Subsea technology provider Ashtead Technology shares plunged more than 15% after the company warned that project delays would push 2026 revenue and underlying profit below market expectations.

The Aberdeen-based firm said revenue was now expected to be around 5% below current consensus, while underlying operating profit was forecast to be about 15% below expectations.

Continued conflict in the Middle East has led to several projects scheduled for the second half of 2026 being postponed until 2027, while broader economic uncertainty and vessel scheduling changes have delayed projects elsewhere, the company said in a trading update to the London Stock Exchange (LSE).

Shares fell from £4.285 to around £3.63 in early trading, wiping roughly £50m-£60m from its market value as investors treated the update as a profit warning.

The impact on profitability reflects the deferral of rental revenues, which will weaken the group's revenue mix and, combined with operating leverage, put pressure on margins. The company had warned in July that its full-year outlook depended on an easing of Middle East tensions and no major changes to project schedules.

For FY2025, Ashtead Technology reported revenue of £203.2m and an operating profit of £51.6m.

Despite the downgrade, Ashtead Technology said the delays were largely timing-related rather than cancellations. The board said it remained confident in the group's strategy despite the near-term earnings pressure.

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