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JLR Sales Rebound After Cyber Attack, But Restructuring Costs Hit Profits


JLR Sales Rebound After Cyber Attack, But Restructuring Costs Hit Profits

 

Jaguar Land Rover has reported a strong rebound in sales and a swing back to profit as it recovers from last year's damaging cyber attack, though new restructuring costs are putting pressure on its bottom line.

The luxury British carmaker posted revenues of £5.9 billion for the three months to the end of September, a rise of a fifth compared with the same period last year. The company also returned to profit before tax and exceptional items of £6 million for the quarter, a marked turnaround from the £134 million loss it recorded over the same three months in 2025.

That earlier loss stemmed from a severe cyber attack that forced JLR to shut down production across all of its UK factories for five weeks, starting on September 1 last year. Manufacturing came to a halt at every one of the group's sites, including its plants in Solihull, West Midlands, and Halewood, Merseyside, before operations resumed in October.


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Car factory assembly line resumes production

JLR said the sharp improvement in both sales volumes and profitability this year reflects the company's recovery from that disruption. However, bosses struck a note of caution about the months ahead, warning that profit margins for the full year are expected to be slightly lower than previously anticipated. The company pointed to "ongoing market challenges, geopolitical risks and the exceptional costs recognised in the quarter" as the reasons behind the weaker outlook.

Among those exceptional costs, JLR flagged a £530 million hit linked to restructuring efforts and the writing down of assets. The figure underscores the scale of the overhaul the carmaker is pushing through as it looks to cut expenses and streamline its operations following a difficult year.

That restructuring drive was first set out in September, when JLR announced plans to cut around 4,000 jobs from its global workforce over the next two years. The job losses form part of a wider strategy to slash costs by £1.7 billion, as the company seeks to strengthen its finances in the wake of the cyber attack and position itself for future growth.


Automotive factory grounds amid restructuring

While the latest figures mark a significant step forward for JLR after a turbulent period, the combination of restructuring charges and broader economic pressures means the carmaker is tempering expectations for the rest of the financial year, even as underlying sales momentum continues to build.

Source: The Independent

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