BCG: One in Six European Companies Under Financial Strain as Leverage Rises 22% in Four Years
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
A report by Boston Consulting Group (BCG) analyzing approximately 1,700 listed European companies reveals that one in six firms in Western Europe is under financial strain, with rising leverage making them more vulnerable to shocks. The share of companies requiring business transformation across Europe has risen to 16.2% from 14.3% last year. Spain and Portugal face the most acute pressure, with 22% of firms needing restructuring. France and the DACH region (Germany, Austria, Switzerland) have the highest proportion of companies under heavy financial or restructuring pressure, both at 10%. The report notes that the net-debt-to-Ebitda ratio, a key measure of overall indebtedness, increased by 22% between 2022 and 2025. Nearly one-third of companies are expected to have a ratio exceeding 3 times by early 2026, which BCG considers the threshold for financial distress. Many firms took on cheap debt during the pandemic and are now struggling to deleverage, leaving them less able to withstand energy price spikes, trade disruptions, and a prolonged period of high interest rates.
Source report
According to the Boston Consulting Group (BCG), one in six companies in Western Europe is facing financial strain, with rising leverage making businesses more vulnerable to various shocks.
In a report analyzing approximately 1,700 publicly listed European companies, BCG found that Spain and Portugal face the most acute pressure, with 22% of companies in these countries requiring business transformation. Across Europe, the share of companies in need of transformation has risen from 14.3% last year to 16.2%.
France and the DACH region—comprising Germany, Austria, and Switzerland—recorded the highest proportions of companies under significant financial or restructuring pressure, both at 10%.
The net-debt-to-EBITDA ratio, a key indicator of overall debt levels, increased by 22% between 2022 and 2025. Nearly one-third of companies are expected to have a ratio exceeding 3x by early 2026—a threshold BCG considers the critical line for financial distress.
Many companies took on low-cost debt during the pandemic and are now struggling to deleverage. This has weakened their ability to withstand shocks from surging energy costs, trade disruptions, and a prolonged period of high interest rates.
Source
新浪财经Neutral / independent
Part of this Story
BCG: One in Six Western European Firms Face Financial Stress as Leverage Rises