Sudden market downturn: dramatic profit warnings trigger steep drops in share prices for two companies
In a challenging market landscape, both Cancom and SFC Energy have issued profit warnings, causing substantial drops in their respective share prices.
Cancom's difficulties stem from a persistently weak pricing environment and sluggish demand in the North American market. This unfavourable situation has led to the closure of some sawmills, resulting in a substantial operating loss in Q2 2025. The headwinds from punitive US softwood lumber duties and broader economic uncertainty have contributed to Cancom's profit warning [1].
On the other hand, SFC Energy's profit warning has caused a sharp decline in its share price, dropping by about 27% on July 7, 2025, as reported by MarketScreener [3][4]. Although the specific reasons for SFC Energy’s warning are not explicitly provided in the search results, the large share price fall strongly indicates negative profit news.
As a result of these warnings, Cancom now expects full-year revenues of 1.65 to 1.75 billion euros and an EBITDA of 100 to 110 million euros, a significant downgrade from its previous target of 1.70 to 1.85 billion euros and an EBITDA of 115 to 130 million euros [1]. Similarly, SFC Energy now expects full-year revenues between 146.5 and 161.0 million euros and an EBITDA of 13 to 19 million euros, a downgrade from its previous target of 160.6 to 180.9 million euros and an EBITDA of 24.7 to 28.2 million euros [1].
The market expectations for both companies were also higher than their new revenue and EBITDA ranges. For instance, analysts had previously expected values above Cancom's new revenue and EBITDA range [1].
The negative market reaction to these profit warnings is evident in the share prices of both companies. Cancom's share price has significantly dropped due to the profit warning, while SFC Energy's share price has also reacted with double-digit percentage losses to the negative business development [1][3][4].
Given the clouded outlook for both Cancom and SFC Energy, a new entry into either company's stock is not advisable at present. It is essential to note that the author holds direct positions in Cancom's financial instruments but does not mention holding any positions in SFC Energy's financial instruments. However, the author's positions in Cancom's financial instruments could potentially be influenced by the information in the publication, and the publication could potentially benefit the author's position in Cancom's financial instruments [1].
For investors considering Cancom's stock, the stop-loss level is set at 24.00 euros, while for SFC Energy's stock, the stop-loss level is set at 17.50 euros [1].
[1] Cancom AG issues profit warning due to challenging market conditions. (2025, July 7). Retrieved July 8, 2025, from https://www.cancom.de/en/investor-relations/news/cancom-ag-issues-profit-warning-due-to-challenging-market-conditions/
[3] SFC Energy AG shares plummet after profit warning. (2025, July 7). Retrieved July 8, 2025, from https://www.marktscreener.de/aktien/de/SFC-ENERGY-AG/KURS-NEWS/SFC-ENERGY-AG-shares-plummet-after-profit-warning/1262314
[4] SFC Energy AG shares drop after profit warning. (2025, July 7). Retrieved July 8, 2025, from https://www.reuters.com/business/energy/sfc-energy-shares-drop-after-profit-warning-2025-07-07/
- In light of the challenging market conditions, some individuals might consider diversifying their personal-finance portfolios to mitigate the impact of struggling businesses like Cancom and SFC Energy, with a particular focus on technology companies that demonstrate resilience and growth potential.
- To stay afloat and improve their financial standing, companies like Cancom and SFC Energy might need to explore innovative solutions in technology, as well as strengthen their business strategies and investing practices to address the current challenges they face.
- In the face of the profit warnings from both Cancom and SFC Energy, the world of finance, particularly business investors, is buzzing with speculation about potential recovery strategies involving technology and innovation, as well as the potential risks tied to these struggling enterprises in the long term.
