Janus Henderson(JHG) - 2025 Q1 - Quarterly Results

First Quarter 2025 Results Overview Financial Highlights Janus Henderson reported solid Q1 2025 results with year-over-year improvements in net flows, operating revenues, and income, alongside AUM growth and a new strategic partnership Q1 2025 Key Financial Metrics (GAAP vs. Adjusted) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | GAAP Basis | | | | | Operating Income (US$ millions) | 153.6 | 197.5 | 119.2 | | Diluted EPS (US$) | 0.77 | 0.77 | 0.81 | | Adjusted Basis | | | | | Adjusted Operating Income (US$ millions) | 156.6 | 204.7 | 128.2 | | Adjusted Diluted EPS (US$) | 0.79 | 1.07 | 0.71 | - Assets Under Management (AUM) reached US$373 billion as of March 31, 2025, a 6% increase year-over-year[7] - The company experienced net inflows of US$2.0 billion in the first quarter of 2025, with positive flows in both Intermediary and Institutional channels[7] - A strategic partnership was announced with Guardian, which includes managing a US$45 billion fixed income portfolio and up to US$400 million in seed capital[7] CEO Statement and Strategic Outlook CEO Ali Dibadj highlighted solid Q1 results, emphasizing capital returns and the strategic Guardian partnership as key to future growth and navigating market uncertainty - The CEO highlighted solid Q1 results with YoY improvements in net flows, operating revenues, operating income, and EPS[4] - The new buyback authorization and dividend increase reflect excellent cash flow and a continued commitment to capital return[4] - The strategic partnership with Guardian is expected to amplify several areas of the business and demonstrates that Janus Henderson is a destination for sophisticated assets[5] - The company is focused on leveraging its diversity in AUM, clients, geographies, and investment capabilities to manage the uncertain environment effectively[6] Share Repurchase and Dividend The Board increased the quarterly dividend by 3% to US$0.40 per share and authorized a new US$200 million share repurchase program - The Board declared a 3% increase in the quarterly dividend to US$0.40 per share[7][11] - A new share repurchase program was authorized for up to US$200 million of common shares, valid until the 2026 Annual General Meeting[7][11] - In Q1 2025, the company purchased approximately 0.6 million shares for a total of US$27 million[10] Assets Under Management (AUM) and Flows AUM and Flow Trends Total AUM was US$373.2 billion as of March 31, 2025, with net inflows of US$2.0 billion driven by Fixed Income, despite overall market/FX movements Total AUM and Flows (in US$ billions) | Period | Opening AUM (US$ billions) | Net Sales / (Redemptions) (US$ billions) | Market / FX (US$ billions) | Closing AUM (US$ billions) | | :--- | :--- | :--- | :--- | :--- | | Q1 2025 | 378.7 | 2.0 | (7.5) | 373.2 | | Q4 2024 | 382.3 | 3.3 | (10.1) | 378.7 | | Q1 2024 | 334.9 | (3.0) | 20.7 | 352.6 | Q1 2025 Net Flows by Capability (in US$ billions) | Capability | Net Sales / (Redemptions) (US$ billions) | | :--- | :--- | | Equities | (4.2) | | Fixed Income | 5.6 | | Multi-Asset | (0.6) | | Alternatives | 1.2 | | Total | 2.0 | Average AUM by Capability (in US$ billions) | Capability | Q1 2025 (US$ billions) | Q4 2024 (US$ billions) | Q1 2024 (US$ billions) | | :--- | :--- | :--- | :--- | | Equities | 231.1 | 235.5 | 212.7 | | Fixed Income | 87.8 | 81.4 | 70.6 | | Multi-Asset | 53.4 | 53.8 | 50.0 | | Alternatives | 14.1 | 13.5 | 8.6 | | Total | 386.4 | 384.2 | 341.9 | Investment Performance Benchmark Outperformance Janus Henderson showed strong long-term investment performance with 77% of AUM outperforming benchmarks over three years, though short-term performance was weaker % of AUM Outperforming Benchmark (as of March 31, 2025) | Capability | 1-year | 3-year | 5-year | 10-year | | :--- | :--- | :--- | :--- | :--- | | Equities | 20% | 69% | 49% | 63% | | Fixed Income | 89% | 84% | 90% | 87% | | Multi-Asset | 3% | 94% | 98% | 97% | | Alternatives | 74% | 83% | 100% | 100% | | Total | 34% | 77% | 65% | 73% | - Overall long-term performance is solid, with 77% of AUM outperforming over 3 years and 73% over 10 years[7][18] Morningstar Quartile Rankings Mutual funds demonstrated strong peer performance, with 71% of AUM in the top two Morningstar quartiles over one year and 84% over ten years % of Mutual Fund AUM in Top 2 Morningstar Quartiles (as of March 31, 2025) | Capability | 1-year | 3-year | 5-year | 10-year | | :--- | :--- | :--- | :--- | :--- | | Equities | 57% | 65% | 66% | 83% | | Fixed Income | 91% | 80% | 72% | 70% | | Multi-Asset | 94% | 94% | 96% | 96% | | Alternatives | 98% | 83% | 66% | 100% | | Total | 71% | 73% | 72% | 84% | Financial Disclosures Condensed Consolidated Statements of Comprehensive Income Q1 2025 GAAP revenues were US$621.4 million, with operating income of US$153.6 million and diluted EPS of US$0.77 Q1 2025 Income Statement Highlights (in US$ millions) | Item | Q1 2025 (US$ millions) | Q4 2024 (US$ millions) | Q1 2024 (US$ millions) | | :--- | :--- | :--- | :--- | | Total Revenue | 621.4 | 708.3 | 551.7 | | Total Operating Expenses | 467.8 | 510.8 | 432.5 | | Operating Income | 153.6 | 197.5 | 119.2 | | Net Income Attributable to JHG | 120.7 | 121.8 | 130.1 | | Diluted EPS (in US$) | 0.77 | 0.77 | 0.81 | Condensed Consolidated Balance Sheets As of March 31, 2025, total assets were US$7.12 billion, with total equity at US$4.83 billion, reflecting an increase from year-end 2024 Balance Sheet Highlights (in US$ millions) | Item | 31 Mar 2025 (US$ millions) | 31 Dec 2024 (US$ millions) | | :--- | :--- | :--- | | Cash and cash equivalents | 1,083.6 | 1,217.2 | | Intangible assets and goodwill, net | 4,067.6 | 4,023.7 | | Total Assets | 7,117.4 | 6,963.1 | | Long-term debt | 395.2 | 395.0 | | Total Equity | 4,826.5 | 4,718.1 | Condensed Consolidated Statements of Cash Flows Q1 2025 saw minimal cash from operating activities at US$2.8 million, with a net decrease in cash of US$129.1 million for the period Cash Flow Summary (in US$ millions) | Activity | Q1 2025 (US$ millions) | Q4 2024 (US$ millions) | Q1 2024 (US$ millions) | | :--- | :--- | :--- | :--- | | Operating Activities | 2.8 | 247.3 | (5.0) | | Investing Activities | (227.3) | 44.3 | (54.3) | | Financing Activities | 79.6 | (518.9) | (179.2) | | Net Change During Period | (129.1) | (270.0) | (245.8) | Reconciliation of GAAP to Non-GAAP Measures This section reconciles GAAP to adjusted non-GAAP financial measures, highlighting adjustments for pass-through fees and non-recurring items Q1 2025 GAAP to Adjusted Reconciliation (in US$ millions) | Metric | GAAP (US$ millions) | Adjustments (US$ millions) | Adjusted (Non-GAAP) (US$ millions) | | :--- | :--- | :--- | :--- | | Revenue | 621.4 | (134.9) | 486.5 | | Operating Expenses | 467.8 | (137.9) | 329.9 | | Operating Income | 153.6 | 3.0 | 156.6 | | Net Income Attributable to JHG | 120.7 | 3.9 | 124.6 | - Management uses non-GAAP measures, which adjust for items like pass-through distribution fees, acquisition-related expenses, and amortization of certain intangible assets, to better reflect ongoing operations[28][32] Supplementary Information Conference Call Information Details for the Q1 2025 results conference call and webcast, held on May 1, 2025, were provided for participants - The Q1 2025 results presentation by CEO Ali Dibadj and CFO Roger Thompson was held via conference call and webcast on May 1, 2025, at 9:00 a.m. ET[23] Forward-Looking Statements Disclaimer The report includes a standard disclaimer for forward-looking statements, noting inherent risks and uncertainties that could impact future performance - The press release contains forward-looking statements that involve known and unknown risks and are not guarantees of future performance[35] - Key risks that could affect future results include changes in interest rates and inflation, financial market volatility, investment performance, and client redemptions[36]