Annual Financial Report 2024 2025

Virginia Tech Financial Report 2024-2025

Summary of Capital Project Funding

Funding for Authorized Current and Future Capital Projects As of June 30, 2025 (all dollars in millions)

Future Debt Issuances Planned (3)

Cash Basis

State

Other

Total

Project-To-Date

Funds (1)

Funds (2)

Funding

Expenses

Current education and general Current auxiliary enterprise Future education and general Future auxiliary enterprise Total current

$

425.0

$

52.9 14.5 67.4

$

33.6

$

511.5 14.5 526.0 135.1 135.1 661.1 -

$

118.0 13.4 131.4

-

-

425.0 25.5 25.5 450.5 -

33.6

109.6

- - -

8.0

-

-

Total future

109.6 177.0

8.0

$

$

$

33.6

$

$

139.4

Total authorized

(1) Includes the general fund, capital appropriations, and the general obligation bonds of the Commonwealth of Virginia. (2) Includes private gifts, auxiliary surpluses, student fees, and other customer revenues. (3) Includes bonds and notes payable the university plans to issue in future years which will be repaid by the university.

The increase in total assets along with the increase in total liabilities is reflected in the year-over-year growth of the university’s net position of $490.1 million (16.5%). Net position in the category of net investment in capital assets increased by $98.7 million, reflecting continued investment in new facilities and equipment supporting the university’s mission. Unrestricted net position rose by $175.4 million (42.5%) due to the prudent management of fiscal resources as well as the net change of $39.3 million in VRS Pension and OPEB liabilities, and deferred inflows and outflows. Capital Asset and Debt Administration One of the critical factors in ensuring the quality of the university’s academic, research, and residential life functions is the development and renewal of its capital assets. The university continues to maintain and upgrade current struc tures, as well as pursue opportunities for additional facilities. Investment in new structures and the upgrade of current structures serve to enrich high-quality instructional programs, residential lifestyles, and research activities. Note 7 of the Notes to Financial Statements describes the university’s significant investment in depreciable capital assets, with gross additions of $569.3 million during fiscal year 2025. Major projects included the completion of the Upper Quad Hall North residence hall ($73.0 million), Hitt Hall ($69.7 million), the Corps Leadership and Military Science building ($47.6 million), and Slusher Hall renovation ($6.6 million). Ongoing investments in instructional, research, and computer equipment, as well as pooled assets, totaled $96.5 million. Depreciation and amortization expense related to capital assets was $192.8 million with net retirement of depreciable assets of $3.4 million. The net decrease in nondepreciable capital assets ($324.3 million) was primarily due to the completion of multiple construction projects during fiscal year 2025. The construction-in-progress category includes the construction of Mitchell Hall to replace Randolph Hall ($39.6 million) and other ongoing capital im provements and renovations throughout the university ($116.9 million). In addition, $15.3 million was withheld as retainage payable on major projects under construction. This retainage amount will be moved to the building asset category once final payments are made to the construction contractors. Proceeds from the sale of commercial paper were used to provide temporary funding for some projects under construction. The majority of the temporary financing will be replaced with the issuance of long-term bonds and notes. Total liabilities related to debt, long-term leases, and SBITAs experienced a net decrease of $56.1 million during fiscal year 2025. This decrease was due to retirements and terminations ($71.6 million) and the net effect of debt refundings during the current year ($1.7 million). This decrease was offset by the addition of long-term leases payable ($3.4 million), and SBITAs pay able ($14.1 million). See Notes 12, 13, 14, 15, and 16 of the Notes to Financial Statements for more details.

The educational and general (E&G) portion of the university’s capital outlay program includes five projects currently under construction. These projects include construction of Mitchell Hall ($359.1 million) and building envelope improvements ($47.2 million). Future capital projects include the planning phase of a new building for the Pamplin College of Business ($94.0 million) and improvements to the Center Woods complex ($14.7 million). The Commonwealth of Virginia will provide partial funding for several of these E&G projects. In addition to funding received from the commonwealth, the projects may also be funded from a combination of private gifts, student fees, other customer revenues, and debt financing. The auxiliary enterprises portion of the university’s capital outlay program consisted solely of maintenance reserve projects at the end of fiscal year 2025. Since auxiliaries are required to be self-supporting, no state general funds or capital appropriations are provided for these projects. These projects are funded by a combination of private gifts, student fees, other customer revenues, and debt financing. Virginia Tech had a total authorization of $661.1 million in capital build ing projects as of June 30, 2025, requiring approximately $33.6 million in additional debt financing. Capital projects in progress carried commitments to construction contractors, architects, and engineers totaling $63.3 million at June 30, 2025. These obligations are for future effort and as such have not been accrued as expenses or liabilities on the university’s financial statements. The majority of the financial commitment is attributed to the construction of Mitchell Hall to replace Randolph Hall ($37.4 million) and the Virginia Tech-Carilion School of Medicine and Fralin Biomedical Institute expan sion ($12.2 million). These commitments represent only a portion of the university’s capital projects currently under construction or authorized by the commonwealth. The university’s bond and commercial paper ratings shown in the table below reflect strong student demand, balanced operating performance, and adequate reserves to address unforeseen expenses. Bonds Commercial Paper Moody’s Investor Service Inc. Aa1 P-1 S&P Global Ratings AA+ A-1+

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