Affiliated Managers Group 2025 Q2 Earnings Strong EPS Growth as Net Income Rises 0.7%

Affiliated Managers Group (AMG) reported its fiscal 2025 Q2 earnings on July 31st, 2025. AMG's Q2 results beat expectations with a 15% growth in Economic Earnings per share, driven by strong net inflows into alternative strategies. The company provided optimistic guidance, forecasting adjusted EBITDA between $230 million and $240 million for Q3, along with Economic EPS between $5.62 and $5.87. The new investments in Qualitas Energy and Montefiore are expected to modestly boost earnings in 2026. AMG's strategic business evolution continues to show promising results.

Revenue
Affiliated Managers Group experienced a 1.4% decline in total revenue for Q2 2025, totaling $493.20 million compared to $500.30 million in Q2 2024. Both consolidated and total revenue figures were reported at $493.20 million.

Earnings/Net Income
Affiliated Managers Group's EPS saw a significant rise of 22.3% to $2.96 in Q2 2025, up from $2.42 in Q2 2024, indicating continued earnings growth. The company's net income increased by 0.7% to $135.90 million in Q2 2025 from $135 million in Q2 2024, reflecting improved profitability. The EPS growth is a positive indicator of the company's financial health.

Post-Earnings Price Action Review
The strategy of purchasing AMG stock following an earnings beat and holding for 30 days has yielded impressive results, boasting a return of 197.59%, significantly outperforming the benchmark's 114.53% return. This strategy demonstrated a Sharpe ratio of 0.66, indicating favorable risk-adjusted returns, while maintaining a maximum drawdown of 0%, showcasing its effective risk management. Although the 30-day holding period experienced a volatility rate of 32.95%, the overall compound annual growth rate stood at 21.72%, reflecting consistent growth throughout the backtested period. The strategy has proven resilient, providing robust returns despite market fluctuations.

CEO Commentary
Jay C. Horgen emphasized AMG's robust Q2 results, highlighting a 15% year-over-year increase in economic earnings per share and over $8 billion in net client cash flows. These were propelled by record inflows into alternative strategies. The CEO pointed out that the quarter marked AMG's strongest organic growth in 12 years, underscoring a strategic focus on capital allocation in sectors with secular growth. Horgen conveyed optimism for future earnings and stressed the ongoing importance of partnerships with affiliates to capitalize on growth opportunities.

Guidance
CFO Dava Elaine Ritchea provided Q3 guidance, anticipating adjusted EBITDA between $230 million and $240 million and economic earnings per share ranging from $5.62 to $5.87, based on an adjusted weighted average share count of 29.4 million. She mentioned that investments in Qualitas Energy and Montefiore are projected to be modestly accretive to earnings in 2026 with potential for significant growth as they scale and generate carried interest.

Additional News
Affiliated Managers Group announced a new partnership with Montefiore Investment, marking its fourth partnership in 2025. Montefiore, a leading European private equity firm, adds approximately $24 billion in alternative assets. Additionally, AMG appointed Thomas M. Wojcik as President and Chief Operating Officer, effective June 3, 2025, highlighting leadership continuity. AMG also continued its capital return initiative, repurchasing $100 million in common stock during Q2, totaling $273 million in the first half of 2025, while declaring a quarterly dividend of $0.01 per share, payable on August 25, 2025. These developments demonstrate AMG's strategic expansion and commitment to shareholder value.