Shares in John Wood Group PLC plunged 31% in early trading after the company warned of weaker-than-expected fourth-quarter performance and forecast negative free cash flow for 2025.
The engineering and consulting firm expects to report full-year adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of $450 million to $460 million, with adjusted operating profit of $205 million to $215 million.
In response to its struggles, Wood has cancelled employee bonuses and taken steps to manage working capital. It completed the sale of EthosEnergy, bringing in $138 million in cash, but net debt remained high at $690 million, with an average debt of $1.1 billion over the year.
An ongoing independent review, led by Deloitte, could result in prior-year adjustments relating to Wood’s Projects business, though the company does not expect a significant impact on its cash position.
Wood remains focused on cost-cutting, targeting $145 million in savings between 2023 and 2026. It plans to sell assets worth $150 million to $200 million to offset its cash shortfall and maintain debt levels.
The stock was off 20.12p at 45.23p.
