Slovak Companies Face Weak Year, But Wages Outpace Inflation

Slovak businesses navigated a challenging economic landscape in 2025, marked by stagnant revenues and a second consecutive year of profit decline. The overall picture, as revealed by Finstat's analysis of financial statements, shows total company revenues barely inching up by 0.1% to over 90 billion euros, with net profit falling by 1.1% to 4.8 billion euros. This marks a slight improvement from the steeper 3.9% profit drop in 2024, offering a sliver of relief.

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Slovak companies experienced another weak year. Revenues in 2025 practically stagnated and profits fell for the second year in a row. However, companies increased wages, which grew faster than inflation and revenues themselves.

However, a notable counter-trend emerged as companies boosted employee wages by 5.3%, a rate that outpaced both inflation at 4% and revenue growth. This wage increase, while positive for employees, also includes increased social security contributions following rate adjustments in 2024, meaning the actual take-home pay increase might be less dramatic than the headline figure suggests.

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Companies also increased personal costs, i.e. employee wages, by 5.3%, thus exceeding inflation at the level of 4%.

The performance varied significantly across sectors. Services and education led the pack with impressive revenue growth of 18.3% and 14.3% respectively, while the IT sector also saw a healthy 9.4% increase. Conversely, the energy and mining sector faced a severe downturn, with revenues plummeting by nearly a quarter, largely due to changes within energy companies. The mechanical engineering and apparel sectors also struggled, experiencing revenue drops of 10.1% and 8.5%, the latter exacerbated by the closure of a production facility.

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The results were not the same in all sectors. Services fared the best, with revenues increasing by 18.3%, and education and training with growth of 14.3%.

Some major players faced substantial losses, including Tatry Mountain Resorts with over 58 million euros in losses and U. S. Steel Košice reporting a deficit exceeding 56 million euros. On the brighter side, SPP Infrastructure, Finhold, and Stredoslovenská energetika Holding were among the most profitable, demonstrating resilience and success despite the broader economic headwinds.

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Conversely, the energy and mining sector recorded a significant decline, with revenues falling by almost a quarter.