JLR Reports Q2 FY26 Results: Cyber-attack effects, recovery, and the road ahead

Jaguar Land Rover (JLR) has released its financial results for the second quarter of FY26, covering the three months to 30 September 2025. The car maker faced a challenging quarter marked by a major cyber incident, production stoppages, and the planned phase-out of older Jaguar models. Despite these setbacks, JLR has moved quickly to resume operations and reinforce its long-term transformation plans.

Revenue hit by Cyber incident and Jaguar model discontinuation

JLR reported Q2 revenue of £4.9bn, a 24% drop year-on-year, reflecting the impact of the September cyber-attack that forced a temporary shutdown of global systems and halted production. For the first half of the year, revenue stood at £11.5bn, down 16% compared to H1 FY25.

The company is phasing out legacy Jaguar models ahead of the launch of an electrified next-generation Jaguar lineup—a strategic move that also contributed to the lower volumes this period.

Profitability declines, exceptional costs rise

The production pause and reduced sales weighed heavily on profitability:

• Loss before tax (excluding exceptional items):
  £(485)m in Q2 and £(134)m for H1
• EBIT margin:
  (8.6)% in Q2 and (1.4)% in H1
  (Full-year guidance revised to 0%–2%)
• Exceptional items:
  £238m, mostly tied to cyber-response costs (£196m) and a voluntary redundancy programme (£42m)

Overall, JLR posted a loss after tax of £(547)m for the quarter, compared with a £283m profit in the same period last year.

Strengthening the balance sheet

To protect its financial position amid the disruption, JLR secured £3.5bn in additional liquidity, including:

• A new £2bn bridge facility
• £1.7bn in undrawn revolving credit
• A £1.5bn UK Export Finance–guaranteed loan (secured in October)
• A new £500m supplier financing scheme designed to support its supply chain during the recovery

As of 30 September, JLR held £6.6bn in total liquidity and £3.0bn in cash.

Cyber- incident response

Following the cyber-attack on 2 September, JLR temporarily shut down all global systems. The company then implemented a staged restart from 8 October. Key recovery actions included:

• Rebooting vehicle wholesale systems to revive cash flow
• Restarting the Global Parts Logistics Centre to keep customers’ cars serviceable
• Fast-tracking supplier financing to keep smaller partners stable
• Using downtime to accelerate EV development, including validation work at Solihull and Halewood
• Production has now returned to normal levels.

Transforming for an electric future

Despite short-term setbacks, JLR continues to invest in its long-term “Reimagine” strategy. With £18bn of planned investment over five years, the company is preparing for major product launches—including the highly anticipated Range Rover Electric and the new electric Jaguar.

CEO Adrian Mardell praised the workforce for their resilience:

“The speed of recovery is testament to the hard work of our colleagues. I am extremely grateful to all our people and to our clients, retailers, suppliers and communities for their support.”

Mardell, who will step down after a 35-year career at JLR, expressed confidence in the company’s future direction as PB Balaji prepares to take over leadership.

Looking ahead

While JLR acknowledges ongoing economic, geopolitical and regulatory challenges, the company believes it is well positioned to move forward. Updated expectations for FY26 include:

• EBIT margin: 0%–2%
• Free cash outflow: £2.2bn–£2.5bn

With core operations back online and its transformation strategy progressing, JLR is gearing up for a pivotal phase—one marked by the arrival of its next generation of electric luxury vehicles.