EY Study: Austrian Companies Heading Toward a New Wave of Restructuring

Central Stress Factors

"Viele Unternehmen stehen nicht vor einem einzelnen Problem, sondern vor einer Gleichzeitigkeit mehrerer Belastungen: hohe Kosten, schwächere Nachfrage, geopolitische Unsicherheit und teils eingeschränkter Finanzierungsspielraum", said Jürgen Kogler, Partner at EY-Parthenon Austria. This multiple burden makes restructurings more complex and increases the pressure to develop realistic scenarios at an early stage.

According to the survey, the automotive sector is particularly affected. "Der Druck im Automotive-Sektor wirkt entlang ganzer Wertschöpfungsketten – von Zulieferern über Produktionsbetriebe bis zu industrienahen Dienstleistern", says Ben Trask, Partner at EY-Parthenon Austria. The impact thus extends far beyond the direct manufacturers and also affects suppliers and production-related service providers.

Automotive Sector Particularly Affected

In addition to the automotive industry, the weak consumer climate is increasingly affecting consumer-related sectors. "Gleichzeitig zeigt die Entwicklung im Handel, dass die schwache Konsumstimmung und hohe Kostenbelastung zunehmend auch konsumnahe Branchen treffen", says Kogler. The pressure is thus spreading to industries that previously received less focus.

When it comes to turnaround measures, banks continue to rely on joint solutions with the affected companies, according to EY. "Wenn Geschäftsmodelle strukturell unter Druck stehen, braucht es oft eine Kombination aus finanzieller Neuordnung, operativer Sanierung und strategischen Entscheidungen – bis hin zu Verkäufen, Carve-outs (Abspaltung eines Unternehmensbereiches, Anm.) oder geordneten Insolvenzverfahren", said Kogler.

Banks' Measures

In the process, loan agreements are still frequently adjusted to give companies financial leeway. However, insolvency or liquidation of a company is also gaining importance: for the first half of 2026, 18 percent of respondents named these measures as the most common solution. The share of orderly insolvency proceedings is thus rising significantly.

In parallel with the EY survey, the credit protection association KSV 1870 paints a similar picture. According to the association, insolvencies remain at a high level. KSV expert Karl-Heinz Götze told ORF.at that insolvencies in the first half of this year declined by about one percent compared to the same period last year, at 3,450.

By the end of the year, the KSV expects around 6,800 insolvencies, as in 2025. Insolvencies have been rising significantly year on year since 2023, but Götze does not expect another jump above the 7,000 mark this year. Traditionally, retail, construction, and gastronomy are the industries most affected by insolvencies.

Assessment of the Credit Protection Association

Götze sees additional pressure on personnel costs: "Haben uns aus dem Markt geschossen, das muss uns bewusst sein", he states. Since the outlook is "auch nicht gerade rosig", the situation will remain tense. The multiple burden of high labor costs and weak demand is exacerbating the situation.

The EY survey also shows that banks are increasingly taking a more differentiated view of the situation in individual industries. While the automotive sector and retail are under particular pressure, the experts also see an increased need for restructuring in the real estate sector. The range of affected sectors indicates that the crisis is not limited to individual sectors.

For the coming months, the banking experts surveyed expect an increase in restructuring cases that require strategic decisions at board level. The complexity of cases is rising because several stress factors are impacting companies simultaneously and often require industry-specific solutions.

Overall, the EY survey paints the picture of an economy that is in a phase of increased vulnerability. The combination of cost increases, weak demand, and geopolitical risks is increasing the pressure to act on companies and banks. EY-Parthenon therefore expects an elevated number of restructurings, turnarounds, and insolvencies in Austria.

Outlook for the Second Half of the Year

The results of the EY survey and the assessments of KSV 1870 suggest that the restructuring wave will shape the entire year of 2026. Companies, banks, and advisors are therefore faced with the task of jointly developing viable solutions to cushion the economic consequences of the multiple burden.

Looking ahead to the second half of the year, the experts emphasize that automotive suppliers and retail in particular face difficult months. The expectation that the peak of restructurings will only be reached in the second half of the year leaves the economy little time to prepare for the coming burdens.

The findings also make clear that the problems are not only cyclical in nature, but in some cases structural. Rising energy and material costs as well as geopolitical tensions have a longer-term effect and cannot be resolved by short-term measures such as the adjustment of loan agreements alone.

In conclusion, the EY experts underline the importance of early planning. Those who react too late to the worsening situation run the risk that their options for action shrink and that, in the end, only insolvency or liquidation remains as a way out. The coming months are therefore seen as a decisive phase for the stability of many Austrian companies.