Affiliated Managers' Q2 Earnings Beat Estimates as AUM Increases

Affiliated Managers Group Inc.’s AMG second-quarter 2025 economic earnings of $5.39 per share handily surpassed the Zacks Consensus Estimate of $5.26. The bottom line also jumped 15.4% from the prior-year quarter.

Results benefited from a solid improvement in assets under management (AUM) balance. Also, the company had a robust liquidity position. However, a rise in expenses and a slight fall in revenues were the undermining factors.

Economic net income was $159.2 million, up 2.1% year over year. Our estimate for the metric was $151.5 million.

AMG’s Revenues Fall, Expenses Rise

Quarterly total revenues declined 1.4% year over year to $493.2 million. The top line missed the Zacks Consensus Estimate of $510.2 million.
    
Adjusted EBITDA was $219.7 million, up 1%. We had projected the metric to be $214.8 million.

Total consolidated expenses jumped 14.8% to $412.7 million. We had estimated total expenses to be $407.6 million.

Affiliated Managers’ AUM Rises

As of June 30, 2025, total AUM was $771 billion, which increased 10%. Our estimate for total AUM was $716.2 billion.

Net client cash inflows were $8.1 billion in the reported quarter.

AMG’s Capital & Liquidity Position Decent

As of June 30, 2025, Affiliated Managers had $361 million in cash and cash equivalents compared with $950 million as of Dec. 31, 2024. The company had $2.62 billion of debt, almost at the same level as on Dec. 31, 2024.

Stockholders’ equity as of June 30, 2025, was $3.24 billion, down from $3.35 billion as of Dec. 31, 2024.

Update on AMG Share Repurchases

During the second quarter, Affiliated Managers repurchased shares worth $100 million.

Our View on Affiliated Managers

Affiliated Managers is well-positioned for growth given the successful partnerships, global distribution capability and a diverse product mix. However, substantial intangible assets on the company's balance sheet and a tough operating backdrop are major near-term concerns.
 

Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise

Affiliated Managers Group, Inc. price-consensus-eps-surprise-chart | Affiliated Managers Group, Inc. Quote

Affiliated Managers currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of AMG’s Peers

SEI Investments Co.’s SEIC second-quarter 2025 earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.18. Moreover, the bottom line reflected a rise of 70% from the prior-year quarter.

Results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport for SEIC.

Invesco’s IVZ second-quarter 2025 adjusted earnings of 36 cents per share lagged the Zacks Consensus Estimate of 40 cents. Moreover, the bottom line declined 16.3% from the prior-year quarter.

Invesco’s results were adversely impacted by higher adjusted operating expenses. However, a rise in adjusted net revenues was a tailwind. An increase in the AUM balance, driven by solid inflows, was another positive.

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This article originally published on Zacks Investment Research (zacks.com).

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