Onex Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Onex Corporation reported record annual results for 2025, achieving a net income of $711 million, a 40% increase from the previous year [11] - The acquisition of Convex and partnership with AIG are seen as pivotal for Onex's growth prospects, enhancing its profitability and operational efficiency [2][7] Financial Results - For the fourth quarter of 2025, Onex reported net earnings of $181 million, compared to a loss of $2 million in Q4 2024 [3] - The full year 2025 net earnings reached $617 million, up from $303 million in 2024 [3] - Net earnings per diluted share for 2025 was $8.88, compared to $4.00 in 2024 [3] - Total segment net earnings for 2025 were $644 million, a significant increase from $365 million in 2024 [3] Convex Acquisition - Onex completed the $7 billion acquisition of Convex on February 6, 2026, with Onex and AIG holding approximately 63% and 35% stakes, respectively [7][9] - Convex demonstrated strong growth in 2025, with gross premiums written increasing by 14% to a record $5.9 billion [11] Asset Management Performance - Onex's private equity and credit asset management platforms raised over $8 billion in new capital in 2025 [2] - The company reported distributable earnings of $648 million for the year, up from $617 million in 2024 [29] Investment Capital - Onex had approximately $8.7 billion in investing capital as of December 31, 2025, with a per share value of $124.70 [12][27] - The investing capital per fully diluted share returned 10% in 2025, with a five-year compound annual return of 11% [12] Operational Efficiency - The net combined ratio for Convex was reported at 89%, maintaining a ratio below 90% for three consecutive years [11] - The net operating expense ratio improved by 140 basis points year-over-year to 13.1% [11] Cash and Near-Cash Position - Onex's cash and near-cash balance was $2.1 billion as of December 31, 2025, representing 24% of its investing capital [21] - Following the Convex investment, the cash and near-cash balance is expected to decline to approximately $400 million [21][38]