Number of profit warnings from Yorkshire firms lifts in third quarter amid ‘challenging’ environment
UK-listed companies in Yorkshire issued five profit warnings in the third quarter of 2026, up from the three recorded during the same period last year, according to EY-Parthenon’s latest Profit Warnings report.
Listed companies in the FTSE Industrials super-sector have accounted for more than half of Yorkshire’s 14 profit warnings so far this year, continuing the trend seen throughout 2025.
The 14 profit warnings issued by businesses in the region so far this year is up 40 per cent compared to the first three quarters of 2025, when 10 warnings were issued. Yorkshire warnings remained unchanged from Q2 2026, when five warnings were also issued.
London, with 20 profit warnings, and the South East, with 15, were the only regions to see more warnings issued than Yorkshire during the third quarter.
Tim Vance, EY-Parthenon UK&I financial restructuring partner in Yorkshire, said: “Although profit warnings from Yorkshire businesses have increased year-on-year, the total seen so far in 2026 remains relatively low despite the challenging economic environment, which continues to be impacted by geopolitical headwinds, low growth and subdued consumer confidence. Industrials companies have issued the region’s highest volume of profit warnings so far this year by some margin, which underscores the impact of ongoing supply chain challenges.
“The challenges that have already affected trading conditions so far this year aren’t showing many signs of easing, with inflation and interest rates now both expected to rise in the coming months, so stress testing, scenario planning and prioritising cash flow will continue to be as important as ever. Businesses will need to be adaptable as the global and domestic economic landscapes face persistent volatility.”
Overall, UK-listed companies issued 65 profit warnings during the third quarter of 2026, up from 59 in Q2 and the highest quarterly total since Q4 2024, where 71 warnings were issued.
Rising costs were cited as a leading factor in more than a third of Q3 warnings – the highest proportion recorded for this cause since Q4 2022 when 41 per cent cited costs as a contributing reason.
The leading driver of UK profit warnings in Q3, for the sixth consecutive quarter, was policy change and geopolitical uncertainty, the highest quarterly proportion to reference this reason in more than 25 years of EY’s analysis.
Two in five warnings during the third quarter specifically cited the impact of the conflict in the Middle East.
The report also identified contract and order cancellations or delays and weaker consumer confidence as the other main drivers behind Q3 warnings.
Nearly a fifth of all UK-listed businesses have issued at least one profit warning in the last 12 months.