Core Insights - Janus Henderson Group plc (JHG) is a significant entity in the investment management sector, providing various financial services including investment advisory and asset management [1] - Evercore ISI has set a price target of $50 for JHG, indicating a potential upside of approximately 15.29% from its current trading price of $43.37 [2][6] - JHG has demonstrated strong financial performance, with quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.01, resulting in a +7.92% earnings surprise [3][6] Financial Performance - JHG reported quarterly revenue of $700.4 million for Q3 2025, slightly missing the Zacks Consensus Estimate by 0.6%, but showing improvement from $624.8 million in the same period last year [4] - The company's operating income for Q3 2025 was $172 million, an increase from $163.8 million in the previous quarter, with adjusted operating income reaching $204.5 million [5][6] - JHG has consistently exceeded revenue estimates in three of the last four quarters, indicating a positive trend in financial performance [4]

Core Insights - Janus Henderson Group plc (JHG) is a significant player in the asset management industry, competing with firms like BlackRock and Vanguard [1] - Evercore ISI has a "Positive" rating for JHG, raising the price target from $48 to $50, indicating a favorable outlook despite a "hold" recommendation [1][4] - As of October 31, 2025, JHG's stock price was $43.39, with a slight increase of 1.05% to $43.46 [1][4] Financial Performance - During the Q3 2025 earnings call on October 30, 2025, key figures from the company discussed performance metrics, with participation from analysts from TD Cowen, BofA Securities, and Morgan Stanley [2] - JHG's market capitalization is approximately $6.78 billion, reflecting its substantial presence in the asset management sector [3][4] - The stock has experienced a trading range over the past year, with a high of $49.42 and a low of $28.26, indicating volatility and growth potential [3]

Financial Data and Key Metrics Changes - Janus Henderson reported adjusted diluted EPS of $1.09, a 20% increase compared to the same period a year ago [10][31] - Assets under management (AUM) reached $483.8 billion, a 6% increase over the prior quarter and a 27% increase year-over-year [8][31] - The company generated net inflows of $7.8 billion in the third quarter, significantly improving from $400 million in net inflows a year ago [20][21] Business Line Data and Key Metrics Changes - The third quarter saw 21 strategies each achieving at least $100 million in net inflows, up from 11 strategies a year ago [11] - Fixed income net flows were $9.7 billion, while equity flows were negative $3.3 billion, impacted by a merger that resulted in $900 million of net outflows [24][25] - The alternative capability generated net inflows of $1.4 billion, driven by various strategies including Victory Park Capital's asset-backed opportunistic credit strategy [25] Market Data and Key Metrics Changes - Net flows in the U.S. were positive for the ninth consecutive quarter, with significant inflows in Active ETFs and U.S. Research [22] - In EMEA, net inflows were recorded in Continental Europe and the Middle East, while the UK experienced net outflows primarily due to a single outflow [23] - The intermediary channel saw net flows of $5.1 billion, equating to a 9% organic growth rate [21] Company Strategy and Development Direction - The company is focused on three strategic pillars: protect and grow core businesses, amplify strengths, and diversify where clients provide opportunities [11] - A partnership with CNO Financial Group aims to provide long-term capital, enhancing Victory Park Capital's investment capabilities [12] - The transition to the Aladdin investment management system is expected to improve operational efficiencies in the long term, despite a short-term increase in costs [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent growth, despite acknowledging that not all areas are performing optimally [39] - The company remains committed to returning cash to shareholders while investing in business growth [39] - Management highlighted the importance of active asset management in navigating challenging market conditions [95] Other Important Information - The company returned nearly $130 million to shareholders through dividends and share buybacks in the quarter [18][32] - A special committee has been formed to evaluate a non-binding acquisition proposal from Trian, a significant shareholder [6][39] - Roger Thompson, the CFO, will retire in April 2025, with Suk Rawal set to succeed him [40][41] Q&A Session Summary Question: What is the story behind the improved gross sales? - Management attributed improved gross sales to having the right people in place, incentivizing them effectively, and ensuring product performance [43][46] Question: Can you comment on the themes impacting equity performance? - Management noted that while one-year performance in equity is lower, longer-term performance remains solid, with over 50% ahead of benchmarks [60] Question: How do you think about capital return from here? - Management confirmed that capital return expectations remain unchanged, with plans to complete a $200 million buyback by the annual general meeting next year [71] Question: How has Victory Park's AUM grown since the deal closed? - Management expressed satisfaction with the Victory Park Capital acquisition, highlighting its growth and the potential for future expansion, particularly in private credit [75][86] Question: How are you addressing recent issues in the bank loan market? - Management emphasized the importance of active asset management in mitigating risks associated with market volatility [95][96]

Core Insights - Janus Henderson Group plc reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and showing an increase from $0.91 per share a year ago, resulting in an earnings surprise of +7.92% [1] - The company posted revenues of $700.4 million for the quarter ended September 2025, which was 0.6% below the Zacks Consensus Estimate, but an increase from $624.8 million year-over-year [2] - The stock has underperformed the S&P 500, gaining about 4.1% since the beginning of the year compared to the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.04 on revenues of $738.13 million, and for the current fiscal year, it is $3.76 on revenues of $2.7 billion [7] - The estimate revisions trend for Janus Henderson Group was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Financial - Investment Management industry, to which Janus Henderson Group belongs, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Q3 2025 RESULTS Thursday, October 30, 2025 Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer Q3 2025 RESULTS 1 Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on slide 23. 2 Solid long-term investment performance AUM up 6% to $483.8 billion Net inflows of $7.8 billion U.S. GAAP diluted EPS of $0.92 and adjusted diluted EPS of $1.09 Dividend of $0.40 per share declared and 1.5 million shares repurchased 2 Q2 2025 ...

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Revenue and Income - Revenue for Q3 2025 was $700.4 million, an increase of $75.6 million, or 12%, compared to Q3 2024[111] - Net income attributable to JHG for Q3 2025 was $142.1 million, an increase of $114.8 million, or 421%, compared to Q3 2024[112] - Diluted earnings per share for Q3 2025 was $0.92, or $1.09 on an adjusted basis[113] - Adjusted revenue for the three months ended September 30, 2025, was $554.8 million, compared to $488.1 million in 2024, reflecting a growth of 13.6%[168] - Adjusted operating income for the three months ended September 30, 2025, was $204.5 million, up from $170.5 million in 2024, indicating a 20% increase[168] Assets Under Management (AUM) - Assets Under Management (AUM) increased to $483.8 billion, up 6% from June 30, 2025, and 27% from September 30, 2024[113] - AUM increased by $105.1 billion, or 28%, from December 31, 2024, driven by the addition of $46.5 billion of investment-grade public fixed income assets[116] - Total Assets Under Management (AUM) increased from $457.3 billion on June 30, 2025, to $483.8 billion on September 30, 2025, reflecting a growth of 5.5%[118] - AUM growth was driven by the addition of $46.5 billion in investment-grade public fixed income assets and favorable market performance of $40.5 billion[116] - AUM by capability as of September 30, 2025: Equities at $254.2 billion, Fixed Income at $153.1 billion, Multi-Asset at $58.0 billion, and Alternatives at $18.5 billion[118] Inflows and Outflows - The company achieved net inflows of $7.8 billion in Q3 2025, marking six consecutive quarters of positive net inflows[113] - Total net sales across all capabilities for Q3 2025 were $29.9 billion, while total redemptions were $22.1 billion, resulting in a net inflow of $7.8 billion[118] - Net sales for Equities in Q3 2025 were $7.8 billion, while redemptions amounted to $11.1 billion, resulting in a net outflow of $3.3 billion[118] - Fixed Income AUM rose from $142.2 billion to $153.1 billion, with net sales of $17.8 billion and redemptions of $8.1 billion, indicating strong inflows[118] - Alternatives AUM grew from $15.9 billion to $18.5 billion, with net sales of $2.3 billion and redemptions of $0.9 billion, highlighting positive investor sentiment[118] Operating Expenses - Total operating expenses for Q3 2025 were $528.4 million, an increase of $68.3 million, or 15%, compared to Q3 2024[111] - Total operating expenses rose by $68.3 million (15%) for the three months and by $148.9 million (11%) for the nine months ended September 30, 2025, compared to the same periods in 2024[140] - Employee compensation and benefits increased by $28.4 million (16%) for the three months and by $56.8 million (11%) for the nine months ended September 30, 2025, mainly due to higher average headcount following acquisitions[142] - Distribution expenses increased by $11.9 million (9%) for the three months and by $27.9 million (7%) for the nine months ended September 30, 2025, driven by higher average AUM[147] - General, administrative and occupancy expenses increased by $7.2 million (9%) for the three months and by $27.7 million (13%) for the nine months ended September 30, 2025, primarily due to accelerated amortization related to a strategic decision[153] Shareholder Returns - The company returned $128.9 million in capital to shareholders through dividends and share buybacks during Q3 2025[113] - Cumulative shares repurchased under the 2024 Corporate Buyback Program were 3,778,622 for $146.8 million as of April 30, 2025[179] - Cumulative shares repurchased under the 2025 Corporate Buyback Program were 2,874,504 for $116.1 million as of September 30, 2025[180] - Dividends declared during the nine months ended September 30, 2025, included $0.39 per share on January 30, 2025, totaling $61.5 million paid on February 27, 2025[184] Market Performance - The company reported that 74%, 64%, and 65% of AUM outperformed relevant benchmarks on a three-, five-, and ten-year basis, respectively[113] - As of September 30, 2025, 91% of Fixed Income AUM outperformed benchmarks over 1 year, and 94% over 10 years[112] Future Outlook - The company’s future outlook remains positive, with continued focus on expanding its investment capabilities and enhancing client offerings[120] - The company expects adjusted non-compensation expense annual growth in the high-single digits for 2025 compared to 2024, driven by planned investments and inflation[156] - The company anticipates an adjusted compensation to revenue ratio in the range of 43% to 44% for the year ending December 31, 2025[143] Cash and Debt Management - Cash and cash equivalents held by the company as of September 30, 2025, were $982.4 million, down from $1,190.9 million as of December 31, 2024[172] - Long-term debt remained stable at $395.4 million as of September 30, 2025, compared to $395.0 million at the end of 2024[174] - The company believes existing cash and cash from operations should be sufficient to satisfy short-term capital requirements, including operating expenditures and dividend payments[176] - The company expects to fund long-term commitments with existing cash and cash generated from operations or by accessing capital and credit markets as necessary[185]

Financial Performance - Third quarter 2025 operating income was US$172.0 million, up 5.2% from US$163.8 million in the second quarter 2025 and up 4.0% from US$164.7 million in the third quarter 2024[2] - Adjusted operating income for the third quarter 2025 was US$204.5 million, a 22.4% increase from US$167.0 million in the second quarter 2025 and a 20.0% increase from US$170.5 million in the third quarter 2024[2] - Total revenue for Q3 2025 was $700.4 million, a 10.6% increase from $633.2 million in Q2 2025 and a 12.1% increase from $624.8 million in Q3 2024[27] - Management fees increased to $563.1 million in Q3 2025, up 11.1% from $507.0 million in Q2 2025 and 12.0% from $502.8 million in Q3 2024[27] - Net income attributable to JHG was $142.1 million in Q3 2025, compared to $149.9 million in Q2 2025 and $27.3 million in Q3 2024, reflecting a significant year-over-year increase[27] - Diluted earnings per share for Q3 2025 was $0.92, slightly down from $0.95 in Q2 2025 but significantly up from $0.17 in Q3 2024[29] - Adjusted operating income for Q3 2025 was $204.5 million, an increase from $167.0 million in Q2 2025 and $170.5 million in Q3 2024[29] Assets and Management - Assets under management (AUM) reached a record high of US$483.8 billion, reflecting a 6% increase quarter over quarter and a 27% increase year over year[4] - The company reported net inflows of US$7.8 billion in the third quarter 2025, marking the sixth consecutive quarter of positive net flows[8] - AUM performance showed that 74%, 64%, and 65% of AUM outperformed relevant benchmarks on a three-, five-, and ten-year basis, respectively[8] - Total assets as of September 30, 2025, were $7,614.9 million, up from $6,963.1 million as of December 31, 2024[30] Shareholder Returns - The Board declared a quarterly dividend of US$0.40 per share for the quarter ended September 30, 2025[11] - The company returned US$129 million to shareholders through dividends and share buybacks in the third quarter 2025[8] Strategic Initiatives - The strategic vision of "Protect & Grow, Amplify, and Diversify" has led to 21 different strategies achieving net inflows of at least US$100 million, nearly doubling from the previous year[5] - Janus Henderson's partnership with CNO Financial Group is expected to enhance growth in Victory Park Capital and expand investment capabilities[5] - The company is transitioning its investment management platform to Aladdin, which is expected to enhance operational efficiency[32] - The company anticipates continued growth in management fees and overall revenue driven by market expansion and new product offerings[36] Operational Metrics - Cash provided by operating activities in Q3 2025 was $258.8 million, compared to $135.2 million in Q2 2025 and $228.5 million in Q3 2024[31] - The company reported an operating margin of 24.6% for Q3 2025, down from 25.9% in Q2 2025 and 26.4% in Q3 2024[29] Risks and Limitations - The company faces various risks including changes in interest rates, inflation, and trade policies that could materially affect future results[37] - Not all products or services are available in all jurisdictions, indicating potential market limitations[39] - Annualized and projected numbers in the report are for illustrative purposes only and do not reflect actual results[38]

Core Insights - Janus Henderson Group plc reported third quarter 2025 operating income of US$172.0 million, an increase from US$163.8 million in the second quarter of 2025 and US$164.7 million in the third quarter of 2024 [1] - The adjusted operating income for the third quarter 2025, which excludes one-time, acquisition, and transaction-related costs, was US$204.5 million [1]

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