Bilfinger's shares slumped after the company lowered its outlook for the year and said it would cut up to 1,500 jobs, with postponed customer investments expected to weigh on results.

The stock was down 20% in European morning trade Thursday.

The industrial services provider lowered its guidance for 2026, now expecting revenue of between 5.3 billion euros and 5.7 billion euros ($6.08 billion-$6.53 billion). It previously expected a range of 5.4 billion euros to 5.9 billion euros.

Further, the company said it expects an earnings before interest, taxes and amortization margin of 4.6% to 5.0%, adjusted for one-off effects. EBITA margin expectations were previously 5.8% to 6.2%.

The guidance cut was well beyond the low end, with weakness cyclical and demand-driven, analysts at Bernstein said in a note.

Bilfinger also said it would cut up to 1,500 positions globally under the Program Agile initiative. The company has 31,000 employees around the world, according to its website.

The program aims to make annual savings of around 75 million euros and to be fully in effect from 2028. The one-off cost of the plan will be 75 million euros.

The company cited subdued interest from customer investments, leading to postponements, as a main driver of the outlook downgrade. "The war in the Middle East, which lasts longer than expected, is considered a major driver of this development," it said.

"In the current third quarter, Bilfinger has seen a significant increase in customer restraint," the company added.