Jaguar Land Rover’s losses deepen as cyber attack fallout continues

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Jaguar Land Rover, the UK’s largest car manufacturer, has reported a pre-tax loss of £310 million for the final three months of 2025, a sharp reversal from the £523 million profit recorded during the same period a year earlier.

The slump was primarily driven by the lingering effects of a devastating cyber attack that crippled the company’s operations late last year.

While the initial breach occurred in August, the financial hangover lasted through the winter. Production only returned to normal levels in mid-November, leaving a massive hole in the company’s balance sheet.

Revenues for Q4, 2025 plummeted 39 per cent to £4.5 billion as wholesale volumes – the number of cars sold to dealerships – fell by 43 per cent.

The company confirmed it incurred an additional £64 million in direct costs related to the incident during this period, following a massive £196 million hit in the previous quarter.

The cyber crisis was compounded by a deteriorating global economic landscape. JLR pointed to weakening market conditions in China, where sales fell by over 18 per cent, as well as the ongoing pressure of US trade tariffs.

In North America, retail sales saw a dramatic 37.7 per cent decline year-on-year. Furthermore, the company’s decision to wind down production of older Jaguar models ahead of a major brand relaunch this year also weighed on total volumes.

Chief executive P.B. Balaji described the quarter as “challenging” but insisted the business remains resilient. Despite the quarterly loss, the firm maintained its full-year guidance for 2026, betting on a significant performance recovery in the coming months.

Management is pinning its hopes on a “transformation” strategy, aiming to move past the IT breach that was so significant it was cited as a factor in denting the UK’s overall economic growth last year.

However, as the manufacturer ramps up production of high-margin vehicles like the Range Rover, it faces a steep climb to return to the billion-pound profits it enjoyed before the digital shutdown.

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