Serbia’s largest state-owned companies ended 2025 with approximately €3.6 billion in combined financial debt, while receiving hundreds of millions of euros in budget support and benefiting from government guarantees. The figures highlight the financial exposure associated with state-controlled enterprises as the incoming administration faces decisions on public spending, infrastructure investment and corporate management.
- Energy and road companies account for most corporate debt
- State enterprises report €119 million in net earnings
- Railways and roads receive the largest subsidies
- Government issues €494.5 million in new guarantees
- Infrastructure investment and financing arrangements face greater scrutiny
- Updated liabilities remain important for budget planning
According to Treasury data examined in an analysis published by Danas, Elektroprivreda Srbije (EPS), Srbijagas and Putevi Srbije accounted for the combined debt burden. Meanwhile, the broader portfolio of state enterprises received approximately €542 million in government subsidies in 2025 and recorded aggregate net earnings of just €119 million, excluding Telekom Srbija. The figures are based on financial disclosures published earlier in 2026.
Energy and road companies account for most corporate debt
Srbijagas and EPS each reported approximately €1.29 billion in financial debt at the end of 2025, making them the largest borrowers among the state enterprises examined. Putevi Srbije followed with approximately €1 billion.
The three companies operate critical infrastructure covering electricity generation, gas supply and Serbia’s national road network. Their financial obligations therefore have implications for energy security, infrastructure modernisation, road maintenance and future investment programmes.
The debt figures do not automatically represent direct government liabilities. The potential fiscal impact depends on companies’ repayment capacity, refinancing requirements, outstanding guarantees and the possibility of state intervention if borrowers cannot meet their obligations.
State enterprises report €119 million in net earnings
Serbia’s strategic state enterprises generated approximately €8.35 billion in operating revenue during 2025, compared with operating expenses of around €7.96 billion.
Their combined net earnings amounted to approximately €119 million, excluding Telekom Srbija. EPS was the largest profit contributor, with approximately €329 million, followed by Srbijagas with €83 million and Air Serbia with €35 million.
Several other companies reported substantial losses. Putevi Srbije recorded a net loss of approximately €192 million, while Elektrodistribucija Srbije (EDS) reported a loss of around €60 million. Infrastruktura železnice Srbije recorded a further €38 million loss.
The differences in financial performance underline the varying dependence of state enterprises on budget transfers and external financing. Positive accounting results also do not necessarily indicate sufficient cash generation to cover capital expenditure, debt repayments and asset maintenance.
Railways and roads receive the largest subsidies
Transport infrastructure companies accounted for the largest individual government subsidy allocations in 2025.
Infrastruktura železnice Srbije received approximately €153 million, while Putevi Srbije obtained around €148 million. The state-owned coal-mining company Resavica received approximately €55 million, followed by Srbijavoz with €45 million.
Electricity transmission operator EMS and distribution company EDS also received public support, including funding for network investments.
Some of these transfers finance infrastructure development, network expansion and capital projects rather than covering operating losses. The combination of subsidies, corporate losses and outstanding borrowing raises questions about the financial sustainability of state-controlled infrastructure operators. For Putevi Srbije, the simultaneous presence of approximately €1 billion in financial debt, annual losses and recurring budget support places particular importance on revenue collection, infrastructure expenditure, financing costs and contractual obligations.
Government issues €494.5 million in new guarantees
The Serbian government issued approximately €494.5 million in new guarantees for state-enterprise borrowing during 2025.
Srbijagas accounted for the largest share, with €201 million, followed by:
- Srbijavoz: €132 million
- EPS: €97 million
- EDS: €52.5 million
- EMS: €12 million
Government guarantees represent contingent fiscal liabilities rather than direct subsidies or additional corporate debt. They create potential budget exposure if companies fail to meet obligations covered by the guarantees.
Treasury disclosures also record government payments linked to previously issued guarantees and obligations transferred into public debt, particularly in the energy and transport sectors. Another form of state financial support involved the recapitalisation of defence-sector company Jugoimport SDPR, which received approximately €103 million during 2025.
Infrastructure investment and financing arrangements face greater scrutiny
The financial position of state enterprises raises questions about the division of investment and repayment risks between companies and the central government.
Major infrastructure developments in Serbia rely on different financing arrangements, including budget allocations, sovereign guarantees, bilateral loans and funding from international financial institutions.
Greater transparency over procurement contracts, project costs and corporate financial management could strengthen fiscal oversight and investor confidence. At the same time, prolonged reviews or disruptions to existing financing arrangements could affect contractors, suppliers and lenders involved in ongoing projects.
Banks and international financial institutions will also be concerned with the transparency of borrowing structures, the reliability of cash-flow projections and the allocation of financial risks between state-owned companies and the government.
Updated liabilities remain important for budget planning
A complete assessment of Serbia’s exposure requires more than the reported 2025 corporate debt and subsidy figures. It also depends on updated 2026 debt balances, outstanding government guarantees, contractor payment obligations and multi-year investment commitments.
Electricity networks, railways, roads and other strategic infrastructure require substantial public investment because their economic benefits cannot always be recovered through commercial revenues.
The central fiscal challenge is therefore to establish whether budget transfers generate measurable returns, whether state enterprises can maintain credible debt-servicing plans and whether potential liabilities are identified before they become direct budget obligations. These issues will become increasingly relevant as Serbia seeks to finance energy modernisation, transport infrastructure development and industrial competitiveness while maintaining control over public finances.
