Wood Group Shares Plunge After Governance Failures and $200M Cash Flow Deficit Forecast

The engineering firm faces financial setbacks, governance weaknesses, and asset sales as it aims to stabilize operations.

Wood Group's shares dropped over 45% after revealing a projected negative cash flow of up to $200 million for 2025, reversing previous positive forecasts.
An independent review by Deloitte uncovered material weaknesses in the company’s financial culture, governance, and controls, prompting corrective actions.
The company plans to sell $200 million in assets, cancel employee bonuses, and implement additional cost-saving measures to address financial challenges.
Wood Group has been burdened by debt since its 2017 acquisition of Amec Foster Wheeler and has faced abandoned takeover bids in recent years.
Despite setbacks, the company reported a growing order book of $6.2 billion and aims to achieve positive cash flow by 2026.