Contract delays and cancellations behind rise, EY-Parthenon says

Listed construction and materials firms have so far this year issued nearly three times the profit warnings they made in the whole of 2024.

With the Budget three weeks away, new figures from accountant EY-Parthenon show the number of warnings in the nine months to September has hit 14 – compared with six last year.

The number of warnings in the third quarter was six, the joint highest total since the second quarter of 2020 when the country was in the teeth of the covid-19 pandemic.

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Listed firms in the construction and materials sector made 14 profit warnings in the nine months to September

EY-Parthenon said: “So far in 2025, the leading factor behind profit warnings cited by UK-listed construction companies is contract and order cancellations or delays, referenced in more than two-thirds (70%) of the 14 warnings to date.”

Tim Vance, EY-Parthenon UK&I turnaround and restructuring partner, added: “While stress has so far been concentrated among smaller firms and contractors, warnings among larger, mid-market companies are rising. Indeed, the average turnover of construction companies to issue warnings in 2025 is just over £400m, up from just over £300m in 2024 and just under £200m in 2023, which suggests broader sector-wide strain.”

Over the last 12 months nearly a fifth (18%) of UK-listed businesses have issued at least one profit warning, the report added.

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