Overview

• UK-listed companies issued 26 profit warnings in April 2025, a 24% increase from the same month last year, reversing a decline in Q1 warnings.
• Half of April’s profit warnings directly or indirectly attributed financial struggles to the trade disruptions caused by President Trump’s tariff hikes on steel, aluminum, and cars.
• Companies issuing profit warnings experienced an average share price drop of 19% on the day of their announcements, reflecting heightened investor concerns.
• Global firms, including General Motors, Kraft Heinz, and PepsiCo, also flagged tariff impacts, signaling widespread economic repercussions from the trade policy shifts.
• Key drivers of profit warnings included contract and order cancellations (40%), policy and geopolitical uncertainty (26%), and labor market challenges (18%).