Aston Martin surged to its third consecutive quarterly profit on robust demand for the new DB11 sports car, putting the company in a better position for a potential share sale even as Brexit clouds its longer-term outlook.
Second-quarter pretax profit was 15.2 million pounds ($19.6 million) compared with a 52.6 million-pound loss a year earlier, as revenue almost doubled to 222 million euros, Aston Martin said in a statement on Friday.
Full-year adjusted earnings before interest, taxes, depreciation and amortization will amount to 175 million pounds, it said, compared with an earlier 170 million-pound forecast.
First-half profit surged almost fivefold, as deliveries jumped 67 percent and its cars' average selling price rose 25 percent to 149,000 pounds.
The UK automaker has been eliminating jobs and and expanding its model range to reverse six years of losses. In a bid to follow a trail blazed by Italian rival Ferrari, the company could consider an initial public offering on the London Stock Exchange as early as next year, people familiar with the matter said in May.
A stock sale is "a natural point of speculation" given Aston Martin's ownership structure, Chief Financial Officer Mark Wilson said Friday in an interview.
Any decision would have to be made by the closely held company's shareholders and not the management board, he said, reiterating earlier comments. The carmaker's owners include Italian private equity company Investindustrial and a Kuwaiti investment consortium, while Mercedes-Benz parent Daimler owns a small stake.
Generating positive cash flow might take slightly longer than returning to profit, even though Aston Martin made substantial progress in the first half of the year, Wilson said.
Longer term, the ramifications of Brexit on trade and possible tariffs remain difficult to predict, since the outcome of government talks on the UK’s departure from the European Union is a "big unknown," he said.
Aston Martin CEO Andy Palmer, who took charge three years ago, is pushing to widen the brand's appeal. The company plans to start production of the family-friendly DBX crossover as well as an electric version of the Rapide coupe in 2019. Other models in the works include special editions of the Vanquish sports car line.