Jaguar Land Rover (JLR) reported lower annual profits after tariffs, China market pressures and the Jaguar model transition hit its FY26 performance.
The carmaker reported revenue of £22.9 billion for the year to March 31, 2026, down 20.9% year-on-year, while profit before tax and exceptional items fell to £14 million from £2.5bn the previous year.
Fourth quarter revenue reached £6.9bn, down 11.1% year-on-year but up 51.4% compared with the previous quarter as production volumes recovered following disruption earlier in the year.
JLR said profitability had also been affected by increased marketing costs, ongoing US tariffs and a temporary production pause linked to a cyber incident.
Adjusted EBIT margin for the year fell to 0.7%, compared with 8.5% in FY25, although the business returned to stronger profitability in Q4 with a 9.2% margin, up from a negative 6.8% in Q3.
Profit after tax for the full year moved to a loss of £244m, compared with a profit of £1.8bn the previous year.
The manufacturer said production volumes improved significantly during the fourth quarter as operations returned to normal levels.
Profits impacted by multiple headwinds
JLR highlighted continued momentum for the Defender OCTA, which recorded a fourfold increase in sales year-on-year during Q4 following marketing activity including the Defender Trophy programme and success in the Dakar Rally.
The company also confirmed that the first all-electric Jaguar, called Type 01, will be unveiled later this year.
P.B. Balaji, chief executive officer at JLR, said the business had faced a difficult trading environment during FY26.
He said: “JLR faced a challenging year with revenue and profit impacted by multiple headwinds, including a pause in production following the cyber incident.
“We recovered well in Q4 as production returned to normal levels, demonstrating the commitment of our people, suppliers and retail partners.”
Focused on House of Brands strategy
Balaji said the business remained focused on growth through its House of Brands strategy and upcoming product launches.
He said: “As we look ahead into FY27, we are focused on driving growth through our well-differentiated House of Brands and reducing our break-even volumes while we launch a slew of products starting with the new Range Rover Electric, the unveiling of the first of our EMA products and the new Jaguar.”
JLR reported free cash flow of £829m during Q4, although full-year free cash flow was negative £2.2bn.
The company ended the financial year with a cash balance of £2.8bn and total liquidity of £6.9bn.
JLR said planned investment spending would remain at £18bn across the five-year period from FY24 as it continues product and electrification programmes.