Portuguese companies record their best financial performance in seven years

Non-financial companies in Portugal finished the 2025 financial year with their best economic and financial results in seven years, again underpinned by very strong domestic demand, even as the export sector showed early signs of softening.

By Íris Marçal, in News · 28 Oct 2026, 18:03 · 0 Comments

Credits: envato elements; Author: DC_Studio;

The Iberinform Panorama Empresarial Português 2026 (Portuguese Business Landscape 2026) study, based on an analysis of 366,900 non-financial companies, shows turnover up 7.4% on the prior year and GVA up 10%.

The business sector's financial autonomy reached a record high of 48.8%, and the cash buffer was at 3.11 months, giving companies more scope to operate and to react to any potential disruption.

The improved financial position (lower debt, greater liquidity) provides an extra cushion against geopolitical instability and uncertainty, which is now directly affecting international trade in early 2026.

The underlying strength of the economy has been due to domestic demand, which grew by 3.7%, investment, which was up 6% and construction investment, which was up 10.3%. Tourism and housing have continued to be key drivers of the economy.

On the flip side, exports from the group of companies looked at declined by 1.1%, and productivity continues to be a structural impediment to the country's external competitiveness.

The study shows that in Portugal each euro spent on personnel costs generates €1.80 of GVA (Gross Value Added) as against the EU average of €1.87 per euro of personnel costs.

Iberinform concludes that while the Portuguese business sector will be entering 2026 with more balanced balance sheets and a firmer financial footing, the key to improving international competitiveness and to ensuring growth in the years ahead is continued productivity growth.