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Profit warnings by UK-listed firms up 20% YoY in Q2 2025: EY-Parthenon

Profit warnings by UK-listed firms up 20% YoY in Q2 2025: EY-Parthenon

Fibre2Fashion24-07-2025
UK-listed businesses issued 59 profit warnings in the second quarter (Q2) this year—a 20-per cent rise year on year (YoY), according to an EY-Parthenon report, which revealed that 46 per cent of those warnings cited policy change and geopolitical uncertainty as a leading factor—the highest percentage ever recorded for this cause and up from just 4 per cent during the same period last year.
Nearly a fifth (19 per cent) of such businesses issued at least one warning in the last 12 months.
A profit warning is a public statement issued by a company to inform its shareholders and the public that its financial performance is expected to be lower than previously anticipated.
UK-listed businesses issued 59 profit warnings in Q2 2025â€'a 20-per cent rise YoY, an EY-Parthenon report said. Close to a fifth issued at least one warning in the last 12 months. Forty-six per cent of those warnings cited policy change and geopolitical uncertainty as a top factor. Two-fifths of those cited contract and order cancellations or delays, while 34 per cent cited tariff-related impacts.
Profit warnings citing contract and order cancellations or delays remained at a record level in Q2 (40 per cent), while 34 per cent cited tariff-related impacts, including weaker demand, supply chain disruption, and exchange-rate volatility.
Retail was among the sectors with the highest number of profit warnings during the second quarter.
EY-Parthenon is the strategy consulting arm of Ernst & Young (EY), focusing on transformative strategy and transactions.
Fibre2Fashion News Desk (DS)
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