Invesco(US:IVZ)2025-10-28 10:58Financial Performance - Invesco reported third quarter diluted EPS of $0.66 and adjusted diluted EPS of $0.61, impacted by a non-cash impairment charge of $0.08[2][15][23] - Net income for Q3 2025 was $356.4 million, an 80.5% increase compared to $197.4 million in Q2 2025[41] - The diluted earnings per share (EPS) for Q3 2025 was $0.66, compared to a loss of $0.03 in Q2 2025[41] - Adjusted net income attributable to Invesco Ltd. for Q3 2025 was $275.4 million, up 66.8% from $165.2 million in Q2 2025 and 37.8% from $199.8 million in Q3 2024[47] - Adjusted operating income for Q3 2025 was $406.1 million, up from $344.4 million in Q2 2025[46] - Total operating expenses increased to $1,369.5 million in Q3 2025, a 5.2% rise from $1,301.3 million in Q2 2025[41] Assets Under Management (AUM) - Assets under management (AUM) reached a record $2.1 trillion, reflecting a 6.2% increase from the prior quarter and an 18.3% increase year-over-year[4][10] - Ending assets as of September 30, 2025, reached $2,124.8 billion, reflecting a 6.2% increase from the previous quarter[52] - Average long-term AUM for the three months ended September 30, 2025, was $1,462.0 billion, an 8.8% increase from the previous quarter[52] - Ending long-term AUM as of September 30, 2025, was $1,510.3 billion, a 6.7% increase from the previous quarter[52] Cash Flow and Capital Management - The company repaid $260 million of bank term loans and ended the quarter with a zero balance on its revolving credit agreement, indicating continued balance sheet strength[5][4] - The company repurchased 1.2 million common shares for $25 million during the quarter, reflecting its commitment to returning capital to shareholders[5][4] - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $1,069.5 million, up from $873.1 million in the same period of 2024, reflecting a growth of 22.5%[63] - The total cash and cash equivalents at the end of the period on September 30, 2025, were $1,523.8 million, compared to $1,639.4 million at the end of December 31, 2024, indicating a decrease of 7.0%[66] Market Performance and Inflows - The company achieved net long-term inflows of $28.9 billion for the quarter, a significant increase from $15.6 billion in the previous quarter, representing an annualized organic growth rate of 8%[5][6][9] - Total net flows for the three months ended September 30, 2025, increased by 71.7% to $26.1 billion compared to the previous quarter[52] - Long-term inflows for the same period rose by 16.6% to $138.4 billion, while long-term outflows increased by 6.2% to $109.5 billion[52] - The company reported a 68.8% increase in net flows in money market funds for the three months ended September 30, 2025, totaling $(5.4) billion[52] Tax and Regulatory Matters - The effective tax rate was (2.8%) for the quarter, a decrease from 28.1% in the previous quarter, primarily due to favorable tax resolutions[14][19] - The company removed a non-cash income tax benefit of $39.0 million in Q3 2025 related to deferred tax liabilities, aiding comparability of results[49] Debt and Equity - Total debt decreased to $1,624.6 million from $1,883.9 million, with $260.0 million of bank term loans repaid in Q2 2025[30] - The total equity attributable to Invesco Ltd. was $14,005.6 million as of September 30, 2025, compared to $14,559.9 million at the end of December 31, 2024, indicating a decrease of 3.8%[66]