Voya (VOYA) Q2 EPS Jumps 20%

Core Insights - Voya Financial reported Q2 2025 non-GAAP EPS of $2.46, exceeding analyst expectations of $2.05, marking a 12.8% increase from Q2 2024 [1][5] - Non-GAAP net revenue for the twelve months ended June 30, 2025, was $4.16 billion, while GAAP net income available to common shareholders decreased by 19.4% to $162 million due to investment losses and severance costs [1][5] - The company faced challenges in the Employee Benefits segment, with adjusted operating margin dropping to 3.7% from 19.1% year-over-year, and net revenues declining by 13.8% [1][9] Business Overview - Voya Financial operates in three main segments: Retirement, Investment Management, and Employee Benefits, focusing on financial planning, investment, and protection solutions [3] - The company aims to expand assets under management and integrate acquisitions, such as the OneAmerica retirement business, while maintaining operational discipline [4] Quarterly Highlights - The Retirement segment showed strong performance with pre-tax adjusted operating earnings rising from $214 million in Q2 2024 to $235 million in Q2 2025, and total client assets reaching $757 billion, a 30% increase year-over-year [6] - Investment Management reported pre-tax adjusted operating earnings of $51 million, with net inflows of $1.8 billion, surpassing $1 trillion in total assets managed and administered [7][11] - Employee Benefits saw a 15% increase in pre-tax adjusted operating earnings to $69 million, but faced a 13.8% decline in net revenues and a significant drop in adjusted operating margin [8][9] Operational Achievements - Voya surpassed $1 trillion in total assets managed and administered across Retirement and Investment Management, driven by successful asset gathering and favorable market conditions [11] - The company is investing $50 million in developing leave management solutions to adapt to evolving customer needs [12] Shareholder Returns - Voya returned $44 million to shareholders through dividends in Q2 2025, maintaining a capital-light, high free cash flow approach [13] Future Outlook - Management is focused on integrating the OneAmerica business, improving margins in Employee Benefits, and driving organic growth, without providing explicit forward guidance for revenue or profit [14][15]