UK-listed companies issue two-year high in profit warnings

UK-listed companies issued 65 profit warnings during the third quarter of 2026, marking the highest quarterly total since late 2024. According to research from EY-Parthenon, this increase comes amid significant supply-side disruptions and geopolitical instability.

Policy changes and geopolitical uncertainty were cited as the primary drivers in 54% of the warnings, the highest proportion in over 25 years of analysis. Specifically, 38% of companies referenced the impact of the conflict in the Middle East. Additionally, rising costs accounted for 35% of warnings, reflecting inflationary pressures and energy shocks.

The construction and household goods sectors have been particularly impacted. Listed housebuilders have issued 14 profit warnings so far this year, a figure that surpasses the total recorded during the 2008 financial crisis. Conversely, the retail sector showed unexpected resilience, with FTSE retailers issuing only two warnings during the third quarter.

These developments occur ahead of the UK autumn Budget. Industry groups are calling for government support to mitigate rising business costs, while officials face pressure to balance economic relief with limited public finances and high borrowing costs.