MINNEAPOLIS--(BUSINESS WIRE)--Piper Sandler Companies (NYSE: PIPR), a leading investment bank, has named Michael Piper as the head of fixed income, effective in the first quarter of 2026. He will report to Deb Schoneman, president at Piper Sandler. The previous head of fixed income, John Beckelman will transition to vice chairman of fixed income capital markets. He will continue to serve as a senior advisor to the business while focusing almost exclusively on client engagement. "Mike has proven. ...

Core Viewpoint - Piper Sandler Companies is positioned for strong top-line growth due to its exposure to both structural and cyclical growth sectors within investment banking, with Goldman Sachs upgrading its rating to Buy and setting a price target of $386, indicating an 18% upside from recent trading levels [1]. Group 1: Revenue Growth Projections - Goldman Sachs projects a 12.5% revenue CAGR through 2027, which is approximately 200 basis points above its peers, driven by leadership in mid-cap M&A, financials, capital markets, tech M&A, and municipal finance, alongside stable margins and limited compensation leverage [2]. - The firm's M&A backlog has increased by about 110% since early 2024, significantly outperforming peer growth [3]. Group 2: Sector-Specific Insights - Piper Sandler's strong position in mid-cap M&A, which constitutes 65% of its fees since 2019, is notably higher than the group average of 48% [3]. - The firm is well-positioned to benefit from a rebound in financial sector activity, with global bank M&A expected to more than double its 10-year average in 2025 and U.S. bank M&A projected to rise by about 70% [5]. - Continued momentum in financials M&A and debt capital markets is anticipated, supported by potential deregulation and lower unrealized losses on bank balance sheets as interest rates decline, with Goldman estimating a 6-12% revenue and 10-18% EPS upside if the segment normalizes [6]. Group 3: Technology and Municipal Finance Growth - Piper Sandler's investment in the technology sector, which is the largest source of M&A fees, is a key growth driver, with expectations for further investments to enhance competitive positioning [7]. - The municipal finance business is expected to experience cyclical growth as interest rates decline, with Goldman projecting a 14% annual increase in muni finance revenue from 2024 to 2027, alongside specific revenue forecasts of $1.75 billion in 2025 and $1.99 billion in 2026 [8].

Despite exceeding Wall Street’s revenue and non-GAAP profit expectations in Q3, Piper Sandler’s results were met with a negative market reaction. Management attributed the quarter’s strong financial performance to increased activity in equity capital markets, especially within health care and financial services. CEO Chad Abraham emphasized, “We have now achieved 8 consecutive quarters of year-over-year growth, underscoring our consistent execution and sustained momentum.” However, leadership acknowledged t ...

Financial Performance - Net revenues for the three months ended September 30, 2025, were $479,276,000, representing a 33.3% increase from $359,572,000 in the same period of 2024[194]. - Net income attributable to Piper Sandler Companies for the three months ended September 30, 2025, was $60,266,000, a 73.2% increase compared to $34,789,000 in 2024[194]. - Adjusted net revenues for the three months ended September 30, 2025, were $455,314,000, a 29.4% increase from $351,844,000 in 2024[194]. - Investment banking revenues rose 36.9% to $330.6 million, compared to $241.5 million in the same period of 2024[208]. - Advisory services revenues increased by 12.9% to $212.4 million, driven by more completed transactions[208]. - Corporate financing revenues surged 345.3% to $79.7 million, up from $17.9 million in the prior-year period[208]. - Institutional brokerage revenues grew 8.5% to $109.5 million, compared to $100.9 million in the prior-year period[210]. - For the nine months ended September 30, 2025, total revenues increased by 18.3% to $1.24 billion compared to $1.05 billion in the prior-year period[235]. - Net income attributable to Piper Sandler Companies for the nine months ended September 30, 2025, was $167.4 million, a 49.4% increase from $112.1 million in the same period of 2024[233]. - Adjusted net income for the nine months ended September 30, 2025, was $194,793,000, up from $141,467,000 in 2024, reflecting a 37.7% growth[263]. Expenses and Costs - Non-interest expenses were $371.8 million, a 22.3% increase from $304.0 million in the prior-year period[214]. - Compensation and benefits expenses increased 25.1% to $288.9 million, with a compensation ratio of 60.3%[216]. - Deal-related expenses rose to $12.9 million, compared to $6.1 million in the prior-year period[222]. - Non-interest expenses on a U.S. GAAP basis were $1.05 billion for the nine months ended September 30, 2025, compared to $905.5 million in the corresponding period of 2024, reflecting a 15.7% increase[242]. - Restructuring and integration costs for the nine months ended September 30, 2025, totaled $6.0 million, significantly higher than $1.8 million in the prior-year period[246]. - Other operating expenses for the nine months ended September 30, 2025, were $16.3 million, an increase from $12.2 million in the same period of 2024[248]. Taxation - The effective tax rate for the three months ended September 30, 2025, was 23.2%, down from 27.4% in the same period of 2024[194]. - Provision for income taxes for the nine months ended September 30, 2025, was $34.8 million, with an effective tax rate of 18.7%[250]. - Adjusted provision for income taxes for the nine months ended September 30, 2025, was $43.5 million, with an adjusted effective tax rate of 18.2%[250]. Market and Business Outlook - Advisory services revenues for the fourth quarter of 2025 are expected to be similar to the fourth quarter of 2024, supported by a robust advisory services pipeline[198]. - Corporate financing revenues for the fourth quarter of 2025 are expected to moderate from the strong performance in the third quarter due to favorable market conditions[199]. - The equity brokerage business is anticipated to have its strongest quarter in the fourth quarter of 2025, following historical trends[200]. - Municipal financing revenues for the fourth quarter of 2025 are expected to be similar to the third quarter, with strong performance in both governmental and specialty sectors[202]. Shareholder Returns and Capital Management - The company repurchased 66,758 shares of common stock at an average price of $248.25 per share for a total of $16.6 million during the nine months ended September 30, 2025[274]. - A special cash dividend of $3.00 per share was declared on January 31, 2025, with a payment date of March 14, 2025[272][273]. - The board of directors declared dividends totaling $0.65 per share on October 31, 2025, with a payment date of December 12, 2025[272]. Assets and Liquidity - Total assets as of September 30, 2025, were $2,219,822,000, a decrease from $2,255,936,000 as of December 31, 2024[276]. - As of September 30, 2025, the company had $53.1 million of financing outstanding under the clearing arrangement with bank financing[283]. - The company has an unsecured revolving credit facility of $120 million with U.S. Bank N.A., with $10.0 million of advances against this facility as of September 30, 2025[284]. - As of September 30, 2025, the company's net capital was $243.2 million, exceeding the minimum requirement by $242.2 million[291]. Risk Management - Liquidity risk is present due to potentially illiquid inventory positions and the role as a remarketing agent for variable rate demand notes[318]. - Operational risk includes potential financial loss from inadequate processes, systems, or external events affecting transaction processing[328]. - Interest rate risk is managed by selling short U.S. government securities and establishing limits on long fixed income securities inventory[312]. - The company monitors market risk exposure through evaluation of spread DV01 and MMD basis risk for municipal securities[315]. Derivative and Credit Exposure - The fair value of derivative contracts was approximately $6.1 million as of September 30, 2025, compared to $3.3 million at the end of 2024[299]. - Concentrated counterparty credit exposure with three non-publicly rated entities totals $5.3 million, with one counterparty representing 86.5% of this exposure[327]. - The majority of fixed income securities inventory generally turns over within three weeks, evaluated based on a five-day average by category of security[314].

分组1 - Piper Sandler Companies reported quarterly earnings of $3.82 per share, exceeding the Zacks Consensus Estimate of $2.96 per share, and showing an increase from $2.57 per share a year ago, resulting in an earnings surprise of +29.05% [1] - The company achieved revenues of $455.31 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 12.09%, compared to $359.57 million in the same quarter last year [2] - Piper Sandler Companies has consistently surpassed consensus EPS estimates over the last four quarters [2] 分组2 - The stock has increased approximately 9.1% since the beginning of the year, while the S&P 500 has gained 16% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $3.84 on revenues of $464.24 million, and for the current fiscal year, it is $13.84 on revenues of $1.66 billion [7] 分组3 - The Financial - Investment Bank industry, to which Piper Sandler belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Piper Sandler was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Piper Sandler reported quarterly adjusted net revenues of $455 million, a 29% increase year-over-year, with an operating margin of 21.2% and adjusted EPS of $3.82, all higher compared to the same period last year [4][15][16] - For the first nine months of 2025, net revenues totaled $1.2 billion, reflecting a 19% increase compared to the prior year [15][16] - The compensation ratio improved to 61.7% for Q3 2025, down from previous periods, indicating better expense management [16] Business Line Data and Key Metrics Changes - Corporate investment banking revenues reached $292 million, marking significant growth year-over-year, with advisory revenues of $212 million, up 13% year-over-year [5][6] - Corporate financing generated $80 million in revenues, the strongest quarterly results since 2021, with 38 financings raising $14 billion for corporate clients [9][10] - Public finance revenues were $39 million, up 8% year-over-year, despite a decline from the previous quarter [12] Market Data and Key Metrics Changes - The equity markets reached record highs, contributing to improved investor sentiment and a more favorable environment for equity underwriting [4] - The healthcare and financial services sectors showed strong performance, with significant contributions to advisory and corporate financing revenues [5][6] Company Strategy and Development Direction - The company continues to focus on expanding its advisory capabilities, particularly in healthcare and financial services, while also building out its technology group [10][33] - Investments in the advisory business, including debt capital markets and private capital advisory, are expected to enhance market share and client offerings [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued growth in the bank M&A environment, although stock price fluctuations pose risks [21][22] - The fourth quarter is anticipated to be strong, with a robust advisory pipeline and expectations for similar advisory revenues compared to the previous year [8][10] Other Important Information - The company returned an aggregate of $16 million to shareholders in Q3 2025, including a quarterly dividend payment [17] - A quarterly cash dividend of $0.70 per share was approved, to be paid on December 12 [18] Q&A Session Summary Question: Outlook on bank M&A environment - Management noted an accelerated pace in bank M&A activity and expects this trend to continue, with stock prices being a key risk factor [21][22] Question: Margin potential and expense management - Management indicated that while they aim for a 20% margin, they are open to opportunities for further improvement as revenues grow [23][26] Question: Risks from government shutdown on corporate financing - Management acknowledged potential impacts on revenues from the government shutdown but noted that recent months have not shown significant effects [30][31] Question: Build-out of the technology sector within investment banking - Management described the technology sector build-out as a priority, with significant progress made but still room for growth [33] Question: Drivers of M&A advisory activity - Management highlighted a steady increase in M&A activity across various sectors, particularly healthcare and private equity [39] Question: Normalization of fixed income and municipal demand - Management discussed expectations for increased activity as rates normalize, with a focus on balance sheet restructurings tied to M&A transactions [41][43]

Investor Presentation October 2025 Piper Sandler Investor Presentation Disclosures Cautionary notice regarding forward-looking statements and non-GAAP financial measures This presentation contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those ...

Financial Performance - Piper Sandler Companies reported record third quarter revenues of $479 million, a 21% increase from Q2 2025 and a 33% increase from Q3 2024[2]. - Adjusted net revenues for Q3 2025 were $455 million, reflecting a 12% increase from Q2 2025 and a 29% increase from Q3 2024[2]. - Net income attributable to Piper Sandler Companies was $60 million, up 43% from Q2 2025 and 73% from Q3 2024[2]. - Earnings per diluted common share for Q3 2025 were $3.38, a 42% increase from Q2 2025 and a 72% increase from Q3 2024[2]. - For the first nine months of 2025, net revenues totaled $1.2 billion, up 18% year-over-year, supported by strong execution across all business segments[6]. - Adjusted net revenues reached $455.3 million in Q3 2025, a 12% increase from Q2 2025 and a 29% increase from Q3 2024, driven by growth in corporate financing revenues[24]. - Total revenues for Q3 2025 reached $480.1 million, a 20.5% increase from $398.6 million in Q2 2025 and a 33.1% increase from $360.9 million in Q3 2024[42]. - Net income for Q3 2025 was $60.3 million, or $3.38 per diluted share, reflecting increases due to higher net revenues and a lower effective tax rate[18]. - Adjusted net income for Q3 2025 was $68.6 million, or $3.82 per diluted share, reflecting increases due to higher adjusted net revenues[28]. - Adjusted net revenues for the nine months ended September 30, 2025, were $1.244 billion, compared to $1.042 billion for the same period in 2024, reflecting a 19.4% year-over-year growth[44]. - The company’s adjusted net income for the nine months ended September 30, 2025, was $194.793 million, compared to $141.467 million for the same period in 2024, marking a 37.7% increase[45]. Revenue Breakdown - Advisory services revenues reached $212 million, growing 13% year-over-year, driven by significant M&A activity[6]. - Corporate financing revenues surged to $80 million, marking a 128% increase from Q2 2025 and a 345% increase from Q3 2024[12]. - Investment banking revenues were $330.6 million in Q3 2025, up 16.7% from $283.1 million in Q2 2025 and up 37.0% from $241.5 million in Q3 2024[42]. - Equity brokerage revenues were $53.8 million in Q3 2025, down 7% from Q2 2025 but flat compared to Q3 2024, while fixed income services revenues increased by 3% from Q2 2025 and 15% from Q3 2024[19]. Expenses and Margins - Non-interest expenses for Q3 2025 were $371.8 million, a 7% increase from Q2 2025 and a 22% increase from Q3 2024[15]. - Adjusted total operating expenses for Q3 2025 were $359.0 million, an increase from $332.0 million in Q2 2025[43]. - Adjusted operating income for Q3 2025 was $96.3 million, a 31% increase from Q2 2025 and a 49% increase from Q3 2024, with an adjusted operating margin of 21.2%[26]. - The adjusted operating margin for Q3 2025 was 21.2%, compared to 18.1% in Q2 2025[43]. - Compensation ratio decreased to 61.7% in Q3 2025 from 62.0% in Q2 2025 and 62.5% in Q3 2024, driven by higher adjusted net revenues[31]. Shareholder Returns - A quarterly cash dividend of $0.70 per share was declared, to be paid on December 12, 2025[7]. - The company declared a quarterly cash dividend of $0.70 per share, totaling $11.9 million for Q3 2025, and returned $99.3 million to shareholders in the first nine months of 2025[30]. - During Q3 2025, the company repurchased 11 thousand shares for $3.7 million at an average price of $328.38 per share[32]. - The company declared a dividend of $0.70 per common share for Q3 2025, up from $0.65 in Q2 2025[42]. Strategic Developments - The company completed the acquisition of G Squared Capital Partners on September 12, 2025, enhancing its technology investment banking capabilities[4]. - Piper Sandler's acquisition of G Squared Capital Partners is expected to enhance its corporate advisory capabilities, although the anticipated benefits may take longer to realize[38]. - The company is focused on expanding its corporate investment banking and fixed income businesses amid uncertain macroeconomic conditions[41]. Taxation - The effective tax rate for Q3 2025 was 28.8%, compared to 28.1% in Q2 2025 and 28.6% in Q3 2024[27]. - Piper Sandler Companies reported an adjusted income tax expense of $27.777 million for Q3 2025, compared to $20.631 million in Q2 2025 and $18.519 million in Q3 2024[44].

Group 1 - The Value Lab focuses on long-only value investment ideas, targeting international mispriced equities with a portfolio yield of approximately 4% [1][2] - Piper Sandler operates as both a brokerage and mid-market advisory firm, with an upcoming Q3 earnings release scheduled for October 23 [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are expected to generate non-correlated and outsized returns in the current economic environment [3] Group 2 - The Value Lab provides members with real-time portfolio updates, 24/7 chat support, global market news reports, feedback on stock ideas, monthly new trades, quarterly earnings write-ups, and daily macro opinions [2]

Core Viewpoint - Piper Sandler Companies will announce its financial results for the third quarter of 2025 and will host a conference call on October 31, 2025 [1] Group 1 - The announcement pertains to the financial results for the third quarter of 2025 [1] - A conference call is scheduled to discuss these results [1]