Loews Q4: Earnings Take A Hit On Pension Charge, But Pipelines And Buybacks Offer Silver Lining

Loews Corporation (NYSE: L) recently reported its fourth-quarter 2024 financial results, and while the earnings took a hit due to a pension settlement charge, there were some silver linings to be found in the company's performance. Let's dive into the details and explore what this means for investors.



Loews reported net income of $187 million, or $0.86 per share, in the fourth quarter of 2024, compared to $446 million, or $1.99 per share, in the same period of 2023. The results included a $265 million pension settlement charge for CNA Financial Corporation, which was previously reported in October 2024. Excluding this charge, net income attributable to Loews would have been $284 million, compared to $336 million in the prior year period.

Despite the pension settlement charge, there were some positive aspects to Loews' Q4 2024 performance:

1. Boardwalk Pipelines' strong performance: Boardwalk Pipelines' net income increased to $145 million from $92 million in the same quarter of 2023. This improvement was driven by increased revenues from higher re-contracting rates and recently completed growth projects. This segment's robust performance demonstrates the company's ability to generate growth and adapt to market conditions.
2. Share repurchases: Loews Corporation repurchased 7.7 million shares of its common stock for a total cost of $611 million in 2024. This strategic move enhances shareholder value by reducing the number of outstanding shares, which increases the earnings per share for remaining shareholders. Additionally, the company's book value per share, excluding AOCI, increased to $88.18 as of December 31, 2024, reflecting the positive impact of share repurchases on shareholder value.
3. Strong liquidity position: Loews' parent company had $3.3 billion in cash and investments and $1.8 billion in debt at year-end. This strong liquidity position provides substantial flexibility for future capital deployment and strategic opportunities, further supporting shareholder value.

In conclusion, while Loews' Q4 2024 earnings were impacted by a pension settlement charge, the company's strong performance in key segments, such as Boardwalk Pipelines, and strategic share repurchases offer a silver lining for investors. As the company continues to execute on its growth initiatives and maintain a strong balance sheet, investors can remain confident in Loews' long-term prospects. Keep an eye on Loews' future developments and consider the company as a potential addition to your investment portfolio.