Barings(US:BBDC)2025-11-06 21:18Financial Performance - For Q3 2025, Barings BDC reported net investment income of $33.6 million, or $0.32 per share, compared to $29.8 million, or $0.28 per share in Q2 2025, reflecting a 13.4% increase in per share income [2]. - The total investment income for the quarter was $72.4 million, leading to a net increase in net assets from operations of $23.6 million, or $0.22 per share [5]. - Net investment income after taxes for the three months ended September 30, 2025, was $33,613,000, compared to $30,185,000 for the same period in 2024, representing an increase of approximately 8.05% [30]. - Total investment income for the three months ended September 30, 2025, was $72,404,000, compared to $70,851,000 for the same period in 2024, indicating a growth of about 2.18% [30]. - The net increase in net assets resulting from operations for the three months ended September 30, 2025, was $23,550,000, compared to $22,020,000 for the same period in 2024, an increase of approximately 6.95% [32]. - Net realized gains on investments for the three months ended September 30, 2025, were $1,615,000, compared to a loss of $8,543,000 in the same period of 2024, showing a significant turnaround [32]. Investment Portfolio - The investment portfolio at fair value decreased to $2,536.3 million as of September 30, 2025, down from $2,623.9 million as of June 30, 2025, representing a decline of approximately 3.3% [4]. - Barings BDC made 14 new investments totaling $78.6 million and invested an additional $70.2 million in existing portfolio companies during the quarter [7]. - The company recorded net unrealized depreciation of $8.8 million in Q3 2025, primarily due to a $17.3 million depreciation on the current portfolio [8]. - Total investments at fair value rose to $2,536,315,000, up from $2,449,272,000, marking an increase of about 3.55% [28]. Assets and Liabilities - As of September 30, 2025, Barings BDC had total assets of $2,821.9 million, an increase from $2,793.3 million as of June 30, 2025 [4]. - Total assets increased to $2,821,892,000 as of September 30, 2025, compared to $2,695,660,000 as of December 31, 2024, reflecting a growth of approximately 4.68% [28]. - Total liabilities increased to $1,655,097,000 as of September 30, 2025, from $1,505,306,000 as of December 31, 2024, reflecting a rise of about 9.93% [28]. Debt and Equity - The debt-to-equity ratio increased to 1.40x as of September 30, 2025, compared to 1.34x as of June 30, 2025, indicating a higher leverage position [4]. - Total debt (principal) as of September 30, 2025, increased to $1,628,981 thousand from $1,572,313 thousand as of June 30, 2025 [35]. - Total net debt as of September 30, 2025, was $1,464,843 thousand, reflecting a decrease from $1,516,433 thousand as of June 30, 2025 [35]. - The total net debt-to-equity ratio improved slightly to 1.26x as of September 30, 2025, compared to 1.29x as of June 30, 2025 [35]. Dividends - Barings BDC declared a quarterly cash dividend of $0.26 per share, payable on December 10, 2025 [12]. - Regular quarterly dividends per share remained stable at $0.26 for both the three months ended September 30, 2025, and 2024 [32]. - Total dividends per share increased to $0.31 for the three months ended September 30, 2025, compared to $0.26 for the same period in 2024, marking a growth of approximately 19.23% [32]. Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2025, was $(43,985) thousand, a significant decrease compared to $167,318 thousand for the same period in 2024 [34]. - Cash and foreign currencies at the end of the period were $83,206 thousand, up from $65,994 thousand at the end of the same period in 2024 [34]. - Cash paid for interest during the nine months ended September 30, 2025, was $60,376 thousand, compared to $52,942 thousand for the same period in 2024 [34]. - Cash dividends/distributions paid increased to $97,906 thousand for the nine months ended September 30, 2025, from $82,606 thousand in the same period of 2024 [34]. - Purchases of portfolio investments rose significantly to $(561,582) thousand for the nine months ended September 30, 2025, compared to $(345,954) thousand for the same period in 2024 [34]. - Net realized gains on investments increased to $27,200 thousand for the nine months ended September 30, 2025, from $17,644 thousand in the same period of 2024 [34]. - Proceeds from derivative contracts increased to $25,402 thousand for the nine months ended September 30, 2025, compared to $8,296 thousand for the same period in 2024 [34].