UK-listed companies in Yorkshire issued three profit warnings in the third quarter of 2025, down from five during the same period last year and equalling the region’s joint-lowest quarterly total since Q3 2021, according to EY-Parthenon’s latest Profit Warnings report.

Across the first three quarters of 2025, listed companies in Yorkshire issued 10 warnings, down 38% from the 16 recorded during the opening nine months of 2024. The region’s Q3 profit warnings total was also down quarter-on-quarter, from four in Q2.

All three of the region’s warnings issued during the third quarter came from listed companies operating in the FTSE Industrials super-sector, similar to the regional trend seen during the first half of the year with a high proportion of warnings coming from industrial companies. Nationally, companies in the FTSE Industrials sector issued the second-highest number of warnings in Q3 (14).

Across all UK listed companies, a total of 64 profit warnings were issued in the third quarter, down from 84 in Q3 2024.

One in five (19%) of the 64 profit warnings issued by UK-listed companies during Q3 2025 cited the impact of weaker consumer confidence, the highest proportion recorded for this cause since 2022 and up from just 6% during the same period last year.

The leading factor behind profit warnings across the UK during the third quarter was policy change and geopolitical uncertainty, cited in nearly half (47%) of warnings. This marked the highest percentage recorded for this cause in more than 25 years of EY’s analysis, and a significant increase from 17% in Q3 2024.

A third (34%) of profit warnings issued in the third quarter cited contract and order cancellations or delays, while 22% referenced tariff-related impacts, including weaker demand and supply chain disruption.

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

Tim Vance

Despite a challenging economic backdrop characterised by sticky inflation, global trade market uncertainty and regular changes to policy, it is encouraging to see that listed companies in Yorkshire have been resilient, with profit warnings in the region down by more than a third across the first three quarters of this year compared to the same period in 2024. The Industrials FTSE super-sector continues to be most affected by persistent headwinds, seeing the region’s highest proportion of warnings so far this year, with significant levels of contract delays and order cancellations having an impact. Specifically, five of the region’s warnings so far this year have come from companies operating in the construction and materials sector, highlighting the marked challenges facing businesses in this space, which include weaker markets, delays in tenders and project starts, significant regulatory challenges and rising input costs.

While the resilience on display from Yorkshire’s business community this year to date has been commendable and is testament to the resolve and quality of the region’s businesses, the outlook for the UK economy continues to be relatively downbeat, with the prospect of tax rises in the Autumn Budget signalling further challenges ahead. Prioritising cash flow and forward planning will be critical for businesses in Yorkshire and indeed across the UK in the coming months.

Jo Robinson, EY-Parthenon Partner and UK&I Financial Restructuring Leader, added:
“The latest profit warnings data shows that the persistent uncertainty which has weighed heavily on UK businesses has spread to households. The standout trend in Q3 was the knock-on effect of weakening consumer confidence, at its highest since late 2022 when rising energy prices and the wider cost-of-living crisis were having an acute impact on consumer behaviour.

“Companies are still clearly seeing ripples from earlier geopolitical tensions and policy shifts, and the proportion of firms to have issued a warning in the last 12 months has consistently been at a level typically associated with a period of economic shock for the past two years. As the Government faces difficult decisions ahead of the Autumn Budget, businesses are continuing to navigate market shifts and external threats, adapting their operations and supply chains to ongoing uncertainty and growing risks like cyberattacks.

“While buoyant equity markets over the summer sustained a narrative of corporate resilience, resilience is not immunity. Forecasting confidence is being disrupted by near-constant change, and restructuring activity continues to rise as persistent pressures leave many companies with tighter liquidity and reduced flexibility. In this environment, firms must adopt a measured, scenario-based approach that balances both agility and strategic clarity.”

Software services, construction and media sectors lead UK warnings in Q3

The FTSE sectors with the highest numbers of profit warnings in Q3 2025 were Software and Computer Services, with 10 warnings issued, followed by Construction and Materials, and Media – both with six.

Companies from the FTSE Retailers sector and FTSE Personal Care, Drug and Grocery sector, which includes supermarkets, issued nine warnings in total during the third quarter, the highest number since Q4 2023 (also nine) and the highest Q3 total since 2022.