John Wood Group Faces Stock Plunge Amid Negative Cash Flow Outlook

John Wood Group PLC shares dive 32% after projecting $200M negative cash flow for 2025 amid adjusted earnings expectations. Investors are concerned about the financial outlook.

Date: 14-02-2025

AI Rating: 4

Earnings Per Share (EPS)
The report does not explicitly mention EPS figures, so no analysis can be provided.

Revenue Growth
The company expects double-digit growth in adjusted EBITDA and adjusted EBIT for the year, which is a positive sign indicating revenue strength. This contrasts with the previous guidance of high single-digit growth.

Net Income
There is no mention of net income in the report, so no analysis can be provided.

Profit Margins
The report does not specifically provide information about profit margins, so no analysis can be provided.

Free Cash Flow (FCF)
John Wood has projected negative free cash flow of up to $200 million for 2025, which is highly concerning for investors. The need to generate cash from asset sales indicates financial distress.

Return on Equity (ROE)
The report does not mention ROE metrics, so no analysis can be provided.

Overall, while John Wood has optimistic revenue growth projections, the significant drop in stock price and the bleak cash flow outlook raise serious concerns. The forecast of negative free cash flow, despite efforts to maintain debt levels, indicates potential liquidity issues. Investors may react strongly to this information, leading to volatility in stock prices.

Stocks: WG.L