UK-listed companies in the North West issued nine profit warnings during the second quarter of 2026, triple the number issued during the same period last year (three) and marking the region’s highest Q2 total since 2020, according to EY-Parthenon’s latest Profit Warnings report.

Almost half of North West Q2 warnings (four) came from businesses operating in the Industrials FTSE super-sector. Other warnings came from a variety of sectors, highlighting that current headwinds are affecting businesses across the region’s economy.

The South East (19 profit warnings) and London (15) were the only regions to see more warnings issued than the North West during the second quarter.

Across the first half of 2026, listed companies in the North West issued 13 warnings – the highest H1 total since 2023 when there were 14.

Overall, UK-listed businesses issued 59 warnings during the second quarter, up slightly from 55 in Q1. More than half (53%) of Q2 profit warnings referenced policy change and geopolitical uncertainty as a leading factor, the highest quarterly proportion recorded for this cause in more than 25 years of EY’s analysis.

Since the start of the conflict in the Middle East on 28 February, two in five (40%) of the 80 UK profit warnings issued have cited its impact.

Sam Woodward, EY-Parthenon UK&I Financial Restructuring Partner in the North West, said: “The North West business community has shown encouraging resilience in recent times despite subdued economic growth, a volatile global economy and geopolitical disruption. However, with such a complex combination of persistent headwinds, challenges are inevitable for businesses across various sectors and regions, so the increase in warnings seen during the second quarter was not unexpected.

“Industrial businesses across the North West have been most affected in the second quarter because of ongoing supply chain disruption and high energy costs. The latest figures are a timely reminder of how important it is for businesses – particularly those in the industrials FTSE super-sector – to prioritise cash flow, forecasting, stress testing and scenario planning, all of which will continue to be crucial in the coming months.”

Jo Robinson, EY-Parthenon Partner and UK&I Financial Restructuring Leader, added: “The latest figures show that pressure and profit warnings are increasingly concentrated in sectors and businesses facing rising costs, cautious consumers and tighter credit conditions. Just as one source of pressure begins to ease, another emerges; a year ago, companies were grappling with disruption from tariffs and shifting trade policy, while the conflict in the Middle East has now triggered more than two-fifths of recent warnings.

“Beyond geopolitical tensions, businesses face some policy uncertainty – both domestically and abroad – which is creating a source of volatility. Many companies will adapt and thrive despite this backdrop, but there is growing evidence that years of rolling disruption have eroded corporate resilience. The number of profit warnings has stabilised, but the proportion of listed companies issuing them has reached levels more typically associated with recession in six of the last seven years. Whilst no single shock has matched the severity of the global financial crisis or pandemic, the cumulative impact of successive disruptions could be just as powerful.”

Highest level of travel and leisure sector warnings in nearly four years

The FTSE sector with the highest number of profit warnings during Q2 was Travel and Leisure, which recorded seven warnings. This marked the sector’s highest quarterly total since Q3 2022 (nine).

After Home Construction (six), three sectors issued five profit warnings in the second quarter. These were Software and Computer Services, Industrial Support Services – which encompasses business service providers, industrial suppliers and recruitment companies – and Retail.