UK listed firms issue surge of profit warnings amid Iran war energy shock
London-listed companies filed 65 profit warnings, the most in almost two years, as the Iran conflict drives up energy costs and inflation.
EY's latest review found that 65 companies on the London Stock Exchange issued profit warnings, the highest tally in nearly two years and close to the 71 warnings recorded in the fourth quarter of 2024. The increase follows a rise from 59 warnings in the prior quarter. More than half of the firms blamed heightened geopolitical risk, and 38% specifically cited the Iran war's impact on energy prices and inflation.
The construction and household goods sectors posted the most alerts, with six housebuilders adding to a year-to-date total that now exceeds the warnings issued during the 2008 financial crisis peak. Industrial support services such as Hays and Bunzl, along with material producers, also released warnings. Analysts note that persistent policy shifts and supply-side disruptions are complicating capital allocation for many businesses.
Why it matters
Rising profit warnings signal widening financial strain on UK companies from geopolitical and energy pressures.
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