Invesco Reports Results for the Three Months Ended March 31, 2025

Core Insights - Invesco Ltd. reported a diluted EPS of $0.38 and an adjusted diluted EPS of $0.44 for Q1 2025, reflecting a decrease from the previous quarter but an increase compared to the same quarter last year [1][19][13]. Financial Performance - The company achieved operating revenues of $1,529.2 million, a decrease of 4.0% from Q4 2024 but an increase of 3.7% from Q1 2024 [6][9]. - Operating income was $277.3 million, down 11.0% from Q4 2024 but up 30.1% from Q1 2024 [6][9]. - The operating margin for Q1 2025 was 18.1%, while the adjusted operating margin was 31.5% [6][8]. - Net income attributable to Invesco Ltd. was $171.1 million, down 18.3% from Q4 2024 but up 20.9% from Q1 2024 [6][9]. Asset Management - Invesco's ending assets under management (AUM) were flat at $1,844.8 billion, with average AUM increasing by 3.1% during the quarter [5][8]. - The company experienced net long-term inflows of $17.6 billion in Q1 2025, a decrease from $25.6 billion in Q4 2024 [3][4]. - The breakdown of net long-term inflows included $16.3 billion from ETFs and Index, $8.0 billion from Fundamental Fixed Income, and $2.2 billion from China JV & India, offset by outflows from Fundamental Equities and Multi-Asset/Other [4][7]. Capital Management - Invesco announced a $1 billion repurchase of its preferred stock held by MassMutual and executed share buybacks during the quarter [2][7]. - The company increased its quarterly common stock dividend to $0.21 per share, reflecting a strong cash position and stable cash flows [2][7]. - Cash and cash equivalents stood at $821.7 million as of March 31, 2025, compared to $986.5 million at the end of 2024 [23]. Market Dynamics - The company faced net market losses that decreased AUM by $42.2 billion, while foreign exchange rate movements increased AUM by $7.4 billion [5][44]. - The effective tax rate for Q1 2025 was 22.5%, down from 24.8% in Q4 2024, primarily due to favorable tax resolutions [12][16]. Strategic Initiatives - Invesco's strategic clarity has driven organic growth of over 5% in the long term, with a focus on enhancing returns to shareholders [2][7]. - The partnership with MassMutual aims to scale both firms' private wealth offerings, supported by a $650 million initial investment from MassMutual [2][7].