Shares in Games Workshop, the British maker of miniature wargames, dropped as much as 6.5% on Tuesday after the company raised concerns about U.S. tariff impacts and rising plastic prices tied to the Iran war — news that overshadowed an otherwise record-breaking annual profit report.
The company, best known for its Warhammer fantasy miniature line, said newly imposed U.S. tariffs are projected to add an annualized cost of approximately £13 million — roughly $17.29 million — to its expenses. However, Games Workshop indicated it plans to partially offset that burden through a combination of price increases and changes to its operations.
In addition to tariff concerns, the company warned of higher costs for plastic, a key material in its manufacturing process. Supply chain disruptions and inflationary pressure tied to swings in global energy markets are expected to result in an additional hit of around £2 million.
Despite those headwinds, Games Workshop reported that profit before tax rose 4.9% to a record £275.7 million for the fiscal year that ended May 31, driven by continued strength in its core Warhammer business.
The Warhammer brand has grown well beyond its tabletop origins, expanding into video games, books, and film, attracting a devoted global following for the company’s premium, in-house produced fantasy miniatures.
Games Workshop also addressed the topic of artificial intelligence, reaffirming that AI plays no role in the creation of Warhammer miniatures, artwork, or story content. The company did acknowledge, however, that as AI tools become more common in third-party software, they may end up being used in some non-creative areas of its business operations.
Games Workshop is the only publicly traded company in the world focused purely on miniatures. Its shares were last trading at £195.64 each, giving the company a total market value of approximately £6.46 billion.
