Shares of industrial services provider Bilfinger tumbled 20% in early European trading on Thursday after the company lowered its full-year outlook and unveiled plans to cut up to 1,500 jobs. The company attributed the weak performance to delayed client investment projects.

Bilfinger now expects revenue in a range of €5.3 billion to €5.7 billion (equivalent to $6.08 billion to $6.53 billion) for 2026, down from its previous guidance of €5.4 billion to €5.9 billion. Excluding one-off items, the company also anticipates an EBITA margin of 4.6% to 5.0%, a significant reduction from the earlier forecast of 5.8% to 6.2%.

Analysts at Bernstein noted in a research report that this downward revision significantly exceeds the lower end of prior expectations, characterizing the weakness as cyclical and driven by demand-side factors. As part of its restructuring initiative, dubbed "Program Agile," Bilfinger will cut up to 1,500 positions globally. According to the company's website, it employs approximately 31,000 people worldwide.

The program is designed to deliver annual cost savings of around €75 million, with full implementation targeted for 2028. One-time restructuring costs are estimated at €75 million. The company cited subdued client investment appetite and numerous project deferrals as the primary reasons for the revised outlook.

"The Middle East conflict lasting longer than expected is the main driver of this situation," the company stated. "Entering the current third quarter, Bilfinger has observed a significant increase in caution among clients regarding investment decisions."