Positive result for 2025: strengthening UT’s financial foundation and looking ahead

The result has several causes, but the Executive Board recognises that it is also linked to the efforts made across the organisation. In several parts of the university, reorganisations have recently taken place or are currently ongoing. At the same time, vacancies have been filled more cautiously, and teams have had to reorganise their work. This has required considerable flexibility and effort from staff and has in some cases also brought uncertainty about roles, workload and future perspectives. We greatly appreciate the commitment and resilience shown by colleagues during this period.

Overall, faculties and services spent less than budgeted. This is partly due to the planned reduction in the number of staff in support functions, but also to a more cautious approach to spending. Expenditure on central items such as housing was also lower than expected. At the same time, income was somewhat higher than anticipated, including higher government contributions and tuition fee revenues. The so-called contribution margin was also higher.

A positive result at the level of the university does not mean that the financial balance is already in order everywhere within the organisation. In several parts of the university, it remains challenging to bring income and expenditure into balance, and a number of units still recorded a deficit in 2025.

In some cases, this is related to external developments, but not everywhere. This means further steps are needed within the organisation to strengthen our financial position structurally.

In addition, we have not yet succeeded in increasing income from the third funding stream as much as intended. Expanding these revenues therefore remains an important priority for the coming years.

The positive result for 2025 helps rebuild UT’s reserves. This strengthens our resilience in the face of setbacks and creates room for strategic investments in the future. At the same time, it does not mean there is structural additional financial space. The outlook for the coming years remains uncertain, partly due to developments in government funding and student enrolment.

The Executive Board believes it is important that our budget aligns as closely as possible with the income and expenditure we expect. The fact that the preliminary result is considerably higher than projected in the August MARAP shows that we need to adjust our expectations more effectively during the year as new insights emerge.

Improving our insight into financial developments throughout the year will help us make timely decisions and ensure that resources are used effectively for education, research and support.

The positive result for 2025 does not change the structural financial challenges facing the university. These require careful choices over the longer term.

For this reason, the acute measures introduced in 2024 will remain in place. These include limiting student jobs, applying a careful procedure for new vacancies and exercising restraint in external hiring. For the time being, these measures remain necessary to maintain financial stability in the coming years.

The measure regarding travel has already been adjusted and partly relaxed. Other measures can only be adapted or lifted once sufficient improvements have been made in our budgeting and forecasting. At the same time, we are developing ways of working that support careful use of resources. Based on this, we will assess when and how other temporary measures can be adjusted.

As part of the annual report process, a proposal will be developed to reserve part of the result for targeted strategic investments. These investments will align with the new institutional plan that is currently being developed.

In this way, we aim to combine financial stability with continued investment in our ambitions and in the further development of the University of Twente as a fourth-generation university.