Listed companies in the FTSE Construction & Materials sector issued 18 profit warnings between them during 2025. By comparison they put out five warnings in 2024.
The 18 profit warnings in 2025 was the highest annual total since 2020, when the covid pandemic induced 33 warnings.
EY-Parthenon鈥檚 latest Profit Warnings report reveals that 33% of the sector鈥檚 listed businesses issued at least one profit warning last year 鈥� more than double the 14% seen in 2024.
The leading factors behind profit warnings from UK-listed construction companies in 2025 were contract and order cancellations or delays, cited in 50% of all warnings, policy change and geopolitical uncertainty (28%) and rising costs (17%).
Tim Vance, EY-Parthenon UK&I turnaround and restructuring partner, said: 鈥淭he steep rise in profit warnings across the sector shows that FTSE Construction & Materials companies continue to be significantly impacted by delays in contract starts or slippage in project timelines, which are impacting revenues, disrupting delivery and straining working capital across the supply chain.
鈥淚ncreasing regulatory complexity 鈥� particularly relating to the Building Safety Act 鈥� continues to slow approvals, while legacy liabilities and labour shortages are also weighing on margins, with rising employment costs adding further pressure.
鈥淭here are some signs of encouragement for the months ahead, such as the potential for increased infrastructure spending, particularly in the utilities sector. Lower borrowing costs and easing inflationary pressures could also support demand across parts of the construction market. In this rapidly-evolving landscape, both resilience and agility remain fundamental to success. Businesses that can effectively manage risk, drive innovation and cultivate strong partnerships will be in the best possible position to thrive.鈥�
Overall, 17% of all UK-based listed businesses issued at least one profit warning in 2025.
Got a story? Email news@theconstructionindex.co.uk
