Analysis by EY-Parthenon says wider businesses reporting impact of tariffs for jump in warnings in Q2
Companies listed in the construction and materials sector issued five profit warnings during the first quarter of this year – the same total as the whole of 2024.
According to EY-Parthenon’s latest Profit Warnings report, the sector issued the third most profit warnings in the first three months of 2025 behind software and computer services with 10 and industrial support services with nine.
Of the 62 profit warnings issued by all UK-listed firms during Q1, a record two in five (40%) cited contract and order cancellations or delays as a leading factor – the highest percentage recorded for this cause in 25 years of EY’s analysis.
Tom Watson, partner, Construction and Property Services M&A, at EY-Parthenon, said: “The increase in employer National Insurance contributions will further impact budgets already under pressure from a persistent shortage of skilled labour, while delays to contract start dates and project timelines place added strain.”
EY’s research also said that so far in Q2, 50% of the profit warnings issued by UK-listed businesses in April cited the direct or indirect impact of tariffs and resulting recent global trade disruption.
No comments yet