Profitability of Portugal’s companies up 9.5% in 1Q
The profitability of Portuguese companies reached 9.5% in the first quarter of 2026, a figure approaching the all-time high of 9.7% recorded in the third quarter of 2023.
The data appears in the statistical information note on corporate statistics from the Central Balance Sheet Database, released this Monday by the Bank of Portugal.
The indicator, measured by the ratio of earnings before interest, taxes, depreciation, and amortisation (EBITDA) to total assets, rose 0.4 percentage points (pp) compared to the same period last year, remaining “at a historically high level,” central bank analysts highlight.
Profitability growth was most pronounced in the trade and head office sectors, with increases of 0.9 p.p. and 0.7 p.p., respectively. In the trade sector, the Bank of Portugal attributes this trend to a rise in EBITDA, driven by “turnover growth outpacing the growth of expenses.”
For head offices, the result stemmed from capital gains generated through the sale of equity stakes, the central bank notes. Meanwhile, the profitability of public enterprises stood at 7%, an increase of 0.7 p.p. compared to the previous year.
Data from the Bank of Portugal further reveals that 45.7% of corporate assets were financed by equity, a figure 0.4 percentage points higher than that recorded in the same period of 2025.
According to the Bank of Portugal, this increase stemmed from “the incorporation of current-year results into the companies’ equity.” An analysis by size category shows that the financial autonomy of small and medium-sized enterprises rose from 45.6% to 46.3%, while for large enterprises, it fell from 41.1% to 41%.
Furthermore, the cost of financing obtained by companies continued to decline, settling at 4.3%, compared to 4.8% in the first quarter of 2025. This reduction reflects the downward trend in interest rates that began in mid-2024, a trend observed across all economic sectors and size categories.
At the same time, the interest coverage ratio—which measures the extent to which EBITDA exceeds financing costs—rose from 7 to 8.2 times; according to the Bank of Portugal, this signals “reduced financial pressure” on companies.
Overall, the balance sheet data for the first quarter of 2026 reflect simultaneous improvements in profitability, financial autonomy, and financing costs for domestic companies. The next update to these statistics is scheduled for October 8, 2026.
Banco Comercial Português (Millennium bcp) is the most profitable company in Portugal, generating around US$1.51Bn in annual net profit. It leads the nation’s net income rankings, followed by the energy and retail giants EDP – Energias de Portugal (US$1.25Bn) and Galp Energia (US$737 million).
However, in terms of sheer revenue, the retail conglomerate Jerónimo Martins takes the top spot, bringing in over US$40Bn annually.
Sources: Bank of Portugal/ECO Online
