UK-listed companies in the North West issued four profit warnings during the first quarter of 2026, down marginally from the five issued during the same period last year, and marking the region’s lowest Q1 total since 2021, according to EY-Parthenon’s latest Profit Warnings report.

The region’s warnings came from a variety of sectors, highlighting that headwinds are affecting businesses across the North West’s economy.

The North West saw the joint-lowest number of profit warnings from listed companies of all English regions during Q1, with four warnings also issued in the North East and Yorkshire respectively.

However, there have been seven warnings from listed companies in the North West since 28 February, four of which have cited the conflict in the Middle East.

Across the UK, almost half (49%) of the 55 profit warnings issued by listed companies in Q1 2026 cited the impact of policy change and geopolitical uncertainty as a leading factor – including the conflict in the Middle East. This marked the highest quarterly proportion recorded for this cause in more than 25 years of EY’s analysis and is a significant increase on the 34% of warnings to reference this reason during the same period last year. The report identified rising costs as the other main driver behind profit warnings in the first quarter, which was referenced in more than a fifth (22%) of warnings, followed by contract and order cancellations or delays (16%).

Nearly a fifth (19%) of all UK-listed businesses have issued at least one profit warning in the last 12 months.

Sam Woodward

It’s encouraging to see that profit warnings issued by listed companies in the North West were down both year-on-year and quarter-on-quarter across the opening three months of 2026 – testament to the resilience of the region’s business community.

However, subdued consumer confidence amid muted economic growth, still-high inflation and interest rates falling at a slower pace than previously expected all represent headwinds. Meanwhile, the conflict in the Middle East has added an additional layer of uncertainty and geopolitical disruption, which could present further challenges for businesses in the months ahead. This is demonstrated by the fact that profit warnings from listed companies in the North West have risen since late February. It will therefore continue to be critical that businesses remain agile amid this volatile backdrop.

Jo Robinson, EY-Parthenon Partner and UK&I Financial Restructuring Leader, added:
The slower pace of profit warnings at the end of last year may have continued into early 2026, but UK-listed companies now face a prolonged period of uncertainty following the conflict in the Middle East. Higher costs and supply chain disruption will take time to filter through to earnings and order books, as customers delay, pause, renegotiate or reduce spending, but will overlap with existing business challenges and amplify the strain on earnings for some.

“Sustained uncertainty is likely to embed a risk premium in exposed markets, with pressure concentrating in cash‑constrained, highly leveraged and operationally stretched businesses. As challenges mount, companies need to be constantly redefining what resilience means in this lower‑growth, higher‑cost and unpredictable business environment.”

Joint-highest level of travel sector warnings in three and a half years

The FTSE sectors with the highest number of profit warnings UK-wide during the first quarter were Software and Computer Services (seven warnings), Industrial Support Services – which encompasses business service providers, industrial suppliers and recruitment companies – and Travel and Leisure (both five).

This marked the highest quarterly total of Travel and Leisure sector profit warnings since Q3 2024, which also saw five warnings issued, and the joint-highest since the nine warnings recorded in Q3 2022.