Market Newsdesk

May 7, 2025 6:09 pm

Safety Insurance Group, Inc. Announces First Quarter 2025 Results and Declares Second Quarter 2025 Dividend

Safety Insurance Group, Inc. Announces First Quarter 2025 Results and Declares Second Quarter 2025 Dividend

BOSTON–(BUSINESS WIRE)–
Safety Insurance Group, Inc. (NASDAQ:SAFT) (“the Company” or “Safety”) today reported first quarter 2025 results.

George M. Murphy, Chairman of the Board of Directors, President and Chief Executive Officer, commented: “Safety’s first quarter combined ratio in 2025 improved to 99.4% compared to 101.9% in the first quarter of 2024. The year-over-year change reflects the impact of our prior year growth in direct written premiums earning into top-line results and improvements in our private passenger automobile loss ratio. Positive trends in other revenue lines resulted in strong earnings per share of $1.48 per share and a $22.2 million increase in total shareholders’ equity.”

Net income for the quarter ended March 31, 2025 was $21.9 million, or $1.48 per diluted share, compared to net income of $20.1 million, or $1.36 per diluted share, for the comparable 2024 period. Non-generally accepted accounting principles (“non-GAAP”) operating income, as defined below, for the quarter ended March 31, 2025 was $1.28 per diluted share, compared to $0.93 per diluted share, for the comparable 2024 period.

Safety’s book value per share increased to $57.12 at March 31, 2025 from $55.83 at December 31, 2024 resulting from the net income and increases in the value of our fixed maturity portfolio, offset by dividends paid. Safety paid $0.90 per share in dividends to investors during the quarters ended March 31, 2025 and 2024. Safety paid $3.60 per share in dividends to investors during the year ended December 31, 2024.

Today, our Board of Directors approved and declared a $0.90 per share quarterly cash dividend on its issued and outstanding common stock, payable on June 13, 2025 to shareholders of record at the close of business on June 2, 2025.

Direct written premiums for the quarter ended March 31, 2025 increased by $31.7 million, or 11.8%, to $299.0 million from $267.3 million for the comparable 2024 period. Net written premiums for the quarter ended March 31, 2025 increased by $24.5 million, or 9.8%, to $274.8 million from $250.3 million for the comparable 2024 period. Net earned premiums for the quarter ended March 31, 2025 increased by $36.6 million, or 15.5%, to $272.7 million from $236.1 million for the comparable 2024 period. The year-over-year increase in net earned premiums is the result of prior year growth in direct written premiums earning into top-line results.

The increases in direct written premiums and net written premiums are a result of new business production and rate increases. For the three months ended March 31, 2025, the Company achieved policy count growth across all lines of business, including 1.3%, 2.5% and 5.4% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024. Additionally, for the three months ended March 31, 2025, average written premium per policy increased 9.5%, 8.4%, and 11.0% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024.

For the quarter ended March 31, 2025, loss and loss adjustment expenses incurred increased by $21.9 million, or 13.0%, to $190.3 million from $168.4 million for the comparable 2024 period. The slight increase is driven by larger policy counts offset by improved results in our Private Passenger Automobile line.

Loss, expense, and combined ratios for the quarter ended March 31, 2025 were 69.8%, 29.6%, and 99.4%, respectively, compared to 71.3%, 30.6%, and 101.9%, respectively, for the comparable 2024 period. The decrease in the loss and expense ratios is driven by the increase in earned premiums. Total prior year favorable development included in the pre-tax results for the quarter ended March 31, 2025 was $12.2 million compared to $11.0 million for the comparable 2024 period.

Net investment income for the quarter ended March 31, 2025 decreased by $0.6 million, or 4.3%, to $14.6 million from $15.2 million for the comparable 2024 period. The decrease is primarily driven by lower earned interest from our higher yield bonds and variable-rate secured and senior bank loans. Net effective annualized yield on the investment portfolio was 3.9% for the three months ended March 31, 2025 compared to 4.3% for the comparable 2024 period. Our duration on fixed maturities was 3.6 years at March 31, 2025 and 3.5 years at December 31, 2024.

Non-GAAP Measures

Management has included certain non-GAAP financial measures in presenting the Company’s results. Management believes that these non-GAAP measures better explain the Company’s results of operations and allow for a more complete understanding of the underlying trends in the Company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (“GAAP”). In addition, our definitions of these items may not be comparable to the definitions used by other companies.

Non-GAAP operating income and non-GAAP operating loss per diluted share consist of our GAAP net income adjusted by the net realized gains on investments, change in net unrealized gains on equity securities, credit loss expense and taxes related thereto. For the quarter ended March 31, 2025, a decrease of $0.3 million for the change in unrealized gains on equity investments was recognized within income before income taxes, compared to an increase of $7.7 million for the change in unrealized gains on equity investments in the comparable 2024 period. Net income and earnings per diluted share are the GAAP financial measures that are most directly comparable to non-GAAP operating income and non-GAAP operating income per diluted share, respectively. A reconciliation of the GAAP financial measures to these non-GAAP measures is included in the financial highlights below.

About Safety: Safety Insurance Group, Inc., based in Boston, MA, is the parent of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company, Safety Northeast Insurance Company, and Safety Northeast Insurance Agency, Inc. Operating exclusively in Massachusetts, New Hampshire, and Maine, Safety is a leading writer of property and casualty insurance products, including private passenger automobile, commercial automobile, homeowners, dwelling fire, umbrella and business owner policies.

Additional Information: Press releases, announcements, U. S. Securities and Exchange Commission (“SEC”) Filings and investor information are available under “About Safety,” “Investor Information” on our Company website located at www.SafetyInsurance.com. Safety filed its December 31, 2024 Form 10-K with the SEC on February 27, 2025 and urges shareholders to refer to this document for more complete information concerning Safety’s financial results.

Cautionary Statement under “Safe Harbor” Provision of the Private Securities Litigation Reform Act of 1995:

This press release contains, and Safety may from time to time make, written or oral “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “aim,” “projects,” or words of similar meaning and expressions that indicate future events and trends, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may”. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements.

Forward-looking statements are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. There are a number of factors, many of which are beyond our control, that could cause actual future conditions, events, results or trends to differ significantly and/or materially from historical results or those projected in the forward-looking statements. These factors include but are not limited to:

The competitive nature of our industry and the possible adverse effects of such competition;
Conditions for business operations and restrictive regulations in Massachusetts;
The possibility of losses due to claims resulting from severe weather;
The impact of inflation, changes in tariffs and supply chain delays on loss severity;
The possibility that the Commissioner of Insurance may approve future rule changes that change the operation of the residual market;
The possibility that existing insurance-related laws and regulations will become further restrictive in the future;
The impact of investment, economic and underwriting market conditions, including interest rates and inflation;
Our possible need for and availability of additional financing, and our dependence on strategic relationships, among others; and
Other risks and factors identified from time to time in our reports filed with the SEC, such as those set forth under the caption “Risk Factors” in our Form 10-K for the year ended December 31, 2024 filed with the SEC on February 27, 2025.

We are not under any obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise. You should carefully consider the possibility that actual results may differ materially from our forward-looking statements.

Safety Insurance Group, Inc. and Subsidiaries Consolidated Balance Sheets (Dollars in thousands, except share data)

	March 31,			December 31,
	2025			2024
	(Unaudited)
Assets
Investments:
Fixed maturities, available for sale, at fair value (amortized cost: $1,190,688 and $1,181,038, allowance for expected credit losses of $1,519 and $1,198)	$	1,140,093		$	1,115,218
Short-term investments, at fair value (cost: $0 and $19,970)		—			19,975
Equity securities, at fair value (cost: $202,623 and $201,258)		222,516			221,422
Other invested assets		158,574			156,444
Total investments		1,521,183			1,513,059
Cash and cash equivalents		64,708			58,974
Accounts receivable, net of allowance for expected credit losses of $785 and $918		306,408			306,465
Receivable for securities sold		496			568
Accrued investment income		7,866			7,426
Receivable from reinsurers related to paid loss and loss adjustment expenses		35,103			26,386
Receivable from reinsurers related to unpaid loss and loss adjustment expenses		136,510			130,792
Ceded unearned premiums		41,553			41,413
Deferred policy acquisition costs		104,902			105,474
Deferred income taxes		7,683			11,200
Equity and deposits in pools		4,489			3,740
Operating lease right-of-use-assets		14,673			15,733
Goodwill		17,093			17,093
Intangible assets		7,493			7,730
Other assets		21,142			24,037
Total assets	$	2,291,302		$	2,270,090

Liabilities
Losses and loss adjustment expense reserves	$	682,717		$	671,669
Unearned premium reserves		622,146			619,916
Accounts payable and accrued liabilities		59,524			77,276
Payable for securities purchased		9,913			6,949
Payable to reinsurers		20,442			19,074
Taxes payable		1,220			1,009
Short-term debt		—			30,000
Long-term debt		30,000			—
Operating lease liabilities		14,673			15,733
Total liabilities		1,440,635			1,441,626


Shareholders’ equity
Common stock: $0.01 par value; 30,000,000 shares authorized; 18,051,280 and 17,995,584 shares issued		181			180
Additional paid-in capital		232,264			230,864
Accumulated other comprehensive loss, net of taxes		(38,771	)		(51,047	)
Retained earnings		807,286			798,760
Treasury stock, at cost: 3,157,577 shares		(150,293	)		(150,293	)
Total shareholders’ equity		850,667			828,464
Total liabilities and shareholders’ equity	$	2,291,302		$	2,270,090

Safety Insurance Group, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except share and per share data)

	Three Months Ended March 31,
	2025			2024

Net earned premiums	$	272,690		$	236,053
Net investment income		14,574			15,231
Earnings from partnership investments		2,112			1,772
Net realized gains on investments		4,263			492
Change in net unrealized gains on equity securities		(271	)		7,665
Credit loss expense		(321	)		(142	)
Commission income		2,095			1,808
Finance and other service income		6,287			5,354
Total revenue		301,429			268,233

Losses and loss adjustment expenses		190,290			168,399
Underwriting, operating and related expenses		80,851			72,267
Other expense		1,954			1,837
Interest expense		104			123
Total expenses		273,199			242,626

Income before income taxes		28,230			25,607
Income tax expense		6,334			5,529
Net income	$	21,896		$	20,078

Earnings per weighted average common share:
Basic	$	1.48		$	1.36
Diluted	$	1.48		$	1.36

Cash dividends paid per common share	$	0.90		$	0.90

Number of shares used in computing earnings per share:
Basic		14,718,572			14,667,107
Diluted		14,745,015			14,696,590


Reconciliation of Net Income to Non-GAAP Operating Income

Net income	$	21,896		$	20,078
Exclusions from net income:
Net realized gains on investments		(4,263	)		(492	)
Change in net unrealized gains on equity securities		271			(7,665	)
Credit loss expense		321			142
Income tax expense on exclusions from net income		771			1,683
Non-GAAP operating income	$	18,996		$	13,746

Net income per diluted share	$	1.48		$	1.36
Exclusions from net income:
Net realized gains on investments		(0.29	)		(0.03	)
Change in net unrealized gains on equity securities		0.02			(0.52	)
Credit loss expense		0.02			0.01
Income tax expense on exclusions from net income		0.05			0.11
Non-GAAP operating income per diluted share	$	1.28		$	0.93

Safety Insurance Group, Inc. and Subsidiaries Additional Premium Information (Unaudited) (Dollars in thousands)

	Three Months Ended March 31,
	2025			2024
Written Premiums
Direct	$	298,970		$	267,339
Assumed		6,805			9,438
Ceded		(30,995	)		(26,482	)
Net written premiums	$	274,780		$	250,295

Earned Premiums
Direct	$	296,819		$	251,884
Assumed		6,725			8,968
Ceded		(30,854	)		(24,799	)
Net earned premiums	$	272,690		$	236,053

View source version on businesswire.com: https://www.businesswire.com/news/home/20250507426420/en/

Safety Insurance Group, Inc.

Office of Investor Relations

877-951-2522

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Insurance Professional Services

MEDIA:

Logo

May 7, 2025 6:09 pm

FNF Reports First Quarter 2025 Financial Results

PR Newswire

JACKSONVILLE, Fla.
, May 7, 2025 /PRNewswire/ — Fidelity National Financial, Inc. (NYSE:FNF) (“FNF” or the “Company”), a leading provider of title insurance and transaction services to the real estate and mortgage industries and a leading provider of insurance solutions serving retail annuity and life customers and institutional clients through its majority-owned, publicly traded subsidiary F&G Annuities & Life, Inc. (NYSE:FG) (“F&G”), today reported financial results for the first quarter ended March 31, 2025.

Net earnings attributable to common shareholders for the first quarter were $83 million, or $0.30 per diluted share (per share), compared to net earnings of $248 million, or $0.91 per share, for the first quarter of 2024. Net earnings attributable to common shareholders include mark-to-market effects and non-recurring items; all of which are excluded from adjusted net earnings attributable to common shareholders.

Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the first quarter were $213 million, or $0.78 per share, compared to $206 million, or $0.76 per share, for the first quarter of 2024.

The Title Segment contributed $158 million for the first quarter, compared to $130 million for the first quarter of 2024
The F&G Segment contributed $80 million for the first quarter, compared to $95 million for the first quarter of 2024
The Corporate Segment, before eliminating dividend income from F&G in the consolidated financial statements, had adjusted net earnings of $3 million for the first quarter, compared to $8 million for the first quarter of 2024
FNF’s consolidated adjusted net earnings include significant income and expense items in the F&G Segment, as well as alternative investment portfolio returns from short-term mark-to-market movement that differ from long-term return expectations. Please see “Segment Financial Results” for F&G, as well as the “Non-GAAP Measures and Other Information” section for further explanation

Company Highlights

Title Segment delivered strong operating performance despite dynamic environment: For the Title Segment, total revenue was $1.8 billion for the first quarter, compared to $1.7 billion for the first quarter of 2024. Total revenue, excluding recognized gains and losses, was $1.8 billion for the first quarter, a 12% increase over the first quarter of 2024. Our industry leading adjusted pre-tax title margin was 11.7% for the first quarter
F&G Segment assets under management growth was driven by continued strong indexed annuity sales: F&G achieved assets under management before flow reinsurance of $67.4 billion at the end of the first quarter, an increase of 16% over the first quarter of 2024. F&G’s gross sales were $2.9 billion and net sales were $2.2 billion for the first quarter
FNF participation in F&G common equity raise supported by strong balance sheet: FNF purchased 4.5 million shares of 8.0 million total shares in F&G’s common equity offering in March; FNF’s majority ownership stake in F&G is approximately 82% as of March 31, 2025
Share repurchase relaunch and sustainable common dividend backed by stable cash generation: FNF has repurchased 390,000 shares for a total of $25 million, at an average price of $63.42 per share, in the latter part of the first quarter and paid common dividends of $0.50 per share for $136 million. FNF ended the quarter with $687 million in cash and short-term liquid investments at the holding company

William P. Foley, II, Chairman, commented, “Our business continued to perform well through the first quarter highlighted by industry leading margins from our Title segment and assets under management from F&G. Our Title business has successfully navigated the downturn in the housing market and is delivering impressive profitability and cash flows, both of which are poised to further expand as interest rates normalize. Given our confidence in F&G’s continued growth and our desire to maintain FNF’s ownership stake above 80%, we made the decision to participate in F&G’s March capital raise by investing $150 million. This capital will position F&G to take advantage of the many opportunities that lie ahead to further grow their business and expand returns while also improving the liquidity in their shares. We also returned capital to FNF’s shareholders having restarted the Company’s share repurchase program late in the first quarter while also paying our quarterly cash dividend.”

Summary Financial Results

(In millions, except per share data)	Three Months Ended
	March 31, 2025	March 31, 2024
Total revenue	$ 2,729	$ 3,299
F&G gross sales¹	$ 2,902	$ 3,495
F&G net sales¹	$ 2,181	$ 2,302
F&G assets under management (AUM)¹	$ 54,546	$ 49,787
F&G AUM before flow reinsurance¹	$ 67,398	$ 58,020
Total assets	$ 98,209	$ 84,496
Adjusted pre-tax title margin	11.7 %	10.7 %
Net earnings attributable to common shareholders	$ 83	$ 248
Net earnings per share attributable to common shareholders	$ 0.30	$ 0.91
Adjusted net earnings¹	$ 213	$ 206
Adjusted net earnings per share¹	$ 0.78	$ 0.76
Weighted average common diluted shares	273	272
Total common shares outstanding	275	273

____________________________

¹ See definition of non-GAAP measures below

Segment Financial Results

Title Segment

This segment consists of the operations of the Company’s title insurance underwriters and related businesses, which provide core title insurance and escrow and other title-related services including loan sub-servicing, valuations, default services, and home warranty.

Mike Nolan, Chief Executive Officer, said, “The year is off to a strong start as we delivered an adjusted pre-tax Title margin of 11.7%, an increase of 100 basis points as compared to the 10.7% margin that we achieved in the year ago first quarter. Our improved margin is a testament to our employees as well as the operational efficiencies that we have achieved over the last few decades through investments in technology. Our investments are enabling us to deliver margins above prior market troughs and, we believe, will likewise deliver higher margins at the peak of the next cycle. We also continue to generate strong free cash flows during this period of low transactional volume. This enables us to have a dynamic capital allocation strategy focused on returning capital to shareholders through our dividend and share repurchases while also investing in our business through ongoing technology and growth investments as we position our Title business for the long term.”

First Quarter 2025 Highlights

Total revenue of $1.8 billion, compared with $1.7 billion in the first quarter of 2024
Total revenue, excluding recognized gains and losses, of $1.8 billion, a 12% increase over the first quarter of 2024
- Direct title premiums of $510 million, a 16% increase over first quarter of 2024
- Agency title premiums of $681 million, a 15% increase over first quarter of 2024
- Commercial revenue of $293 million, a 23% increase over first quarter of 2024
Purchase orders opened increased 3% on a daily basis over the first quarter of 2024, and purchase orders closed increased 2% on a daily basis over the first quarter of 2024
Refinance orders opened increased 33% on a daily basis and refinance orders closed increased 31% on a daily basis over the first quarter of 2024
Commercial orders opened increased 8% and commercial orders closed increased 7% over the first quarter of 2024
Total fee per file of $3,761 for the first quarter, a 6% increase over the first quarter of 2024

First Quarter 2025 Financial Results

Pre-tax title margin of 9.6% and industry leading adjusted pre-tax title margin of 11.7% for the first quarter, compared to 13.1% and 10.7%, respectively, for the first quarter of 2024
Pre-tax earnings in Title for the first quarter of $171 million, compared with $218 million for the first quarter of 2024
Adjusted pre-tax earnings in Title for the first quarter of $211 million, compared with $171 million for the first quarter of 2024; the increase reflects higher direct orders closed and agency revenue

F&G Segment

This segment consists of operations of FNF’s majority-owned subsidiary F&G, a leading provider of insurance solutions serving retail annuity and life customers and funding agreement and pension risk transfer institutional clients.

Chris Blunt, Chief Executive Officer, commented, “Despite some near-term headwinds, F&G’s solid foundation is underpinned by a conservatively positioned investment portfolio and the ability to optimize our capital allocation to secure the highest returning business, which positions us to succeed in an uncertain economy. We achieved AUM before flow reinsurance of $67.4 billion, an increase of 16% from the year ago first quarter, driven by strong indexed annuity sales. Additionally, our equity offering in March provides us with the flexibility to take advantage of both opportunities to further grow the business given the strong secular tailwinds that exist as well as providing additional capital should the environment turn increasingly challenging. Overall, the credit quality of our portfolio remains high with 96% of our fixed maturities being investment grade combined with credit related impairments remaining well below our pricing assumptions over the past five years and current quarter. We remain confident that we will deliver on our medium-term Investor Day targets, to grow AUM and expand returns, in the coming years.”

First Quarter 2025

AUM before flow reinsurance of $67.4 billion at the end of the first quarter increased 16% over the first quarter of 2024. This included AUM of $54.5 billion, an increase of 9% over the first quarter of 2024 driven by retained new business flows
Profitable gross sales were $2.9 billion for the first quarter, a decrease of 17% from the first quarter of 2024; this reflects our decision to allocate capital to the highest returning business, specifically indexed annuity sales and pension risk transfer sales, resulting in a reduction in MYGA sales
Retail channel sales were $2.1 billion for the first quarter, a decrease of 25% from the first quarter of 2024; this reflects our decision to allocate capital to indexed annuity sales given the ongoing favorable economic conditions and strong demand for retirement savings products, resulting in a reduction in MYGA sales. Strong indexed annuity sales were $1.5 billion and indexed universal life sales were $43 million in the first quarter, both in line with the first quarter of 2024
Institutional market sales were $0.8 billion for the first quarter, an increase of 14% over $0.7 billion in the first quarter of 2024; driven by higher funding agreements, partially offset by lower pension risk transfer as compared to the prior year which was a first quarter record
Stable net sales of $2.2 billion for the first quarter, compared to $2.3 billion in the first quarter of 2024
Net loss attributable to common shareholders for F&G Segment of $18 million for the first quarter due to unfavorable mark-to-market movement, compared to net earnings of $98 million for the first quarter of 2024 which included favorable mark-to-market movement
Adjusted net earnings attributable to common shareholders for F&G Segment of $80 million for the first quarter, compared to $95 million for the first quarter of 2024
- F&G Segment adjusted net earnings of $80 million for the first quarter of 2025 include $13 million of income from a reinsurance true-up adjustment. Investment income from alternative investments was $52 million below management’s long-term expected return of approximately 10%
- F&G Segment adjusted net earnings of $95 million for the first quarter of 2024 included $2 million of other income items. Investment income from alternative investments was $44 million below management’s long-term expected return of approximately 10%
- As compared to the prior year quarter, adjusted net earnings reflect margin compression due to near-term headwinds, lower owned distribution margin and higher interest expense in line with our capital market activity; partially offset by asset growth, higher income from accretive flow reinsurance fees and disciplined expense management, as well as the above alternatives investments short-term mark-to-market movement and significant income items
- Please see “Segment Financial Results” for F&G under “Non-GAAP Measures and Other Information” for further explanation

Conference Call

We will host a call with investors and analysts to discuss FNF’s first quarter of 2025 results on Thursday, May 8, 2025, beginning at 11:00 a.m. Eastern Time. A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at fnf.com. The conference call replay will be available via webcast through the FNF Investor Relations website at fnf.com.

About Fidelity National Financial, Inc.

Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance and transaction services to the real estate and mortgage industries. FNF is the nation’s largest title insurance company through its title insurance underwriters – Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York – that collectively issue more title insurance policies than any other title company in the United States. More information about FNF can be found at fnf.com.

About F&G

F&G is part of the FNF family of companies. F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com.

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this earnings release includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include adjusted net earnings per share, adjusted pre-tax title earnings, adjusted pre-tax title earnings as a percentage of adjusted title revenue (adjusted pre-tax title margin), adjusted net earnings attributable to common shareholders (adjusted net earnings), assets under management (AUM), average assets under management (AAUM) and sales.

Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do.

The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, FNF believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company’s management operates the Company.

Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, net earnings per share, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Further, FNF’s non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided below.

Forward-Looking Statements and Risk Factors

This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business, political crisis, war and pandemic conditions, including ongoing geopolitical conflicts; consumer spending; government spending; the volatility and strength of the capital markets; investor and consumer confidence; foreign currency exchange rates; commodity prices; inflation levels; changes in trade policy; tariffs and trade sanctions on goods; trade wars; supply chain disruptions; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U.S. economy; our potential inability to find suitable acquisition candidates; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that F&G and our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries, including regulation of title insurance and services and privacy and data protection laws; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of FNF’s Form 10-K and other filings with the Securities and Exchange Commission.

FNF-E

FIDELITY NATIONAL FINANCIAL, INC. FIRST QUARTER SEGMENT INFORMATION (In millions, except per share data) (Unaudited)
	Consolidated	Title	F&G	Corporate and Other	Elimination
*Three Months Ended*
*March 31, 2025*
Direct title premiums	$ 510	$ 510	$ —	$ —	$ —
Agency title premiums	681	681	—	—	—
Escrow, title related and other fees	1,065	525	505	35	—
Total title and escrow	2,256	1,716	505	35	—

Interest and investment income	760	83	666	39	(28)
Recognized gains and losses, net	(287)	(25)	(263)	1	—
Total revenue	2,729	1,774	908	75	(28)

Personnel costs	770	672	67	31	—
Agent commissions	528	528	—	—	—
Other operating expenses	377	313	41	23	—
Benefits & other policy reserve changes	524	—	524	—	—
Market risk benefit (gains) losses	109	—	109	—	—
Depreciation and amortization	196	36	153	7	—
Provision for title claim losses	54	54	—	—	—
Interest expense	60	—	40	20	—
Total expenses	2,618	1,603	934	81	—

Pre-tax earnings (loss)	$ 111	$ 171	$ (26)	$ (6)	$ (28)

Income tax expense (benefit)	29	42	(5)	(8)	—
Earnings (loss) from equity investments	1	1	—	—	—
Non-controlling interests	—	3	(3)	—	—

Net earnings (loss) attributable to common shareholders	$ 83	$ 127	$ (18)	$ 2	$ (28)

EPS attributable to common shareholders – basic	$ 0.30

EPS attributable to common shareholders – diluted	$ 0.30

Weighted average shares – basic	273
Weighted average shares – diluted	273

FIDELITY NATIONAL FINANCIAL, INC. FIRST QUARTER SEGMENT INFORMATION (In millions, except per share data) (Unaudited)
	Consolidated	Title	F&G	Corporate and Other	Elimination
*Three Months Ended*
*March 31, 2025*
Net earnings (loss) attributable to common shareholders	$ 83	$ 127	$ (18)	$ 2	$ (28)

Pre-tax earnings (loss)	$ 111	$ 171	$ (26)	$ (6)	$ (28)

Non-GAAP Adjustments
Recognized (gains) and losses, net	53	25	29	(1)	—
Market related liability adjustments	103	—	103	—	—
Purchase price amortization	33	15	16	2	—

Adjusted pre-tax earnings (loss)	$ 300	$ 211	$ 122	$ (5)	$ (28)

Total non-GAAP, pre-tax adjustments	$ 189	$ 40	$ 148	$ 1	$ —
Income taxes on non-GAAP adjustments	(40)	(10)	(30)	—	—
Non-controlling interest on non-GAAP adjustments	(20)	—	(20)	—	—
Deferred tax asset valuation allowance	1	1	—	—	—
Total non-GAAP adjustments	$ 130	$ 31	$ 98	$ 1	$ —

Adjusted net earnings (loss) attributable to common shareholders	$ 213	$ 158	$ 80	$ 3	$ (28)

Adjusted EPS attributable to common shareholders – diluted	$ 0.78

FIDELITY NATIONAL FINANCIAL, INC. FIRST QUARTER SEGMENT INFORMATION (In millions, except per share data) (Unaudited)
	Consolidated	Title	F&G	Corporate and Other	Elimination
*Three Months Ended*
*March 31, 2024*
Direct title premiums	$ 440	$ 440	$ —	$ —	$ —
Agency title premiums	593	593	—	—	—
Escrow, title related and other fees	1,281	484	741	56	—
Total title and escrow	2,314	1,517	741	56	—

Interest and investment income	710	83	616	38	(27)
Recognized gains and losses, net	275	63	212	—	—
Total revenue	3,299	1,663	1,569	94	(27)

Personnel costs	727	618	66	43	—
Agent commissions	460	460	—	—	—
Other operating expenses	369	285	58	26	—
Benefits & other policy reserve changes	1,161	—	1,161	—	—
Market risk benefit (gains) losses	(11)	—	(11)	—	—
Depreciation and amortization	167	36	123	8	—
Provision for title claim losses	46	46	—	—	—
Interest expense	49	—	30	19	—
Total expenses	2,968	1,445	1,427	96	—

Pre-tax earnings (loss)	$ 331	$ 218	$ 142	$ (2)	$ (27)

Income tax expense (benefit)	63	45	26	(8)	—
Earnings from equity investments	1	1	—	—	—
Non-controlling interests	21	2	18	1	—

Net earnings (loss) attributable to common shareholders	$ 248	$ 172	$ 98	$ 5	$ (27)

EPS attributable to common shareholders – basic	$ 0.92

EPS attributable to common shareholders – diluted	$ 0.91

Weighted average shares – basic	271
Weighted average shares – diluted	272

FIDELITY NATIONAL FINANCIAL, INC. FIRST QUARTER SEGMENT INFORMATION (In millions, except per share data) (Unaudited)
	Consolidated	Title	F&G	Corporate and Other	Elimination
*Three Months Ended*
*March 31, 2024*
Net earnings (loss) attributable to common shareholders	$ 248	$ 172	$ 98	$ 5	$ (27)

Pre-tax earnings (loss)	$ 331	$ 218	$ 142	$ (2)	$ (27)

Non-GAAP Adjustments
Recognized (gains) and losses, net	(31)	(63)	32	—	—
Market related liability adjustments	(55)	—	(55)	—	—
Purchase price amortization	41	16	22	3	—
Transaction costs	1	—	—	1	—

Adjusted pre-tax earnings (loss)	$ 287	$ 171	$ 141	$ 2	$ (27)

Total non-GAAP, pre-tax adjustments	$ (44)	$ (47)	$ (1)	$ 4	$ —
Income taxes on non-GAAP adjustments	11	11	1	(1)	—
Non-controlling interest on non-GAAP adjustments	(3)	—	(3)	—	—
Deferred tax asset valuation allowance	(6)	(6)	—	—	—
Total non-GAAP adjustments	$ (42)	$ (42)	$ (3)	$ 3	$ —

Adjusted net earnings (loss) attributable to common shareholders	$ 206	$ 130	$ 95	$ 8	$ (27)

Adjusted EPS attributable to common shareholders – diluted	$ 0.76

FIDELITY NATIONAL FINANCIAL, INC. SUMMARY BALANCE SHEET INFORMATION (In millions)

	March 31, 2025		December 31, 2024
	(Unaudited)		(Unaudited)
Cash and investment portfolio		$ 68,651		$ 67,094
Goodwill		5,271		5,271
Title plant		421		420
Total assets		98,209		95,263
Notes payable		4,394		4,321
Reserve for title claim losses		1,695		1,713
Secured trust deposits		628		551
Accumulated other comprehensive (loss) earnings		(1,866)		(2,052)
Non-controlling interests		904		778
Total equity and non-controlling interests		8,797		8,532
Total equity attributable to common shareholders		7,893		7,754

Non-GAAP Measures and Other Information

Title Segment

The table below reconciles pre-tax title earnings to adjusted pre-tax title earnings.

	Three Months Ended
(Dollars in millions)	March 31, 2025	March 31, 2024
Pre-tax earnings	$ 171	$ 218
Non-GAAP adjustments before taxes
Recognized (gains) and losses, net	25	(63)
Purchase price amortization	15	16
Total non-GAAP adjustments	40	(47)
Adjusted pre-tax earnings	$ 211	$ 171
Adjusted pre-tax margin	11.7 %	10.7 %

FIDELITY NATIONAL FINANCIAL, INC. QUARTERLY OPERATING STATISTICS (Unaudited)

	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Quarterly Opened Orders (‘000’s except % data)
Total opened orders*	343	299	352	344	315	257	318	347
Total opened orders per day*	5.6	4.7	5.5	5.5	5.1	4.1	5.0	5.4
Purchase % of opened orders	75 %	72 %	73 %	80 %	79 %	78 %	80 %	79 %
Refinance % of opened orders	25 %	28 %	27 %	20 %	21 %	22 %	20 %	21 %
Total closed orders*	201	232	232	229	186	192	224	233
Total closed orders per day*	3.3	3.7	3.6	3.6	3.0	3.1	3.6	3.6
Purchase % of closed orders	75 %	72 %	77 %	81 %	79 %	80 %	80 %	81 %
Refinance % of closed orders	25 %	28 %	23 %	19 %	21 %	20 %	20 %	19 %

Commercial (millions, except orders in ‘000’s)
Total commercial revenue	$ 293	$ 376	$ 290	$ 273	$ 238	$ 294	$ 263	$ 263
Total commercial opened orders	52.6	47.5	50.8	50.7	48.7	43.7	49.1	50.2
Total commercial closed orders	26.0	28.9	25.9	25.7	24.3	26.3	25.6	27.7

National commercial revenue	$ 149	$ 208	$ 151	$ 145	$ 123	$ 164	$ 131	$ 132
National commercial opened orders	22.7	20.7	21.9	21.4	19.4	18.2	19.2	19.5
National commercial closed orders	10.2	11.8	10.4	9.8	9.2	10.1	9.4	10.1

Total Fee Per File
Fee per file	$ 3,761	$ 3,909	$ 3,708	$ 3,759	$ 3,555	$ 3,806	$ 3,618	$ 3,598
Residential fee per file	$ 2,776	$ 2,772	$ 2,881	$ 2,995	$ 2,746	$ 2,889	$ 2,861	$ 2,897
Total commercial fee per file	$ 11,300	$ 13,000	$ 11,200	$ 10,600	$ 9,800	$ 11,200	$ 10,300	$ 9,500
National commercial fee per file	$ 14,600	$ 17,600	$ 14,500	$ 14,800	$ 13,400	$ 16,300	$ 14,000	$ 13,000

Total Staffing
Total field operations employees	10,200	10,300	10,400	10,300	10,000	9,900	10,400	10,600

Actual title claims paid ($ millions)	$ 65	$ 75	$ 64	$ 70	$ 70	$ 64	$ 69	$ 67

Title Segment (continued)

FIDELITY NATIONAL FINANCIAL, INC. MONTHLY TITLE ORDER STATISTICS

		Direct Orders Opened *			Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
January 2025		107,000	76 %		62,000	74 %
February 2025		108,000	75 %		64,000	76 %
March 2025		128,000	74 %		75,000	75 %

First Quarter 2025		343,000	75 %		201,000	75 %

		Direct Orders Opened *			Direct Orders Closed *
Month	/ (% Purchase)				/ (% Purchase)
January 2024		102,000	79 %		56,000	78 %
February 2024		102,000	79 %		61,000	79 %
March 2024		111,000	80 %		69,000	80 %

First Quarter 2024		315,000	79 %		186,000	79 %
* Includes an immaterial number of non-purchase and non-refinance orders

F&G Segment

The table below reconciles net earnings (loss) attributable to common shareholders to adjusted net earnings attributable to common shareholders. The F&G Segment is reported net of noncontrolling minority interest.

	Three Months Ended
(Dollars in millions)	March 31, 2025	March 31, 2024
Net earnings attributable to common shareholders	$ (18)	$ 98
Non-GAAP adjustments⁽¹⁾:
Recognized (gains) losses, net	29	32
Market related liability adjustments	103	(55)
Purchase price amortization	16	22
Transaction and other costs	—	—
Income taxes on non-GAAP adjustments	(30)	1
Non-controlling interest on non-GAAP adjustments	(20)	(3)
Adjusted net earnings (loss) attributable to common shareholders⁽¹⁾	$ 80	$ 95

Adjusted net earnings of $80 million for the first quarter of 2025 include $13 million, or $0.05 per share, of income from a reinsurance true-up adjustment. Investment income from alternative investments was $52 million, or $0.19 per share, below management’s long-term expected return of approximately 10%.
Adjusted net earnings of $95 million for the first quarter of 2024 included $2 million, or $0.01 per share, of other income items. Investment income from alternative investments was $44 million, or $0.16 per share, below management’s long-term expected return of approximately 10%.

Footnotes:

1. Non-GAAP financial measure. See the Non-GAAP Measures section below for additional information.

F&G Segment (continued)

The table below provides a summary of sales highlights.

	Three Months Ended
(In millions)	March 31, 2025	March 31, 2024
Total annuity sales	$ 2,023	$ 2,764
Indexed universal life sales	43	42
Funding agreements (FABN/FHLB)	525	105
Pension risk transfer	311	584
Gross sales⁽¹⁾	$ 2,902	$ 3,495
Sales attributable to flow reinsurance to third parties	(721)	(1,193)
Net Sales⁽¹⁾	$ 2,181	$ 2,302

Footnotes:

1. Non-GAAP financial measure. See the Non-GAAP Measures section below for additional information.

DEFINITIONS

The following represents the definitions of non-GAAP measures used by the Company.

Adjusted Net Earnings attributable to common shareholders

Adjusted net earnings attributable to common shareholders is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted net earnings attributable to common shareholders is calculated by adjusting net earnings (loss) attributable to common shareholders to eliminate:

i. Recognized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment (“OTTI”) losses, recognized in operations; and the effects of changes in fair value of the reinsurance related embedded derivative and other derivatives, including interest rate swaps and forwards;
ii. Market related liability adjustments: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost; the impact of initial pension risk transfer deferred profit liability losses, including amortization from previously deferred pension risk transfer deferred profit liability losses; and the changes in the fair value of market risk benefits by deferring current period changes and amortizing that amount over the life of the market risk benefit;
iii. Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset and the change in fair value of liabilities recognized as a result of acquisition activities);
iv. Transaction costs: the impacts related to acquisition, integration and merger related items;
v. Certain income tax adjustments: the impacts related to unusual tax items that do not reflect our core operating performance such as the establishment or reversal of significant deferred tax asset valuation allowances in our Title and Corporate and Other segments;
vi. Other and “non-recurring,” “infrequent” or “unusual items”: Other adjustments include removing any charges associated with U.S. guaranty fund assessments as these charges neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, but result from external situations not controlled by the Company. Further, Management excludes certain items determined to be “non-recurring,” “infrequent” or “unusual” from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years;
vii. Non-controlling interest on non-GAAP adjustments: the portion of the non-GAAP adjustments attributable to the equity interest of entities that FNF does not wholly own; and
viii. Income taxes: the income tax impact related to the above-mentioned adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction

While these adjustments are an integral part of the overall performance of FNF, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations.

Assets Under Management (AUM)

AUM is comprised of the following components and is reported net of reinsurance assets ceded in accordance with GAAP:

i. total invested assets at amortized cost, excluding investments in unconsolidated affiliates, owned distribution and derivatives;
ii. investments in unconsolidated affiliates at carrying value;
iii. related party loans and investments;
iv. accrued investment income;
v. the net payable/receivable for the purchase/sale of investments; and
vi. cash and cash equivalents excluding derivative collateral at the end of the period.

Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio that is retained.

AUM before Flow Reinsurance

AUM before Flow Reinsurance is comprised of components consistent with AUM, but also includes flow reinsured assets.

Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio including reinsured assets.

Average Assets Under Management (AAUM)

AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one.

Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on retained assets.

Sales

Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e., contractholder funds) within the Company’s consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.

View original content:https://www.prnewswire.com/news-releases/fnf-reports-first-quarter-2025-financial-results-302448972.html

SOURCE Fidelity National Financial, Inc.

May 7, 2025 6:09 pm

APA Corporation Announces First-Quarter 2025 Financial and Operational Results

HOUSTON, May 07, 2025 (GLOBE NEWSWIRE) — APA Corporation (Nasdaq: APA) today announced first-quarter 2025 results. Results can be found on the company’s website by visiting www.apacorp.com or investor.apacorp.com.

APA will host a conference call on May 8 at 10 a.m. Central time via the webcast link available on the company website to discuss the results. Following the conference call, a replay will be available for one year on the “Investors” page of the company’s website.

About APA

APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.


Contacts

Investor:		(281) 302-2286
Media:		(713) 296-7276
Website:		www.apacorp.com

APA-F

May 7, 2025 6:09 pm

Acadia Realty Trust Announces $0.20 Per Share Quarterly Dividend

Acadia Realty Trust Announces $0.20 Per Share Quarterly Dividend

RYE, N.Y.–(BUSINESS WIRE)–
Acadia Realty Trust (NYSE:AKR) (“Acadia” or the “Company”) today announced that its Board of Trustees has authorized a cash dividend of $0.20 per common share for the quarter ended June 30, 2025. The quarterly dividend is payable on July 15, 2025 to holders of record as of June 30, 2025.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth. Acadia owns and operates a high-quality core real estate portfolio (“Core” or “Core Portfolio”) of street and open-air retail properties in the nation’s most dynamic retail corridors, along with an investment management platform that targets opportunistic and value-add investments through its institutional co-investment vehicles (“Investment Management”). For further information, please visit www.acadiarealty.com.

The Company uses, and intends to use, the Investors page of its website, which can be found at www.acadiarealty.com/investors, as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations and certain portfolio updates. Additionally, the Company also uses its LinkedIn profile to communicate with its investors and the public. Accordingly, investors are encouraged to monitor the Investors page of the Company’s website and its LinkedIn profile, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

Safe Harbor Statement

Certain statements in this press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations are generally identifiable by the use of words, such as “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project,” or the negative thereof, or other variations thereon or comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company’s actual results and financial performance to be materially different from future results and financial performance expressed or implied by such forward-looking statements, including, but not limited to: (i) macroeconomic conditions, including due to geopolitical instability and global trade disruptions, which may lead to a disruption of or lack of access to the capital markets and other sources of funding, and rising inflation; (ii) the Company’s success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (iii) changes in general economic conditions or economic conditions in the markets in which the Company may, from time to time, compete, including the impact of recently announced tariffs on our tenants and their customers, and their effect on the Company’s and our tenants’ revenues, earnings and funding sources; (iv) increases in the Company’s borrowing costs as a result of rising inflation, changes in interest rates and other factors; (v) the Company’s ability to pay down, refinance, restructure or extend its indebtedness as it becomes due; (vi) the Company’s investments in joint ventures and unconsolidated entities, including its lack of sole decision-making authority and its reliance on its joint venture partners’ financial condition; (vii) the Company’s ability to obtain the financial results expected from its development and redevelopment projects; (viii) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration, the Company’s ability to re-lease its properties on the same or better terms in the event of nonrenewal or in the event the Company exercises its right to replace an existing tenant, and obligations the Company may incur in connection with the replacement of an existing tenant; (ix) the Company’s potential liability for environmental matters; (x) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xi) the economic, political and social impact of, and uncertainty surrounding, any public health crisis; (xii) uninsured losses; (xiii) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information technology security breaches, including increased cybersecurity risks relating to the use of remote technology; (xv) the loss of key executives; and (xvi) the accuracy of the Company’s methodologies and estimates regarding corporate responsibility metrics, goals and targets, tenant willingness and ability to collaborate towards reporting such metrics and meeting such goals and targets, and the impact of governmental regulation on our corporate responsibility efforts. The factors described above are not exhaustive and additional factors could adversely affect the Company’s future results and financial performance, including the risk factors discussed under the section captioned “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and other periodic or current reports the Company files with the SEC. Any forward-looking statements in this press release speak only as of the date hereof. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any changes in the Company’s expectations with regard thereto or changes in the events, conditions or circumstances on which such forward-looking statements are based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250507729092/en/

Acadia Realty Trust

(914) 288-8100

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Professional Services Residential Building & Real Estate Commercial Building & Real Estate Finance Construction & Property REIT

MEDIA:

Logo

May 7, 2025 6:09 pm

The Metals Company Announces First Quarter 2025 Corporate Update Conference Call for Wednesday, May 14, 2025

NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) — TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”), an explorer of the world’s largest undeveloped resource of critical metals for energy, defense, manufacturing and infrastructure, today announced that it will host a conference call on Wednesday, May 14, 2025, to provide an update on first quarter 2025 financial results and recent corporate developments.

First Quarter 2025 Conference Call Details

Date:	Wednesday, May 14, 2025

Time:	4:30 p.m. ET

Audio-only Dial-in:	Register Here

Virtual webcast with slides:	Register Here

The virtual webcast will be available for replay in the ‘Investors’ tab of the Company’s website under ‘Investors’ > ‘Media’ > ‘Events and Presentations’, approximately two hours after the event.

The Metals Company is an explorer of lower-impact critical metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for energy, defense, manufacturing and infrastructure with net positive impacts compared to conventional production routes and (2) trace, recover and recycle the metals we supply to help create a metal commons that can be used in perpetuity. The Company has conducted more than a decade of research into the environmental and social impacts of offshore nodule collection and onshore processing. More information is available at www.metals.co.

Contacts
Media | [email protected]
Investors | [email protected]

May 7, 2025 6:09 pm

MILLER INDUSTRIES REPORTS 2025 FIRST QUARTER RESULTS

PR Newswire

CHATTANOOGA, Tenn.
, May 7, 2025 /PRNewswire/ — Miller Industries, Inc. (NYSE: MLR) (“Miller Industries” or the “Company”) today announced financial results for the first quarter ended March 31, 2025.

Net Sales for the first quarter of 2025 were $225.7 million, compared to $349.9 million for the first quarter of 2024, a decrease of 35.5%. The year over year decrease was driven primarily by a decline in chassis shipments, which, in prior quarters, were significantly elevated due to the inconsistent delivery schedule of chassis from original equipment manufacturers (“OEMs”) as they recovered from previous supply chain disruptions.

Gross profit for the first quarter of 2025 was $33.9 million, or 15.0% of net sales, compared to $44.2 million, or 12.6% of net sales, for the first quarter of 2024. The increase in gross margin was driven largely by product mix, which shifted from a higher percentage of chassis in the prior year period, to a higher percentage of bodies in the current period.

Selling, general and administrative (SG&A) expenses were $23.3 million, or 10.3% of net sales, compared to $21.5 million, or 6.2% of net sales, in the prior year period. The year over year increase in selling, general and administrative expenses was primarily driven by annual market adjustments to salaries and cost of living increases in the second quarter of 2024, as well as elevated employee benefit costs.

Net income in the first quarter of 2025 was $8.1 million, or $0.69 per diluted share, compared to net income of $17.0 million, or $1.47 per diluted share, in the prior year period, for decreases of 52.6% and 52.8%, respectively.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.20 per share, payable June 9, 2025, to shareholders of record at the close of business on June 2, 2025, the fifty-eighth consecutive quarter that the Company has paid a dividend.

“Results for the quarter were in-line with our expectations as we continued to execute our strategy of reducing field inventory and product lead times as the industry returns to a normalized channel flow, positioning ourselves for future growth,” said William G. Miller, II, Chief Executive Officer of the Company. “During the quarter, we continued to prioritize returning capital to our shareholders as we executed approximately $2.1 million in share repurchases, in addition to paying our industry-leading dividend. With our cash conversion improving, working capital declining, and $20 million remaining in our share repurchase authorization, we have excellent flexibility to continue buying opportunistically.”

Mr. Miller II, concluded, “While tariff-related uncertainties persist, we’ve made efforts to mitigate the existing and expected impacts to our business to the extent we can. We recently implemented a tariff surcharge on all new orders of manufactured products, as well as additional price increases on all accessories and parts sales. We continue to diversify our supply chain, including continued reduction of our already-minimal exposure in China. Despite the current uncertainty, we’re encouraged by the underlying fundamentals we see in our end markets. Channel inventory is returning to optimal levels, and we continue to see strong activity in the global military market. We anticipate continued improvement throughout the second half of 2025 and enter 2026 in a position of strength.”

The Company will host a conference call, which will be simultaneously broadcast live over the Internet. The call is scheduled for tomorrow, May 8, 2025, at 10:00 AM ET. Listeners can access the conference call live and archived over the Internet through the following link:

https://app.webinar.net/4xOvyGvRja3

Please allow 15 minutes prior to the call to visit the site, download, and install any necessary audio software. A replay of this call will be available approximately one hour after the live call ends through May 15, 2025. The replay number is 1-844-512-2921, Passcode 1188873.

About Miller Industries, Inc.

Miller Industries is The World’s Largest Manufacturer of Towing and Recovery Equipment®, and markets its towing and recovery equipment under a number of well-recognized brands, including Century®, Vulcan®, Chevron™, Holmes®, Challenger®, Champion®, Jige™, Boniface™, Titan® and Eagle®.

Certain statements in this news release may be deemed to be forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “may”, “will”, “should”, “could”, “continue”, “future”, “potential”, “believe”, “project”, “plan”, “intend”, “seek”, “estimate”, “predict”, “expect”, “anticipate” and similar expressions, or the negative of such terms, or other comparable terminology and include, without limitation, any statements relating to the ability to execute our strategy to reduce field inventory and product lead times, expectations regarding channel flow, expectations regarding improvements in cash conversion and working capital declining, the potential for future repurchases of stock under our share repurchase program, the potential success of actions taken to address tariff-related uncertainties, the future performance of our end markets, opportunities in the global military market, and our future performance, including the 2025 guidance, revenues, share repurchases or profitability. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Such forward-looking statements are made based on our management’s beliefs as well as assumptions made by, and information currently available to, our management. Our actual results may differ materially from the results anticipated in these forward-looking statements due to, among other things: our dependence upon outside suppliers for component parts, chassis and raw materials, including aluminum, steel, and petroleum-related products leaves us subject to changes in price and availability, the cadence and quantity of deliveries from our suppliers, and delays in receiving supplies of such materials, component parts or chassis; our customers’ and towing operators’ access to capital and credit to fund purchases; macroeconomic trends, availability of financing, and changing interest rates; our customers’ ability to fund purchases of our products increases in the cost of skilled labor; the cyclical nature of our industry and changes in consumer confidence and in economic conditions in general; special risks from our sales to U.S. and other governmental entities through prime contractors; changes in fuel and other transportation costs, insurance costs and weather conditions; changes in government regulations, including environmental and health and safety regulations; failure to comply with domestic and foreign anti-corruption laws; competition in our industry and our ability to attract or retain customers; our ability to develop or acquire proprietary products and technology; assertions against us relating to intellectual property rights; changes in the tax regimes and related government policies and regulations in the countries in which we operate, including the imposition of new or increased tariffs and any resulting trade wars; the effects of regulations relating to conflict minerals; the catastrophic loss of one of our manufacturing facilities; environmental and health and safety liabilities and requirements; loss of the services of our key executives; product warranty or product liability claims in excess of our insurance coverage; potential recalls of components or parts manufactured for us by suppliers or potential recalls of defective products; an inability to acquire insurance at commercially reasonable rates; a disruption in, or breach in security of, our information technology systems or any violation of data protection laws; and those other risks discussed in our filings with the Securities and Exchange Commission, including those risks discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, as supplemented in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which discussion is incorporated herein by this reference. Such factors are not exclusive. We do not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, the Company.

MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except share and per share data) (Unaudited)

		Three Months Ended
		March 31
					%
		2025		2024	Change
NET SALES	$	225,651	$	349,871	(35.5) %

COST OF OPERATIONS		191,707		305,628	(37.3) %

GROSS PROFIT		33,944		44,243	(23.3) %

OPERATING EXPENSES:
Selling, General and Administrative Expenses		23,260		21,543	8.0 %

NON-OPERATING (INCOME) EXPENSES:
Interest Expense, Net		95		1,245	(92.4) %

Other (Income) Expense, Net		(202)		(33)	512.5 %

Total Expense, Net		23,153		22,755	1.7 %

INCOME BEFORE INCOME TAXES		10,791		21,488	(49.8) %

INCOME TAX PROVISION		2,726		4,465	(38.9) %

NET INCOME	$	8,065	$	17,023	(52.6) %


BASIC INCOME PER SHARE OF COMMON STOCK	$	0.70	$	1.49	(52.7) %

DILUTED INCOME PER SHARE OF COMMON STOCK	$	0.69	$	1.47	(52.8) %

CASH DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	$	0.20	$	0.19	5.3 %


WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic		11,450		11,452	0.0 %
Diluted		11,614		11,556	0.5 %

MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data)

	March 31,
	2025		December 31,
	(Unaudited)		2024
ASSETS
CURRENT ASSETS:
Cash and temporary investments	$	27,360	$	24,337
Accounts receivable, net of allowance for credit losses of $1,907 and $1,850 at March 31, 2025 and December 31, 2024, respectively		292,574		313,413
Inventories, net		164,897		186,169
Prepaid expenses		16,114		5,847
Total current assets		500,945		529,766
NON-CURRENT ASSETS:
Property, plant and equipment, net		117,502		115,979
Right-of-use assets – operating leases		500		545
Goodwill		19,998		19,998
Other assets		762		727
TOTAL ASSETS	$	639,707	$	667,015

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	113,512	$	145,853
Accrued liabilities		39,520		50,620
Income taxes payable		1,887		1,082
Current portion of operating lease obligation		319		318
Total current liabilities		155,238		197,873
NON-CURRENT LIABILITIES:
Long-term obligations		75,000		65,000
Non-current portion of operating lease obligation		181		227
Deferred income tax liabilities		2,782		2,885
Total liabilities		233,201		265,985

SHAREHOLDERS’ EQUITY:
Preferred stock, $0.01 par value per share:
Authorized – 5,000,000 shares, Issued – none		—		—
Common stock, $0.01 par value per share:
Authorized – 100,000,000 shares, Issued – 11,459,278 and 11,439,292 shares as of March 31, 2025 and December 31, 2024, respectively		115		114
Additional paid-in capital		153,523		153,704
Retained earnings		260,715		254,938
Accumulated other comprehensive loss		(7,847)		(7,726)
TOTAL SHAREHOLDERS’ EQUITY		406,506		401,030
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	639,707	$	667,015

View original content:https://www.prnewswire.com/news-releases/miller-industries-reports-2025-first-quarter-results-302449130.html

SOURCE Miller Industries, Inc.

May 7, 2025 6:09 pm

Invesco Mortgage Capital Inc. Reports First Quarter 2025 Financial Results

PR Newswire

ATLANTA
, May 7, 2025 /PRNewswire/ — Invesco Mortgage Capital Inc. (NYSE: IVR) (the “Company”) today announced financial results for the quarter ended March 31, 2025.

Net income per common share of $0.26 compared to net loss of $0.09 in Q4 2024
Earnings available for distribution per common share⁽¹⁾ of $0.64 compared to $0.53 in Q4 2024
Common stock dividend of $0.34 per common share compared to $0.40 in Q4 2024
Book value per common share⁽²⁾ of $8.81 compared to $8.92 as of December 31, 2024
Economic return⁽³⁾ of 2.6% compared to (0.5)% in Q4 2024

Update from John Anzalone, Chief Executive Officer

“During the first quarter, financial markets reacted negatively to proposed U.S. fiscal and trade policies given concerns they could result in slower economic growth and higher inflation. Despite weaker market sentiment, Agency RMBS performance was largely consistent with Treasuries, with higher coupons modestly outperforming their hedges as longer-dated interest rate volatility trended lower. This resulted in an economic return for the quarter of 2.6%, consisting of our $0.34 dividend per common share and an $0.11 decline in book value per common share.

“We ended the first quarter with a debt-to-equity ratio of 7.1x, up from 6.7x as of December 31, 2024. At quarter end, our $5.9 billion investment portfolio primarily consisted of $5.0 billion Agency RMBS and $0.9 billion Agency CMBS, and we maintained a sizeable balance of unrestricted cash and unencumbered investments totaling $372 million.

“Agency RMBS sharply underperformed Treasuries in April given a significant increase in interest rate volatility and deterioration in risk sentiment driven by rapidly evolving U.S. trade policy. Our book value per common share declined as a result and is estimated to be between $7.74 and $8.06⁽⁴⁾as of April 30, 2025. We remain cautious on the near-term outlook for markets given elevated policy uncertainty and will continue to prudently manage our investment portfolio and liquidity position.

“Our long-term outlook for Agency RMBS is favorable, however, as we expect investor demand to strengthen in higher coupons given attractive valuations, an eventual decline in interest rate volatility, and a steeper yield curve. Finally, while Agency CMBS risk premiums may remain elevated until sentiment in the broader fixed income market improves, limited issuance, strong fundamental performance and stable cash flow profiles should provide favorable support for this sector.”

(1) Earnings available for distribution (and by calculation, earnings available for distribution per common share) is a non-Generally Accepted Accounting Principles (“GAAP”) financial measure. Refer to the section entitled “Non-GAAP Financial Measures” for important disclosures and a reconciliation to the most comparable U.S. GAAP measure.

(2) Book value per common share as of March 31, 2025 and December 31, 2024 is calculated as total stockholders’ equity less the liquidation preference of the Company’s Series C Preferred Stock ($177.9 million as of March 31, 2025 and $180.2 million as of December 31, 2024), divided by total common shares outstanding.

(3) Economic return for the quarter ended March 31, 2025 is defined as the change in book value per common share from December 31, 2024 to March 31, 2025 of ($0.11); plus dividends declared of $0.34 per common share; divided by the December 31, 2024 book value per common share of $8.92. Economic return for the quarter ended December 31, 2024 is defined as the change in book value per common share from September 30, 2024 to December 31, 2024 of ($0.45); plus dividends declared of $0.40 per common share; divided by the September 30, 2024 book value per common share of $9.37.

(4) Book value per common share as of April 30, 2025 is adjusted to exclude a pro rata portion of the current quarter’s common stock dividend (which for purposes of this calculation is assumed to be the same as the previous quarter) and is calculated as total stockholders’ equity less the liquidation preference of the Company’s Series C Preferred Stock ($176.7 million as of April 30, 2025), divided by total common shares outstanding of 65.9 million.

Key performance indicators for the quarters ended March 31, 2025 and December 31, 2024 are summarized in the table below.

($ in millions, except share amounts)	Q1 2025	Q4 2024	Variance
Average Balances ⁽¹⁾	(unaudited)	(unaudited)
Average earning assets (at amortized cost)	$5,422.6	$5,440.7	($18.1)
Average borrowings	$4,930.2	$4,865.6	$64.6
Average total stockholders’ equity	$754.7	$798.4	($43.7)

U.S. GAAP Financial Measures
Total interest income	$73.8	$76.1	($2.3)
Total interest expense	$55.0	$62.4	($7.4)
Net interest income	$18.8	$13.7	$5.1
Total expenses	$4.7	$4.8	($0.1)
Net income (loss) attributable to common stockholders	$16.3	($5.5)	$21.8

Average earning asset yields	5.45 %	5.60 %	(0.15) %
Average cost of funds	4.46 %	5.13 %	(0.67) %
Average net interest rate margin	0.99 %	0.47 %	0.52 %

Period-end weighted average asset yields ⁽²⁾	5.51 %	5.42 %	0.09 %
Period-end weighted average cost of funds	4.47 %	4.80 %	(0.33) %
Period-end weighted average net interest rate margin	1.04 %	0.62 %	0.42 %

Book value per common share ⁽³⁾	$8.81	$8.92	($0.11)
Earnings (loss) per common share (basic)	$0.26	($0.09)	$0.35
Earnings (loss) per common share (diluted)	$0.26	($0.09)	$0.35
Debt-to-equity ratio	7.1x	6.7x	0.4x

Non-GAAP Financial Measures ⁽⁴⁾
Earnings available for distribution	$40.0	$32.3	$7.7
Effective interest expense	$26.9	$30.1	($3.2)
Effective net interest income	$46.9	$46.0	$0.9

Effective cost of funds	2.18 %	2.47 %	(0.29) %
Effective interest rate margin	3.27 %	3.13 %	0.14 %

Earnings available for distribution per common share	$0.64	$0.53	$0.11
Economic debt-to-equity ratio	7.1x	6.7x	0.4x

(1) Average earning assets, average borrowings and average total stockholders’ equity are calculated based on the weighted month-end balances of mortgage-backed securities at amortized cost, repurchase agreement borrowings and total U.S. GAAP stockholders’ equity, respectively.

(2) Period-end weighted average asset yields are based on amortized cost as of period-end and incorporate future prepayment and loss assumptions when appropriate.

(3) Book value per common share is calculated as total stockholders’ equity less the liquidation preference of the Company’s Series C Preferred Stock ($177.9 million as of March 31, 2025 and $180.2 million as of December 31, 2024), divided by total common shares outstanding.

(4) Earnings available for distribution (and by calculation, earnings available for distribution per common share), effective interest expense (and by calculation, effective cost of funds), effective net interest income (and by calculation, effective interest rate margin), and economic debt-to-equity ratio are non-GAAP financial measures. Refer to the section entitled “Non-GAAP Financial Measures” for important disclosures and a reconciliation to the most comparable U.S. GAAP measures of net income (loss) attributable to common stockholders (and by calculation, basic earnings (loss) per common share), total interest expense (and by calculation, cost of funds), net interest income (and by calculation, net interest rate margin) and debt-to-equity ratio.

Portfolio Composition

The following table summarizes certain characteristics of the Company’s MBS portfolio as of March 31, 2025 and December 31, 2024.

	As of
	March 31, 2025			December 31, 2024
$ in thousands	Fair Value	Percentage of Portfolio	Period-end Weighted Average Yield	Fair Value	Percentage of Portfolio	Period-end Weighted Average Yield
Agency RMBS:
30 year fixed-rate pass-through coupon:
4.0 %	—	— %	— %	369,321	6.8 %	4.67 %
4.5 %	657,554	11.1 %	4.95 %	658,218	12.1 %	4.95 %
5.0 %	993,414	16.7 %	5.32 %	836,197	15.3 %	5.35 %
5.5 %	1,414,961	23.8 %	5.58 %	1,196,335	22.0 %	5.59 %
6.0 %	1,471,826	24.8 %	5.97 %	1,481,454	27.2 %	5.97 %
6.5 %	436,908	7.3 %	6.16 %	—	— %	— %
Total 30 year fixed-rate pass-through	4,974,663	83.7 %	5.61 %	4,541,525	83.4 %	5.50 %
Agency-CMO	73,539	1.2 %	10.02 %	70,776	1.3 %	9.20 %
Agency CMBS	890,372	15.0 %	4.62 %	816,147	15.0 %	4.59 %
Non-Agency CMBS	—	— %	— %	9,836	0.2 %	8.91 %
Non-Agency RMBS	7,215	0.1 %	11.53 %	7,224	0.1 %	11.13 %
Total MBS portfolio	5,945,789	100.0 %	5.51 %	5,445,508	100.0 %	5.42 %

The following table summarizes certain characteristics of the Company’s borrowings as of March 31, 2025 and December 31, 2024.

	As of
$ in thousands	March 31, 2025			December 31, 2024
$ in thousands	Amount Outstanding	Weighted Average Interest Rate	Weighted Average Remaining Maturity (days)	Amount Outstanding	Weighted Average Interest Rate	Weighted Average Remaining Maturity (days)
Repurchase agreements – Agency RMBS	4,512,054	4.48 %	24	4,112,219	4.80 %	29
Repurchase agreements – Agency CMBS	842,507	4.46 %	30	781,739	4.77 %	32
Total borrowings	5,354,561	4.47 %	25	4,893,958	4.80 %	29

The following tables summarize certain characteristics of TBAs accounted for as derivatives as of March 31, 2025 and December 31, 2024.

$ in thousands	As of March 31, 2025
	Notional Amount	Implied Cost Basis	Implied Market Value	Net Carrying Value – Asset (Liability)
6.5% TBA purchase contracts	400,000	411,610	412,448	838
6.5% TBA sale contracts	(400,000)	(411,391)	(412,448)	(1,057)
Net TBA derivatives	—	219	—	(219)

$ in thousands	As of December 31, 2024
	Notional Amount	Implied Cost Basis	Implied Market Value	Net Carrying Value – Asset (Liability)
5.5% TBA purchase contracts	100,000	99,800	99,173	(627)
5.5% TBA sales contracts	(100,000)	(99,194)	(99,173)	21
Net TBA derivatives	—	606	—	(606)

The followings tables summarize certain characteristics of the Company’s interest rate swaps whereby the Company pays interest at a fixed rate and receives floating interest based on the secured overnight financing rate as of March 31, 2025 and December 31, 2024.

$ in thousands	As of March 31, 2025
Maturities	Notional Amount	Weighted Average Fixed Pay Rate	Weighted Average Floating Receive Rate	Weighted Average Years to Maturity
Less than 3 years	1,480,000	0.54 %	4.41 %	2.3
3 to 5 years	375,000	0.39 %	4.41 %	4.0
5 to 7 years	785,000	0.72 %	4.41 %	5.6
7 to 10 years	555,000	4.14 %	4.41 %	9.8
Greater than 10 years	445,000	1.99 %	4.41 %	19.5
Total	3,640,000	1.29 %	4.41 %	6.4

$ in thousands	As of December 31, 2024
Maturities	Notional Amount	Weighted Average Fixed Pay Rate	Weighted Average Floating Receive Rate	Weighted Average Years to Maturity
Less than 3 years	1,730,000	1.06 %	4.49 %	2.2
3 to 5 years	375,000	0.39 %	4.49 %	4.3
5 to 7 years	750,000	0.57 %	4.49 %	5.8
Greater than 10 years	410,000	1.83 %	4.49 %	18.9
Total	3,265,000	0.97 %	4.49 %	5.3

The following table summarizes certain characteristics of the Company’s futures contracts as of March 31, 2025 and December 31, 2024.

	As of
	March 31, 2025	December 31, 2024
$ in thousands	Notional Amount – Short	Notional Amount – Short
10 year U.S. Treasury futures	400,000	136,000
Ultra 10 year U.S. Treasury futures	315,000	1,057,000
30 year U.S. Treasury futures	187,500	209,000
Total	902,500	1,402,000

Capital Activities

Dividends

As previously announced on March 25, 2025, the Company declared a common stock dividend of $0.34 per share paid on April 25, 2025 to its stockholders of record as of the close of business on April 7, 2025. The Company declared a Series C Preferred Stock dividend of $0.46875 per share on May 6, 2025 that is payable on June 27, 2025 to its stockholders of record on June 5, 2025.

Issuances of Common Stock

During the three months ended March 31, 2025, the Company sold 4,212,057 shares of common stock for net proceeds of $36.0 million through its at-the-market program.

Repurchases of Preferred Stock

During the three months ended March 31, 2025, the Company repurchased and retired 90,146 shares of Series C Preferred Stock for a total cost of $2.2 million.

Portfolio and Liquidity Update as of April 30, 2025

Total investment portfolio of $5.1 billion, consisting of 82% Agency RMBS and 18% Agency CMBS
Unrestricted cash and unencumbered investments totaling approximately $336 million
Debt-to-equity ratio estimated to be 6.4x

About Invesco Mortgage Capital Inc.

The Company is a real estate investment trust that primarily focuses on investing in, financing and managing mortgage-backed securities and other mortgage-related assets. The Company is externally managed and advised by Invesco Advisers, Inc., a registered investment adviser and an indirect wholly-owned subsidiary of Invesco Ltd., a leading independent global investment management firm.

Earnings Call

Members of the investment community and the general public are invited to listen to the Company’s earnings conference call on Thursday, May 8, 2025, at 9:00 a.m. ET, by calling one of the following numbers:

North America Toll Free:	888-982-7409
International:	1-212-287-1625
Passcode:	Invesco

An audio replay will be available until 5:00 pm ET on May 22, 2025 by calling:

866-363-1806 (North America) or 1-203-369-0194 (International)

The presentation slides that will be reviewed during the call will be available on the Company’s website at www.invescomortgagecapital.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release, the related presentation and comments made in the associated conference call, may include statements and information that constitute “forward-looking statements” within the meaning of the U.S. securities laws as defined in the Private Securities Litigation Reform Act of 1995, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements include our views on the risk positioning of our portfolio, domestic and global market conditions (including the Agency RMBS, Agency CMBS and residential and commercial real estate markets), the market for our target assets, our financial performance, including our earnings available for distribution, economic return, comprehensive income and changes in our book value, our intention and ability to pay dividends, our ability to continue performance trends, the stability of portfolio yields, interest rates, credit spreads, prepayment trends, financing sources, cost of funds, our leverage, liquidity, capital structure and equity allocation. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks identified under the captions “Risk Factors,” “Forward-Looking Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on the Securities and Exchange Commission’s website at www.sec.gov.

All written or oral forward-looking statements that we make, or that are attributable to us, are expressly qualified by this cautionary notice. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate.

INVESCO MORTGAGE CAPITAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended
$ in thousands, except share data	March 31, 2025	December 31, 2024	March 31, 2024

Interest income	73,846	76,110	68,583
Interest expense	55,025	62,431	61,580
Net interest income	18,821	13,679	7,003

Other income (loss)
Gain (loss) on investments, net	82,158	(187,714)	(66,153)
(Increase) decrease in provision for credit losses	—	(236)	(39)
Equity in earnings (losses) of unconsolidated ventures	—	—	(193)
Gain (loss) on derivative instruments, net	(76,679)	182,556	93,161
Other investment income (loss), net	—	2	—
Total other income (loss)	5,479	(5,392)	26,776
Expenses
Management fee – related party	2,996	3,172	2,861
General and administrative	1,663	1,609	1,796
Total expenses	4,659	4,781	4,657
Net income (loss)	19,641	3,506	29,122
Dividends to preferred stockholders	(3,341)	(5,444)	(5,585)
Gain (loss) on repurchase and retirement of preferred stock	(11)	1	193
Issuance and redemption cost of redeemed preferred stock	—	(3,535)	—
Net income (loss) attributable to common stockholders	16,289	(5,472)	23,730
Earnings (loss) per share:
Net income (loss) attributable to common stockholders
Basic	0.26	(0.09)	0.49
Diluted	0.26	(0.09)	0.49

INVESCO MORTGAGE CAPITAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

	Three Months Ended
$ in thousands	March 31, 2025	December 31, 2024	March 31, 2024
Net income (loss)	19,641	3,506	29,122
Other comprehensive income (loss):
Unrealized gain (loss) on mortgage-backed securities, net	500	(412)	(202)
Reclassification of unrealized (gain) loss on sale of mortgage-backed securities to gain (loss) on investments, net	116	—	—
Reclassification of unrealized loss on available-for-sale securities to (increase) decrease in provision for credit losses	—	224	39
Total other comprehensive income (loss)	616	(188)	(163)
Comprehensive income (loss)	20,257	3,318	28,959
Dividends to preferred stockholders	(3,341)	(5,444)	(5,585)
Gain (loss) on repurchase and retirement of preferred stock	(11)	1	193
Issuance and redemption cost of redeemed preferred stock	—	(3,535)	—
Comprehensive income (loss) attributable to common stockholders	16,905	(5,660)	23,567

INVESCO MORTGAGE CAPITAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

	As of
$ in thousands, except share amounts	March 31, 2025	December 31, 2024
ASSETS
Mortgage-backed securities, at fair value (including pledged securities of $5,616,874 and $5,129,486, respectively; net of allowance for credit losses of $0 and $654, respectively)	5,945,789	5,445,508
Cash and cash equivalents	42,894	73,403
Restricted cash	138,611	137,478
Due from counterparties	251	580
Investment related receivable	27,315	24,870
Derivative assets, at fair value	2,931	5,033
Other assets	973	1,162
Total assets	6,158,764	5,688,034
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Repurchase agreements	5,354,561	4,893,958
Derivative liabilities, at fair value	1,767	627
Dividends payable	22,420	24,692
Accrued interest payable	14,273	32,711
Collateral held payable	1,526	—
Accounts payable and accrued expenses	1,418	1,619
Due to affiliate	3,633	3,698
Total liabilities	5,399,598	4,957,305
Commitments and contingencies (See Note 12) ⁽¹⁾
Stockholders’ equity:
Preferred Stock, par value $0.01 per share; 50,000,000 shares authorized:
7.50% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock: 7,116,513 and 7,206,659 shares issued and outstanding, respectively ($177,913 and $180,166 aggregate liquidation preference, respectively)	172,101	174,281
Common Stock, par value $0.01 per share; 134,000,000 shares authorized; 65,942,495 and 61,729,693 shares issued and outstanding, respectively	659	617
Additional paid in capital	4,163,897	4,127,807
Accumulated other comprehensive income	789	173
Retained earnings (distributions in excess of earnings)	(3,578,280)	(3,572,149)
Total stockholders’ equity	759,166	730,729
Total liabilities and stockholders’ equity	6,158,764	5,688,034


(1)	See Note 12 of the Company’s condensed consolidated financial statements filed in Item 1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

Non-GAAP Financial Measures

The table below shows the non-GAAP financial measures the Company uses to analyze its operating results and the most directly comparable U.S. GAAP measures. The Company believes these non-GAAP measures are useful to investors in assessing its performance as discussed further below.

Non-GAAP Financial Measure		Most Directly Comparable U.S. GAAP Measure
Earnings available for distribution (and by calculation, earnings available for distribution per common share)		Net income (loss) attributable to common stockholders (and by calculation, basic earnings (loss) per common share)
Effective interest expense (and by calculation, effective cost of funds)		Total interest expense (and by calculation, cost of funds)
Effective net interest income (and by calculation, effective interest rate margin)		Net interest income (and by calculation, net interest rate margin)
Economic debt-to-equity ratio		Debt-to-equity ratio

The non-GAAP financial measures used by the Company’s management should be analyzed in conjunction with U.S. GAAP financial measures and should not be considered substitutes for U.S. GAAP financial measures. In addition, the non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of its peer companies.

Earnings Available for Distribution

The Company’s business objective is to provide attractive risk-adjusted returns to its stockholders, primarily through dividends and secondarily through capital appreciation. The Company uses earnings available for distribution as a measure of its investment portfolio’s ability to generate income for distribution to common stockholders and to evaluate its progress toward meeting this objective. The Company calculates earnings available for distribution as U.S. GAAP net income (loss) attributable to common stockholders adjusted for (gain) loss on investments, net; realized (gain) loss on derivative instruments, net; unrealized (gain) loss on derivative instruments, net; TBA dollar roll income; (gain) loss on repurchase and retirement of preferred stock and foreign currency (gains) losses, net.

By excluding the gains and losses discussed above, the Company believes the presentation of earnings available for distribution provides a consistent measure of operating performance that investors can use to evaluate its results over multiple reporting periods and, to a certain extent, compare to its peer companies. However, because not all of the Company’s peer companies use identical operating performance measures, the Company’s presentation of earnings available for distribution may not be comparable to other similarly titled measures used by its peer companies. The Company excludes the impact of gains and losses when calculating earnings available for distribution because (i) when analyzed in conjunction with its U.S. GAAP results, earnings available for distribution provides additional detail of its investment portfolio’s earnings capacity and (ii) gains and losses are not accounted for consistently under U.S. GAAP. Under U.S. GAAP, certain gains and losses are reflected in net income whereas other gains and losses are reflected in other comprehensive income. For example, a portion of the Company’s mortgage-backed securities are classified as available-for-sale securities, and changes in the valuation of these securities are recorded in other comprehensive income on its condensed consolidated balance sheets. The Company elected the fair value option for its mortgage-backed securities purchased on or after September 1, 2016, and changes in the valuation of these securities are recorded in other income (loss) in the condensed consolidated statements of operations. In addition, certain gains and losses represent one-time events. The Company may add and has added additional reconciling items to its earnings available for distribution calculation as appropriate.

To maintain qualification as a REIT, U.S. federal income tax law generally requires that the Company distribute at least 90% of its REIT taxable income annually, determined without regard to the deduction for dividends paid and excluding net capital gains. The Company has historically distributed at least 100% of its REIT taxable income. Because the Company views earnings available for distribution as a consistent measure of its investment portfolio’s ability to generate income for distribution to common stockholders, earnings available for distribution is one metric, but not the exclusive metric, that the Company’s board of directors uses to determine the amount, if any, and the payment date of dividends on common stock. However, earnings available for distribution should not be considered as an indication of the Company’s taxable income, a guaranty of its ability to pay dividends or as a proxy for the amount of dividends it may pay, as earnings available for distribution excludes certain items that impact its cash needs.

Earnings available for distribution is an incomplete measure of the Company’s financial performance and there are other factors that impact the achievement of the Company’s business objective. The Company cautions that earnings available for distribution should not be considered as an alternative to net income (determined in accordance with U.S. GAAP), or as an indication of the Company’s cash flow from operating activities (determined in accordance with U.S. GAAP), a measure of the Company’s liquidity, or as an indication of amounts available to fund its cash needs.

The table below provides a reconciliation of U.S. GAAP net income (loss) attributable to common stockholders to earnings available for distribution for the following periods.

	Three Months Ended
$ in thousands, except per share data	March 31, 2025	December 31, 2024	March 31, 2024
Net income (loss) attributable to common stockholders	16,289	(5,472)	23,730
Adjustments:
(Gain) loss on investments, net	(82,158)	187,714	66,153
Realized (gain) loss on derivative instruments, net ⁽¹⁾	101,516	(157,864)	(48,682)
Unrealized (gain) loss on derivative instruments, net ⁽¹⁾	3,242	7,629	808
TBA dollar roll income⁽²⁾	1,147	249	—
(Gain) loss on repurchase and retirement of preferred stock	11	(1)	(193)
Foreign currency (gains) losses, net ⁽³⁾	—	(2)	—
Subtotal	23,758	37,725	18,086
Earnings available for distribution	40,047	32,253	41,816
Basic income (loss) per common share	0.26	(0.09)	0.49
Earnings available for distribution per common share ⁽⁴⁾	0.64	0.53	0.86


(1)	U.S. GAAP gain (loss) on derivative instruments, net on the condensed consolidated statements of operations includes the following components:

	Three Months Ended
$ in thousands	March 31, 2025	December 31, 2024	March 31, 2024
Realized gain (loss) on derivative instruments, net	(101,516)	157,864	48,682
Unrealized gain (loss) on derivative instruments, net	(3,242)	(7,629)	(808)
Contractual net interest income (expense) on interest rate swaps	28,079	32,321	45,287
Gain (loss) on derivative instruments, net	(76,679)	182,556	93,161

(2)	A TBA dollar roll is a series of derivative transactions where TBAs with the same specified issuer, term and coupon but different settlement dates are simultaneously bought and sold. The TBA settling in the later month typically prices at a discount to the TBA settling in the earlier month. TBA dollar roll income represents the price differential between the TBA price for current month settlement versus the TBA price for forward month settlement. The Company includes TBA dollar roll income in earnings available for distribution because it is the economic equivalent of interest income on the underlying Agency RMBS, less an implied financing cost, over the forward settlement period. TBA dollar roll income is a component of gain (loss) on derivative instruments, net on the Company’s condensed consolidated statements of operations.

(3)	Foreign currency gains (losses), net are included in other investment income (loss), net on the condensed consolidated statements of operations.

(4)	Earnings available for distribution per common share is equal to earnings available for distribution divided by the basic weighted average number of common shares outstanding.

The table below presents the components of earnings available for distribution for the following periods.

	Three Months Ended
$ in thousands	March 31, 2025	December 31, 2024	March 31, 2024
Effective net interest income ⁽¹⁾	46,900	46,000	52,290
TBA dollar roll income	1,147	249	—
Equity in earnings (losses) of unconsolidated ventures	—	—	(193)
(Increase) decrease in provision for credit losses	—	(236)	(39)
Total expenses	(4,659)	(4,781)	(4,657)
Subtotal	43,388	41,232	47,401
Dividends to preferred stockholders	(3,341)	(5,444)	(5,585)
Issuance and redemption costs of redeemed preferred stock	—	(3,535)	—
Earnings available for distribution	40,047	32,253	41,816


(1)	See below for a reconciliation of net interest income to effective net interest income, a non-GAAP measure.

Effective Interest Expense/Effective Cost of Funds/Effective Net Interest Income/Effective Interest Rate Margin

The Company calculates effective interest expense (and by calculation, effective cost of funds) as U.S. GAAP total interest expense adjusted for contractual net interest income (expense) on its interest rate swaps that is recorded as gain (loss) on derivative instruments, net. The Company views its interest rate swaps as an economic hedge against increases in future market interest rates on its borrowings. The Company adds back the net payments or receipts on its interest rate swap agreements to its total U.S. GAAP interest expense because the Company uses interest rate swaps to add stability to interest expense.

The Company calculates effective net interest income (and by calculation, effective interest rate margin) as U.S. GAAP net interest income adjusted for contractual net interest income (expense) on its interest rate swaps that is recorded as gain (loss) on derivative instruments, net.

The Company believes the presentation of effective interest expense, effective cost of funds, effective net interest income and effective interest rate margin measures, when considered together with U.S. GAAP financial measures, provides information that is useful to investors in understanding the Company’s borrowing costs and operating performance.

The following table reconciles total interest expense to effective interest expense and cost of funds to effective cost of funds for the following periods.

	Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024
$ in thousands	Reconciliation	Cost of Funds / Effective Cost of Funds	Reconciliation	Cost of Funds / Effective Cost of Funds	Reconciliation	Cost of Funds / Effective Cost of Funds
Total interest expense	55,025	4.46 %	62,431	5.13 %	61,580	5.57 %
Less: Contractual net interest expense (income) on interest rate swaps recorded as gain (loss) on derivative instruments, net	(28,079)	(2.28) %	(32,321)	(2.66) %	(45,287)	(4.10) %
Effective interest expense	26,946	2.18 %	30,110	2.47 %	16,293	1.47 %

The following table reconciles net interest income to effective net interest income and net interest rate margin to effective interest rate margin for the following periods.

	Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024
$ in thousands	Reconciliation	Net Interest Rate Margin / Effective Interest Rate Margin	Reconciliation	Net Interest Rate Margin / Effective Interest Rate Margin	Reconciliation	Net Interest Rate Margin / Effective Interest Rate Margin
Net interest income	18,821	0.99 %	13,679	0.47 %	7,003	(0.05) %
Add: Contractual net interest income (expense) on interest rate swaps recorded as gain (loss) on derivative instruments, net	28,079	2.28 %	32,321	2.66 %	45,287	4.10 %
Effective net interest income	46,900	3.27 %	46,000	3.13 %	52,290	4.05 %

Economic Debt-to-Equity Ratio

The following table shows the Company’s debt-to-equity ratio and the Company’s economic debt-to-equity ratio as of March 31, 2025 and December 31, 2024. The Company’s debt-to-equity ratio is calculated in accordance with U.S. GAAP and is the ratio of total debt to total stockholders’ equity.

The Company presents an economic debt-to-equity ratio, a non-GAAP financial measure of leverage that considers the impact of the off-balance sheet financing of its investments in TBAs that are accounted for as derivative instruments under U.S. GAAP. The Company includes its TBAs at implied cost basis in its measure of leverage because a forward contract to acquire Agency RMBS in the TBA market carries similar risks to Agency RMBS purchased in the cash market and funded with on-balance sheet liabilities. Similarly, a contract for the forward sale of Agency RMBS has substantially the same effect as selling the underlying Agency RMBS and reducing the Company’s on-balance sheet funding commitments. The Company believes that presenting its economic debt-to-equity ratio, when considered together with its U.S. GAAP financial measure of debt-to-equity ratio, provides information that is useful to investors in understanding how management evaluates at-risk leverage and gives investors a comparable statistic to those of other mortgage REITs who also invest in TBAs and present a similar non-GAAP measure of leverage.

	As of
$ in thousands	March 31, 2025	December 31, 2024
Repurchase agreements	5,354,561	4,893,958
Total stockholders’ equity	759,166	730,729

Debt-to-equity ratio ⁽¹⁾	7.1	6.7
Economic debt-to-equity ratio ⁽²⁾	7.1	6.7


(1)	Debt-to-equity ratio is calculated as the ratio of total repurchase agreements to total stockholders’ equity.
(2)	Economic debt-to-equity ratio is calculated as the ratio of total repurchase agreements and TBAs at implied cost basis ($219,000 as of March 31, 2025; $606,000 as of December 31, 2024) to total stockholders’ equity.

Average Balances

The table below presents information related to the Company’s average earning assets, average earning asset yields, average borrowings and average cost of funds for the following periods:

	Three Months Ended
$ in thousands	March 31, 2025	December 31, 2024	March 31, 2024
Average earning assets⁽¹⁾	5,422,552	5,440,662	4,972,242
Average earning asset yields ⁽²⁾	5.45 %	5.60 %	5.52 %

Average borrowings ⁽³⁾	4,930,237	4,865,582	4,419,757
Average cost of funds⁽⁴⁾	4.46 %	5.13 %	5.57 %


(1)	Average balances for each period are based on weighted month-end balances.
(2)	Average earning asset yields for each period are calculated by dividing interest income, including amortization of premiums and discounts, by average earning assets based on the amortized cost of the investments. All yields are annualized.
(3)	Average borrowings for each period are based on weighted month-end balances.
(4)	Average cost of funds is calculated by dividing annualized interest expense by average borrowings.

View original content to download multimedia:https://www.prnewswire.com/news-releases/invesco-mortgage-capital-inc-reports-first-quarter-2025-financial-results-302449177.html

SOURCE Invesco Mortgage Capital Inc.

May 7, 2025 6:08 pm

Hillenbrand Declares Third Quarter Dividend of $0.225 Per Share

PR Newswire

BATESVILLE, Ind.
, May 7, 2025 /PRNewswire/ — The board of directors of Hillenbrand, Inc. (NYSE: HI) has declared a regular quarterly cash dividend of $0.225 per share on the company’s common stock. The dividend is payable on June 30, 2025, to shareholders of record at the close of business on June 16, 2025.

About Hillenbrand
Hillenbrand (NYSE: HI) is a global industrial company that provides highly-engineered, mission-critical processing equipment and solutions to customers in over 100 countries around the world. Our portfolio is composed of leading industrial brands that serve large, attractive end markets, including durable plastics, food, and recycling. Guided by our Purpose — Shape What Matters For Tomorrow™ — we pursue excellence, collaboration, and innovation to consistently shape solutions that best serve our associates, customers, communities, and other stakeholders. To learn more, visit: www.Hillenbrand.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/hillenbrand-declares-third-quarter-dividend-of-0-225-per-share-302449164.html

SOURCE Hillenbrand

May 7, 2025 6:08 pm

FS KKR Capital Corp. Announces First Quarter 2025 Results

PR Newswire

Declares Second Quarter 2025 Distribution of $0.70 per share

PHILADELPHIA and NEW YORK, May 7, 2025 /PRNewswire/ — FS KKR Capital Corp. (NYSE: FSK), or the Company, today announced its financial and operating results for the quarter ended March 31, 2025, and that its board of directors has declared a second quarter 2025 distribution of $0.70 per share.

Financial and Operating Highlights for the Quarter Ended March 31, 2025

⁽¹⁾

Net investment income of $0.67 per share, compared to $0.61 per share for the quarter ended December 31, 2024
- Adjusted net investment income⁽²⁾ of $0.65 per share, compared to $0.66 per share for the quarter ended December 31, 2024
Net asset value of $23.37 per share, compared to $23.64 per share as of December 31, 2024
Total net realized and unrealized loss of $0.24 per share, compared to a total net realized and unrealized loss of $0.09 per share for the quarter ended December 31, 2024
- Adjusted net realized and unrealized loss⁽²⁾of $0.22 per share, compared to adjusted net realized and unrealized loss of $0.07 per share for the quarter ended December 31, 2024
Earnings per Share of $0.43, compared to Earnings per Share of $0.52 for the quarter ended December 31, 2024
Total purchases of $1,998 million versus $1,407 million of sales and repayments, including $290 of sales to the Company’s joint venture Credit Opportunities Partners JV, LLC
Net debt to equity ratio⁽³⁾ as of March 31, 2025 was 114%, compared to 104% as of December 31, 2024
Paid distributions to stockholders totaling $0.70 per share⁽⁴⁾

“We are pleased to deliver a strong start to the year, generating $0.65 per share of Adjusted Net Investment Income and originating approximately $2.0 billion of new investments,” said Michael C. Forman, Chief Executive Officer & Chairman. “Our strategy of building spillover income during prior periods of elevated interest rates supports the continued stability of our $0.64 base and $0.06 supplemental quarterly distributions amid the current market volatility.”

Declaration of Distribution for Second Quarter 2025

On May 5, 2025, FSK’s board of directors declared a distribution for the second quarter of $0.70 per share, consisting of a base distribution of $0.64 per share and a supplemental distribution of $0.06 per share, which will be paid on or about July 2, 2025 to stockholders of record as of the close of business on June 18, 2025.

Portfolio Highlights as of

March 31, 2025

Total fair value of investments was $14.1 billion of which 63.3% was invested in senior secured securities.
Weighted average annual yield on accruing debt investments⁽⁵⁾ was 11.0%, compared to 11.3% as of December 31, 2024. Excluding the impact of merger accounting, weighted average annual yield on accruing debt investments was 10.8%, compared to 11.0% as of December 31, 2024.
Weighted average annual yield on all debt investments⁽⁵⁾ was 10.4%, compared to 10.7% as of December 31, 2024. Excluding the impact of merger accounting, weighted average annual yield on all debt investments was 10.2%, compared to 10.4% as of December 31, 2024.
Exposure to the top ten largest portfolio companies by fair value was 20%, compared to 21% as of December 31, 2024.
As of March 31, 2025, investments on non-accrual status represented 2.1% and 3.5% of the total investment portfolio at fair value and amortized cost, respectively, compared to 2.2% and 3.7% as of December 31, 2024.

Portfolio Data	As of March 31, 2025	As of December 31, 2024
Total fair value of investments	$14,122	$13,490
Asset Class (based on fair value)
Senior Secured Loans — First Lien	58.1 %	57.8 %
Senior Secured Loans — Second Lien	4.8 %	5.1 %
Other Senior Secured Debt	0.4 %	0.9 %
Subordinated Debt	1.7 %	1.7 %
Asset Based Finance	15.4 %	15.6 %
Credit Opportunities Partners JV, LLC	11.8 %	10.1 %
Equity/Other	7.8 %	8.8 %
Interest Rate Type (based on fair value)
% Variable Rate Debt Investments	67.2 %	65.8 %
% Fixed Rate Debt Investments	8.2 %	9.5 %
% Other Income Producing Investments	17.3 %	16.4 %
% Non-Income Producing Investments⁽⁷⁾	5.2 %	6.1 %
% of Investments on Non-Accrual⁽⁶⁾	2.1 %	2.2 %

Leverage and Liquidity as of March 31, 2025

Net debt to equity ratio⁽³⁾ of 114%, based on $8.0 billion in total debt outstanding, $472 million of cash, cash equivalents and foreign currency and $62 million of net receivable for investments sold and repaid and stockholders’ equity of $6.5 billion. FSK’s weighted average effective interest rate (including the effect of non-usage fees) was 5.48%.
Cash, cash equivalents and foreign currency of $472 million and availability under the Company’s financing arrangements of $2.6 billion, subject to borrowing base and other limitations.
As of March 31, 2025, 54% of the Company’s $8.0 billion of total debt outstanding was in unsecured debt and 46% in secured debt.

Conference Call Information

FSK will host its first quarter 2025 results conference call via live webcast on Thursday, May 8, 2025 at 9:00 a.m. (Eastern Time). All interested parties are welcome to participate and can access the live webcast from the Investor Relations section of FSK’s website at www.fskkradvisor.com under Events or through the following URL: https://edge.media-server.com/mmc/p/isyxsvi2.

Research analysts who wish to participate in the conference call are requested to register a day in advance or at a minimum 15 minutes before the start of the call using the following URL: https://register.vevent.com/register/BI88609fffb868418db921e13cda59543e. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN number that can be used to access the call.

An investor presentation of financial information will be available by visiting the Investor Relations section of FSK’s website, under Presentations after the market close on Wednesday, May 7, 2025.

A replay of the call will be available beginning shortly after the end of the call by visiting the Investor Relations section of FSK’s website, under Events.

Supplemental Information

An investor presentation of financial information will be available by visiting the Investor Relations section of FSK’s website at www.fskkradvisor.com, under Presentations, after the market close on Wednesday, May 7, 2025.

About FS KKR Capital Corp.

FSK is a leading publicly traded business development company (BDC) focused on providing customized credit solutions to private middle market U.S. companies. FSK seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies. FSK is advised by FS/KKR Advisor, LLC. For more information, please visit www.fskkradvisor.com.

About FS/KKR Advisor, LLC

FS/KKR Advisor, LLC (FS/KKR) is a partnership between FS Investments and KKR Credit that serves as the investment adviser to FSK and other business development companies.

FS Investments is a global alternative asset manager dedicated to delivering superior performance and innovative investment and capital solutions. The firm manages over $83 billion in assets for a wide range of clients, including institutional investors, financial professionals and individual investors. FS Investments provides access to a broad suite of alternative asset classes and strategies through its best-in-class investment teams and partners. With its diversified platform and flexible capital solutions, the firm is a valued partner to general partners, asset owners and portfolio companies. FS Investments is grounded in its high-performance culture and guided by its commitment to building value for its clients, investing in its colleagues and giving back to its communities. The firm has more than 500 employees across offices in the U.S., Europe and Asia and is headquartered in Philadelphia.

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

Forward-Looking Statements and Important Disclosure Notice

This announcement may contain certain forward-looking statements, including statements with regard to future events or future performance or operations of FSK. Words such as “believes,” “expects,” “projects,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially include changes in the economy, risks associated with possible disruption in FSK’s operations or the economy generally due to terrorism, geo-political risks, natural disasters or pandemics, future changes in laws or regulations and conditions in FSK’s operating area and the price at which shares of FSK’s common stock trade on the New York Stock Exchange. Some of these factors are enumerated in the filings FSK makes with the SEC. FSK undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The press release above contains summaries of certain financial and statistical information about FSK. The information contained in this press release is summary information that is intended to be considered in the context of FSK’s SEC filings and other public announcements that FSK may make, by press release or otherwise, from time to time. FSK undertakes no duty or obligation to update or revise the information contained in this press release. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. Investors should not view the past performance of FSK, or information about the market, as indicative of FSK’s future results.

Other Information

The information in this press release is summary information only and should be read in conjunction with FSK’s quarterly report on Form 10-Q for the quarter ended March 31, 2025, which FSK filed with the U.S. Securities and Exchange Commission (the SEC) on May 7^th, 2025, as well as FSK’s other reports filed with the SEC. A copy of FSK’s quarterly report on Form 10-Q for the quarter ended March 31, 2025 and FSK’s other reports filed with the SEC can be found on FSK’s website at www.fskkradvisor.com and the SEC’s website at www.sec.gov.

Certain Information About Distributions

The determination of the tax attributes of FSK’s distributions is made annually as of the end of its fiscal year based upon its taxable income and distributions paid, in each case, for the full year. Therefore, a determination as to the tax attributes of the distributions made on a quarterly basis may not be representative of the actual tax attributes for a full year. FSK intends to update stockholders quarterly with an estimated percentage of its distributions that resulted from taxable ordinary income. The actual tax characteristics of distributions to stockholders will be reported to stockholders annually on Form 1099-DIV.

The timing and amount of any future distributions on FSK’s shares of common stock are subject to applicable legal restrictions and the sole discretion of its board of directors. There can be no assurance as to the amount or timing of any such future distributions.

FSK may fund its distributions to stockholders from any sources of funds legally available to it, including net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies, proceeds from the sale of shares of FSK’s common stock and borrowings. FSK has not established limits on the amount of funds it may use from available sources to make distributions. There can be no assurance that FSK will be able to pay distributions at a specific rate or at all.

Contact Information:

Investor Relations Contact

Anna Kleinhenn

[email protected]

FS Investments Media Team

Melanie Hemmert

[email protected]

Unaudited Consolidated Statements of Operations (in millions, except share and per share amounts)

	Three Months Ended
	March 31,
	2025	2024
Investment income
From non-controlled/unaffiliated investments:
Interest income	$ 217	$ 288
Paid-in-kind interest income	16	17
Fee income	14	17
Dividend and other income	12	6
From non-controlled/affiliated investments:
Interest income	8	6
Paid-in-kind interest income	18	10
Fee income	3	—
Dividend and other income	9	4
From controlled/affiliated investments:
Interest income	15	21
Paid-in-kind interest income	28	8
Fee income	—	—
Dividend and other income	60	57
Total investment income	400	434

Operating expenses
Management fees	52	55
Subordinated income incentive fees	39	43
Administrative services expenses	3	3
Accounting and administrative fees	1	1
Interest expense	113	116
Other general and administrative expenses	5	4
Total operating expenses	213	222
Net investment income	187	212

Realized and unrealized gain/loss
Net realized gain (loss) on investments:
Non-controlled/unaffiliated investments	(40)	(225)
Non-controlled/affiliated investments	9	(10)
Controlled/affiliated investments	13	(8)
Net realized gain (loss) on foreign currency forward contracts	0	(0)
Net realized gain (loss) on foreign currency	1	(3)
Net change in unrealized appreciation (depreciation) on investments:
Non-controlled/unaffiliated investments	58	172
Non-controlled/affiliated investments	(20)	20
Controlled/affiliated investments	(52)	(6)
Net change in unrealized appreciation (depreciation) on foreign currency forward contracts	(10)	8
Net change in unrealized gain (loss) on foreign currency	(26)	13
Total net realized and unrealized gain (loss)	(67)	(39)
Net increase (decrease) in net assets resulting from operations	$ 120	$ 173

Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings (Losses) per Share)	$ 0.43	$ 0.62
Weighted average shares outstanding	280,066,433	280,066,433

Consolidated Balance Sheets (in millions, except share and per share amounts)

	March 31, 2025	December 31, 2024
	(Unaudited)	December 31, 2024
Assets
Investments, at fair value
Non-controlled/unaffiliated investments (amortized cost—$9,307 and $8,830, respectively)	$ 9,109	$ 8,573
Non-controlled/affiliated investments (amortized cost—$1,192 and $1,128, respectively)	1,184	1,140
Controlled/affiliated investments (amortized cost—$4,191 and $4,086, respectively)	3,829	3,777
Total investments, at fair value (amortized cost—$14,690 and $14,044, respectively)	14,122	13,490
Cash and cash equivalents	289	278
Foreign currency, at fair value (cost—$183 and $17, respectively)	183	18
Receivable for investments sold and repaid	65	186
Income receivable	180	187
Unrealized appreciation on foreign currency forward contracts	0	3
Deferred financing costs	26	26
Prepaid expenses and other assets	50	31
Total assets	$ 14,915	$ 14,219
Liabilities
Payable for investments purchased	$ 3	$ 2
Debt (net of deferred financing costs and discount of $49 and $49, respectively)	7,989	7,351
Unrealized depreciation on foreign currency forward contracts	8	1
Stockholder distributions payable	196	—
Management fees payable	52	53
Subordinated income incentive fees payable	39	35
Administrative services expense payable	5	3
Interest payable	65	108
Other accrued expenses and liabilities	12	44
Total liabilities	8,369	7,597
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding	—	—
Common stock, $0.001 par value, 750,000,000 shares authorized, 280,066,433 and 280,066,433 shares issued and outstanding, respectively	0	0
Capital in excess of par value	9,284	9,284
Retained earnings (accumulated deficit)	(2,738)	(2,662)
Total stockholders’ equity	6,546	6,622
Total liabilities and stockholders’ equity	$ 14,915	$ 14,219
Net asset value per share of common stock at period end	$ 23.37	$ 23.64

Non-GAAP Financial Measures

This press release contains certain financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). FSK uses these non-GAAP financial measures internally in analyzing financial results and believes that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing results and trends and in comparing FSK’s financial results with other BDCs.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with FSK’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures has been provided in this press release, and investors are encouraged to review the reconciliation.

Reconciliation of Non-GAAP Financial Measures⁽¹⁾

	Three Months Ended
	March 31, 2025	December 31, 2024
GAAP net investment income per share	$0.67	$0.61
Accretion resulting from merger accounting	$(0.02)	$(0.02)
Excise taxes	$0.00	$0.07
Adjusted net investment income per share⁽²⁾	$0.65	$0.66
GAAP Net realized and unrealized gain (loss) per share	$(0.24)	$(0.09)
Unrealized appreciation from merger accounting	$0.02	$0.02
Adjusted net realized and unrealized gain⁽²⁾	$(0.22)	$(0.07)


1)	Per share data was derived by using the weighted average shares of FSK’s common stock outstanding during the applicable period. Per share numbers may not sum due to rounding.
2)	Adjusted net investment income is a non-GAAP financial measure. Adjusted net investment income is presented for all periods as GAAP net investment income excluding (i) the accrual for the capital gains incentive fee for realized and unrealized gains; (ii) excise taxes (iii) the impact of accretion resulting from merger accounting; and (iv) certain non-recurring operating expenses that are one-time in nature and are not representative of ongoing operating expenses incurred during FSK’s normal course of business. FSK uses this non-GAAP financial measure internally in analyzing financial results and believes that the use of this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends and in comparing its financial results with other business development companies. Adjusted net realized and unrealized gain is a non-GAAP financial measure. Adjusted net realized and unrealized gain is presented for all periods as GAAP realized and unrealized gains to exclude the impact of the merger accounting. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. A reconciliation of GAAP net investment income to adjusted net investment income and GAAP net realized and unrealized gain to adjusted net realized and unrealized gain can be found above.
3)	Net debt to equity ratio is debt outstanding, net of cash and foreign currency and net payable/receivable for investments purchased/sold and repaid, divided by net assets.
4)	The per share data for distributions reflects the amount of distributions paid per share of our common stock to stockholders of record during each applicable period.
5)	See FSK’s quarterly report on Form 10-Q for the quarter ended March 31, 2025 for important information, including information related to the calculation and definition of weighted average annual yield on accruing debt investments, weighted average annual yield on all debt investments, variable rate debt investments, fixed rate debt investments, other income producing investments and non-income producing investments.
6)	Interest income is recorded on an accrual basis. See FSK’s quarterly report on Form 10-Q for the quarter ended March 31, 2025 for a description of FSK’s revenue recognition policy.
7)	Does not include investments on non-accrual status.

View original content to download multimedia:https://www.prnewswire.com/news-releases/fs-kkr-capital-corp-announces-first-quarter-2025-results-302449015.html

SOURCE FS Investments

May 7, 2025 6:08 pm

KYNDRYL REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS

PR Newswire

Revenues for the quarter ended March 31, 2025 total $3.8 billion, pretax income is $118 million, net income is $68 million, adjusted EBITDA is $698 million, and adjusted pretax income is $185 million
Fiscal year 2025 revenues total $15.1 billion, pretax income is $435 million, net income is $252 million, adjusted EBITDA is $2.5 billion, and adjusted pretax income is $482 million
Signings for fiscal year 2025 were a record $18.2 billion, representing a year-over-year increase of 46%
Company provides fiscal year 2026 outlook for positive constant-currency revenue growth, at least $725 million of adjusted pretax income and approximately $550 million of adjusted free cash flow

NEW YORK
, May 7, 2025 /PRNewswire/ — Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today released financial results for the quarter ended March 31, 2025, the fourth quarter of its 2025 fiscal year.

“Fiscal 2025 was another year of strong execution on our strategy. In addition to returning to constant-currency revenue growth in the fourth quarter, we strengthened our leadership in innovative mission-critical technology services. We expanded our capabilities in cloud, modernization, applications, AI and security, and we further differentiated our services with Kyndryl Bridge,” said Kyndryl Chairman and Chief Executive Officer Martin Schroeter.

“Our fiscal year 2026 outlook for free cash flow growth, earnings growth and constant-currency revenue growth reinforces our confidence to deliver our fiscal year 2028 objectives. Additionally, our ongoing share repurchase program reflects our commitment to returning capital to shareholders, and underscores our strong performance and confidence in the future,” Mr. Schroeter said.

Results for the Fiscal Fourth Quarter Ended March 31, 2025

For the fourth quarter, Kyndryl reported revenues of $3.8 billion, a year-over-year decline of 1% on a reported basis and a year-over-year increase of 1.3% in constant currency. The Company reported pretax income of $118 million, compared to a pretax loss of $4 million in the fourth quarter of 2024. Net income was $68 million, or $0.28 per diluted share, in the quarter, compared to a net loss of $45 million, or ($0.20) per diluted share, in the prior-year period. Cash flow from operations was $581 million.

Adjusted pretax income was $185 million, a 510% increase compared to adjusted pretax income of $30 million in the prior-year period, reflecting contributions from Kyndryl’s three-A initiatives, offset by the contractually required increase in IBM software costs. Adjusted net income was $126 million, or $0.52 per diluted share, compared to an adjusted net loss in the prior-year period. Adjusted EBITDA was $698 million, a 23% year-over-year increase. Adjusted free cash flow was $335 million in the quarter.

Results for the Fiscal Year Ended March 31, 2025

For the fiscal year ended March 31, 2025, Kyndryl reported revenues of $15.1 billion, a year-over-year decline of 6% and 4% in constant currency. The year-over-year constant-currency revenue decline reflects the Company’s progress in reducing inherited no-margin and low-margin third-party content in customer contracts. The Company reported pretax income of $435 million, compared to a pretax loss of $168 million in fiscal year 2024. Net income was $252 million, or $1.05 per diluted share, in the year, compared to a net loss of $340 million, or ($1.48) per diluted share, in the prior year. Cash flow from operations was $942 million.

Adjusted pretax income was $482 million, a 192% increase compared to adjusted pretax income of $165 million in the prior-year period, reflecting contributions from Kyndryl’s three-A initiatives, offset by the contractually required increase in IBM software costs and workforce rebalancing charges. Adjusted net income was $285 million, or $1.19 per diluted share, compared to an adjusted net loss in the prior-year period. Adjusted EBITDA was $2.5 billion, a 6% year-over-year increase. Adjusted free cash flow was $446 million in fiscal year 2025.

Signings for fiscal year 2025 were a record $18.2 billion, representing a year-over-year increase of 46%. The Company’s global signings growth spanned a broad range of industries and included a record 55 contracts in excess of $50 million.

“We delivered strong signings growth in fiscal year 2025, with attractive margins built into these signings. This demonstrates the potential our business has to continue to grow our revenue, increase our earnings and generate cash flow. Our Kyndryl Consult and managed services capabilities align with enterprise customers’ technology needs and are driving incremental, profitable growth opportunities,” said David Wyshner, Kyndryl’s Chief Financial Officer.

Recent Developments

Alliances initiative – In the fourth quarter and the full year, Kyndryl recognized $375 million and $1.2 billion, respectively, in revenue tied to cloud hyperscaler alliances. These amounts are more than double prior-year levels and allowed the Company to exceed its hyperscaler revenue target of nearly $1 billion in fiscal year 2025.
Advanced Delivery initiative – The AI-enabled Kyndryl Bridge operating platform is further enhancing the world-class technology services the Company provides and creating additional revenue opportunities. It has also helped Kyndryl free up more than 13,000 delivery professionals. This has generated annualized savings of approximately $775 million as of year-end, ahead of the Company’s $750 million fiscal 2025 year-end goal.
Accounts initiative
– Kyndryl continued to address elements of contracts with substandard margins, bringing the total impact from this initiative to $900 million of annualized benefits, surpassing the Company’s $850 million fiscal 2025 year-end objective.
Strong projected margin on recent signings
– In the quarter, projected pretax income margins associated with total signings were in the high-single-digit range, in line with recent quarters, reflecting the Company’s focus on margin expansion.
Double-digit growth in Kyndryl Consult – Kyndryl Consult revenues grew 45% year-over-year in the fourth quarter and grew 26% in fiscal 2025. Kyndryl Consult signings grew 37% year-over-year in the fourth quarter and grew 47% in fiscal 2025.
Higher cash balance – The Company ended fiscal year 2025 with cash of $1.8 billion and debt of $3.2 billion, resulting in a net debt balance of $1.4 billion.
Share repurchases
– The Company repurchased 1.8 million shares of its common stock at a cost of $64 million in the fourth quarter, under the $300 million share repurchase program authorized in November 2024.

Fiscal Year 2026 Outlook

Kyndryl is providing the following outlook for its fiscal year 2026, which runs from April 2025 to March 2026:

Adjusted pretax income of at least $725 million, representing a year-over-year increase of at least $243 million.
Adjusted EBITDA margin of approximately 18%, representing a year-over-year increase of approximately 130 basis points.
Adjusted free cash flow of approximately $550 million, reflecting the Company’s projected adjusted pretax income less cash taxes.

The Company’s earnings and cash flow outlook only assumes constant-currency revenue growth of 1%.

Earnings Webcast

Kyndryl’s earnings call for the fourth fiscal quarter is scheduled to begin at 8:30 a.m. ET on May 8, 2025. The live webcast can be accessed by visiting investors.kyndryl.com on Kyndryl’s investor relations website. A slide presentation will be made available on Kyndryl’s investor relations website before the call on May 8, 2025. Following the event, a replay will be available via webcast for twelve months at investors.kyndryl.com.

About Kyndryl

Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world’s largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements concerning the Company’s plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, including without limitation the outlook and financial objectives in this press release (which does not assume any future acquisitions or divestitures), are forward-looking statements. Such forward-looking statements often contain words such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “objectives,” “opportunity,” “plan,” “position,” “predict,” “project,” “should,” “seek,” “target,” “will,” “would” and other similar words or expressions or the negative thereof or other variations thereon. Forward-looking statements are based on the Company’s current assumptions and beliefs regarding future business and financial performance.

The Company’s actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to attract new customers, retain existing customers or sell additional services to customers; failure to meet growth and productivity objectives; competition; impacts of relationships with critical suppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic, political, public health and other conditions; damage to the Company’s reputation; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the Company’s ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; failure of the Company’s intellectual property rights to prevent competitive offerings and the failure of the Company to obtain, retain and extend necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal and regulatory requirements; adverse effects from tax matters; legal proceedings and investigatory risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; the Company’s pension plans; the impact of currency fluctuations; and risks related to the Company’s common stock and the securities market.

Additional risks and uncertainties include, among others, those risks and uncertainties described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, and may be further updated from time to time in the Company’s subsequent filings with the Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date on which it is made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In this release, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts. Forecasted amounts are based on currency exchange rates as of April 2025.

Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding its results, the Company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA, adjusted pretax income, adjusted net income, adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin, net debt, adjusted operating cash flow and adjusted free cash flow. Such non-GAAP metrics are intended to supplement GAAP metrics, but not to replace them. The Company’s non-GAAP metrics may not be comparable to similarly titled metrics used by other companies. Definitions of non-GAAP metrics and reconciliations of non-GAAP metrics for historical periods to GAAP metrics are included in the tables in this release.

A reconciliation of forward-looking non-GAAP financial information is not included in this release because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP.

Investor Contact:

[email protected]

Media Contact:

[email protected]

Table 1 CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts)

	Three Months Ended				Year Ended
	March 31,				March 31,
	2025		2024		2025		2024
Revenues	$	3,800	$	3,850	$	15,057	$	16,052

Cost of services	$	2,975	$	3,134	$	11,914	$	13,189
Selling, general and administrative expenses		640		714		2,591		2,773
Workforce rebalancing charges		23		23		114		138
Transaction-related costs (benefits)		2		(58)		(125)		(46)
Interest expense		23		29		100		122
Other expense		18		11		27		45
Total costs and expenses	$	3,682	$	3,854	$	14,622	$	16,221

Income (loss) before income taxes	$	118	$	(4)	$	435	$	(168)
Provision for income taxes		50		41		184		172
Net income (loss)	$	68	$	(45)	$	252	$	(340)

Earnings per share data
Basic earnings (loss) per share	$	0.30	$	(0.20)	$	1.09	$	(1.48)
Diluted earnings (loss) per share		0.28		(0.20)		1.05		(1.48)

Weighted-average basic shares outstanding		231.4		230.2		231.5		229.2
Weighted-average diluted shares outstanding		241.7		230.2		239.1		229.2

Table 2 SEGMENT RESULTS AND SELECTED BALANCE SHEET INFORMATION (dollars in millions)

	Three Months Ended March 31,				Year-over-Year Growth
					As	Constant
Segment Results	2025		2024		Reported	Currency
Revenue
United States	$	969	$	990	(2 %)	(2 %)
Japan		605		584	4 %	6 %
Principal Markets¹		1,273		1,350	(6 %)	(3 %)
Strategic Markets¹		953		926	3 %	8 %
Total revenue	$	3,800	$	3,850	(1 %)	1 %
Adjusted EBITDA²
United States	$	228	$	174
Japan		102		83
Principal Markets		231		166
Strategic Markets		161		166
Corporate and other³		(24)		(24)
Total adjusted EBITDA	$	698	$	566

	Year Ended March 31,				Year-over-Year Growth
					As	Constant
Segment Results	2025		2024		Reported	Currency
Revenue
United States	$	3,876	$	4,295	(10 %)	(10 %)
Japan		2,358		2,344	1 %	6 %
Principal Markets¹		5,206		5,479	(5 %)	(4 %)
Strategic Markets¹		3,617		3,934	(8 %)	(5 %)
Total revenue	$	15,057	$	16,052	(6 %)	(4 %)
Adjusted EBITDA²
United States	$	725	$	781
Japan		390		361
Principal Markets		886		677
Strategic Markets		606		642
Corporate and other³		(90)		(95)
Total adjusted EBITDA	$	2,516	$	2,367

	March 31,		March 31,
Balance Sheet Data	2025		2024
Cash and equivalents	$	1,786	$	1,553
Debt (short-term and long-term)		3,172		3,238

Principal Markets is comprised of Kyndryl’s operations in Canada, France, Germany, India, Italy, Spain/Portugal and the United Kingdom/Ireland. Strategic Markets is comprised of Kyndryl’s operations in all other geographic locations. Kyndryl’s operations in Australia/New Zealand transitioned from Principal Markets to Strategic Markets in the quarter ended June 30, 2024; historical segment information has been updated to reflect this change.

In the three months ended March 31, 2025, amounts include workforce rebalancing charges of $2 million in United States, $2 million in Japan, $7 million in Principal Markets, and $12 million in Strategic Markets. In the year ended March 31, 2025, amounts include workforce rebalancing charges of $41 million in United States, $6 million in Japan, $23 million in Principal Markets, and $45 million in Strategic Markets.

Represents net amounts not allocated to segments.

Table 3 CONSOLIDATED STATEMENT OF CASH FLOWS (dollars in millions)

	Year Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	252	$	(340)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization
Depreciation of property, equipment and capitalized software		660		834
Depreciation of right-of-use assets		327		319
Amortization of transition costs and prepaid software		1,278		1,256
Amortization of capitalized contract costs		420		531
Amortization of acquisition-related intangible assets		30		30
Stock-based compensation		100		95
Deferred taxes		(1)		(13)
Net (gain) loss on asset sales and other		(152)		43
Change in operating assets and liabilities:
Deferred costs (excluding amortization)		(1,762)		(1,569)
Right-of-use assets and liabilities (excluding depreciation)		(314)		(335)
Workforce rebalancing liabilities		(25)		(38)
Receivables		289		11
Accounts payable		(89)		(305)
Taxes		(1)		(2)
Other assets and other liabilities		(71)		(63)
Net cash provided by operating activities	$	942	$	454

Cash flows from investing activities:
Capital expenditures	$	(605)	$	(651)
Proceeds from disposition of property and equipment		83		138
Acquisitions and divestitures, net of cash acquired		139		—
Other investing activities, net		(20)		(40)
Net cash used in investing activities	$	(404)	$	(553)

Cash flows from financing activities:
Debt repayments	$	(148)	$	(644)
Proceeds from issuance of debt, net of debt issuance costs		—		494
Common stock repurchases		(93)		—
Common stock repurchases for tax withholdings		(45)		(22)
Other financing activities, net		—		2
Net cash used in financing activities	$	(286)	$	(170)

Effect of exchange rate changes on cash, cash equivalents and restricted cash	$	(16)	$	(37)
Net change in cash, cash equivalents and restricted cash	$	235	$	(306)

Cash, cash equivalents and restricted cash at beginning of period	$	1,554	$	1,860
Cash, cash equivalents and restricted cash at end of period	$	1,789	$	1,554

Supplemental data
Income taxes paid, net of refunds received	$	149	$	191
Interest paid on debt	$	119	$	118


Net cash provided by operating activities was $581 million in the three months ended March 31, 2025 and $361 million in the nine months ended December 31, 2024.

Table 4

NON-GAAP METRIC DEFINITIONS AND RECONCILIATIONS

(dollars in millions, except signings)

We report our financial results in accordance with GAAP. We also present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors’ visibility to management decisions and their impacts on operational performance; enables better comparison to peer companies; and allows us to provide a long-term strategic view of the business going forward. Moreover, we use certain of these non-GAAP financial metrics in measuring performance under our executive compensation plans.

Constant-currency information compares results between periods as if exchange rates had remained constant period over period. We define constant-currency revenues as total revenues excluding the impact of foreign exchange rate movements and use it to determine the constant-currency revenue growth on a year-over-year basis. Constant-currency revenues are calculated by translating current period revenues using corresponding prior-period exchange rates.

Adjusted pretax income is defined as pretax income excluding transaction-related costs and benefits, charges related to ceasing to use leased / fixed assets, charges related to lease terminations, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, amortization of acquisition-related intangible assets, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted pretax margin is calculated by dividing adjusted pretax income by revenue.

Adjusted EBITDA is defined as net income (loss) excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased / fixed assets, charges related to lease terminations, transaction-related costs and benefits, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.

Adjusted net income is defined as adjusted pretax income less the reported provision for income taxes, minus or plus the tax effect of the non-GAAP adjustments made to calculate adjusted pretax income, and excluding exceptional items impacting the reported provision for income taxes. Adjusted net margin is calculated by dividing adjusted net income by revenue.

Adjusted earnings per share (EPS) is defined as adjusted net income divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of adjusted net income. The weighted average common shares outstanding used to calculate adjusted earnings (loss) per share will differ from such shares used to calculate diluted earnings (loss) per share (GAAP) when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.

Adjusted free cash flow is defined as cash flows from operating activities (GAAP) after adding back transaction-related payments, charges related to lease terminations, payments related to workforce rebalancing charges incurred prior to March 31, 2024, and significant litigation payments (collectively referred to as adjusted operating cash flow), less net capital expenditures. Management uses adjusted operating cash flow and adjusted free cash flow as measures to evaluate our operating results, plan strategic investments and assess our ability and need to incur and service debt. We believe adjusted operating cash flow and adjusted free cash flow are useful supplemental financial measures to aid investors in assessing our ability to pursue business opportunities and investments and to service our debt. Adjusted operating cash flow and adjusted free cash flow are financial measures that are not recognized under U.S. GAAP and should not be considered as an alternative to cash flows from operations or liquidity derived in accordance with U.S. GAAP.

Signings are defined by Kyndryl as an initial estimate of the value of a customer’s commitment under a contract. The calculation involves estimates and judgments to gauge the extent of a customer’s commitment. We calculate this based on various considerations including the type and duration of the agreement as well as the presence of termination charges or wind-down costs. Contract extensions and increases in scope are treated as signings only to the extent of the incremental new value. Signings can vary over time due to a variety of factors including, but not limited to, the timing of signing a small number of larger outsourcing contracts, as well as the length of those contracts. The conversion of signings into revenue may vary based on the types of services and solutions, customer decisions and other factors, which may include, but are not limited to, macroeconomic environment or external events. Management uses signings as a tool to monitor the performance of the business including the business’ ability to attract new customers and sell additional scope into our existing customer base.


Reconciliation of net income (loss)
to adjusted pretax income,
adjusted EBITDA, adjusted net	Three Months Ended				Year Ended
income (loss) and adjusted EPS	March 31,				March 31,
(in millions, except per share amounts)	2025		2024		2025		2024
Net income (loss) (GAAP)	$	68	$	(45)	$	252	$	(340)
Provision for income taxes		50		41		184		172
Pretax income (loss) (GAAP)	$	118	$	(4)	$	435	$	(168)
Workforce rebalancing charges incurred prior to March 31, 2024		—		23		—		138
Charges related to ceasing to use leased/fixed assets and lease terminations		19		14		48		39
Transaction-related costs (benefits)¹		2		(58)		(125)		(46)
Stock-based compensation expense		22		22		100		95
Amortization of acquisition-related intangible assets		7		7		30		30
Other adjustments²		17		25		(6)		78
Adjusted pretax income (non-GAAP)	$	185	$	30	$	482	$	165
Interest expense		23		29		100		122
Depreciation of property, equipment and capitalized software³		186		195		656		824
Amortization of transition costs and prepaid software		304		311		1,278		1,256
Adjusted EBITDA (non-GAAP)	$	698	$	566	$	2,516	$	2,367
Net income margin		1.8 %		(1.2) %		1.7 %		(2.1) %
Adjusted EBITDA margin		18.4 %		14.7 %		16.7 %		14.7 %

Adjusted pretax income (non-GAAP)	$	185	$	30	$	482	$	165
Provision for income taxes (GAAP)		(50)		(41)		(184)		(172)
Tax effect of non-GAAP adjustments		(9)		9		(14)		(18)
Adjusted net income (loss) (non-GAAP)	$	126	$	(2)	$	285	$	(25)
Diluted weighted average shares outstanding for calculating adjusted EPS		241.7		230.2		239.1		229.2

Diluted earnings (loss) per share (GAAP)	$	0.28	$	(0.20)	$	1.05	$	(1.48)
Adjusted earnings (loss) per share (non-GAAP)	$	0.52	$	(0.01)	$	1.19	$	(0.11)

Kyndryl’s reported results for the year ended March 31, 2025 include a transaction-related gain of $145 million pretax ($138 million after-tax) related to the Company’s divestiture of its Securities Industry Services platform in Canada. The divestiture reduced the Company’s reported revenue from the divestiture date forward.

Other adjustments represent pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries.

Amount for the year ended March 31, 2024 excludes $10 million of expense that is included in transaction-related costs and benefits.


Reconciliation of cash flow from operations	Three Months Ended				Year Ended
to adjusted operating cash flow and	March 31,				March 31,
adjusted free cash flow (in millions)	2025		2024		2025		2024
Cash flows from operating activities (GAAP)	$	581	$	145	$	942	$	454
Plus: Transaction-related payments (benefits)		(19)		(6)		(14)		106
Plus: Workforce rebalancing payments related to charges incurred prior to March 31, 2024		—		34		25		176
Plus: Significant litigation payments		1		6		15		61
Plus: Payments related to lease terminations		—		—		—		7
Adjusted operating cash flow (non-GAAP)	$	563	$	179	$	968	$	804
Less: Net capital expenditures		(228)		(199)		(522)		(513)
Adjusted free cash flow (non-GAAP)	$	335	$	(20)	$	446	$	291

	Three Months Ended				Year Ended
	March 31,				March 31,
Signings (in billions)	2025		2024		2025		2024
Signings¹	$	5.5	$	3.6	$	18.2	$	12.5

Signings for the three months ended March 31, 2025 increased by 53%, and 55% in constant currency, compared to the three months ended March 31, 2024. Signings for the year ended March 31, 2025 increased by 46%, and 48% in constant currency, compared to the year ended March 31, 2024.

View original content to download multimedia:https://www.prnewswire.com/news-releases/kyndryl-reports-fourth-quarter-and-full-year-2025-results-302449070.html

SOURCE Kyndryl