Janus Henderson(JHG) - 2025 Q2 - Quarterly Results

Janus Henderson Group plc Reports Second Quarter 2025 Results Overview of Q2 2025 Performance Janus Henderson reported solid Q2 2025 results, achieving its fifth consecutive quarter of positive net flows, significant AUM growth, and increased capital returns Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Operating Income (GAAP) | US$163.8M | US$153.6M | US$164.3M | | Adjusted Operating Income | US$167.0M | US$156.6M | US$164.7M | | Diluted EPS (GAAP) | US$0.95 | US$0.77 | US$0.81 | | Adjusted Diluted EPS | US$0.90 | US$0.79 | US$0.85 | - CEO Ali Dibadj highlighted the fifth consecutive quarter of positive net flows, totaling US$46.7 billion, as a key differentiator for the firm in the active management industry[4] - The strategic partnership with Guardian contributed US$46.5 billion in general account assets and US$100 million in seed funding for the new JABS ETF[5] - Total Assets Under Management (AUM) reached US$457 billion as of June 30, 2025, a 27% increase year-over-year[6] - The company returned US$113 million to shareholders in Q2 2025 through dividends and share buybacks[6] Financial Performance Analysis Summary of Financial Results Q2 2025 financial results indicate GAAP revenue of US$633.2 million and 25.9% operating margin, with adjusted figures showing US$497.9 million revenue and 33.5% operating margin Q2 2025 Financial Summary (GAAP vs. Adjusted) | Metric (US$ millions) | Q2 2025 (GAAP) | Q2 2025 (Adjusted) | Q2 2024 (GAAP) | Q2 2024 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 633.2 | 497.9 | 588.4 | 458.3 | | Operating Income | 163.8 | 167.0 | 164.3 | 164.7 | | Operating Margin | 25.9% | 33.5% | 27.9% | 35.9% | | Net Income (to JHG) | 149.9 | 142.6 | 129.7 | 135.2 | | Diluted EPS | $0.95 | $0.90 | $0.81 | $0.85 | Capital Return Program The company declared a quarterly dividend of US$0.40 per share and repurchased 1.3 million shares for approximately US$50 million in Q2 2025 - A quarterly dividend of US$0.40 per share was declared on July 30, 2025, payable on August 28, 2025[9] - As part of a US$200 million program, JHG repurchased 1.3 million shares for approximately US$50 million in Q2 2025[10] Detailed Financial Statements Detailed Q2 2025 financial statements reveal US$633.2 million in total revenues, US$149.9 million net income, US$7.45 billion total assets, and US$135.2 million from operating activities Condensed Consolidated Statements of Comprehensive Income (Q2 2025) | Line Item (US$ millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Revenue | 633.2 | 621.4 | 588.4 | | Total Operating Expenses | 469.4 | 467.8 | 424.1 | | Operating Income | 163.8 | 153.6 | 164.3 | | Net Income Attributable to JHG | 149.9 | 120.7 | 129.7 | | Diluted EPS (US$) | 0.95 | 0.77 | 0.81 | Condensed Consolidated Balance Sheet Highlights | Line Item (US$ millions) | 30 Jun 2025 | 31 Dec 2024 | | :--- | :--- | :--- | | Total Assets | 7,451.5 | 6,963.1 | | Long-term Debt | 395.2 | 395.0 | | Total Equity | 4,899.9 | 4,718.1 | Condensed Consolidated Statements of Cash Flows (Q2 2025) | Activity (US$ millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Operating Activities | 135.2 | 2.8 | 223.8 | | Investing Activities | (290.8) | (227.3) | (60.4) | | Financing Activities | (67.7) | 79.6 | (50.9) | Reconciliation of Non-GAAP Financial Information This section details the reconciliation of GAAP to non-GAAP financial measures, adjusting revenue for pass-through fees and operating expenses for acquisition-related costs and non-cash amortization - Adjustments are made to GAAP figures to exclude items management believes are not representative of ongoing operations, such as acquisition-related expenses, certain non-cash costs, and pass-through distribution fees[26][30] Q2 2025 Reconciliation of Net Income to Adjusted Net Income | Line Item (US$ millions) | Q2 2025 | | :--- | :--- | | Net Income Attributable to JHG (GAAP) | 149.9 | | Total Adjustments | (7.3) | | Adjusted Net Income Attributable to JHG | 142.6 | Assets Under Management (AUM) & Flows AUM and Flow Summary Total AUM increased to US$457.3 billion in Q2 2025, driven by US$46.7 billion in net inflows and US$37.4 billion in market/FX movements, primarily from Fixed Income Total AUM and Flows (US$ billions) | Period | Opening AUM | Net Sales | Market / FX | Closing AUM | | :--- | :--- | :--- | :--- | :--- | | Q2 2025 | 373.2 | 46.7 | 37.4 | 457.3 | | Q1 2025 | 378.7 | 2.0 | (7.5) | 373.2 | | Q2 2024 | 352.6 | 1.7 | 7.1 | 361.4 | Q2 2025 Net Flows by Capability (US$ billions) | Capability | Net Sales / (Redemptions) | | :--- | :--- | | Equities | (2.6) | | Fixed Income | 49.7 | | Multi-Asset | (1.1) | | Alternatives | 0.7 | | Total | 46.7 | Closing AUM by Capability (US$ billions) | Capability | 30 Jun 2025 | 31 Mar 2025 | | :--- | :--- | :--- | | Equities | 243.6 | 217.4 | | Fixed Income | 142.2 | 89.5 | | Multi-Asset | 55.6 | 51.6 | | Alternatives | 15.9 | 14.7 | | Total | 457.3 | 373.2 | Investment Performance Performance vs. Benchmark and Morningstar Rankings As of June 30, 2025, Janus Henderson showed strong investment performance, with 72% of AUM outperforming benchmarks over one year and 75% of mutual fund AUM in the top two Morningstar quartiles % of AUM Outperforming Benchmark (as of June 30, 2025) | Capability | 1-year | 3-year | 5-year | 10-year | | :--- | :--- | :--- | :--- | :--- | | Equities | 59% | 67% | 54% | 61% | | Fixed Income | 96% | 88% | 87% | 93% | | Multi-Asset | 93% | 94% | 97% | 97% | | Alternatives | 77% | 86% | 100% | 100% | | Total | 72% | 76% | 67% | 72% | % of Mutual Fund AUM in Top 2 Morningstar Quartiles (as of June 30, 2025) | Capability | 1-year | 3-year | 5-year | 10-year | | :--- | :--- | :--- | :--- | :--- | | Equities | 65% | 68% | 68% | 88% | | Fixed Income | 87% | 79% | 63% | 70% | | Multi-Asset | 95% | 95% | 95% | 95% | | Alternatives | 90% | 41% | 90% | 94% | | Total | 75% | 74% | 72% | 88% | Appendix Conference Call Information A conference call and webcast for Q2 2025 results, hosted by CEO Ali Dibadj and CFO Roger Thompson, is scheduled for July 31, 2025, at 9:00 a.m. ET - The earnings conference call is scheduled for July 31, 2025, at 9:00 a.m. ET[21] - Webcast and slides will be available on the investor relations section of the company's website[21] About Janus Henderson Janus Henderson is a global active asset manager with approximately US$457 billion in AUM, over 2,000 employees across 25 cities, headquartered in London and listed on the NYSE - As of June 30, 2025, the company managed approximately US$457 billion in assets[22] - The firm has a global presence with over 2,000 employees and offices in 25 cities[22] Disclaimers and Forward-Looking Statements This section provides standard legal disclaimers, cautioning that forward-looking statements are not guarantees of future performance and actual results may differ due to various risks - The report contains forward-looking statements that are not guarantees of future performance and involve known and unknown risks[38] - Key risks that could affect future results include changes in interest rates, inflation, market volatility, and investment performance[39]