Affiliated Managers (AMG) - 2025 Q2 - Quarterly Results

Financial and Operating Highlights AMG achieved strong Q2 2025 results with a 15% Economic EPS increase, record alternative strategy inflows, and four new partnerships - Economic Earnings per share (EPS) for Q2 2025 was $5.39, a 15% increase compared to the same quarter in the previous year[2][5] - The company experienced net client cash flows of over $8 billion in Q2 2025, primarily driven by record inflows into alternative strategies, including private markets and liquid alternatives[2] - In 2025, AMG has announced four new partnerships with firms managing a collective $24 billion in alternative strategies, including a new partnership with Montefiore Investment[3][5] Q2 & H1 2025 Financial Highlights | (in millions, except per share data) | Three Months Ended 6/30/2025 | Three Months Ended 6/30/2024 | Six Months Ended 6/30/2025 | Six Months Ended 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | | AUM (at period end, in billions) | $771.0 | $701.0 | $771.0 | $701.0 | | Net client cash flows (in billions) | $8.1 | $0.9 | $7.7 | $(2.9) | | Net income (controlling interest, in millions) | $84.3 | $76.0 | $156.6 | $225.8 | | Earnings per share (diluted, in dollars) | $2.80 | $2.26 | $5.01 | $6.49 | | Adjusted EBITDA (controlling interest, in millions) | $219.7 | $217.5 | $447.9 | $477.3 | | Economic earnings per share (in dollars) | $5.39 | $4.67 | $10.58 | $10.06 | Capital Management The company returned capital to shareholders through $100 million in Q2 stock repurchases and a $0.01 per share quarterly dividend - In Q2 2025, the company repurchased approximately $100 million of its common stock[6] - Total share repurchases for the first half of 2025 amounted to approximately $273 million[6] - A cash dividend of $0.01 per share of common stock was announced for the second quarter, payable on August 25, 2025[6] Detailed Financial Statements This section presents AMG's detailed financial position and performance, including AUM changes, income statements, and the consolidated balance sheet Assets Under Management (AUM) This section details the changes in Assets Under Management, highlighting total AUM and net client cash flows across various investment strategies - Total AUM increased to $771.0 billion as of June 30, 2025, from $712.2 billion at the end of Q1 2025[11] Q2 2025 Net Client Cash Flows by Strategy | Strategy | Private Markets (in billions) | Liquid Alternatives (in billions) | Equities (in billions) | Multi-Asset & Fixed Income (in billions) | Total (in billions) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Flows | $7.8 | $11.5 | $(10.5) | $(0.7) | $8.1 | Year-to-Date 2025 Net Client Cash Flows by Strategy | Strategy | Private Markets (in billions) | Liquid Alternatives (in billions) | Equities (in billions) | Multi-Asset & Fixed Income (in billions) | Total (in billions) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Flows | $11.2 | $21.7 | $(24.2) | $(1.0) | $7.7 | Consolidated Statements of Income This section presents the company's consolidated income statements for quarterly and semi-annual periods, detailing revenue, expenses, and net income Q2 2025 vs Q2 2024 Income Statement Highlights | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | Consolidated revenue | $493.2 | $500.3 | | Total consolidated expenses | $412.7 | $359.4 | | Net income (controlling interest, in millions) | $84.3 | $76.0 | | Earnings per share (diluted, in dollars) | $2.80 | $2.26 | H1 2025 vs H1 2024 Income Statement Highlights | Metric | H1 2025 (in millions) | H1 2024 (in millions) | | :--- | :--- | :--- | | Consolidated revenue | $989.8 | $1,000.3 | | Total consolidated expenses | $869.6 | $740.7 | | Net income (controlling interest, in millions) | $156.6 | $225.8 | | Earnings per share (diluted, in dollars) | $5.01 | $6.49 | Consolidated Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025 Balance Sheet Highlights | Metric | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | Total assets | $8,807.6 | $8,830.9 | | Cash and cash equivalents | $361.0 | $950.0 | | Debt | $2,621.2 | $2,620.2 | | Total equity | $4,138.7 | $4,298.2 | Supplemental Information and Reconciliations This section reconciles GAAP to non-GAAP measures like Economic Net Income and Adjusted EBITDA, explaining adjustments and diluted EPS calculations Reconciliation of Supplemental Performance Measures This section provides detailed reconciliations of GAAP net income to non-GAAP Economic Net Income for quarterly and semi-annual periods Q2 Reconciliation of Net Income to Economic Net Income | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | Net income (controlling interest, in millions) | $84.3 | $76.0 | | Intangible amortization and impairments (in millions) | $31.0 | $65.6 | | Intangible-related deferred taxes (in millions) | $14.6 | $14.7 | | Other economic items (in millions) | $29.3 | $(0.4) | | Economic net income (controlling interest, in millions) | $159.2 | $155.9 | H1 Reconciliation of Net Income to Economic Net Income | Metric | H1 2025 (in millions) | H1 2024 (in millions) | | :--- | :--- | :--- | | Net income (controlling interest, in millions) | $156.6 | $225.8 | | Intangible amortization and impairments (in millions) | $116.8 | $91.2 | | Intangible-related deferred taxes (in millions) | $13.9 | $30.9 | | Other economic items (in millions) | $30.6 | $(5.3) | | Economic net income (controlling interest, in millions) | $317.9 | $342.6 | - For Q2 and H1 2025, results include a one-time expense of $30.5 million from a modification of Affiliate equity, which is added back for non-GAAP calculations of Economic Net Income and Adjusted EBITDA[24] Notes to Financial Statements This section explains the company's use of non-GAAP measures, their adjustments, and the methodology for diluted earnings per share calculation - The company uses non-GAAP measures like Adjusted EBITDA and Economic Net Income to assess performance, excluding certain non-cash expenses from acquisitions, and to improve comparability. Economic Net Income is a principal performance benchmark for determining executive compensation[20] - Economic Net Income adjusts GAAP Net Income for items such as pre-tax intangible amortization and impairments, related deferred taxes, gains/losses from Affiliate Transactions, and other economic items like unrealized gains/losses on seed capital[21] - The calculation for diluted EPS applies the if-converted method to junior convertible securities and adjusts for the potential issuance of shares to settle Redeemable non-controlling interests[18][19] Forward-Looking Statements This section provides disclaimers for forward-looking statements, noting potential material differences due to market and economic risks - The press release contains forward-looking statements that are subject to risks and uncertainties, including changes in financial markets, economic conditions, and the performance of Affiliates. The company undertakes no obligation to update these statements[25]