8 billion (~$5 billion USD) investment planned in 2025 supporting electrification and new models
Vehicle Sales and Production
| Metric | Q1 FY 2026 | Year-Over-Year Change (%) |
|---|---|---|
| Wholesale Units | 87,286 units | -10.7% |
| Retail Sales | 94,420 units | -15.1% |
| Revenue | £6.6 billion | -9.2% |
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Jaguar legacy internal combustion models are phased down as the brand prepares to relaunch as all-electric in 2026.
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Range Rover, Range Rover Sport, and Defender models accounted for 77.2% of total wholesale volumes, up from prior quarters.
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U.S. export volumes declined sharply in Q1 due to tariffs and a temporary export halt.
Regional and Global Sales Performance
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North America: Sales impacted by tariffs with a 12.2% YoY decline in wholesale volumes during Q1 FY 2026.
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Europe: Stable market performance supported by electrified models like Jaguar I-PACE.
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China and Asia-Pacific: Strong focus on electrification with growing demand in premium electric SUVs.
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Trade deals with the U.S. and EU expected to mitigate tariffs and improve export economics.
Profitability and Cost Factors
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Tariffs on U.S. exports significantly impacted revenue and profit margins.
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Currency exchange headwinds and supply chain constraints added pressure.
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Ongoing investments in electrification and new product launches weigh on near-term profitability.
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Workforce restructuring announced with reduction in management positions in the UK.
Debt and Liquidity
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Liquidity remains solid within Tata Motors and JLR group with free cash flow challenges driven by investment spending.
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Stable debt levels with strategic funding supporting ongoing electrification and capacity expansion.
Best Selling Vehicles: Overview and Profit/Loss Status
| Model | Status and Trends |
|---|---|
| Jaguar I-PACE | Core EV model with steady demand |
| Jaguar F-PACE | Important volume contributor with refreshed variants |
| Legacy combustion models | Winded down ahead of all-electric relaunch in 2026 |
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Electrified Jaguar models, primarily I-PACE and emerging EV launches, are central to future growth.
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Legacy internal combustion Jaguar vehicles are being phased out as part of brand transformation.
Weakest Performers and Segment Underperformance
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Internal combustion engine Jaguar models face declining sales amid phase-out plans.
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Tariff-related export delays impeded U.S. volume and profitability.
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Market headwinds from global economic uncertainty and supply chain disruptions.
Key Financial and Operational Metrics
| Metric | Value | Notes |
|---|---|---|
| Profit Before Tax (PBT) | £351M / $468M | Impaired by tariffs and FX losses |
| Revenue | £6.6B / $8.8B | Down 9.2% YoY |
| EBIT Margin | 4.0% | Within full-year target |
| Capital Expenditure (2025) | £3.8B / $5B | Focused on electrification & new products |
Industry Outlook and Strategic Focus
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Complete transition to all-electric Jaguar by 2026 as part of JLR’s Reimagine Strategy.
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Expect reduced tariffs from recent UK–US and EU–US trade agreements improving competitive position.
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Strong emphasis on electrification investment (£3.8B in 2025 fiscal year) and model launch pipeline.
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Tightening cost controls and operational efficiency programs underway to offset margin pressures.
Key Takeaways
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Jaguar faces short-term headwinds from tariffs, legacy model wind-down, and global market softness.
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Ongoing transformation positions Jaguar as a fully electrified brand starting 2026 with new model launches.
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JLR showing resilience with 11 consecutive profitable quarters despite challenging conditions.
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Recent trade agreements expected to ease tariff burdens and support revenue recovery in H2 2025 and beyond.
Sources
The overview of Jaguar’s financial and operational performance was compiled primarily from the following authoritative sources:
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Jaguar Land Rover Q1 FY 2026 Financial Results and Press Releases
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Tata Motors Group Q1 FY 2026 Earnings Reports
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Official Jaguar Land Rover corporate communications
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Industry news covering trade tariffs and automotive market trends
These sources offer the most accurate, up-to-date, and detailed insights into Jaguar's financial condition, segmental performance, and strategic outlook for 2025 without reliance on third-party aggregated data.
Summary
Jaguar in 2025 is in a transition phase, marked by tariff impacts and legacy internal combustion model phase-out amid planned electrification and model relaunches in 2026. Despite volume pressures and profitability challenges in early 2025, Jaguar contributes to JLR’s continued profitability and shows promising strategic moves with trade deal mitigations and heavy investments in electrified models. The company looks to stabilize and grow in the medium term on the back of improving export conditions and new product launches.