Annual Financial Report 2024 2025

Virginia Tech Financial Report 2024-2025

participating in the university’s Graduation Plan for Success, Hokie Summer Scholars, and eleVaTed Scholars programs – all aimed at enhancing educational and experiential learning out comes. And in June, SCHEV announced Virginia Tech’s $4.5 million grant to strengthen pathways to higher education for students across the commonwealth, particularly for prospective first-generation and Pell-eligible students. • Fralin Biomedical Research Institute established a laboratory on the Children’s National Hospital Research and Innovation Campus in Washington, D.C., a further expansion of an existing partnership to advance pediatric cancer research. Supporting the institution’s mission and long-term vision, Virginia Tech’s portfolio of active capital projects had a total combined budget of $1.35 billion for FY25, with $151 million of annual expenditures and $765 million of cumulative expenditures across 24 projects. In February, the university celebrated the opening of the 11-story, 300,000 gsf Academic Building One in Alexandria, Virginia. The building houses the Institute for Advanced Computing and supports outreach and partnerships that advance research and education in artificial intelligence, quantum science, and next-generation technology. The university’s new Undergraduate Science Laboratory Building in Blacksburg, spanning approximately 102,000 gross-square-feet, advances interdisciplinary scholarship among students and faculty from several colleges. In addition to collaboration and instructional spaces, the building provides 26 flexible and adaptable laboratories that enable students to work on projects bridging academic instruction with experiential learning and real-world applications. A fully renovated War Memorial Hall opened for the 2024-25 academic year, and planning efforts are underway to expand and improve student’s residential experience, enhance Rescue Squad operations, and expand operations for the College of Veterinary Medicine. The university’s forward looking 2026-2032 Capital Outlay Plan re flects the university’s priorities for academic, auxiliary, and infrastructure projects which will be supported through a combination of state and institutional resources, including the prudent use of debt. For FY25, the university reported a debt ratio of 4.92 percent, with a long-term debt liability of $725 million. Virginia Tech owns an Aa1 credit rating from Moody’s Investors Service Inc., and in December 2025, S&P Global Ratings upgraded the university’s rating from AA to AA+. S&P cited the university’s improved enrollment, selectivity, operating results, and financial resources as key drivers of the upgrade. This achievement illus trates the proactive and comprehensive planning our teams do around capital outlay and debt allocation. As the scope and complexity of projects continue to evolve, the university will continue to strike a sustainable balance between meeting the university’s near-term needs and preserving capacity for future projects and priorities. This is a transformational period for higher education and for Virginia Tech. The years ahead will require significant new financial commitments in support of our institutional priorities, whilst maintaining a prudent posture in an evolving external environment. However, as the following pages demonstrate, the university enters this period with a strong financial position to deliver on these ambitions and manage any such challenges. Led by our incredible students, faculty, and staff, and driven by our Ut Prosim (That I May Serve) shared responsibility, Virginia Tech continues to excel in its mission and advance our communities, the commonwealth, and the world.

Virginia Tech continued to achieve significant progress toward phil anthropic milestones. The Boundless Impact Campaign, which launched in 2019, had raised nearly $1.88 billion and engaged more than 117,000 alumni as of June 30, 2025, surpassing its goal of $1.87 billion two years ahead of schedule. Further, over $53 million of the fiscal year’s donations counted toward Virginia Tech Advantage , bringing the total raised for that priority to $105.7 million – with a goal of raising $500 million by 2033. More than $70.9 million was raised in support of Virginia Tech Global Distinction priorities such as faculty and graduate student support, research facilities and equipment, and project-specific funding. In addition, the value of the Virginia Tech Foundation’s endowed assets totaled $2.09 billion as of June 30, 2025, an increase from the FY24 total of $1.95 billion. The continued strength in philanthropy, coupled with solid endowment performance, offers flexibility to invest in university priorities and expand financial aid resources for students. Creating new opportunities for learning, research, and discovery is paramount to serving the commonwealth as a leading land-grant insti tution. A variety of strategic activities, partnerships, and investments during FY25 underscore Virginia Tech’s commitment to driving economic and workforce progress through its educational, research and extension activities, while creating pathways for innovation: • The U.S. Department of Energy Office of Fossil Energy and Carbon Management selected Virginia Tech to lead an $11.6 million feasibility research study for developing a regional carbon dioxide storage complex in the Roanoke Valley. Lo cated in Botetourt County, the study pairs Virginia Tech’s pioneering research team with a variety of industry partners to investigate the effectiveness of a cutting-edge geologic carbon sequestration process. • This spring, the Virginia Tech National Security Institute (NSI) and the Virginia Tech Mid-Atlantic Aviation Partnership (MAAP) received a $5 million award from the U.S. Department of Defense to lead the new Counter UAS Research and Testing Center, aimed at creating an ecosystem of drone research with outdoor, indoor, and virtual labs working in tandem. Students from NSI and MAAP are engaged in the creation of the virtual environment and outdoor test bed, supporting the develop ment of the field’s future workforce. The NSI also continued its collaboration with Northrop Grumman engineers on a multi-year project aimed at strengthening wireless security by developing smart radio techniques to detect anomalies that could compromise secure data. • Project VITAL (Virginia Innovations and Technology Ad vancements in Life Sciences), a statewide initiative, announced it will direct $4.9 million to strengthen Southwest Virginia’s position in fields such as medical devices, oncology therapeutic research, and neurotechnology. Virginia Tech, in partnership with Carilion Clinic and the Roanoke Blacksburg Innovation Alliance, will help lead the project, which will include support for innovation fellowships facilitated through LAUNCH: Center for New Ventures at Virginia Tech. • The State Council of Higher Education for Virginia (SCHEV) made significant investments supporting current and prospec tive Virginia Tech students. In November, SCHEV awarded more than $7.4 million to support Pell Grant-eligible students

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