American companies pushed their overseas holdings and investments to a record $7.14 trillion last year, according to new data from the U.S. Bureau of Economic Analysis. That’s an increase of $438.1 billion from 2024.

The bulk of investments went to Europe, with the U.K. and Luxembourg absorbing the most. Manufacturing led the way among industries, and chemical companies in particular expanded aggressively abroad. Five countries alone accounted for more than half of everything U.S. multinationals have invested overseas: the U.K. topped the list at $1.11 trillion, trailed by the Netherlands, Luxembourg, Ireland and Canada.

Holding companies remain the dominant structure for these investments, making up nearly 46 percent of the total position, while income on that foreign investment climbed to $660.1 billion. That’s an 11.1 percent gain.

Foreign investment flowed into the U.S. too, though at a slower pace. The positions held by foreign companies rose $266.0 billion to $5.86 trillion by year’s end. Europe again supplied much of the growth. German firms led individual countries with a $49 billion increase, and Canadian firms followed close behind.

Manufacturing pulled in the most new money, and electrical equipment makers were the standout performers within that category.

Japan now sits atop the list of countries investing in America, with a position of $776.3 billion by direct count. But ownership isn’t always so simple, the report’s authors said. When BEA traces an investment back to its ultimate beneficial owner, the picture shifts. Canada climbs to second place. Germany jumps to third. And investment credited to the Netherlands and Luxembourg shrinks considerably once you follow the money past those countries to whoever actually controls it.

That gap reveals that a lot of capital gets routed through low-tax jurisdictions before landing in its true home.

Manufacturing dominates the inbound side of the ledger, too. It claims 42.8 percent of all foreign direct investment in the U.S., worth $2.51 trillion. Chemical manufacturing alone represents a third of that. Finance and wholesale trade trail well behind. Yet even as the investment position grew, the income foreign companies earned from their American operations slipped. It fell 1.9 percent to $310.1 billion. A modest dip. But a notable one, given how much fresh money poured in during the same year.