Piper Sandler(US:PIPR)2026-02-06 12:03Financial Performance - Fourth quarter 2025 net revenues reached $666 million, a 39% increase from Q3 2025 and a 38% increase from Q4 2024[10] - Full year 2025 revenues totaled $1.9 billion, growing over 20% year-over-year, driven by a record year in advisory services[2] - Advisory services revenues for Q4 2025 were $403 million, reflecting a 44% year-over-year growth[5] - Corporate investment banking revenues for 2025 were $1.3 billion, up 28% compared to 2024, with five of seven industry groups showing growth[5] - Institutional brokerage revenues increased to $433 million in 2025, an 8% rise from 2024, supported by strong equity brokerage performance[5] - Investment banking revenues for 2025 reached $1.40 billion, an increase of 27% compared to 2024[11] - Municipal financing revenues for 2025 increased by 19% to $145.8 million compared to the prior year, driven by improved market conditions[12] - Net income for 2025 was $281.3 million, or $15.82 per diluted common share, reflecting an increase compared to 2024[20] - Net income attributable to Piper Sandler Companies for Q4 2025 was $114 million, a 89% increase from Q4 2024[10] - Earnings per diluted share for 2025 were $15.82, a 54% increase compared to the previous year[10] Dividends and Shareholder Returns - The company declared a special cash dividend of $5.00 per share and a quarterly cash dividend of $0.70 per share[5] - Total dividends for fiscal year 2025 amounted to $7.70 per share, a 40% increase over 2024[5] - The company declared a special cash dividend of $5.00 per share and a quarterly cash dividend of $0.70 per share, totaling $7.70 per share for fiscal year 2025, with a payout ratio of 43% of adjusted net income[33][34] Stock and Share Repurchase - The company announced a four-for-one stock split effective March 24, 2026[5] - A four-for-one stock split was approved by the Board of Directors to enhance liquidity and accessibility for investors, effective March 23, 2026[31][32] - During Q4 2025, the company repurchased 59,000 shares at an average price of $337.34 per share, totaling $19.8 million; for 2025, a total of 421,000 shares were repurchased at an average price of $297.22 per share, amounting to $125.0 million[36][37] Operating Expenses and Income - Non-interest expenses for 2025 totaled $1.52 billion, a 17% increase compared to the prior year[15] - Adjusted operating expenses for Q4 2025 were $462.5 million, a 29% increase from Q3 2025 and a 23% increase from Q4 2024; total adjusted operating expenses for 2025 reached $1.47 billion, up 19% year-over-year[26] - Adjusted operating income for Q4 2025 was $172.5 million, a 79% increase from Q3 2025 and a 42% increase from Q4 2024; total adjusted operating income for 2025 was $410.7 million, up 35% compared to 2024[27] - Adjusted operating margin for the three months ended December 31, 2025, was 27.2%, compared to 21.2% in the previous quarter, showing an improvement of 6 percentage points[46] Tax and Income Tax Expense - The effective tax rate for 2025 was 21.5%, down from 27.9% in 2024[18] - Adjusted effective tax rate for Q4 2025 was 28.5%, slightly down from 28.8% in Q3 2025; for 2025, the adjusted effective tax rate was 22.6%, down from 24.9% in the prior year[28] - The company reported an income tax expense of $45.80 million for Q4 2025, compared to $24.95 million in Q3 2025[47] - Adjusted income tax expense for the twelve months ended December 31, 2025, was $92.64 million, an increase from $75.51 million in 2024[48] Employee and Equity Information - The company had 1,858 full-time employees as of December 31, 2025, an increase from 1,836 in Q3 2025 and 1,805 in Q4 2024[38] - Common shareholders' equity increased to $1.371 billion as of December 31, 2025, up from $1.282 billion in Q3 2025[38] - The weighted average diluted common shares outstanding for Q4 2025 was 17,924 thousand, slightly up from 17,931 thousand in Q3 2025[48] Adjusted Financial Metrics - Adjusted net revenues for Q4 2025 were $635.0 million, a 39% increase from Q3 2025 and a 27% increase from Q4 2024[25] - Adjusted net income for Q4 2025 was $123.3 million, translating to $6.88 per diluted common share; for 2025, adjusted net income was $318.1 million, or $17.74 per diluted common share[29][30] - Adjusted total revenues for the twelve months ended December 31, 2025, were $1.88 billion, compared to $1.55 billion in the previous year, reflecting a 22% growth[46] - Adjusted operating income for the twelve months ended December 31, 2025, was $410.71 million, a 35% increase from $303.73 million in 2024[47]