Federated(US:FHI)2026-01-29 22:10Earnings Performance - Q4 2025 earnings per diluted share (EPS) was $1.39, up from $1.04 in Q4 2024; full-year 2025 EPS was $5.13, compared to $3.23 in 2024[6] - Operating income for Q4 2025 was $135,574,000, up 23% from $110,427,000 in Q4 2024[24] - Net income for the year ended December 31, 2025, was $403,299,000, a 50% increase compared to $268,314,000 in 2024[25] - Basic and diluted earnings per share for Q4 2025 were $1.39, a 34% increase from $1.04 in Q4 2024[24] Assets Under Management - Total assets under management (AUM) reached a record $902.6 billion, an increase of $73.0 billion or 9% from $829.6 billion at the end of 2024[6] - Money market AUM was a record $682.6 billion, up $52.3 billion or 8% from $630.3 billion at the end of 2024[8] - Equity assets increased to $97.9 billion, up $18.5 billion or 23% from $79.4 billion at the end of 2024[4] - Fixed-income assets were $100.1 billion, up $2.0 billion or 2% from $98.1 billion at the end of 2024[5] - Total managed assets reached $902,584 million as of December 31, 2025, an increase from $871,200 million in the previous quarter[36] - Total long-term assets increased to $219,980 million, up from $218,433 million in the prior quarter[36] - Average Managed Assets in the Equity asset class rose to $96,404 million, a 17% increase from $82,247 million in December 2024[37] - Fixed-Income assets grew to $100,855 million, reflecting an increase of 2% from $98,254 million year-over-year[37] - Money Market assets reached $654,635 million, up 8.9% from $601,169 million in the previous year[37] - Total Long-Term Assets amounted to $219,066 million, a 7.8% increase compared to $203,189 million in December 2024[37] - Separate Account assets totaled $264,425 million, slightly up from $252,847 million, indicating a growth of 4.6%[37] - The company reported a decline in Alternative / Private Markets assets to $18,971 million, down 4% from $19,754 million in December 2024[37] - The Multi-Asset category saw a slight decrease to $2,836 million from $2,934 million, a decline of 3.3% year-over-year[37] Revenue and Sales - Revenue for Q4 2025 increased by $58.2 million or 14%, primarily due to higher average money market and equity assets[9] - Total revenue for Q4 2025 reached $482,833,000, a 14% increase from $424,683,000 in Q4 2024[24] - Investment advisory fees for the year ended December 31, 2025, were $1,199,236,000, reflecting a 9% growth from $1,097,866,000 in 2024[25] - The company reported a net sales of $1,518,000,000 in Q4 2025, reversing a net redemption of $2,520,000,000 in Q4 2024[27] - Sales for the quarter amounted to $10,419 million, a rise from $9,018 million in the previous quarter[34] - The company reported a net exchange of $33 million for the quarter, compared to $17 million in the previous quarter[34] Operating Expenses - Operating expenses increased by $33.0 million or 11%, mainly due to higher distribution expenses related to increased money market fund assets[10] - Total operating expenses for the year ended December 31, 2025, were $1,286,781,000, a slight increase of 1% from $1,270,626,000 in 2024[25] Dividends - The board declared a quarterly dividend of $0.34 per share, payable on February 13, 2026[3] - The company declared dividends of $0.34 per share for Q4 2025, compared to $0.31 in Q4 2024[24] Market Trends and Outlook - Federated Hermes derived 53% of its revenue from money market assets in 2025, with 45% from long-term assets[14] - The company anticipates continued growth in managed assets driven by strategic market expansions and new product offerings[38]