JLR reported a Q3 loss after production disruption from its cyber incident, weaker China demand and US tariffs hit volumes and profitability.
The company said revenue for the three months to December 31, 2025 dropped by 39% year-on-year to £4.5bn, with year-to-date revenue down 24% to £16bn.
The decline was driven by lower wholesale volumes following the cyber incident, with vehicle production only returning to normal levels by mid-November and further time required to distribute vehicles globally.
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Volumes were also affected by the planned wind-down of legacy Jaguar models ahead of its relaunch this year as a luxury EV brand, alongside a deterioration in market conditions in China.
Profitability was further impacted by ‘incremental US tariffs on exports to the United States and higher variable marketing expense’.
Loss before tax and exceptional items was £310m in Q3, compared with a profit of £523m a year earlier.
Year-to-date, the loss before tax was £444m, down from a £1.6bn profit last year.
EBIT margin for the quarter was minus 6.8%, compared with 9.0% in Q3 FY25, and minus 2.9% year to date.
Costs of £64m related to cyber attack
Exceptional items totalled £74m in the quarter, including £64m of costs related to the cyber incident.
Loss after tax was £298m for the quarter, compared with a £375m profit a year ago, while the year-to-date loss after tax stood at £609m.
Free cash outflow was £1.5bn in Q3 and £3.1bn year to date.
JLR ended the quarter with a cash balance of £1.9bn and total liquidity of £6.6bn, including undrawn facilities.
PB Balaji, JLR chief executive, said: “Q3 was a challenging quarter for JLR with performance impacted by the production shutdown we initiated in response to the cyber incident, the planned wind down of legacy Jaguar and US tariffs.
“Thanks to the commitment of our dedicated teams, we returned vehicle production to normal levels by mid-November, and we are focused on building our business back stronger.
“While the external environment remains volatile, we expect performance to improve significantly in Q4 and we have clear plans to manage global challenges. We have a resilient business and remain focused on transformation.”
JLR reaffirmed its FY26 guidance, with EBIT margin expected to be in the range of 0% to 2% and free cash outflow of £2.2bn to £2.5bn.
Investment spending remains unchanged at £18bn over the five-year period from FY24, with 2026 set to include the launch of Range Rover Electric and the unveiling of the first new Jaguar.