Romania's biggest firms start collapsing

Construction has emerged as the most vulnerable sector in Romania's economy during the first quarter of 2026, based on the ratio of insolvencies to active companies in the field. The trajectory of insolvency filings, compared to the same period last year, points to mounting strain in the industry — and financial distress is no longer confined to small players, but is increasingly hitting companies that carry real economic weight.

According to an analysis by CITR, Romania's leading insolvency and restructuring firm, the first quarter of 2026 marked a clear turning point: financial trouble is moving up the food chain, hitting companies with critical mass in the economy and triggering knock-on effects for suppliers, creditors and jobs alike.

In the first three months of 2026, 19 companies with assets exceeding €4 million filed for insolvency — up from just two in the same period of 2025. These companies hold combined fixed assets of roughly €187 million and total liabilities surpassing €448 million. Altogether, 884 employees are directly affected.

In total, 66 "high-impact" companies — each with assets over €1 million — entered insolvency in Q1 2026, compared to 25 in Q1 2025, marking a staggering 164% year-on-year jump.

"We're seeing a clear shift of economic pressure toward companies that carry real weight in the economy. This is no longer just about isolated vulnerabilities among small firms. The strain is now reaching companies with hundreds of employees and extensive networks of suppliers and creditors. The ripple effects are spreading through the economy," said Paul-Dieter Cîrlănaru, CEO of CITR.

Overall, 1,829 insolvency proceedings were opened in Romania in Q1 2026, up 14.3% compared to the same period last year.

Agriculture is seeing the sharpest deterioration, with the insolvency rate nearly doubling in just one year. The decline stems from the severe climate shocks of 2024, high financing costs, and ongoing disruptions in global supply chains.

Manufacturing and industry account for the bulk of insolvencies among large companies. Eight of the 19 companies with assets over €4 million operate in sectors such as baking, agri-food, timber processing and metal construction. These industries are being squeezed on multiple fronts at once — high costs, falling external demand and tighter financing conditions.

Adding to the pressure is the slowdown in Germany's economy — Romania's top trading partner — which is directly affecting companies plugged into European industrial supply chains.

CITR's analysis notes that raw insolvency numbers don't always tell the full story of risk in the economy. When measured against the number of active companies, construction remains the most exposed sector. Retail, meanwhile, continues to post the highest absolute volume of insolvencies, but its risk level relative to sector size is close to the economy-wide average. IT and telecoms remain the most resilient sector, with just 4.3 insolvencies per 10,000 active firms.

The report also points to a possible silver lining for 2027, with insolvencies potentially dropping by around 6%.

Of the 1,829 insolvencies recorded in Q1 2026, 738 were filed in March alone — nearly 40% of the quarter's total. That clustering points to intensifying financial pressure and suggests the elevated pace of insolvencies could well carry into the second quarter.

Against this backdrop, early intervention through restructuring tools remains crucial — it can be the deciding factor between recovery and structural collapse.