Affiliated Managers (US:AMG)2025-11-03 12:09Financial Performance - AMG reported a diluted EPS of $6.87 and an economic EPS of $6.10 for Q3 2025, reflecting a 27% growth in economic EPS compared to the prior-year quarter [2][6]. - The company achieved a 17% increase in Adjusted EBITDA year-over-year, amounting to $250.9 million for Q3 2025 [2][4]. - AMG's net income (controlling interest) for Q3 2025 was $212.4 million, which includes a gain of approximately $100 million from the sale of Peppertree Capital Management [4][6]. - The company reported a total consolidated revenue of $528 million for Q3 2025, a slight increase from $516.4 million in Q3 2024 [14]. - Consolidated revenue for the nine months ended September 30, 2025, was $1,517.8 million, a slight increase from $1,516.6 million in the same period of 2024 [17]. - Net income attributable to controlling interest rose to $369.0 million for the nine months ended September 30, 2025, compared to $349.5 million in 2024, reflecting a growth of about 5.3% [17]. - Economic net income for controlling interest was $497.6 million in 2025, slightly up from $495.8 million in 2024 [18]. - Earnings per share (diluted) increased to $11.83 in 2025 from $10.25 in 2024, marking a growth of approximately 15.4% [17]. Assets and Liabilities - Assets Under Management (AUM) increased to $803.6 billion as of September 30, 2025, up from $728.4 billion a year earlier [4][8]. - Cash and cash equivalents decreased to $476.1 million as of September 30, 2025, down from $950.0 million at the end of 2024 [19]. - Total assets increased to $8,928.2 million as of September 30, 2025, compared to $8,830.9 million at the end of 2024 [19]. - Total liabilities rose to $4,388.2 million in 2025 from $4,182.2 million in 2024, indicating an increase of about 4.9% [19]. Shareholder Actions - Year-to-date share repurchases reached approximately $350 million, including $77 million in Q3 2025 [7][6]. - Average shares outstanding (diluted) decreased to 33.0 million in 2025 from 35.2 million in 2024 [18]. - Average diluted shares outstanding decreased from 35.0 million in Q3 2024 to 32.9 million in Q3 2025, representing a decline of 6.0% [26]. - The average adjusted diluted shares outstanding decreased from 33.3 million in the nine months ended Q3 2024 to 29.8 million in Q3 2025, a reduction of 10.5% [26]. Strategic Initiatives - The company announced a strategic collaboration with BBH to develop new products for the U.S. wealth marketplace, enhancing its position in alternative strategies [3][6]. - The company anticipates continued growth in financial results and liquidity, with a focus on strategic investments and acquisitions [27]. - Forward-looking statements indicate potential changes in market conditions and competition for acquisitions may impact future performance [27]. - The company plans to maintain transparency by regularly updating investors through its website and SEC filings [28]. Other Financial Metrics - AMG experienced net client cash inflows of approximately $9 billion in Q3 2025, totaling about $17 billion year-to-date [2][6]. - AMG's aggregate fees for the nine months ended September 30, 2025, were $3.79 billion, compared to $3.73 billion for the same period in 2024 [4]. - Total consolidated expenses increased to $1,278.8 million in 2025 from $1,115.4 million in 2024, representing a rise of approximately 14.6% [17]. - Adjusted EBITDA for controlling interest was $698.8 million in 2025, up from $691.4 million in 2024 [18]. - Pre-tax equity method earnings increased from $79.1 million in Q3 2024 to $118.2 million in Q3 2025, a growth of 49.3% [26]. - Equity method income (net) rose from $52.6 million in Q3 2024 to $88.5 million in Q3 2025, reflecting a 68.2% increase [26]. - The company recognized affiliate transaction gains of $127.6 million in Q3 2025, compared to none in Q3 2024 [26]. - For the nine months ended September 30, 2025, the company reported an expense of $30.5 million due to a modification of Affiliate equity, which was added back to Economic net income [26]. - The impact of the sale of equity interest in Peppertree Capital Management resulted in realized gains of $6.2 million from TPG shares in Q3 2025 [26].