KKR's Stock Slips 0.32 as Trading Volume Ranks 202nd Amid Italy Telecom Legal Storm

Market Snapshot

Kkr (KKR) closed on December 23, 2025, with a 0.32% decline in its stock price. Trading volume for the day totaled $0.38 billion, representing a 31.13% drop from the previous day’s activity, ranking it 202nd in trading volume among listed stocks. The muted performance contrasts with KKR’s strong third-quarter earnings report, where it exceeded forecasts by 10.16% in EPS and 20.6% in revenue. Despite these results, the stock dipped 3.32% pre-market following the earnings release, indicating mixed investor sentiment.

Key Drivers

The recent decline in KKR’s stock price appears tied to escalating legal and regulatory challenges in Italy, where the firm’s majority-owned portfolio company, FiberCop SpA, has taken legal action against the country’s broadband authority. FiberCop alleges that Italy’s Infratel Italia SpA provided preferential treatment to its state-backed rival, Open Fiber SpA, during the nation’s €4 billion fiber-optic network expansion. The legal dispute centers on Open Fiber’s reduced workload after it missed a 2026 deadline, with FiberCop claiming the agency avoided penalties or contract revocations that could violate EU state-aid rules. This conflict could delay Italy’s broadband expansion goals and raise regulatory scrutiny for KKR, which holds a 38% stake in FiberCop. The legal filing with Rome’s Lazio regional administrative court adds uncertainty to KKR’s long-term returns from the Italian telecom sector.

Compounding these concerns, the Italian government’s recent legal defeat in a separate case involving Telecom Italia SpA—KKR’s former partner in the 2024 €19 billion fixed-line network acquisition—has introduced additional volatility. Italy’s highest court ruled in favor of Telecom Italia, mandating a €1 billion repayment for overpaid licensing fees from the late 1990s. While this ruling benefits Telecom Italia, it highlights broader regulatory instability in the sector, potentially affecting KKR’s strategic interests. The firm sold its fixed-line network to KKR in 2024 to reduce debt, a move that has since driven Telecom Italia’s stock to double in 2025. However, the legal environment in Italy remains contentious, with overlapping disputes over broadband infrastructure and state-aid compliance.

Despite these challenges, KKR’s third-quarter earnings report demonstrated resilience. The firm reported record fee-related earnings per share of $1.15 and total operating earnings of $1.55 per share, up 17% quarter-over-quarter. Management fees grew 19% year-over-year, driven by Asian markets and private credit investments. Co-CEO Scott Nuttall emphasized the firm’s strategic positioning, noting that “the facts are good” amid market volatility. However, the pre-market sell-off following the earnings release suggests investor caution, particularly as KKR faces near-term hurdles in its European investments.

The firm’s dividend stability also remains a factor. KKR’s preferred shares (KKR_pd) have maintained a consistent quarterly dividend, with the latest payout of $0.7812 on December 1, yielding 6.25%. While this provides income for shareholders, it may not offset concerns over asset performance in Italy. The combination of legal disputes, regulatory risks, and market volatility has created a complex environment for KKR, even as its core business metrics remain strong.

Looking ahead, KKR’s ability to navigate these challenges will depend on the outcomes of the FiberCop legal case and broader regulatory developments in Italy. The firm’s 2026 financial targets—aiming for over $4.50 in fee-related earnings per share and $7 in adjusted net income—remain ambitious but will require resolving these uncertainties to sustain investor confidence. For now, the stock’s modest decline reflects a balance between its operational strengths and the risks associated with its high-profile investments in the Italian telecom sector.