UK-listed companies in Yorkshire issued four profit warnings during the first quarter of 2026, up marginally from the three issued during the same period last year, according to EY-Parthenon’s latest Profit Warnings report.

Three of the region’s four warnings during the first quarter came from businesses operating in the FTSE Industrials super-sector, in keeping with the trend seen throughout 2025, when more than half of the region’s warnings came from listed industrials companies.

Yorkshire recorded 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 the North West.

Almost half (49%) of the 55 profit warnings issued by UK-listed companies in Q1 2026 cited the impact of policy change and geopolitical uncertainty – including the conflict in the Middle East - as a leading factor. 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.

Tim Vance

Businesses in Yorkshire continued to demonstrate resilience during the first quarter, with listed companies in the region issuing the joint-lowest number of profit warnings across all English regions.

The make-up of Yorkshire’s business community means it’s relatively unsurprising that industrials businesses issued the highest volume of warnings in the region. Meanwhile, the conflict in the Middle East is having a far-reaching impact, which could present further challenges in the weeks and months ahead. Scenario planning, stress testing and agility will be pivotal going forward amid a volatile economic landscape.

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.