Financial Data and Key Metrics Changes - The company reported a 15% year-over-year growth in economic earnings per share, reaching $5.39 [4][23] - Adjusted EBITDA for the second quarter was $220 million, a 1% increase year-over-year, with fee-related earnings growing 4% [21][23] - The company generated over $8 billion in net client cash flows, marking the strongest net flow quarter in over a decade [11][21] Business Line Data and Key Metrics Changes - Alternative assets under management (AUM) increased by approximately $55 billion, a 20% rise in just six months, with record net inflows of $33 billion into alternatives [5][20] - Private markets AUM grew by 50% since 2022, now standing at $150 billion, driven by high teens organic growth and new affiliate partnerships [13][20] - Liquid alternatives generated nearly $12 billion in net inflows, supported by tax-aware solutions [15][20] Market Data and Key Metrics Changes - The company experienced $11 billion in outflows from active equities, reflecting industry performance headwinds [11][12] - The wealth channel is seeing an acceleration of alternative flows, particularly in private equity, private credit, and infrastructure [6][20] Company Strategy and Development Direction - The company is focusing on evolving its business mix towards secular growth areas, particularly in alternative asset classes [11][20] - AMG aims to increase the contribution from alternatives to more than two-thirds of its business over the medium term [57][60] - The company is actively pursuing new partnerships and investments in private markets and liquid alternatives [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term impact of their strategy execution, anticipating substantial value creation for shareholders [10][20] - The company is well-positioned to continue executing its growth strategy, supported by a strong balance sheet and diversified business profile [21][26] Other Important Information - The company completed the sale of its minority stake in Peppertree, more than doubling its initial investment [9][20] - AMG repurchased approximately $100 million in shares during the second quarter, with plans to repurchase about $400 million for the full year [26][66] Q&A Session Summary Question: Contribution from AQR and Pantheon - Management expects both Pantheon and AQR to be double-digit contributors to earnings this year, with AQR focusing on tax-aware solutions [29][31] Question: Capacity Constraints for AQR - AQR has a competitive advantage due to its innovation and robust trading systems, allowing for significant growth potential [46][48] Question: Portfolio Management and Buybacks - The company does not actively manage its portfolio but focuses on long-term partnerships with affiliates [60][62] - Share repurchases are viewed as a flexible tool for returning capital to shareholders while pursuing growth investments [66][67] Question: Private Market Fundraising Consistency - The company has seen substantial growth in private markets, with $8 billion raised in the last quarter, driven by multiple affiliates [70][76] Question: European Market Trends - Management noted no significant impact from reallocations to European managers in Q2, but they are monitoring the situation closely [82][86]

Company Overview - AMG has partnered with leading investment specialists for over 30 years[2] - AMG has approximately $771 billion in Assets Under Management (AUM)[2, 63] - AMG's strategy supports compounding of earnings growth at an industry-leading rate[9] Asset Allocation and Growth - Liquid Alternatives AUM is approximately $182 billion[6] - Differentiated Long-Only AUM is approximately $440 billion[6] - Private Markets AUM is approximately $149 billion[6] - Over 50% of EBITDA is from High-Growth Areas[8] Financial Performance - The company has approximately $2 billion in 2024 Annual Economic Net Income[46] - Approximately $2.8 billion in excess capital was returned over the last 5 years[52] - The company has repurchased approximately 10% of shares annually over the last 5 years[52] - The average repurchase price over the last 5 years was $140[52] - Adjusted EBITDA increased from $795 million in 2020 to $973 million in 2024[56]

Core Insights - Affiliated Managers Group Inc. (AMG) reported second-quarter 2025 economic earnings of $5.39 per share, exceeding the Zacks Consensus Estimate of $5.26 and reflecting a 15.4% increase from the prior-year quarter [1][8] - The company's total assets under management (AUM) rose by 10% to $771 billion, with net client cash inflows of $8.1 billion contributing to this growth [4][8] - Despite the positive AUM growth, total revenues declined by 1.4% year over year to $493.2 million, missing the Zacks Consensus Estimate of $510.2 million, while total consolidated expenses increased by 14.8% to $412.7 million [3][8] Financial Performance - Economic net income for the quarter was $159.2 million, up 2.1% year over year, surpassing the estimate of $151.5 million [2] - Adjusted EBITDA increased by 1% to $219.7 million, slightly above the projected $214.8 million [3] - The company's cash and cash equivalents decreased to $361 million from $950 million as of December 31, 2024, while total debt remained stable at $2.62 billion [5] Shareholder Actions - During the second quarter, AMG repurchased shares worth $100 million, indicating a commitment to returning value to shareholders [6] Market Position - AMG is positioned for growth due to successful partnerships, global distribution capabilities, and a diverse product mix, although concerns remain regarding substantial intangible assets and a challenging operating environment [7]

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Affiliated Managers shares have added about 13.9% since the beginning of the year versus the S&P 500's gain of 8.2%. What's Next for Affiliated Managers? Affiliated Managers Group (AMG) came out with quarterly earnings of $5.39 per share, beating the Zacks Consensus Estimate of $5.26 per share. This compares to ...

[Financial and Operating Highlights](index=1&type=section&id=Financial%20and%20Operating%20Highlights) AMG achieved strong Q2 2025 results with a **15%** Economic EPS increase, record alternative strategy inflows, and four new partnerships - Economic Earnings per share (EPS) for Q2 2025 was **$5.39**, a **15% increase** compared to the same quarter in the previous year[2](index=2&type=chunk)[5](index=5&type=chunk) - The company experienced net client cash flows of **over $8 billion** in Q2 2025, primarily driven by record inflows into alternative strategies, including private markets and liquid alternatives[2](index=2&type=chunk) - In 2025, AMG has announced **four new partnerships** with firms managing a collective **$24 billion** in alternative strategies, including a new partnership with Montefiore Investment[3](index=3&type=chunk)[5](index=5&type=chunk) Q2 & H1 2025 Financial Highlights | (in millions, except per share data) | Three Months Ended 6/30/2025 | Three Months Ended 6/30/2024 | Six Months Ended 6/30/2025 | Six Months Ended 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | | **AUM (at period end, in billions)** | $771.0 | $701.0 | $771.0 | $701.0 | | **Net client cash flows (in billions)** | $8.1 | $0.9 | $7.7 | $(2.9) | | **Net income (controlling interest, in millions)** | $84.3 | $76.0 | $156.6 | $225.8 | | **Earnings per share (diluted, in dollars)** | $2.80 | $2.26 | $5.01 | $6.49 | | **Adjusted EBITDA (controlling interest, in millions)** | $219.7 | $217.5 | $447.9 | $477.3 | | **Economic earnings per share (in dollars)** | $5.39 | $4.67 | $10.58 | $10.06 | [Capital Management](index=2&type=section&id=Capital%20Management) The company returned capital to shareholders through **$100 million** in Q2 stock repurchases and a **$0.01** per share quarterly dividend - In Q2 2025, the company repurchased approximately **$100 million** of its common stock[6](index=6&type=chunk) - Total share repurchases for the first half of 2025 amounted to approximately **$273 million**[6](index=6&type=chunk) - A cash dividend of **$0.01 per share** of common stock was announced for the second quarter, payable on August 25, 2025[6](index=6&type=chunk) [Detailed Financial Statements](index=3&type=section&id=Detailed%20Financial%20Statements) This section presents AMG's detailed financial position and performance, including AUM changes, income statements, and the consolidated balance sheet [Assets Under Management (AUM)](index=3&type=section&id=ASSETS%20UNDER%20MANAGEMENT%20-%20STATEMENTS%20OF%20CHANGES) This section details the changes in Assets Under Management, highlighting total AUM and net client cash flows across various investment strategies - Total AUM increased to **$771.0 billion** as of June 30, 2025, from **$712.2 billion** at the end of Q1 2025[11](index=11&type=chunk) Q2 2025 Net Client Cash Flows by Strategy | Strategy | Private Markets (in billions) | Liquid Alternatives (in billions) | Equities (in billions) | Multi-Asset & Fixed Income (in billions) | Total (in billions) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Flows** | $7.8 | $11.5 | $(10.5) | $(0.7) | $8.1 | Year-to-Date 2025 Net Client Cash Flows by Strategy | Strategy | Private Markets (in billions) | Liquid Alternatives (in billions) | Equities (in billions) | Multi-Asset & Fixed Income (in billions) | Total (in billions) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Flows** | $11.2 | $21.7 | $(24.2) | $(1.0) | $7.7 | [Consolidated Statements of Income](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) This section presents the company's consolidated income statements for quarterly and semi-annual periods, detailing revenue, expenses, and net income Q2 2025 vs Q2 2024 Income Statement Highlights | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | **Consolidated revenue** | $493.2 | $500.3 | | **Total consolidated expenses** | $412.7 | $359.4 | | **Net income (controlling interest, in millions)** | $84.3 | $76.0 | | **Earnings per share (diluted, in dollars)** | $2.80 | $2.26 | H1 2025 vs H1 2024 Income Statement Highlights | Metric | H1 2025 (in millions) | H1 2024 (in millions) | | :--- | :--- | :--- | | **Consolidated revenue** | $989.8 | $1,000.3 | | **Total consolidated expenses** | $869.6 | $740.7 | | **Net income (controlling interest, in millions)** | $156.6 | $225.8 | | **Earnings per share (diluted, in dollars)** | $5.01 | $6.49 | [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025 Balance Sheet Highlights | Metric | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total assets** | $8,807.6 | $8,830.9 | | **Cash and cash equivalents** | $361.0 | $950.0 | | **Debt** | $2,621.2 | $2,620.2 | | **Total equity** | $4,138.7 | $4,298.2 | [Supplemental Information and Reconciliations](index=4&type=section&id=Supplemental%20Information%20and%20Reconciliations) This section reconciles GAAP to non-GAAP measures like Economic Net Income and Adjusted EBITDA, explaining adjustments and diluted EPS calculations [Reconciliation of Supplemental Performance Measures](index=4&type=section&id=RECONCILIATIONS%20OF%20SUPPLEMENTAL%20PERFORMANCE%20MEASURES) This section provides detailed reconciliations of GAAP net income to non-GAAP Economic Net Income for quarterly and semi-annual periods Q2 Reconciliation of Net Income to Economic Net Income | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | **Net income (controlling interest, in millions)** | $84.3 | $76.0 | | Intangible amortization and impairments (in millions) | $31.0 | $65.6 | | Intangible-related deferred taxes (in millions) | $14.6 | $14.7 | | Other economic items (in millions) | $29.3 | $(0.4) | | **Economic net income (controlling interest, in millions)** | $159.2 | $155.9 | H1 Reconciliation of Net Income to Economic Net Income | Metric | H1 2025 (in millions) | H1 2024 (in millions) | | :--- | :--- | :--- | | **Net income (controlling interest, in millions)** | $156.6 | $225.8 | | Intangible amortization and impairments (in millions) | $116.8 | $91.2 | | Intangible-related deferred taxes (in millions) | $13.9 | $30.9 | | Other economic items (in millions) | $30.6 | $(5.3) | | **Economic net income (controlling interest, in millions)** | $317.9 | $342.6 | - For Q2 and H1 2025, results include a one-time expense of **$30.5 million** from a modification of Affiliate equity, which is added back for non-GAAP calculations of Economic Net Income and Adjusted EBITDA[24](index=24&type=chunk) [Notes to Financial Statements](index=7&type=section&id=Notes%20to%20Financial%20Statements) This section explains the company's use of non-GAAP measures, their adjustments, and the methodology for diluted earnings per share calculation - The company uses non-GAAP measures like **Adjusted EBITDA** and **Economic Net Income** to assess performance, excluding certain non-cash expenses from acquisitions, and to improve comparability. Economic Net Income is a principal performance benchmark for determining executive compensation[20](index=20&type=chunk) - **Economic Net Income** adjusts **GAAP Net Income** for items such as pre-tax intangible amortization and impairments, related deferred taxes, gains/losses from Affiliate Transactions, and other economic items like unrealized gains/losses on seed capital[21](index=21&type=chunk) - The calculation for **diluted EPS** applies the if-converted method to junior convertible securities and adjusts for the potential issuance of shares to settle Redeemable non-controlling interests[18](index=18&type=chunk)[19](index=19&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section provides disclaimers for forward-looking statements, noting potential material differences due to market and economic risks - The press release contains forward-looking statements that are subject to risks and uncertainties, including changes in financial markets, economic conditions, and the performance of Affiliates. The company undertakes no obligation to update these statements[25](index=25&type=chunk)

Core Insights - AMG reported a 15% growth in Economic Earnings per share for Q2 2025 compared to the same quarter last year, driven by effective capital allocation and strong business momentum [2][5] - The firm experienced net client cash flows exceeding $8 billion, primarily due to record inflows into alternative investments, reflecting robust private market fundraising and increasing demand for liquid alternative strategies [2][5] - AMG's Affiliates managing private markets and liquid alternative strategies generated approximately $33 billion in net client inflows in the first half of 2025, highlighting ongoing demand for specialized strategies [3][5] Financial Highlights - As of June 30, 2025, AMG's Assets Under Management (AUM) reached approximately $771 billion, up from $701 billion a year earlier [4][8] - For the three months ended June 30, 2025, AMG reported net income of $84.3 million, an increase from $76.0 million in the same period of 2024 [4][14] - Economic earnings per share for Q2 2025 were $5.39, reflecting a 15% increase from $4.67 in Q2 2024 [4][15] Capital Management - In Q2 2025, AMG repurchased approximately $100 million in common stock, bringing total share repurchases to about $273 million for the first half of the year [5][6] - The company announced a cash dividend of $0.01 per share, payable on August 25, 2025, to stockholders of record as of August 11, 2025 [6] Strategic Partnerships - AMG formed a new partnership with Montefiore, a leading European private equity firm, further diversifying its business and enhancing its presence in private markets [3][5] - In 2025, AMG announced four new partnerships with firms managing approximately $24 billion in alternative strategies, underscoring the demand for AMG's unique approach [3]

Group 1 - The company, AMG Critical Materials N.V., has declared an interim dividend of €0.20 per ordinary share, which remains unchanged from the previous year [1][2] - The interim dividend is for the period from January 1, 2025, to June 30, 2025, and will be payable on August 15, 2025, to shareholders of record as of August 7, 2025 [2] - The ex-dividend date is set for August 6, 2025, and a Dutch withholding tax of 15% will be deducted from the dividend [2] Group 2 - AMG's mission focuses on providing critical materials and related process technologies to promote a less carbon-intensive world, emphasizing energy storage materials like lithium, vanadium, and tantalum [4] - The company is a leader in recycling vanadium from oil refining residues and operates in various segments including lithium, vanadium, and advanced metallurgy for aerospace engines [5] - AMG has a global presence with approximately 3,600 employees and production facilities in multiple countries including Germany, the United States, and China [6]

Core Insights - AMG Critical Materials N.V. reported a strong second quarter in 2025, with revenue of $439 million, a 20% increase from $364 million in the same period of 2024 [1] - Adjusted EBITDA reached $71 million, marking a 79% increase compared to $39 million in the second quarter of 2024, driven primarily by the AMG Technologies segment [1][5] Financial Performance - Revenue for Q2 2025 was $439 million, up 20% from $364 million in Q2 2024 [1][9] - Adjusted gross profit was $97 million, a 60% increase from $60 million in Q2 2024 [8][9] - Operating profit surged to $33.6 million, a 225% increase from $10.3 million in the same quarter last year [9] - Net income attributable to shareholders was $11.5 million, compared to a loss of $11 million in Q2 2024 [9] - Adjusted EBITDA margin improved to 16.1% from 10.8% year-over-year [9] Segment Performance - AMG Technologies segment achieved an adjusted EBITDA of $53 million, nearly tripling from $18 million in Q2 2024, driven by a high order backlog and strong profitability from AMG Antimony [5][20] - AMG Lithium's revenue decreased by 3% to $37 million, primarily due to a 38% decline in lithium market prices and a 22% decrease in lithium concentrate volumes [11][14] - AMG Vanadium's revenue fell by 4% to $161 million, attributed to lower volumes of ferrovanadium and titanium alloys, despite increased sales prices [14][15] Operational Developments - The lithium hydroxide refinery in Bitterfeld was successfully commissioned in May 2025, with production ramping up and qualification processes with customers advancing [3] - AMG Vanadium successfully bid for significant quantities of spent catalyst in Saudi Arabia and the Middle East, which will help stabilize supply deliveries [7][18] Liquidity and Financial Health - As of June 30, 2025, AMG had total liquidity of $462 million, including $262 million in unrestricted cash and $200 million available on its revolving credit facility [8][27] - The company recorded a net finance cost of $13 million, up from $8 million in Q2 2024, due to foreign exchange losses and decreased interest income [28] Outlook - The company raised its adjusted EBITDA outlook for 2025 from $170 million to $200 million or more, reflecting strong performance in the first half of the year despite low lithium and vanadium prices [29]

Core Insights - Affiliated Managers Group Inc. (AMG) is expected to report improved year-over-year earnings and revenues for Q2 2025, with a history of earnings surprises [1][2] - The company has made strategic moves, including acquisitions and divestitures, to enhance its portfolio and align with market trends [3][4][5] Financial Expectations - Management anticipates adjusted EBITDA in the range of $210-$225 million, with net income projected between $104 million and $115 million [6][7] - Earnings per share (EPS) is expected to be between $5.01 and $5.39, reflecting stronger assets under management (AUM) and new deals [9][11] - The Zacks Consensus Estimate for earnings is $5.25, indicating a 12.4% increase from the previous year, while sales are projected at $510.2 million, showing 2% growth [11] Recent Developments - AMG announced an agreement to acquire a minority equity interest in Verition Fund Management, managing approximately $12.6 billion in assets [3] - The company reached a definitive agreement to acquire a minority interest in Qualitas Energy, focusing on renewable energy, expected to close in Q4 2025 [4] - AMG is divesting its equity stake in Peppertree Capital Management for approximately $240 million, expected to close in Q3 2025 [5] Market Position - AMG's earnings surprise history shows that it has surpassed consensus estimates in three of the last four quarters, with an average beat of 2.99% [2] - The company currently holds a Zacks Rank 3, indicating a stable outlook [10]

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