Affiliated Managers Q4 Earnings on Deck: Here's What to Expect

Affiliated Managers Group Inc. AMG is slated to announce fourth-quarter and full-year 2025 results on Feb. 12, before the opening bell. Its quarterly earnings and revenues are expected to have improved year over year.

In the last reported quarter, AMG’s earnings beat the Zacks Consensus Estimate. Results benefited from a rise in assets under management (AUM) and revenues. However, a rise in expenses was the undermining factor.

The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in three of the trailing four quarters and matched once, with the average beat being 4.38%.

AMG’s Noteworthy Developments in Q4

In November, Affiliated Managers offloaded its interest in Comvest Partners’ private credit business to Manulife Financial Corporation. The all-cash transaction was valued at nearly $285 million. 

In October, AMG acquired a minority stake in Montefiore Investment, a premier middle-market private equity firm in France and Southern Europe. The move underscores the company’s strategy of selectively partnering with leading independent asset managers to expand its global footprint and diversify earnings.

In the same month, Affiliated Managers entered a strategic partnership with Brown Brothers Harriman & Co. (“BBH”) to expand the reach of BBH’s structured and alternative credit strategies into the U.S. wealth marketplace. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions. 

As part of the collaboration, BBH created a new subsidiary, BBH Credit Partners, which will house its taxable fixed income and structured credit business. Affiliated Managers will provide seed capital for a series of new structured and alternative credit products managed by BBH Credit Partners, while also taking a minority ownership stake in the new subsidiary. BBH will remain fully owned and operated by its 38 general partners, maintaining control of the broader firm.

Key AMG Management Expectations for Q4

Management expects adjusted EBITDA in the $325-$370 million range based on the current AUM levels and net performance fees of $75-$120 million. This guidance includes a full quarter contribution from the company’s investment in Montefiore Investment, final quarter contribution from Comvest's private credit business and no impact from its announced investment in Qualitas Energy and BBH Credit Partners.

Interest expenses are expected to be $32 million. Controlling interest depreciation is likely to be $1 million.

Net income (controlling interest) is expected to be between $189 million and $223 million. The company’s share of reported amortization and impairments is anticipated to be $29 million.

Intangible-related deferred taxes are projected to be $15 million. Other economic items, which now include realized gains, are anticipated to be roughly $1 million.

Earnings Whispers for Affiliated Managers

Our quantitative model does not predict an earnings beat for Affiliated Managers this time. This is because it doesn’t have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better. 

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Affiliated Managers is -0.17%.

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

AMG’s Earnings & Sales Projections for Q4

The Zacks Consensus Estimate for AMG’s earnings is pegged at $8.75, which has moved marginally upward over the past month. The figure indicates a 34% jump from the year-ago quarter’s reported number.

The company’s economic net income (controlling interest) is projected in the range of $234-$267 million. Also, economic earnings per share are expected to be between $8.10 and $9.26.

The consensus estimate for sales is pegged at $551.5 million, indicating 5.2% growth.

Q4 Performance of Affiliated Managers’ Peers

T. Rowe Price Group, Inc.’s TROW fourth-quarter 2025 adjusted earnings per share (EPS) of $2.44 missed the Zacks Consensus Estimate of $2.47. Nevertheless, the bottom line increased 15.1% year over year.

TROW’s results were affected by higher expenses. Nonetheless, an increase in investment advisory fees and capital allocation-based income supported the results. Also, higher AUM was another positive.

Invesco’s IVZ fourth-quarter 2025 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line increased 19.2% from the prior-year quarter.

The results have been primarily aided by an increase in adjusted revenues. Moreover, growth in the AUM balance to record levels supported IVZ’s performance. However, an increase in adjusted operating expenses was a headwind.
 

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

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