Janus Henderson(US:JHG)2025-10-30 11:31Revenue and Income - Revenue for Q3 2025 was $700.4 million, an increase of $75.6 million, or 12%, compared to Q3 2024[111] - Net income attributable to JHG for Q3 2025 was $142.1 million, an increase of $114.8 million, or 421%, compared to Q3 2024[112] - Diluted earnings per share for Q3 2025 was $0.92, or $1.09 on an adjusted basis[113] - Adjusted revenue for the three months ended September 30, 2025, was $554.8 million, compared to $488.1 million in 2024, reflecting a growth of 13.6%[168] - Adjusted operating income for the three months ended September 30, 2025, was $204.5 million, up from $170.5 million in 2024, indicating a 20% increase[168] Assets Under Management (AUM) - Assets Under Management (AUM) increased to $483.8 billion, up 6% from June 30, 2025, and 27% from September 30, 2024[113] - AUM increased by $105.1 billion, or 28%, from December 31, 2024, driven by the addition of $46.5 billion of investment-grade public fixed income assets[116] - Total Assets Under Management (AUM) increased from $457.3 billion on June 30, 2025, to $483.8 billion on September 30, 2025, reflecting a growth of 5.5%[118] - AUM growth was driven by the addition of $46.5 billion in investment-grade public fixed income assets and favorable market performance of $40.5 billion[116] - AUM by capability as of September 30, 2025: Equities at $254.2 billion, Fixed Income at $153.1 billion, Multi-Asset at $58.0 billion, and Alternatives at $18.5 billion[118] Inflows and Outflows - The company achieved net inflows of $7.8 billion in Q3 2025, marking six consecutive quarters of positive net inflows[113] - Total net sales across all capabilities for Q3 2025 were $29.9 billion, while total redemptions were $22.1 billion, resulting in a net inflow of $7.8 billion[118] - Net sales for Equities in Q3 2025 were $7.8 billion, while redemptions amounted to $11.1 billion, resulting in a net outflow of $3.3 billion[118] - Fixed Income AUM rose from $142.2 billion to $153.1 billion, with net sales of $17.8 billion and redemptions of $8.1 billion, indicating strong inflows[118] - Alternatives AUM grew from $15.9 billion to $18.5 billion, with net sales of $2.3 billion and redemptions of $0.9 billion, highlighting positive investor sentiment[118] Operating Expenses - Total operating expenses for Q3 2025 were $528.4 million, an increase of $68.3 million, or 15%, compared to Q3 2024[111] - Total operating expenses rose by $68.3 million (15%) for the three months and by $148.9 million (11%) for the nine months ended September 30, 2025, compared to the same periods in 2024[140] - Employee compensation and benefits increased by $28.4 million (16%) for the three months and by $56.8 million (11%) for the nine months ended September 30, 2025, mainly due to higher average headcount following acquisitions[142] - Distribution expenses increased by $11.9 million (9%) for the three months and by $27.9 million (7%) for the nine months ended September 30, 2025, driven by higher average AUM[147] - General, administrative and occupancy expenses increased by $7.2 million (9%) for the three months and by $27.7 million (13%) for the nine months ended September 30, 2025, primarily due to accelerated amortization related to a strategic decision[153] Shareholder Returns - The company returned $128.9 million in capital to shareholders through dividends and share buybacks during Q3 2025[113] - Cumulative shares repurchased under the 2024 Corporate Buyback Program were 3,778,622 for $146.8 million as of April 30, 2025[179] - Cumulative shares repurchased under the 2025 Corporate Buyback Program were 2,874,504 for $116.1 million as of September 30, 2025[180] - Dividends declared during the nine months ended September 30, 2025, included $0.39 per share on January 30, 2025, totaling $61.5 million paid on February 27, 2025[184] Market Performance - The company reported that 74%, 64%, and 65% of AUM outperformed relevant benchmarks on a three-, five-, and ten-year basis, respectively[113] - As of September 30, 2025, 91% of Fixed Income AUM outperformed benchmarks over 1 year, and 94% over 10 years[112] Future Outlook - The company’s future outlook remains positive, with continued focus on expanding its investment capabilities and enhancing client offerings[120] - The company expects adjusted non-compensation expense annual growth in the high-single digits for 2025 compared to 2024, driven by planned investments and inflation[156] - The company anticipates an adjusted compensation to revenue ratio in the range of 43% to 44% for the year ending December 31, 2025[143] Cash and Debt Management - Cash and cash equivalents held by the company as of September 30, 2025, were $982.4 million, down from $1,190.9 million as of December 31, 2024[172] - Long-term debt remained stable at $395.4 million as of September 30, 2025, compared to $395.0 million at the end of 2024[174] - The company believes existing cash and cash from operations should be sufficient to satisfy short-term capital requirements, including operating expenditures and dividend payments[176] - The company expects to fund long-term commitments with existing cash and cash generated from operations or by accessing capital and credit markets as necessary[185]