JLR Reports 11th Profitable Quarter Despite 50% Profit Drop, US Tariffs Impact UK, US Trade Deal Expected

Jaguar Land Rover (JLR) reported its 11th consecutive profitable quarter in Q1 2025 despite a 9.2% decline in revenue to £6.6 billion and pre-tax profits nearly halving to £351 million, mainly due to the impact of 27.5% US trade tariffs introduced under President Donald Trump's administration and the planned phase-out of older Jaguar models. The company paused US exports in April amid tariff uncertainties but welcomed a new UK-US trade deal that reduced tariffs on UK-built vehicles to 10%, effective June 30, 2025, and an EU-US agreement set to lower tariffs on EU-produced cars to 15%. CEO Adrian Mardell, who announced his retirement, highlighted progress on JLR's electrification strategy, including media test drives of the new electric Range Rover and over 200 test builds of a next-generation electric SUV, with a waiting list exceeding 65,000 for the electric Range Rover. Despite the profit hit, JLR's earnings before interest and tax margin remained stable at 4%, close to guidance, and the company plans to invest £3.8 billion in new models this year, aiming for net-zero emissions by 2030. The new CEO P.B. Balaji will take over in November 2025 as JLR continues to navigate challenging global economic conditions while benefiting from recent trade developments.