Until a few years ago, TU/e had no shortage of cash: at the end of 2023, the university had 150.8 million euros in reserves. By the end of 2025, that amount had fallen to 83.8 million euros.

The university continues to pursue ambitious growth plans and intends to invest a total of 461 million euros in ICT, buildings, and equipment through 2030. The largest investment project is a new laboratory building and cleanroom, costing 200 million euros and funded in part through the Beethoven program.

Because of these major investments and limited cash reserves, TU/e will need to borrow more money from banks in the coming years. According to the annual report, its interest-bearing debt is expected to increase by 180.7 million euros, reaching a total of 259.4 million euros in 2029.

Financial resilience declines

TU/e is not expected to face payment problems, but the university’s financial resilience is weakening. Its solvency ratio—a measure of long-term financial health—is projected to decline from 37 percent in 2025 to 24.4 percent in 2029, while the minimum benchmark is 32 percent.

The decline in solvency has been planned deliberately and is considered manageable by TU/e, provided the university returns to positive financial results from 2028 onward. The annual report states that timely measures will be taken if necessary.

The university’s short-term financial position is also under pressure. Its current ratio—a measure of an organization’s ability to meet its short-term obligations—stood at 0.51 in 2025, just above the benchmark of 0.50. In 2021, the ratio was still 1.11.

According to TU/e’s own projections, the current ratio will fall to 0.39 next year, well below the benchmark, and then remain around 0.41 in the following years. TU/e acknowledges this in the annual report but argues that the low ratio presents a distorted picture.

According to the university, the reason is technical in nature: large advance payments from funding agencies artificially inflate current liabilities, while the university’s actual liquidity remains more than sufficient to meet its obligations.

Financial risks

The risks associated with the construction projects are also acknowledged. “There are significant risks associated with the realization and financing of these housing plans,” the annual report states. “These may result in budget overruns, project delays, failure to achieve the desired quality, and/or reputational damage.”

According to the report, those risks are partly driven by ongoing shortages: “In 2025, pressure on tender prices remained high, and these prices did not decline significantly due to shortages of materials, labor shortages, and uncertainty surrounding the global situation.”

More students, less funding per student

TU/e had nearly 14,000 students during the 2024-2025 academic year (8,680 bachelor’s students and 5,174 master’s students), a record for the university. TU/e has grown rapidly in recent years and is aiming to reach 15,000 students by 2029. While this growth reflects the university’s success, it also has a financial downside.

Government funding per student has been declining for years because the national education budget has not increased in proportion to rising student enrollment. The annual report explicitly acknowledges this challenge, stating that government funding “does not increase sufficiently in line with growing student numbers and research ambitions.”

As TU/e previously outlined in its institutional plan, the Beethoven program provides partial relief. The Dutch government is making more than 90 million euros available to help TU/e grow to 1,900 master's students in chip-related programs by 2030. However, those funds are earmarked for a specific purpose and do not offset the structural funding shortfall.

This article was translated using AI-assisted tools and reviewed by an editor.