Company Overview - AMG Critical Materials N.V. focuses on providing critical materials and related process technologies to promote a less carbon-intensive world, emphasizing energy storage materials like lithium, vanadium, and tantalum [2][3] - The company operates globally with approximately 3,600 employees and has production facilities in multiple countries including Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, and Sri Lanka [4] Business Segments - AMG's Lithium segment encompasses the entire lithium value chain, aiming to reduce the CO2 footprint for both suppliers and customers [3] - The Vanadium segment is recognized as the world's market leader in recycling vanadium from oil refining residues, integrating the company's vanadium, titanium, and chrome businesses [3] - The Technologies segment is a leader in advanced metallurgy, providing engineering solutions for the aerospace engine sector and supporting the development of LIVA batteries and NewMOX SAS for the nuclear fuel market [3] Annual Report - AMG has published its 2024 Annual Report, which is accessible to investors and interested parties via the company's website [1][5]

Affiliated Managers Group (AMG) shares soared 3.6% in the last trading session to close at $160.22. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.1% loss over the past four weeks.After three trading sessions of ending the red, the shares of Affiliated Managers rallied yesterday. As the stock market volatility is driving investors toward safe havens, the inflows are expected to rise across the asset management industry. As a ...

Core Points - AMG Critical Materials N.V. is undergoing changes in its Supervisory Board composition, with key retirements and appointments scheduled for the Annual General Meeting on May 8, 2025 [1][2][3][6] Board Changes - Professor Steve Hanke and Mr. Herb Depp will retire from the Supervisory Board after serving twelve years, in accordance with Dutch Corporate Governance Code term limits [2] - Ms. Dagmar Bottenbruch will be appointed as Chairwoman of the Supervisory Board following the retirement of Professor Hanke [3] - Mr. Willem van Hassel will be nominated for reappointment for an additional two-year term as Vice Chairman [4] - Mr. Warmolt Prins will also be nominated for reappointment for a four-year term, continuing his role in financial and sustainability reporting [5] - Mr. Rob Jeffries is nominated as an independent Supervisory Board member, bringing extensive experience in investment banking and corporate finance [6] Company Overview - AMG focuses on providing critical materials and related technologies aimed at reducing carbon intensity, including energy storage materials like lithium, vanadium, and tantalum [9] - The company operates globally with approximately 3,600 employees and has production facilities in multiple countries, including Germany, the United States, and China [11]

Core Points - The Supervisory Board of AMG Critical Materials N.V. has proposed to solidify the leadership and strengthen the executive team during its meeting on February 26, 2025 [1] - Dr. Heinz Schimmelbusch, CEO and Chairman, is set to serve another two-year term ending at the Annual General Meeting on May 8, 2025 [2] - Eric Jackson, COO, will retire from the Management Board on May 8, 2025, after serving since AMG's formation in 2006, but will continue as a senior advisor [3] Management Changes - The Management Board will be supported by three Executive Vice Presidents: Michele Fischer (EVP Human Resources), Juri Abbatantuono (EVP Strategic Projects & Engineering), and Ludo Mees (EVP Legal, Compliance and Corporate Governance) [4] - Michele Fischer has been with the company since 2014, Juri Abbatantuono joined in 2017, and Ludo Mees has been with AMG since its inception [4] Company Overview - AMG focuses on providing critical materials and related process technologies aimed at reducing carbon intensity, including energy storage materials like lithium, vanadium, and tantalum [6] - The company is a leader in recycling vanadium and advanced metallurgy, serving various sectors including aerospace [7] - AMG operates globally with approximately 3,600 employees and production facilities in multiple countries including Germany, the UK, and the US [8]

Core Insights - AMG Critical Materials N.V. reported fourth quarter 2024 revenue of $361 million, slightly down from $367 million in the same quarter of 2023, with a full year revenue of $1,440 million, representing an 11% decrease compared to 2023 [1][9] - The company achieved an adjusted EBITDA of $168 million for 2024, despite significant declines in lithium and vanadium prices, which fell by 65% and 23% respectively [2][3] - AMG Technologies segment showed exceptional performance, with adjusted full year EBITDA of $68 million, more than double that of 2023, and a record order intake of $380 million [2][24] Financial Performance - Fourth quarter adjusted EBITDA was $58 million, marking the highest quarterly result in 2024, despite ongoing weakness in lithium and vanadium prices [8][9] - Full year 2024 adjusted EBITDA decreased to $168 million from $350 million in the previous year, reflecting the impact of lower commodity prices [9][13] - The total proposed dividend for 2024 is €0.40 per ordinary share, including an interim dividend of €0.20 already paid [8][33] Segment Analysis AMG Lithium - Revenue for AMG Lithium in Q4 2024 was $53 million, a 35% decrease year-over-year, primarily due to a 44% decline in lithium market prices [11][13] - Full year revenue for AMG Lithium dropped 56% compared to 2023, driven by lower average annual prices [11][15] - The lithium concentrate plant expansion in Brazil has been completed, increasing capacity from 90,000 tons to 130,000 tons per year [16] AMG Vanadium - Q4 2024 revenue for AMG Vanadium was $145 million, a 10% decrease from the previous year, with full year revenue also down 11% [17][18] - Adjusted gross profit for Q4 2024 increased by 47% compared to the same period in 2023, largely due to benefits from Section 45X production credits [18][20] - Full year adjusted EBITDA for AMG Vanadium decreased from $81 million in 2023 to $76 million in 2024, impacted by lower profitability in vanadium [20] AMG Technologies - Revenue for AMG Technologies in Q4 2024 increased by 32% to $163 million, driven by higher sales prices of antimony and increased silicon sales volumes [21][23] - Full year revenue for AMG Technologies rose 24% compared to 2023, reflecting strong performance in Engineering and higher sales prices [21][23] - The segment's adjusted EBITDA for 2024 was $68 million, more than double the previous year's figure [23] Operational Developments - AMG Engineering secured a record order intake of $380 million in 2024, with an order backlog of $374 million as of December 31, 2024 [8][24] - The company is advancing its lithium expansion initiatives, with the lithium hydroxide refinery in Germany progressing as planned [39][40] - AMG Silicon has temporarily halted operations due to high electricity prices, with plans to resume one furnace operation in Q2 2025 [25] Liquidity and Financial Position - As of December 31, 2024, AMG had $494 million in total liquidity, including $294 million in unrestricted cash and $200 million available on its revolving credit facility [31][38] - The company recorded a net finance cost of $13 million in Q4 2024, a shift from net finance income in the same period of 2023 [32] - AMG's total assets increased to $2,039 million as of December 31, 2024, compared to $1,963 million in 2023 [46]

Company Overview - AMG Critical Materials N.V. is focused on providing critical materials and related process technologies to promote a less carbon-intensive world [3] - The company specializes in energy storage materials such as lithium, vanadium, and tantalum, and also develops systems to reduce CO2 emissions in aerospace engines [3] Financial Results Announcement - AMG will release its fourth quarter and full year 2024 financial results on February 26, 2025, at approximately 18:00 CET [1] - A conference call to discuss these results will take place on February 27, 2025, at 15:00 CET [1] Conference Call Details - Participants are advised to connect approximately 10 minutes prior to the call [2] - The call-in information includes a toll-free number and alternate numbers for various regions, with a specific conference ID provided for access [2] Business Segments - AMG's Lithium segment aims to reduce the CO2 footprint across the lithium value chain [4] - The Vanadium segment is a market leader in recycling vanadium from oil refining residues [4] - The Technologies segment is recognized for advanced metallurgy and engineering services in the aerospace sector, including operations related to LIVA batteries [4] Global Operations - AMG employs approximately 3,600 people and operates production facilities in multiple countries including Germany, the UK, the US, China, and Brazil [5]

Financial Performance - Net income for 2024 was $740.6 million, representing an 18% decrease from $906.1 million in 2023, primarily due to a prior year gain from the sale of an equity interest[147]. - The company experienced net client cash flows of negative $13.9 million in 2024, with significant outflows in equity strategies[139]. - Economic net income (controlling interest) decreased by 2% in 2024 to $701.6 million, impacted by increased taxes and interest expenses[149]. - The company reported a 4% increase in Adjusted EBITDA (controlling interest) to $973.1 million in 2024[148]. - Consolidated revenue decreased by $16.9 million or 1% in 2024, primarily due to a $20.3 million or 1% decrease from asset-based fees[152]. - Net income (controlling interest) decreased by $161.3 million or 24% in 2024, primarily due to a pre-tax gain associated with the Veritable Transaction recognized in 2023[173]. - Investment and other income decreased by $39.7 million or 34% in 2024, primarily due to a $35.3 million decrease in net realized and unrealized gains on investments[169]. - Earnings per share (diluted) for 2024 was $15.13, down from $17.42 in 2023[253]. - The Company’s consolidated revenue for 2024 was $2,040.9 million, a decrease of 0.9% from 2023[253]. - Total consolidated expenses for 2024 were $1,507.8 million, reflecting a slight increase from $1,496.6 million in 2023[253]. Assets and Liabilities - As of December 31, 2024, the company's total assets under management reached approximately $707.9 billion, reflecting a 5% increase from $672.7 billion in 2023[132]. - Average assets under management for 2024 were $700.5 billion, a 6% increase from $660.3 billion in 2023[136]. - Total assets decreased from $9,059.6 million in 2023 to $8,830.9 million in 2024, a decline of 2.5%[259]. - Total liabilities increased from $4,096.1 million in 2023 to $4,182.2 million in 2024, an increase of 2.1%[259]. - The company’s equity decreased from $4,570.1 million in 2023 to $4,298.2 million in 2024, a decline of 5.9%[262]. Cash Flow - Operating cash flow for 2024 was $932.1 million, primarily driven by net income of $740.6 million and distributions from equity method investments of $403.9 million[189]. - Investing cash flow for 2024 was $379.1 million, mainly due to $898.1 million from maturities and sales of investment securities[190]. - Financing cash flow for 2024 was a net outflow of $1,175.9 million, primarily due to $709.8 million in common stock repurchases and $400.0 million in senior notes repayment[191]. - Cash flow from operating activities decreased from $1,054.7 million in 2022 to $874.3 million in 2023, with a slight recovery expected to $932.1 million in 2024[267]. - Cash flow from investing activities improved significantly from a negative $109.9 million in 2022 to a positive $264.5 million in 2023, and further to $379.1 million in 2024[267]. - Cash flow used in financing activities was $1,402.9 million in 2022, reduced to $758.3 million in 2023, with an expected increase to $1,175.9 million in 2024[267]. Investments and Affiliates - The company completed a minority investment in NorthBridge Partners, LLC, a private markets manager, on February 6, 2025[133]. - The company anticipates further evolution of its business mix through investments in new and existing Affiliates to capitalize on industry growth trends[139]. - The equity method investments in affiliates (net) balance was $2,246.6 million as of December 31, 2024[248]. - Management recognized a $39.9 million expense to reduce the carrying value of an equity method investment in an affiliate to fair value due to anticipated declines in assets under management[248]. - The company’s investments in affiliates, net of cash acquired, were $291.1 million in 2022, projected to be $294.7 million in 2023, and significantly reduced to $5.9 million in 2024[267]. Debt and Financing - As of December 31, 2024, the carrying value of total debt was $3.4 billion, with a weighted average maturity of 21 years[196]. - The bank leverage ratio as of December 31, 2024, was 0.9x, significantly below the maximum allowed ratio of 3.25x[199]. - The company fully repaid $400.0 million of 2024 senior notes in the first quarter of 2024[200]. - The company issued $400.0 million of 2034 senior unsecured notes in Q3 2024, with a maturity date of August 20, 2034[200]. - The company intends to use the net proceeds from the 2034 senior notes for general corporate purposes, including share repurchases and debt repayment[202]. - As of December 31, 2024, the company had $341.7 million of principal outstanding in junior convertible trust preferred securities maturing in 2037[204]. Tax and Compliance - Income tax expense decreased by $2.7 million or 1% in 2024, with an effective rate of 25.5% compared to 20.9% in 2023[171]. - Unrecognized tax benefits are recorded based on the likelihood of sustaining uncertain tax positions, with related interest and penalties included in income tax expense[319]. - The Company assesses the recoverability of deferred tax assets, considering future taxable income and recent operations, adjusting the valuation allowance as necessary[318]. Shareholder Returns - Share repurchases amounted to $706.0 million, indicating a significant investment in returning capital to shareholders[263]. - The company entered into an equity distribution program with an aggregate sales price of up to $500.0 million, with no sales occurring as of December 31, 2024[206]. Goodwill and Impairment - The company completed its annual qualitative goodwill impairment assessment as of September 30, 2024, with no impairment indicated[219]. - For the year ended December 31, 2024, the company recorded a $39.9 million expense to reduce the carrying value of an Affiliate to fair value[226]. Currency and Interest Rate Sensitivity - As of December 31, 2024, a 1% change in interest rates would have resulted in a $226.1 million net change in the fair value of fixed rate securities[229]. - A 1% change in the pound sterling, Canadian dollar, and Euro to U.S. dollar exchange rates would have resulted in changes to stockholders' equity of $8.4 million, $1.9 million, and $1.5 million, respectively[231]. - For the year ended December 31, 2024, a 1% change in the pound sterling, Canadian dollar, and Euro to U.S. dollar exchange rates would have resulted in annual changes to income before income taxes of $1.2 million, $0.3 million, and $0.0 million, respectively[231].

Financial Data and Key Metrics Changes - AMG reported record economic earnings per share in 2024, with full-year earnings up 10% year-over-year, reflecting a disciplined capital allocation strategy [6][29] - Adjusted EBITDA for Q4 was $282 million, down 5% year-over-year, while full-year adjusted EBITDA was $973 million, up 4% compared to 2023 [28] - Economic earnings per share for Q4 were $6.53, and for the full year, it was $21.36, benefiting from a record year of share repurchases [29] Business Line Data and Key Metrics Changes - Private markets affiliates raised approximately $24 billion in 2024, with $6 billion raised in Q4, representing annualized organic growth of about 20% [7][17] - Liquid alternatives saw $2 billion of net inflows in Q4, marking the second consecutive quarter of positive flows [19] - Net client cash outflows were $8 billion in Q4, primarily due to challenges in equities, which saw net outflows of approximately $16 billion [16][20] Market Data and Key Metrics Changes - AMG's U.S. wealth platform's alternatives AUM grew more than tenfold over the past five years, ending the year at over $6 billion [22] - The company launched three new evergreen products and filed for two additional strategies anticipated to go live later this year [23] - AMG and its affiliates collectively manage over $30 billion in total AUM for alternative products in wealth markets globally [24] Company Strategy and Development Direction - AMG is strategically evolving to increase exposure to alternatives, enhancing long-term growth prospects and cash flow stability [11][12] - The partnership with NorthBridge Partners aligns with AMG's strategy of investing in high-quality independent firms in areas of secular growth [9][10] - The company aims to continue investing in new affiliate partnerships and existing affiliates to drive growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strength of private markets fundraising and improving trends in liquid alternatives [15][16] - The change in administration is viewed as potentially favorable for new investments, with expectations of lower regulation and increased business development [47] - AMG enters 2025 with significant momentum and a strong pipeline of new investment opportunities [25][37] Other Important Information - AMG repurchased $120 million in shares in Q4, totaling approximately $700 million for the year, representing 13% of shares outstanding [36] - The company maintains a strong liquidity position with $625 million in cash and $475 million in investments [35] Q&A Session Summary Question: Can you discuss the pipeline for new investments and any impacts from the change in administration? - Management indicated a strong pipeline for new investments, with NorthBridge being a recent addition, and noted that the change in administration could favor new investments due to potential regulatory easing [40][47] Question: Is the NorthBridge model the future direction for investments, or are larger deals also possible? - Management confirmed that both mid-sized and larger deals are in the pipeline, with a focus on firms that can leverage AMG's resources for growth [50][52] Question: What trends are seen in retail alternative products and active ETFs? - Management highlighted a strong focus on product development in the U.S. wealth channel, with several new products launched and ongoing interest in active ETFs as a growth driver [56][64]

Q4 2024 Investor Overview AMG: Strategic Partner to Industry-Leading Independent Investment Firms 30+ years of partnering with leading investment specialists 35+ independent Affiliates offering diverse suite of investment products All data as of 12/31/24. 2 Focus on Alternatives: Approximately 50% of AMG Earnings Generated by Alternatives Liquid Alternatives ~$141B AUM Differentiated Long-Only ~$432B AUM Private Markets ~$135B AUM Alternatives include private markets and liquid alternatives strategies. Diff ...

Core Viewpoint - Affiliated Managers Group (AMG) reported quarterly earnings of $6.53 per share, exceeding the Zacks Consensus Estimate of $6.02 per share, but down from $6.86 per share a year ago, indicating an earnings surprise of 8.47% [1][2] Financial Performance - The company posted revenues of $524.2 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.17%, compared to $502.7 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Performance - Affiliated Managers shares have declined approximately 1.4% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.15, with expected revenues of $533.66 million, and for the current fiscal year, the EPS estimate is $22.83 on revenues of $2.19 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Financial - Investment Management industry, to which Affiliated Managers belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could be a useful metric for investors [5]