Study: German listed firms issue over 100 profit warnings in 2025

Listed companies in Germany issued more than 100 profit warnings in 2025, highlighting ongoing economic uncertainty, according to a study by strategy consultancy EY-Parthenon.

The study recorded 118 profit warnings last year, down from 153 in 2024 and 160 in 2023. The decline is attributed less to improved economic conditions than to more conservative corporate planning, with companies factoring in greater uncertainties than in previous years.

Key sectors including chemicals and carmaking were hit by economic weakness and external pressures, such as US trade disputes and competition from China. Around 60% of automotive companies and half of chemical firms listed in the country's major indices such as the DAX, MDAX, and SDAX lowered their forecasts in 2025.

While the automotive sector saw some improvement compared with 2024, profit warnings in the chemical industry doubled, driven by high energy costs and falling demand from carmakers and the construction sector.

Across all listed firms, the media and technology sectors were particularly under pressure, accounting for 24 profit warnings. Falling print circulation and weak advertising budgets weighed on revenues, while companies continued to invest heavily in digitalization and artificial intelligence.

Rising interest rates and tighter credit conditions forced financial, real estate and investment companies to cut forecasts 20 times, while heavy industry issued 18 warnings.

Weak demand and declining sales were cited in over half of the warnings, followed by high financing costs, while supply chain and rising cost issues were less frequently mentioned.

EY-Parthenon expects the number of warnings could fall in 2026 if the German economy recovers, but warns that risks remain significant, including the war in Iran, high energy prices, the transition to a climate-neutral economy and weak consumer demand.