Core Insights - AMG Critical Materials N.V. reported fourth quarter 2024 revenue of $361 million, slightly down from $367 million in the same quarter of 2023, with a full year revenue of $1,440 million, representing an 11% decrease compared to 2023 [1][9] - The company achieved an adjusted EBITDA of $168 million for 2024, despite significant declines in lithium and vanadium prices, which fell by 65% and 23% respectively [2][3] - AMG Technologies segment showed exceptional performance, with adjusted full year EBITDA of $68 million, more than double that of 2023, and a record order intake of $380 million [2][24] Financial Performance - Fourth quarter adjusted EBITDA was $58 million, marking the highest quarterly result in 2024, despite ongoing weakness in lithium and vanadium prices [8][9] - Full year 2024 adjusted EBITDA decreased to $168 million from $350 million in the previous year, reflecting the impact of lower commodity prices [9][13] - The total proposed dividend for 2024 is €0.40 per ordinary share, including an interim dividend of €0.20 already paid [8][33] Segment Analysis AMG Lithium - Revenue for AMG Lithium in Q4 2024 was $53 million, a 35% decrease year-over-year, primarily due to a 44% decline in lithium market prices [11][13] - Full year revenue for AMG Lithium dropped 56% compared to 2023, driven by lower average annual prices [11][15] - The lithium concentrate plant expansion in Brazil has been completed, increasing capacity from 90,000 tons to 130,000 tons per year [16] AMG Vanadium - Q4 2024 revenue for AMG Vanadium was $145 million, a 10% decrease from the previous year, with full year revenue also down 11% [17][18] - Adjusted gross profit for Q4 2024 increased by 47% compared to the same period in 2023, largely due to benefits from Section 45X production credits [18][20] - Full year adjusted EBITDA for AMG Vanadium decreased from $81 million in 2023 to $76 million in 2024, impacted by lower profitability in vanadium [20] AMG Technologies - Revenue for AMG Technologies in Q4 2024 increased by 32% to $163 million, driven by higher sales prices of antimony and increased silicon sales volumes [21][23] - Full year revenue for AMG Technologies rose 24% compared to 2023, reflecting strong performance in Engineering and higher sales prices [21][23] - The segment's adjusted EBITDA for 2024 was $68 million, more than double the previous year's figure [23] Operational Developments - AMG Engineering secured a record order intake of $380 million in 2024, with an order backlog of $374 million as of December 31, 2024 [8][24] - The company is advancing its lithium expansion initiatives, with the lithium hydroxide refinery in Germany progressing as planned [39][40] - AMG Silicon has temporarily halted operations due to high electricity prices, with plans to resume one furnace operation in Q2 2025 [25] Liquidity and Financial Position - As of December 31, 2024, AMG had $494 million in total liquidity, including $294 million in unrestricted cash and $200 million available on its revolving credit facility [31][38] - The company recorded a net finance cost of $13 million in Q4 2024, a shift from net finance income in the same period of 2023 [32] - AMG's total assets increased to $2,039 million as of December 31, 2024, compared to $1,963 million in 2023 [46]

Company Overview - AMG Critical Materials N.V. is focused on providing critical materials and related process technologies to promote a less carbon-intensive world [3] - The company specializes in energy storage materials such as lithium, vanadium, and tantalum, and also develops systems to reduce CO2 emissions in aerospace engines [3] Financial Results Announcement - AMG will release its fourth quarter and full year 2024 financial results on February 26, 2025, at approximately 18:00 CET [1] - A conference call to discuss these results will take place on February 27, 2025, at 15:00 CET [1] Conference Call Details - Participants are advised to connect approximately 10 minutes prior to the call [2] - The call-in information includes a toll-free number and alternate numbers for various regions, with a specific conference ID provided for access [2] Business Segments - AMG's Lithium segment aims to reduce the CO2 footprint across the lithium value chain [4] - The Vanadium segment is a market leader in recycling vanadium from oil refining residues [4] - The Technologies segment is recognized for advanced metallurgy and engineering services in the aerospace sector, including operations related to LIVA batteries [4] Global Operations - AMG employs approximately 3,600 people and operates production facilities in multiple countries including Germany, the UK, the US, China, and Brazil [5]

Financial Performance - Net income for 2024 was $740.6 million, representing an 18% decrease from $906.1 million in 2023, primarily due to a prior year gain from the sale of an equity interest[147]. - The company experienced net client cash flows of negative $13.9 million in 2024, with significant outflows in equity strategies[139]. - Economic net income (controlling interest) decreased by 2% in 2024 to $701.6 million, impacted by increased taxes and interest expenses[149]. - The company reported a 4% increase in Adjusted EBITDA (controlling interest) to $973.1 million in 2024[148]. - Consolidated revenue decreased by $16.9 million or 1% in 2024, primarily due to a $20.3 million or 1% decrease from asset-based fees[152]. - Net income (controlling interest) decreased by $161.3 million or 24% in 2024, primarily due to a pre-tax gain associated with the Veritable Transaction recognized in 2023[173]. - Investment and other income decreased by $39.7 million or 34% in 2024, primarily due to a $35.3 million decrease in net realized and unrealized gains on investments[169]. - Earnings per share (diluted) for 2024 was $15.13, down from $17.42 in 2023[253]. - The Company’s consolidated revenue for 2024 was $2,040.9 million, a decrease of 0.9% from 2023[253]. - Total consolidated expenses for 2024 were $1,507.8 million, reflecting a slight increase from $1,496.6 million in 2023[253]. Assets and Liabilities - As of December 31, 2024, the company's total assets under management reached approximately $707.9 billion, reflecting a 5% increase from $672.7 billion in 2023[132]. - Average assets under management for 2024 were $700.5 billion, a 6% increase from $660.3 billion in 2023[136]. - Total assets decreased from $9,059.6 million in 2023 to $8,830.9 million in 2024, a decline of 2.5%[259]. - Total liabilities increased from $4,096.1 million in 2023 to $4,182.2 million in 2024, an increase of 2.1%[259]. - The company’s equity decreased from $4,570.1 million in 2023 to $4,298.2 million in 2024, a decline of 5.9%[262]. Cash Flow - Operating cash flow for 2024 was $932.1 million, primarily driven by net income of $740.6 million and distributions from equity method investments of $403.9 million[189]. - Investing cash flow for 2024 was $379.1 million, mainly due to $898.1 million from maturities and sales of investment securities[190]. - Financing cash flow for 2024 was a net outflow of $1,175.9 million, primarily due to $709.8 million in common stock repurchases and $400.0 million in senior notes repayment[191]. - Cash flow from operating activities decreased from $1,054.7 million in 2022 to $874.3 million in 2023, with a slight recovery expected to $932.1 million in 2024[267]. - Cash flow from investing activities improved significantly from a negative $109.9 million in 2022 to a positive $264.5 million in 2023, and further to $379.1 million in 2024[267]. - Cash flow used in financing activities was $1,402.9 million in 2022, reduced to $758.3 million in 2023, with an expected increase to $1,175.9 million in 2024[267]. Investments and Affiliates - The company completed a minority investment in NorthBridge Partners, LLC, a private markets manager, on February 6, 2025[133]. - The company anticipates further evolution of its business mix through investments in new and existing Affiliates to capitalize on industry growth trends[139]. - The equity method investments in affiliates (net) balance was $2,246.6 million as of December 31, 2024[248]. - Management recognized a $39.9 million expense to reduce the carrying value of an equity method investment in an affiliate to fair value due to anticipated declines in assets under management[248]. - The company’s investments in affiliates, net of cash acquired, were $291.1 million in 2022, projected to be $294.7 million in 2023, and significantly reduced to $5.9 million in 2024[267]. Debt and Financing - As of December 31, 2024, the carrying value of total debt was $3.4 billion, with a weighted average maturity of 21 years[196]. - The bank leverage ratio as of December 31, 2024, was 0.9x, significantly below the maximum allowed ratio of 3.25x[199]. - The company fully repaid $400.0 million of 2024 senior notes in the first quarter of 2024[200]. - The company issued $400.0 million of 2034 senior unsecured notes in Q3 2024, with a maturity date of August 20, 2034[200]. - The company intends to use the net proceeds from the 2034 senior notes for general corporate purposes, including share repurchases and debt repayment[202]. - As of December 31, 2024, the company had $341.7 million of principal outstanding in junior convertible trust preferred securities maturing in 2037[204]. Tax and Compliance - Income tax expense decreased by $2.7 million or 1% in 2024, with an effective rate of 25.5% compared to 20.9% in 2023[171]. - Unrecognized tax benefits are recorded based on the likelihood of sustaining uncertain tax positions, with related interest and penalties included in income tax expense[319]. - The Company assesses the recoverability of deferred tax assets, considering future taxable income and recent operations, adjusting the valuation allowance as necessary[318]. Shareholder Returns - Share repurchases amounted to $706.0 million, indicating a significant investment in returning capital to shareholders[263]. - The company entered into an equity distribution program with an aggregate sales price of up to $500.0 million, with no sales occurring as of December 31, 2024[206]. Goodwill and Impairment - The company completed its annual qualitative goodwill impairment assessment as of September 30, 2024, with no impairment indicated[219]. - For the year ended December 31, 2024, the company recorded a $39.9 million expense to reduce the carrying value of an Affiliate to fair value[226]. Currency and Interest Rate Sensitivity - As of December 31, 2024, a 1% change in interest rates would have resulted in a $226.1 million net change in the fair value of fixed rate securities[229]. - A 1% change in the pound sterling, Canadian dollar, and Euro to U.S. dollar exchange rates would have resulted in changes to stockholders' equity of $8.4 million, $1.9 million, and $1.5 million, respectively[231]. - For the year ended December 31, 2024, a 1% change in the pound sterling, Canadian dollar, and Euro to U.S. dollar exchange rates would have resulted in annual changes to income before income taxes of $1.2 million, $0.3 million, and $0.0 million, respectively[231].

Financial Data and Key Metrics Changes - AMG reported record economic earnings per share in 2024, with full-year earnings up 10% year-over-year, reflecting a disciplined capital allocation strategy [6][29] - Adjusted EBITDA for Q4 was $282 million, down 5% year-over-year, while full-year adjusted EBITDA was $973 million, up 4% compared to 2023 [28] - Economic earnings per share for Q4 were $6.53, and for the full year, it was $21.36, benefiting from a record year of share repurchases [29] Business Line Data and Key Metrics Changes - Private markets affiliates raised approximately $24 billion in 2024, with $6 billion raised in Q4, representing annualized organic growth of about 20% [7][17] - Liquid alternatives saw $2 billion of net inflows in Q4, marking the second consecutive quarter of positive flows [19] - Net client cash outflows were $8 billion in Q4, primarily due to challenges in equities, which saw net outflows of approximately $16 billion [16][20] Market Data and Key Metrics Changes - AMG's U.S. wealth platform's alternatives AUM grew more than tenfold over the past five years, ending the year at over $6 billion [22] - The company launched three new evergreen products and filed for two additional strategies anticipated to go live later this year [23] - AMG and its affiliates collectively manage over $30 billion in total AUM for alternative products in wealth markets globally [24] Company Strategy and Development Direction - AMG is strategically evolving to increase exposure to alternatives, enhancing long-term growth prospects and cash flow stability [11][12] - The partnership with NorthBridge Partners aligns with AMG's strategy of investing in high-quality independent firms in areas of secular growth [9][10] - The company aims to continue investing in new affiliate partnerships and existing affiliates to drive growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strength of private markets fundraising and improving trends in liquid alternatives [15][16] - The change in administration is viewed as potentially favorable for new investments, with expectations of lower regulation and increased business development [47] - AMG enters 2025 with significant momentum and a strong pipeline of new investment opportunities [25][37] Other Important Information - AMG repurchased $120 million in shares in Q4, totaling approximately $700 million for the year, representing 13% of shares outstanding [36] - The company maintains a strong liquidity position with $625 million in cash and $475 million in investments [35] Q&A Session Summary Question: Can you discuss the pipeline for new investments and any impacts from the change in administration? - Management indicated a strong pipeline for new investments, with NorthBridge being a recent addition, and noted that the change in administration could favor new investments due to potential regulatory easing [40][47] Question: Is the NorthBridge model the future direction for investments, or are larger deals also possible? - Management confirmed that both mid-sized and larger deals are in the pipeline, with a focus on firms that can leverage AMG's resources for growth [50][52] Question: What trends are seen in retail alternative products and active ETFs? - Management highlighted a strong focus on product development in the U.S. wealth channel, with several new products launched and ongoing interest in active ETFs as a growth driver [56][64]

Q4 2024 Investor Overview AMG: Strategic Partner to Industry-Leading Independent Investment Firms 30+ years of partnering with leading investment specialists 35+ independent Affiliates offering diverse suite of investment products All data as of 12/31/24. 2 Focus on Alternatives: Approximately 50% of AMG Earnings Generated by Alternatives Liquid Alternatives ~$141B AUM Differentiated Long-Only ~$432B AUM Private Markets ~$135B AUM Alternatives include private markets and liquid alternatives strategies. Diff ...

Core Viewpoint - Affiliated Managers Group (AMG) reported quarterly earnings of $6.53 per share, exceeding the Zacks Consensus Estimate of $6.02 per share, but down from $6.86 per share a year ago, indicating an earnings surprise of 8.47% [1][2] Financial Performance - The company posted revenues of $524.2 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.17%, compared to $502.7 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Performance - Affiliated Managers shares have declined approximately 1.4% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.15, with expected revenues of $533.66 million, and for the current fiscal year, the EPS estimate is $22.83 on revenues of $2.19 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Financial - Investment Management industry, to which Affiliated Managers belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could be a useful metric for investors [5]

Financial Performance - AMG reported EPS of $4.92 and Economic EPS of $6.53 for Q4 2024, with full-year EPS of $15.13 and Economic EPS of $21.36[1]. - Economic earnings per share grew by 10% year-over-year, reflecting AMG's strategic evolution and disciplined capital allocation[2]. - The company reported net income of $162.1 million for Q4 2024, down from $196.2 million in Q4 2023[12]. - Consolidated revenue for the year ended December 31, 2023, was $2,057.8 million, a slight increase from $2,040.9 million in 2024[14]. - Net income attributable to controlling interest decreased to $672.9 million in 2023 from $511.6 million in 2024, reflecting a decline of approximately 25%[14]. - Earnings per share (diluted) for 2023 was $17.42, down from $15.13 in 2024, indicating a decrease of about 13.1%[14]. - Adjusted EBITDA for the full year was $973.1 million, compared to $935.7 million in the previous year[5]. - Adjusted EBITDA (controlling interest) rose to $935.7 million in 2023, compared to $973.1 million in 2024, showing a decrease of approximately 3.8%[15]. - Economic net income (controlling interest) was $717.8 million in 2023, slightly down from $701.6 million in 2024, a decline of about 2.4%[15]. Assets and Liabilities - AMG's total assets under management (AUM) increased to approximately $708 billion by the end of 2024, up from $672.7 billion at the end of 2023[7]. - Total assets decreased from $9,059.6 million in 2023 to $8,830.9 million in 2024, a reduction of approximately 2.5%[16]. - Cash and cash equivalents increased to $950.0 million in 2024 from $813.6 million in 2023, representing a growth of about 16.8%[16]. - Total liabilities increased from $4,096.1 million in 2023 to $4,182.2 million in 2024, an increase of about 2.1%[16]. Shareholder Actions - The company repurchased approximately $700 million in common stock, representing about 13% of shares outstanding in 2024[5]. - AMG's fourth-quarter cash dividend was set at $0.01 per share, payable on March 4, 2025[6]. - Average shares outstanding (diluted) decreased from 42.2 million in 2023 to 36.1 million in 2024, a reduction of approximately 14.5%[14]. Market Activity - AMG's private markets Affiliates raised approximately $24 billion in 2024, indicating strong demand for specialized strategies[3]. - AMG announced a partnership with NorthBridge Partners, focusing on industrial logistics real estate, enhancing its private markets participation[4]. - Net client cash flows for the year were negative at $(13.9) billion, with Q4 2024 net client cash flows at $(8.3) billion[5]. Forward-Looking Statements - AMG's forward-looking statements include expectations regarding business performance, financial results, and liquidity[25]. - The company anticipates potential changes in investment performance and growth rates of its Affiliates[25]. - AMG emphasizes the importance of competition for acquisitions in the investment management sector[25]. - The company highlights risks related to the availability of equity and debt financing affecting its operations[25]. - AMG's earnings contributions are influenced by the mix of Affiliate performances[25]. - The company does not undertake any obligation to publicly update forward-looking statements except as required by law[25]. - AMG encourages investors to regularly consult its Investor Relations section for important financial information[26].

Financial Performance - Company reported EPS of $4.92 and Economic EPS of $6.53 for Q4 2024, with full-year EPS of $15.13 and Economic EPS of $21.36 [1][6] - Net income (controlling interest) for Q4 2024 was $162.1 million, down from $196.2 million in Q4 2023 [15] - Full-year net income (controlling interest) decreased to $511.6 million in 2024 from $672.9 million in 2023 [18] Growth Strategy - Company achieved a 10% growth in Economic EPS for 2024 compared to the previous year, attributed to strategic evolution and disciplined capital allocation [2][6] - AMG's private markets Affiliates raised approximately $24 billion in 2024, indicating strong demand for specialized strategies [3] - The company announced a new partnership with NorthBridge Partners, focusing on last-mile logistics, a sector benefiting from the digital economy [4] Assets Under Management (AUM) - AUM increased from $672.7 billion at the end of 2023 to $707.9 billion at the end of 2024 [5][9] - Average AUM rose from $660.3 billion in 2023 to $700.5 billion in 2024 [5] Capital Management - Company repurchased approximately $700 million in common stock in 2024, representing about 13% of shares outstanding [6][8] - A cash dividend of $0.01 per share was announced for Q4 2024, payable in March 2025 [8] Financial Highlights - Consolidated revenue for 2024 was $2,040.9 million, slightly down from $2,057.8 million in 2023 [17] - Total consolidated expenses increased to $1,507.8 million in 2024 from $1,496.6 million in 2023 [17] - Adjusted EBITDA (controlling interest) for 2024 was $973.1 million, up from $935.7 million in 2023 [19]

Company reports EPS of $4.92, Economic EPS of $6.53 in the fourth quarter of 2024EPS of $15.13, Economic EPS of $21.36 for the full year 2024 New partnership with NorthBridge Partners, a private markets manager specializing in industrial logistics real estate assetsNet income (controlling interest) of $512 million, Economic Net Income (controlling interest) of $702 million10% full-year Economic Earnings per share growth reflects AMG’s ongoing strategic evolution and disciplined capital allocation strategyRe ...

AMG invests in NorthBridge, a private markets manager specializing in industrial logistics real estate assets NorthBridge to leverage AMG’s strategic capabilities to enhance its long-term success and continue to build an enduring firm Partnership broadens AMG’s exposure to secular growth areas WEST PALM BEACH, Fla., Feb. 06, 2025 (GLOBE NEWSWIRE) -- AMG, a strategic partner to leading independent investment management firms globally, today announced that it acquired a minority equity interest in NorthBr ...