American companies held $7.14 trillion in direct investment abroad at the end of 2025, up $438.1 billion from the year before, according to new data released by the U.S. Bureau of Economic Analysis.
The increase was driven primarily by Europe. Investment in that region rose $350.2 billion, with the United Kingdom and Luxembourg accounting for most of that growth. The United Kingdom remained the single largest destination for U.S. investment overseas, with a position of $1,114.7 billion. The Netherlands came in second at $1,044.0 billion, followed by Luxembourg at $645.3 billion, Ireland at $511.9 billion, and Canada at $488.1 billion. Together, affiliates in those five countries held more than half of all U.S. direct investment abroad.
By industry, manufacturing led the growth, with chemical manufacturing driving the largest gains. Looking at the overall stock of overseas investment, holding companies remained the dominant category, accounting for 45.8 percent of the total position abroad. Manufacturing affiliates held 15.9 percent, and finance and insurance affiliates accounted for 13.5 percent. When measured by the industry of the U.S. parent company rather than the foreign affiliate, manufacturing companies accounted for 50.2 percent of total overseas investment.
American multinationals earned $660.1 billion in income on their overseas investments in 2025, an 11.1 percent increase from 2024. Holding companies drove most of that income growth, adding $40.0 billion. Income from finance and insurance operations fell by $6.3 billion compared with the prior year.
On the other side of the ledger, foreign companies increased their investment in the United States by $266.0 billion, bringing the total foreign direct investment position in the U.S. to $5.86 trillion. Europe again led the inflow, accounting for $182.4 billion of that increase.
Germany posted the largest country-level increase in its U.S. investment position, adding $49.0 billion. Canadian multinationals ranked second, adding $39.2 billion. Manufacturing was the industry with the greatest growth in foreign-owned U.S. assets, led by electrical equipment and components manufacturing.
When measured by the country of the immediate foreign parent, Japan held the largest position in the United States at $776.3 billion, followed by the Netherlands at $751.8 billion, Canada at $747.3 billion, and the United Kingdom at $738.3 billion. When measured instead by ultimate beneficial owner, the picture shifts. Japan still led at $827.1 billion, but Canada moved into second place at $819.8 billion and Germany ranked third at $706.2 billion. The BEA noted that positions attributed to the Netherlands and Luxembourg drop sharply on the ultimate beneficial owner basis, indicating that investment flowing through those countries often originates elsewhere.
