One in six (17%) European public companies are ‘under pressure’ to transform their operations amid ongoing geopolitical instability, trade policy shifts, and tariff uncertainty, a new report by Boston Consulting Group (BCG) has found.
BCG‘s report, The $300 Billion Reason Why CEOs in Europe Need to Focus on Transformation, examined the operational performance and financial stability of more than 1,700 European public firms.
Of those that are under pressure to transform, more than 6% face ‘severe pressure’, indicating that the need to restructure their business is a priority.
Combined, the at-risk firms identified in the report represent more than $300 billion in GDP and 3.5 million jobs.
Tomorrow’s problem today
“Too many CEOs still view transformation as tomorrow’s problem,” commented Renaud Montupet, a BCG managing director and senior partner, and a coauthor of the report. “Business leaders need to act fast to shore up their balance sheets and cash positions if they want to enter 2026 from a place of strength.”
On a geographical basis, public companies in Germany were found to face the most restructuring risk, due to pressure in the automotive, chemicals, and consumer & retail sectors. German companies accounted for one third of the total $300 billion-plus in GDP at risk across Europe, BCG noted.
Companies in Italy and the Nordics also face pressure to transform, due to the ‘struggles of large players’ in fields such as technology, media & telecommunications and energy, while in France and the UK, transformation pressure is less evident.
The BCG report identifies four sectors as ‘standing out’: Consumer & Retail is under margin pressure and facing weakened consumer demand, while Automotive faces stagnant sales, overstocked inventories, and rising competition from China.
Elsewhere, the Chemicals sector faces low capacity utilisation, high energy costs, and regulatory burdens, while Transportation & Logistics is challenged by a worsening truck driver shortage across Europe.
‘A defining moment’
“This is a defining moment for CEOs,” commented Jochen Schönfelder, BCG managing director and senior partner, and a coauthor of the report.
“Long-standing financial vulnerabilities are colliding with macroeconomic risks, and not all sectors are prepared. Without a full transformation playbook, many will remain exposed when the next storm hits.” Read more here.
