Horváth CxO Study 2025: Financial performance, the No. 1 priority for companies in Romania

• Romania ranks 7th globally in prioritizing these topics
• Digital transformation and cybersecurity rank 3rd and 4th in the top strategic concerns, amid increased technological pressure
• The shortage of digital talents and skills is perceived more acutely than in the rest of the CEE, especially in the services sector

Romanian CEOs place significantly higher importance on financial stability and risk management than the global average. According to the sixth edition of the “CxO Priorities” study, conducted by management consulting company Horváth, the majority of Romanian executives place this topic at the top of their strategic agenda, while globally it ranks seventh. This result reflects a more cautious approach to the local business environment, in an economic context marked by volatility, high inflation and persistent macroeconomic pressures.

The strategic priorities on the Romanian CxO agenda were presented during the “Horváth Romania – 20 Years of Impact” event, held last night in the presence of over 100 business leaders, partners, current and former employees, representatives of the business press and other relevant stakeholders.

Operational efficiency, digital transformation and AI on the immediate agenda of companies

After financial stability, Romanian companies prioritize cost optimization and operational efficiency, in response to rising production costs, volatile energy prices and uncertain demand. These pressures are driving the private sector to accelerate initiatives to streamline processes and strengthen their competitive position.

Digital transformation and cybersecurity rank 3rd and 4th in the top strategic priorities of Romanian companies, signaling that technology is becoming a key pillar for resilience and competitiveness. Although the maturity level of artificial intelligence (AI) initiatives is still low, the potential is significant: 41% of companies do not yet have active projects in this area, and another 48% consider themselves to be at the beginning of integrating AI into decision-making processes.

On the other hand, Romanian executives are optimistic about the productivity gains they will achieve, through AI, in the next three years. The strongest growth, between 18% and 20%, is expected in areas such as IT, operations and sales.

Talent shortage, a major strategic challenge

The shortage of qualified labor is perceived significantly more acutely in Romania compared to other Central and Eastern European countries. The challenges are felt especially in the services sector, where the lack of digital and ESG skills amplifies recruitment and retention difficulties. This context determines companies to invest in accelerated development programs and in the reorganization of internal processes.

Profit stability and prudent investment approach

In terms of profitability, operating profit margins (EBIT) are expected to remain at a stable level or to increase slightly for most companies in Romania. The most consistent growth is anticipated in banking and financial services (+33.5% in 2025 versus +24.3% in 2024), while good profitability is maintained in the industrial machinery and automation manufacturing industry (+23% in 2025 versus +22.5% in 2024). Declining profits are expected in construction, tourism, transport and logistics, and automotive production and retail remain the areas with the lowest profit margins (around 1%).

Investment strategies focus 55% on the local market, followed by those in Eastern Europe (42%), North America (2%) and South America (1%). The strong focus on these areas means that zero investments are anticipated for countries such as India, China, Australia, Western and Southern European countries or Africa.

Compared to global trends, Romania stands out by placing risk management and financial performance at the top of the executive agenda. At the same time, innovation and research and development (R&D) only ranks 8th locally, compared to 3rd globally. This gap reflects a pronounced focus on financial stability and risk management, to the detriment of investment in innovation.

In terms of risks that concern Romanian executives, inflation is in first place (52% for manufacturing companies, 65% for services), followed by changes in interest rates (in manufacturing) and the shortage of qualified personnel (in services).

“Romanian executives are adopting a more cautious strategy than their counterparts in other countries, focusing on financial performance and reducing risk exposure. This reflects local economic realities and increasing pressures on the labor market and profit margins. At the same time, digitalization and cybersecurity are becoming increasingly important, signaling the transition to more resilient and agile business models,” said Maria Boldor, Partner and Managing Director, Horváth Romania.

The Horváth study “CxO Priorities 2025” was conducted between May and June 2025, by interviewing over 1,000 CEOs and board members from 33 countries. In Romania, 63 executives were interviewed, of which 73% hold CEO positions.