UK Profit Warnings Q3 2025 headlines
UK-listed companies issued 64 profit warnings in Q3 2025, slightly above Q2 (59) but well below last year’s peak (84). A steadier number of warnings suggests that many of 2025’s economic and geopolitical pressures are now priced into earnings forecasts, but risks continue to evolve.
The most notable trend this quarter is the spread of weakening confidence from businesses to consumers, casting uncertainty over the vital Christmas quarter. One in five warnings cited falling consumer sentiment up from just 6% a year ago, with retailers particularly affected.
We’re also seeing the impact from earlier geopolitical tensions and policy shifts. Warnings citing exchange rate volatility rose to their highest level since 2018, driven by US dollar weakness. More companies report struggling to offset rising employment costs through pricing or productivity gains, adding pressure to margins.
The broader economic backdrop is still fragile, with restructuring activity increasing as firms face tighter liquidity and reduced flexibility. If this is a pause in profit warnings, it’s an uneasy one.