Struggling iconic British luxury sports carmaker Aston Martin ’s recovery plan is teetering and the latest financial numbers show losses widening and debt burgeoning, while some bondholders are unhappy with the terms of a recent refinancing.

In 2026’s second quarter, losses widened to £88.7 million ($120 million) from £61.2 million ($82 million) in the same period last year. Aston Martin said it retained its guidance for a significant improvement in its business for 2026.

Earlier in the month, Aston Martin arranged a new debt financing deal to raise £550 million ($740 million). This might have circumvented existing bondholders, potentially diluting their interests and could lead to legal action, according to legal sources.

The loan deal could have ring-fenced ownership of some assets like intellectual property rights and the ownership of the Aston Martin factory in Wales, they said. Bondholders have asked the company to produce details of any assets that might have been moved to new ownership, the sources said.

Aston Martin has been asked to comment.

Future looks grim, takeover possible?

British automotive analyst Dr Charles Tennant said Aston Martin’s future looks grim with the possibility of another takeover.

Aston Martin was floated on the stock market in 2016. Ford sold Aston Martin to a consortium in 2007.

“CEO Adrian Hallmark is saying that the second half of 2026 will be stronger and the full year may break-even but with the company losing money in all but two quarters in the last four years, the future remains grim,” Tennant said.

“I’m sure that at some point the money will just run out and Aston Martin will be forced into yet another takeover, maybe by a Chinese company,” Tennant said in an email exchange.

When Aston Martin reports poor financial numbers, the takeover rumors reignite . This century-old British supercar maker has already been bankrupt 7 times. The largest shareholder Lawrence Stroll could, finally, lose patience and seek to offload his stake, believed to be about 33%. Stroll rescued Aston Martin in 2020.

Chinese automakers are the current favorites

Current shareholders could be buyers. Saudi Arabia has a 19% stake, Chinese giant Geely has about 17%, Swiss billionaire Ernesto Bertarelli 13.8% and Mercedes 9%. The Germans provide engines and other technology to Aston Martin. Mass carmakers with many brands like Volkswagen and Stellantis could be candidates. Chinese automakers are the current favorites although no potential buyers have commented.

Investment researcher Bernstein recently cut its rating on Aston Martin shares to “Market-Perform” from “Outperform”.

In a report entitled “A turnaround has to start somewhere”, Bernstein said since Stroll rescued the company in 2020, Aston Martin has walked a liquidity tightrope, relying on successive primarily debt market solutions to remain solvent.

“At the same time, it has sought to rebuild its brand and operations into a sustainable luxury company capable of generating consistent FCF (free cash flow) and withstanding external shocks. 2026 has followed exactly this path. Even with a largely new and well-reviewed product portfolio plus the high-margin Valhalla specials, the recent debt raise was necessary to offset another year of triple-digit million cash outflows,” Bernstein said in the report.

The Valhalla is a plug-in hybrid supercar priced at around $1 million. Aston Martin has limited the production run to 999.

Bernstein said there are hopeful signs for Aston Martin, including a favourable sales trend which promises to end the need to slash prices to sell off stock, gross margins in the mid-30s percent, and free cash flow progress.

But analyst Tennant isn’t convinced.

“Aston Martin has once more over-promised and under-delivered with its half-year results. Despite revenue increasing by 38% to £628.6 million ($835 million) it still lost a ton of money with a pre-tax loss of £154.2 million ($207 million) up from £140.8 million ($190 million) last year.”

“It is grappling with a China slowdown, U.S. tariffs, and a ballooning debt pile of £1.5 billion. Earlier this year it cut its workforce by 20% but surely it cannot just borrow and save its way to future profitability.”

“One bright spot is the Valhalla hybrid supercar with a starting price of (around $1 million). 220 have been sold so far this year,” Tennant said.