Group 1 - AMG announced an adjustment to the conversion rate of its 5.15% junior convertible trust preferred securities due 2037, increasing the conversion rate from 0.2558 to 0.2582 common shares per $50.00 junior convertible security, resulting in an adjusted conversion price of $193.6483 per common share [1] - The adjustment is in accordance with the indenture governing the conversion of the junior convertible securities and is a result of quarterly cash dividends paid by AMG on common shares since Q4 2019 [1] - The next quarterly cash dividend has an ex-dividend date of November 13, 2025, and is scheduled to be paid on November 28, 2025 [1] Group 2 - AMG is a strategic partner to leading independent investment management firms globally, focusing on generating long-term value through investments in high-quality independent partner-owned firms [2] - As of September 30, 2025, AMG's aggregate assets under management were approximately $804 billion, covering a diverse range of investment strategies including private markets and liquid alternatives [2]

Core Points - AMG announced an adjustment to the conversion rate of its 5.15% junior convertible trust preferred securities due 2037, increasing the conversion rate from 0.2558 to 0.2582 common shares per $50.00 junior convertible security, resulting in an adjusted conversion price of $193.6483 per common share [1] - The adjustment is in accordance with the indenture governing the conversion of the junior convertible securities and is a result of quarterly cash dividends paid by AMG on common shares since Q4 2019 [1] Company Overview - AMG is a strategic partner to leading independent investment management firms globally, focusing on generating long-term value by investing in high-quality independent partner-owned firms [2] - As of September 30, 2025, AMG's aggregate assets under management were approximately $804 billion, covering a diverse range of investment strategies including private markets, liquid alternatives, and differentiated long-only strategies [2]

Core Viewpoint - Affiliated Managers Group (AMG) has shown strong stock performance, with a 9.6% increase over the past month and a 40.4% gain since the start of the year, outperforming both the Zacks Finance sector and the Zacks Financial - Investment Management industry [1] Financial Performance - AMG has consistently exceeded earnings expectations, reporting an EPS of $6.1 against a consensus estimate of $5.83 in its last earnings report [2] - For the current fiscal year, AMG is projected to achieve earnings of $25.13 per share on revenues of $2.07 billion, reflecting a 17.65% increase in EPS and a 1.56% increase in revenues [3] - The next fiscal year forecasts earnings of $29.73 per share on revenues of $2.24 billion, indicating year-over-year changes of 18.32% in EPS and 7.93% in revenues [3] Valuation Metrics - AMG's current valuation metrics indicate a trading multiple of 10.3X current fiscal year EPS estimates, below the peer industry average of 12.1X [7] - The stock trades at 10.5X trailing cash flow, compared to the peer group's average of 11.8X, and has a PEG ratio of 0.58, positioning it favorably for value investors [7] Zacks Rank and Style Scores - AMG holds a Zacks Rank of 2 (Buy), supported by positive earnings estimate revisions from analysts [8] - The stock has a Value Score of A, a Growth Score of C, and a Momentum Score of A, resulting in a combined VGM Score of A, making it attractive for various investment styles [6][9] Industry Comparison - AMG's performance is compared favorably to peers, such as AllianceBernstein Holding L.P. (AB), which has a Zacks Rank of 1 (Strong Buy) and a Value Score of A [10] - AB is expected to post earnings of $3.86 per share on revenues of $3.57 billion for the current fiscal year, with a recent stock gain of 1.8% over the past month [11][12]

Assets Under Management - As of September 30, 2025, the company's total assets under management reached approximately $804 billion, reflecting a 10% increase from $728.4 billion in the same period of 2024[146][155]. - Average assets under management for the third quarter of 2025 were $786.9 billion, an 11% increase from $711.7 billion in the third quarter of 2024[155]. - As of September 30, 2025, 86% of private market assets under management were ahead of their relevant benchmarks, indicating strong performance[162]. - Approximately 28% of total assets under management could potentially earn performance-based fees as of September 30, 2025[166]. Financial Performance - Aggregate fees for the third quarter of 2025 totaled $1,346.0 million, representing a 16% increase compared to $1,157.1 million in the third quarter of 2024[155][156]. - Aggregate fees for the three months ended September 30, 2025, were $1,346.0 million, an increase of $188.9 million or 16% compared to the same period in 2024[169]. - Asset-based fees increased by $185.6 million or 16% for the three months ended September 30, 2025, primarily due to an increase in average assets under management[169]. - Performance-based fees increased by $3.3 million for the three months ended September 30, 2025, primarily in liquid alternative strategies[169]. - Net income (controlling interest) increased by $88.8 million or 72% for the three months ended September 30, 2025, primarily due to $127.6 million of Affiliate transaction gains[172]. - Adjusted EBITDA (controlling interest) increased by $36.8 million or 17% for the three months ended September 30, 2025, primarily due to a $188.9 million increase in aggregate fees[174]. - Consolidated revenue for the three months ended September 30, 2025, was $528.0 million, an increase of $11.6 million or 2% compared to the same period in 2024[178]. - Economic net income (controlling interest) increased by $26.5 million or 17% for the three months ended September 30, 2025[175]. - Net income (non-controlling interests) increased by $16.3 million or 26% for the three months ended September 30, 2025, reflecting strong performance across the board[207]. - Economic net income (controlling interest) for the nine months ended September 30, 2025, was $497.6 million, with economic earnings per share at $16.68[219]. Cash Flow and Investments - Operating cash flow for the nine months ended September 30, 2025, was $716.8 million, driven by net income of $526.1 million adjusted for non-cash items[227]. - Investing cash flow for the nine months ended September 30, 2025, was a net outflow of $258.6 million, mainly due to $515.1 million in investments in Affiliates[228]. - Financing cash flow for the nine months ended September 30, 2025, was a net outflow of $948.6 million, primarily due to $353.2 million in common stock repurchases and $350.0 million in senior notes repayment[229]. - Cash and cash equivalents as of September 30, 2025, totaled $476.1 million, primarily generated from operating activities[221]. Equity and Debt - The company has a $1.25 billion revolver maturing on November 15, 2029, with $100.0 million borrowed as of September 30, 2025[235]. - Senior notes outstanding as of September 30, 2025, included $350.0 million due in June 2030 and $400.0 million due in August 2034[236]. - The company is rated A3 by Moody's and BBB+ by S&P, maintaining an investment-grade capital structure[220]. - The company has junior subordinated notes outstanding with a par value of $300.0 million maturing in March 2059 and a stated coupon of 5.875%[238]. - The company recorded an impairment expense of $59.2 million attributable to the controlling interest for indefinite-lived acquired client relationships due to a decline in fair value[248]. Strategic Investments - The company completed a minority investment in NorthBridge Partners, LLC, and Verition Fund Management LLC, enhancing its portfolio in private markets and multi-strategy investments[147]. - An agreement was made to acquire a minority equity interest in Qualitas Energy, expected to close in Q4 2025, focusing on energy transition investments[148]. - A minority equity interest in BBH Credit Partners is set to be acquired, with the transaction expected to close in Q1 2026[151]. - The company entered into an equity distribution program allowing for the issuance and sale of common stock up to $500.0 million, with no sales occurring as of September 30, 2025[242]. Expenses and Taxation - Compensation and related expenses increased by $32.7 million or 15% for the three months ended September 30, 2025, primarily due to an increase in Affiliate equity compensation expense[182]. - Total consolidated expenses for the three months ended September 30, 2025, were $409.2 million, an increase of $34.5 million or 9% compared to the same period in 2024[181]. - Income tax expense increased by $40.3 million for the three months ended September 30, 2025, with an effective tax rate of 24.4% compared to 19.3% in the prior year[205]. Impairment and Revenue Projections - Revenue growth rates over the next five years were projected to range from (21)% to 0%, with a long-term revenue growth rate of 0% and a discount rate of 11% used in impairment assessments[248]. - A decrease in revenue growth rates by 200 basis points could result in an additional impairment of approximately $49 million, while a 100 basis point increase in the discount rate could lead to an additional impairment of approximately $91 million[249]. - No triggering events indicating impairment were identified for indefinite-lived acquired client relationships during the three and nine months ended September 30, 2025[250].

Core Insights - Investors are evaluating Affiliated Managers Group (AMG) and T. Rowe Price (TROW) for potential value opportunities in the investment management sector [1] Valuation Metrics - Both AMG and TROW currently hold a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions for both companies [3] - AMG has a forward P/E ratio of 10.22, while TROW has a forward P/E of 10.50 [5] - AMG's PEG ratio is 0.57, suggesting a more favorable valuation relative to its expected earnings growth compared to TROW's PEG ratio of 3.30 [5] - AMG's P/B ratio is 1.71, compared to TROW's P/B of 2.03, indicating that AMG is valued more attractively relative to its book value [6] - Based on these valuation metrics, AMG is rated with a Value grade of B, while TROW has a Value grade of C, suggesting that AMG is the superior value option at this time [6]

Core Insights - AMG Critical Materials N.V. reported a strong performance in Q3 2025, with revenue of $435 million, a 22% increase from $356 million in Q3 2024, and an adjusted EBITDA of $64 million, up 58% from $40 million in the same period last year, primarily driven by the AMG Technologies segment [1][15][35] Financial Performance - Revenue for Q3 2025 was $434.7 million, compared to $356 million in Q3 2024, reflecting a 22% increase [12] - Adjusted gross profit rose to $88 million, a 38% increase from $63.7 million in Q3 2024 [15][31] - Net income attributable to shareholders was $13 million, the highest since Q2 2023, yielding a diluted EPS of $0.39 [15][37] - AMG's liquidity as of September 30, 2025, was $419 million, with $220 million in unrestricted cash and $199 million in revolving credit availability [15][33] Segment Performance - AMG Technologies achieved a revenue increase of 59% to $248 million in Q3 2025, driven by higher antimony sales prices and strong sales in engineering [24][27] - AMG Vanadium's revenue increased by 2% to $154 million, supported by higher sales prices in ferrovanadium and chrome metal [21][23] - AMG Lithium's revenue decreased by 33% to $32.7 million, primarily due to an 8% reduction in lithium market prices and a 32% decrease in sales volumes [16][19] Strategic Developments - The divestment of the natural graphite business is a key strategic move, expected to close later this year, allowing the company to focus on core growth areas [2] - AMG is expanding its production capabilities in the U.S., including becoming the only chrome metal producer in the country and targeting niobium metal and antimony oxide [4] - A memorandum of understanding was signed with Beijing Easpring Material Technology Co., Ltd. for the supply and offtake of battery-grade lithium hydroxide, emphasizing a commitment to a localized battery supply chain [8] Market Outlook - The company anticipates a recovery in the lithium and vanadium markets, positioning itself for long-term value creation despite current low-price environments [3] - AMG Technologies is expected to continue performing well, with an updated adjusted EBITDA outlook for 2025 increased from $200 million to over $220 million [35]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $251 million for Q3 2025, reflecting a 17% year-over-year increase [20] - Economic earnings per share grew 27% year-over-year to $6.10, benefiting from share repurchases [21] - The company anticipates fourth-quarter adjusted EBITDA to range between $325 million and $370 million, with expected economic earnings per share between $8.10 and $9.26 [21][22] Business Line Data and Key Metrics Changes - The company achieved $9 billion in net client cash inflows for Q3 2025, bringing year-to-date total net inflows to $17 billion, representing a 3% annualized organic growth rate [12][20] - Affiliates generated $18 billion in net inflows in alternatives, offsetting $9 billion in outflows from active equities [13] - Liquid alternatives saw record net inflows of $14 billion, driven by tax-aware solutions [13][56] Market Data and Key Metrics Changes - The company’s affiliates manage $353 billion in alternative assets under management (AUM), contributing 55% of EBITDA on a run-rate basis [6] - Approximately $76 billion in alternative AUM was added through organic growth and new affiliate investments, marking a nearly 30% increase in total alternative AUM [5][6] Company Strategy and Development Direction - The company is focused on expanding its investment in growth by partnering with new and existing affiliates, particularly in alternative strategies [7][10] - A strategic collaboration with Brown Brothers Harriman aims to develop innovative products and deliver structured credit solutions to the wealth channel [8][17] - The company has committed over $1 billion across five new growth investments in 2025, enhancing its participation in areas of secular growth [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate long-term earnings growth, driven by strong organic growth and capital allocation strategies [10][22] - The company anticipates a meaningful increase in full-year economic earnings per share in 2026, supported by strong organic growth and new investments [7][22] - Management highlighted the ongoing demand for alternative strategies and the potential for margin expansion at key affiliates [22][46] Other Important Information - The company repurchased approximately $77 million in shares during Q3 2025, with year-to-date repurchases totaling approximately $350 million [24] - The company expects to repurchase at least $500 million in shares for the full year, subject to market conditions [24] Q&A Session Summary Question: Inquiry about franchise momentum and BBH collaboration - Management acknowledged the strong momentum in both organic and inorganic growth, highlighting the strategic collaboration with BBH as a significant opportunity [28][30] Question: Contextualizing growth expectations for 2026 - Management indicated that the combination of new investments, share repurchases, and net inflows from alternatives will significantly impact 2026 earnings per share [42][45] Question: Details on liquid alternatives flows and AQR strategies - Management noted that AQR's diverse strategies and focus on after-tax outcomes have contributed to strong inflows, with a significant opportunity for future growth [51][60]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Company Overview - AMG has ~$804 billion in Assets Under Management [2] - AMG partners with ~40 independent Affiliates [2] - Liquid Alternatives AUM is ~$205 billion, Differentiated Long-Only AUM is ~$451 billion, and Private Markets AUM is ~$148 billion [5] Financial Performance & Growth - AMG's LTM EBITDA contribution by strategy shows Differentiated Long-Only at 48%, Alternatives at 52% (Liquid Alternatives 29% and Private Markets 23%) [7] - The company has a mid-teens annualized long-term earnings growth opportunity [10] - The company has returned ~$28 billion in excess capital over the last 5 years [54] - The company has repurchased ~10% of shares annually over the last 5 years at an average repurchase price of $146 [54] - Adjusted EBITDA increased from $795 million in 2020 to $973 million in 2024 [57] - Economic Earnings Per Share increased from $1330 in 2020 to $2136 in 2024 [57] Investment Performance - 91% of products outperformed benchmarks over 3 years, 99% over 5 years, and 89% over 10 years [15] - Private Markets IRR for the latest vintage is 86%, and for the last three vintages is 84% [15]

Financial Performance - AMG reported a diluted EPS of $6.87 and an economic EPS of $6.10 for Q3 2025, reflecting a 27% growth in economic EPS compared to the prior-year quarter [2][6]. - The company achieved a 17% increase in Adjusted EBITDA year-over-year, amounting to $250.9 million for Q3 2025 [2][4]. - AMG's net income (controlling interest) for Q3 2025 was $212.4 million, which includes a gain of approximately $100 million from the sale of Peppertree Capital Management [4][6]. - The company reported a total consolidated revenue of $528 million for Q3 2025, a slight increase from $516.4 million in Q3 2024 [14]. - Consolidated revenue for the nine months ended September 30, 2025, was $1,517.8 million, a slight increase from $1,516.6 million in the same period of 2024 [17]. - Net income attributable to controlling interest rose to $369.0 million for the nine months ended September 30, 2025, compared to $349.5 million in 2024, reflecting a growth of about 5.3% [17]. - Economic net income for controlling interest was $497.6 million in 2025, slightly up from $495.8 million in 2024 [18]. - Earnings per share (diluted) increased to $11.83 in 2025 from $10.25 in 2024, marking a growth of approximately 15.4% [17]. Assets and Liabilities - Assets Under Management (AUM) increased to $803.6 billion as of September 30, 2025, up from $728.4 billion a year earlier [4][8]. - Cash and cash equivalents decreased to $476.1 million as of September 30, 2025, down from $950.0 million at the end of 2024 [19]. - Total assets increased to $8,928.2 million as of September 30, 2025, compared to $8,830.9 million at the end of 2024 [19]. - Total liabilities rose to $4,388.2 million in 2025 from $4,182.2 million in 2024, indicating an increase of about 4.9% [19]. Shareholder Actions - Year-to-date share repurchases reached approximately $350 million, including $77 million in Q3 2025 [7][6]. - Average shares outstanding (diluted) decreased to 33.0 million in 2025 from 35.2 million in 2024 [18]. - Average diluted shares outstanding decreased from 35.0 million in Q3 2024 to 32.9 million in Q3 2025, representing a decline of 6.0% [26]. - The average adjusted diluted shares outstanding decreased from 33.3 million in the nine months ended Q3 2024 to 29.8 million in Q3 2025, a reduction of 10.5% [26]. Strategic Initiatives - The company announced a strategic collaboration with BBH to develop new products for the U.S. wealth marketplace, enhancing its position in alternative strategies [3][6]. - The company anticipates continued growth in financial results and liquidity, with a focus on strategic investments and acquisitions [27]. - Forward-looking statements indicate potential changes in market conditions and competition for acquisitions may impact future performance [27]. - The company plans to maintain transparency by regularly updating investors through its website and SEC filings [28]. Other Financial Metrics - AMG experienced net client cash inflows of approximately $9 billion in Q3 2025, totaling about $17 billion year-to-date [2][6]. - AMG's aggregate fees for the nine months ended September 30, 2025, were $3.79 billion, compared to $3.73 billion for the same period in 2024 [4]. - Total consolidated expenses increased to $1,278.8 million in 2025 from $1,115.4 million in 2024, representing a rise of approximately 14.6% [17]. - Adjusted EBITDA for controlling interest was $698.8 million in 2025, up from $691.4 million in 2024 [18]. - Pre-tax equity method earnings increased from $79.1 million in Q3 2024 to $118.2 million in Q3 2025, a growth of 49.3% [26]. - Equity method income (net) rose from $52.6 million in Q3 2024 to $88.5 million in Q3 2025, reflecting a 68.2% increase [26]. - The company recognized affiliate transaction gains of $127.6 million in Q3 2025, compared to none in Q3 2024 [26]. - For the nine months ended September 30, 2025, the company reported an expense of $30.5 million due to a modification of Affiliate equity, which was added back to Economic net income [26]. - The impact of the sale of equity interest in Peppertree Capital Management resulted in realized gains of $6.2 million from TPG shares in Q3 2025 [26].