Core Viewpoint - Barings BDC (BBDC) reported a fourth-quarter EPS of $0.27, surpassing Wall Street's consensus estimate by $0.01, indicating a positive performance despite challenges in the portfolio [1] Financial Performance - The investment firm experienced a minor contraction in its portfolio compared to the previous year, suggesting potential challenges in maintaining growth [1] - The warning to investors about lower base performance indicates a cautious outlook for future earnings [1]

Core Insights - The company reported a strong fourth quarter and full-year performance, emphasizing a leadership transition and efforts to improve return on equity through portfolio management and balance sheet actions [7] Portfolio and Investment Strategy - Barings-originated positions accounted for 96% of the portfolio at fair value at quarter-end, an increase from 76% at the beginning of 2022, with a weighted average yield at fair value of 9.6% [1] - The company is actively rotating out of legacy holdings from MVC Capital and Sierra transactions, having exited approximately $50 million in legacy positions during the fourth quarter [2] - The firm has avoided annual recurring revenue loans and deeply cyclical issuers, focusing on a disciplined underwriting approach [5] Financial Performance - The net asset value (NAV) per share was reported at $11.09, nearly unchanged from $11.10 in the previous quarter, with net investment income at $0.27 per share, down from $0.32 [4] - The board declared a first-quarter dividend of $0.26 per share, consistent with the prior quarter, equating to a 9.4% yield on NAV based on the quarter-end NAV [3] Sierra Portfolio Management - The Sierra portfolio generated about $24.3 million in sales and repayments during the fourth quarter, with a significant reduction in positions from 16 valued at $79 million to 12 valued at approximately $32 million [9] - The valuation of the Sierra Credit Support Agreement increased to $60.5 million, attributed to underlying portfolio activity and updated maturity assumptions [10] Credit Metrics and Sector Exposure - The portfolio remains focused on secured lending, with 75% in secured investments and about 70% in first-lien securities, maintaining a weighted average interest coverage of 2.4x [11] - Non-accruals, excluding assets covered by the Sierra CSA, decreased to 0.2% of assets at fair value, down from 0.4% in the prior quarter [12] - Software-related issuers represent approximately 14% of the portfolio's fair value, with the company under-indexed to software compared to many private credit portfolios [13] Leverage and Funding - The company's net leverage ratio was 1.15x at quarter-end, down from 1.26x, aligning with its long-term target range [15] - The company repaid $112.5 million of private placement unsecured notes and issued $300 million of senior unsecured notes, with unsecured debt comprising roughly 84% of outstanding debt [16] Shareholder Returns and Capital Allocation - Share repurchases contributed $0.02 per share to NAV, with over 450,000 shares repurchased in the fourth quarter and more than 700,000 for the full year [18] - The company has approximately $0.80 per share of spillover income, providing flexibility as rates normalize [17]

Tom McDonald: I have had the privilege of connecting with many of our stakeholders following the leadership transition, and I look forward to continuing that dialogue in the weeks and months ahead. In the fourth quarter, BBDC delivered strong net investment income accompanied by excellent credit performance within the Barings-originated portion of the portfolio. Origination activity across the platform during the fourth quarter reflected continued success in our core strategies. Net deployment was influence ...

Barings BDC (NYSE:BBDC) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Company ParticipantsCasey Alexander - Managing DirectorElizabeth Murray - CFOFinian O'Shea - DirectorJoe Mazzoli - Head of Investor RelationsMatt Freund - PresidentRobert Dodd - DirectorTom McDonnell - CEOOperatorAt this time, I'd like to welcome everyone to the Barings BDC, Inc. conference call for the quarter and year ended December 31st, 2025. All participants are in listen-only mode. A question and answer session will follow the ...

Financial Data and Key Metrics Changes - Net asset value (NAV) per share was $11.09, essentially unchanged from the prior quarter at $11.10, reflecting a decrease of less than 0.1% quarter over quarter [22] - Net investment income (NII) for the quarter was $0.27 per share, down from $0.32 per share in the prior quarter and $0.28 per share for the fourth quarter of 2024 [25] - The net leverage ratio was 1.15x at quarter end, down from 1.26x as of September 30, remaining within the long-term leverage target of 0.9x-1.25x [26] Business Line Data and Key Metrics Changes - Barings originated positions now constitute 96% of the BBDC portfolio at fair value, up from 76% at the beginning of 2022 [9] - The weighted average yield at fair value was 9.6%, reflecting a slight reduction from the prior quarter due to a decrease in base rates [9] - The Sierra portfolio was reduced by approximately 75% year-over-year, with 12 positions remaining valued at approximately $32 million [24] Market Data and Key Metrics Changes - The portfolio remains highly diversified, with 75% consisting of secured investments and approximately 70% of investments being first lien securities [18] - Interest coverage within the portfolio was strong, with a weighted average interest coverage of 2.4 times, above industry averages [18] - Non-accruals accounted for 0.2% of assets on a fair value basis, down from 0.4% in the previous quarter [20] Company Strategy and Development Direction - The company aims to enhance existing initiatives and implement new ones with a focus on improving return on equity (ROE) [5] - The strategy emphasizes a core focus on the middle market, which is seen as offering lower leverage and stronger risk-adjusted returns [7] - The company is exploring opportunities across various private asset classes to enhance ROE and returns to shareholders [33][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and durability of the investment process, highlighting a benign credit environment [6] - The company anticipates a banner year for M&A opportunities in 2026, focusing on core middle market transactions [17] - Management noted that while declining base rates may put downward pressure on NII, the diversified portfolio and strong balance sheet position the company well for future challenges [28][29] Other Important Information - The board declared a first-quarter dividend of $0.26 per share, consistent with the prior quarter, representing a 9.4% yield on NAV [10] - The company has spillover income of approximately $0.80 per share, providing flexibility as rates normalize [30] - Share repurchase activity contributed $0.02 per share to NAV, with over 450,000 shares repurchased in the fourth quarter [30] Q&A Session Summary Question: Initiatives to improve ROE - Management is focused on accelerating exits from legacy assets to redeploy proceeds into interest-earning assets, which would enhance ROE [33] Question: Concerns about the non-traded BDC market - Management acknowledged the challenges posed by negative headlines but noted that flows have remained stable and there has been no material degradation in investor interest [41][43] Question: Software market exposure - Management clarified that the company has avoided highly leveraged software issuers and does not have exposure to businesses vulnerable to AI disruption [70] Question: Capital allocation strategy - Management indicated a focus on diversifying holdings in complex private credit opportunities and asset-based lending, while remaining tactical in response to market volatility [66]

Barings BDC (NYSE:BBDC) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Speaker5At this time, I'd like to welcome everyone to the Barings BDC, Inc. conference call for the quarter and year ended December 31st, 2025. All participants are in listen-only mode. A question and answer session will follow the company's formal remarks. If you'd like to be placed in the question queue, you may press star one at any time. Today's call is being recorded, and a replay will be available approximately 2 hours after t ...

FEBRUARY 19, 2026 Barings BDC, Inc. Fourth Quarter 2025 Earnings Presentation Important Information & Cautionary Notice Regarding Forward-Looking Statements Cautionary Notice: Certain statements contained in this presentation are "forward-looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management's current estimates, projections, expectations or beliefs, and which are subject to r ...

分组1 - Barings BDC reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but down from $0.28 per share a year ago, representing an earnings surprise of +3.85% [1] - The company posted revenues of $67.97 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 1.18% and down from $70.63 million year-over-year [2] - Barings BDC has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] 分组2 - The stock has underperformed the market with a loss of about 0.2% since the beginning of the year, compared to the S&P 500's gain of 0.5% [3] - The current consensus EPS estimate for the coming quarter is $0.26 on revenues of $66.34 million, and for the current fiscal year, it is $0.98 on revenues of $261.89 million [7] - The Financial - SBIC & Commercial Industry, to which Barings BDC belongs, is currently in the top 35% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Barings BDC, Inc. For the transition period from to Commission file number 814-00733 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organ ...

Exhibit 99.1 (3) Based on weighted average shares outstanding during the period of 105,200,841. Investment Portfolio and Balance Sheet Highlights | Income Statement | Three Months Ended December 31, 2025 | | Three Months Ended September 30, 2025 | | Full Year Ended December 31, 2025 | | | --- | --- | --- | --- | --- | --- | --- | | | | Per | | Per | | Per | | (dollars in millions, except per share data) | Total Amount | (1) Share | Total Amount | (2) Share | Total Amount | (3) Share | | Net investment incom ...