Jaguar Land Rover has plunged to a £310 million underlying pre-tax loss for the three months ending December, a dramatic reversal from a £523 million profit in the same period last year. The UK's largest car maker continues to bear heavy costs from a major cyber attack that paralyzed production for five weeks last autumn.
The cyber incident alone cost JLR £64 million in the third quarter, adding to £196 million in costs booked during the previous three months. The attack forced the company to shut down production across its UK factories from September 1, with operations only returning to normal levels by mid-November.
New chief executive PB Balaji, who took over in November, acknowledged the difficult period. He described it as 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».
Sharp revenue decline
The company's revenues tumbled 39 percent year-on-year to £4.5 billion in the final three months of 2025. The cyber attack's impact on sales volumes combined with the planned discontinuation of legacy Jaguar models ahead of new launches to hit financial performance.
Year-to-date losses now stand at £444 million, a stark contrast to £1.6 billion in profits during the same period the previous year. The cyber attack costs included expenses for hiring consultants to manage the incident, but excluded the financial impact of lost sales and increased engineering costs.
Recovery expected
Despite the challenging environment, Balaji expressed confidence in improvement ahead. «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», he said.
The CEO added: «While the external environment remains volatile, we expect performance to improve significantly in the fourth quarter and we have clear plans to manage global challenges». Beyond the cyber attack, JLR faces headwinds from US tariffs and worsening market conditions in China.
Note: This article was created with Artificial Intelligence (AI).
