From geopolitics to generative AI, 2025 has delivered no shortage of disruptive forces. Across boardrooms and balance sheets, corporate treasurers are being asked to do more than manage liquidity—they’re being called on to anticipate shocks, protect assets, and steady the ship amid volatile conditions. This is no longer a function behind the scenes; treasury is now central to corporate survival and strategic resilience.

As global risks multiply and economic signals grow more erratic, many corporate treasury professionals are scaling back the complexity and doubling down on what they know works. The path forward? A grounded, back-to-basics approach to managing cash, working capital, and financial risk with discipline and clarity.

The message is loud and clear: “Treasurers are reporting a return to basics as they build their business resilience in a global environment of uncertainty and unpredictability,” according to the 2025 Corporate Debt and Treasury Survey by Herbert Smith Freehills, in association with the Association of Corporate Treasurers (ACT). Far from being a step backward, this renewed focus reflects a strategic recalibration—one that puts core treasury fundamentals at the heart of long-term value creation.

The most important element of treasury management: Cash management

“Cash is always the most important thing.” That sentiment echoes loudly across the treasury landscape in 2025—and the data backs it up. When asked to identify the three most critical priorities for the treasury function, an overwhelming 91% of respondents pointed to cash management as their top focus, as per the survey report.

But cash management doesn’t stand alone. Under its broad umbrella fall essential elements such as cash generation and working capital optimization—both vital to liquidity and day-to-day operations. While treasurers are doubling down on this core pillar, they are also paying close attention to the wider ecosystem of risk and financing. Nearly half of the survey respondents cited interest rate management, derivatives, and debt diversification as other key areas of focus. Together, these priorities signal a treasury function that’s not just guarding cash—but actively steering the organization through financial complexity with strategy, foresight, and adaptability.

Treasurers are mitigating the cost of debt

The global interest rate environment remains a tightrope walk for corporate treasurers, with the overall cost of borrowing continuing to weigh heavily on debt strategy.

To navigate this landscape, corporate treasury teams are relying on time-tested methods—auditing and streamlining internal cash flows, and deepening engagement with global banking partners. Notably, more than nine out of ten participants in the Herbert Smith Freehills and ACT survey emphasized cash management as a central lever in their response arsenal.

“Treasurers have told us that there has been an auditing of cash management systems so that cash is repatriated to home jurisdictions as much as possible and used to pay down expensive debt or utilised for expenditure”, pointed out the report.

Beyond internal measures, organizations are also taking a more diversified approach to alleviating the cost of debt. This includes enhancing creditor relationships, exploring alternative financing options, and cutting costs. Many of these moves mirror treasury’s broader response to geopolitical and macroeconomic volatility in recent years, suggesting that interest rates are now one of many factors, rather than the sole driver in capital allocation decisions.

Amid ongoing uncertainty around interest rate movements, more organizations are adopting interest rate hedging strategies. The use of interest rate derivatives has grown, with 32% of survey participants using them in 2025, up from 27% in 2024. Instruments such as caps and collars are gaining favour as treasurers seek to bring predictability to borrowing costs in an environment where rates may remain elevated for longer.

Capital expenditure (CapEx) reemerges as a priority

The Herbert Smith Freehills and ACT survey report reveals “A renewed focus on capital expenditure,” with 51% of respondents expecting to increase CapEx in 2025, compared to 46% in 2024 and 48% in 2022. This resurgence, though more measured than the spike in 2023 (69%)—likely driven by changes to the capital allowances regime—signals renewed confidence in long-term growth and productivity investment.

Working capital expenditure has also remained a core area of focus. According to the survey report, 42% of respondents plan to spend more on working capital in 2025, consistent with levels reported in 2023 (48%) and 2022 (42%). This steady commitment suggests companies are staying disciplined about liquidity, supply chain resilience, and operational agility—key components of treasury management amid continued macroeconomic unpredictability.

Encouragingly, more organizations are preparing to increase their debt requirements to fund acquisition or growth opportunities. Thirty-eight percent of respondents anticipate increasing spending on acquisitions in 2025, up significantly from 23% in 2024—the highest proportion recorded in recent years. While some scepticism remains about whether this appetite will persist through the year, many treasury leaders believe that companies with strong balance sheets and forward-thinking leadership are well-positioned to pursue strategic acquisitions.

At the same time, caution is far from absent. Twenty-seven percent of survey participants said they expect to allocate more toward debt repayment in 2025, compared to 20–22% range over the previous three years. This uptick highlights a continued focus on deleveraging and prudent cash management, especially in an environment where interest rates remain high and economic volatility persists.

To conclude, in 2025, corporate treasurers are anchoring their strategies in foundational disciplines—prioritizing cash management, managing debt costs, and deploying capital with care in a climate shaped by business complexity. This return to basics is not a step backward, but a deliberate act of strategic foresight—one that positions treasury as a cornerstone of corporate stability and long-term growth.

For treasury professionals seeking actionable insights, the 2025 Corporate Debt and Treasury Survey by Herbert Smith Freehills and the Association of Corporate Treasurers offers a data-rich, practical guide. Whether you’re refining your interest rate risk strategy, navigating debt funding decisions, managing foreign exchange exposures, or strengthening liquidity management, this report delivers the clarity and context needed to lead with confidence—and to equip your treasury team with the intelligence and perspective to thrive in an era of constant change.