According to new figures from consulting EY-Parthenon, six listed companies in the construction and building materials industry issued profit warnings in the third quarter ( Q3 ) of this year.
In its most recent Income Instructions record, it stated that the six instructions were among 65 issued by all UK-listed businesses in the three weeks to September.
Out of 59 total companies listed on the London Stock Exchange ( LSE), two in the market issued warnings in Q2 and out of 59 complete.
The list of listed housebuilders have also received six profit warnings so far this year, upping their year-to-date full to 14. EY-Parthenon’s new numbers likewise reveal this.
This figure sưrpasses tⱨe numbȩr issued proƒit warnings to the market in 2008, accordiȵg to EY-Parthenon, during the globαl financial crisis.
Income instructions attributed to value and supply chain forces are now at their highest level in nearly four years, according to Claire Gambles, a companion at the firm.
She continued,” Housebuilding has become the centre of these price and interest rate stresses. “
Although important details like registration, regional price caps, designer contributions, and schedule are still pending, the industry is hopeful that confirmation of the government’s renewed support for first-time buyers may increase reservations and transaction volumes.
In its analysis, EY-Parthenon did not include any of the businesses. A revenue warning is defined as an official declaration to the stock exchange that states a listed company may report full-year gains that are “materially below management or business anticipation. “
Analysts don’t interpret a company’s statement as a profit warning but rather as a downgraded forecast when it says its profits will be in the lower range of already established expectations.
Brickmaker Ibstock stated that its full-year adjusted core profit would be “around the lower end of current market expectations” in its interim results released in August of this year.
Analysts ‘ range for adjusted EBITDA for 2026 was between £59 million and £68 million.
Hargreaves Lansdown, a stockbroker, described it as a “downgrade” rather than a full profit warning, primarily because Ibstock avoided using the word “below” in relation to market expectations.
In contrast, the share prices of the pμblicly ƫraded companies in tⱨe construction anḑ building materiaIs industry dropped by 6. 9 % between July and September, compared to a 6. 9 % decrease in the second quarter.
The share price of listed construction and building materials companies dropped by 8. 7 % between January and September, according to EY-Parthenon.
In the past year, almost a fifth ( 17 % ) of all UK-listed companies had issued at least one warning, according to the study looking at the general stock market.
The figures, according to Jo Robinson, EY-Parthenon partner and leader of the UK& I financial restructuring, demonstrate how complex a complex web of challenges and structural changes are confronting businesses of all sizes.
She claimed that this is not a typical economic cycle. The post-war period saw a well-known demand-driven boom-and-bust pattern, but supply-side disruption, including material and labor shortages, energy shocks, tariffs, and other related geopolitical disruption, has become much more significant.
As consumer behavior changes and AI transforms its competitive positions and routes to market, businesses are also confronting existential questions about their business models.
