AMG's Q4 Earnings Beat as AUM & Revenues Rise, Partners With HighBrook

Affiliated Managers Group Inc.’s AMG fourth-quarter 2025 economic earnings of $9.48 per share handily surpassed the Zacks Consensus Estimate of $8.75. The bottom line also jumped 45.2% from the prior-year quarter.

Results benefited from a rise in assets under management (AUM) balance and higher revenues. Also, the company had a robust liquidity position. However, a rise in expenses was the undermining factor.

Economic net income was $271.7 million, up 32% year over year. Our estimate for the metric was $235.3 million.

For 2025, economic earnings per share of $26.05 beat the consensus estimate of $25.45 and grew 22% year over year. Economic net income rose 9.6% to $769.3 million.

AMG’s Revenues Rise, Expenses Up

Quarterly total revenues rose 6.2% year over year to $556.6 million. The top line beat the Zacks Consensus Estimate of $551.5 million.

For 2025, total revenues were $2.07 billion, up 1.6%. The top line marginally lagged the Zacks Consensus Estimate of $2.08 billion.
    
Adjusted EBITDA was $378.1 million, up 34.2%. We had projected the metric to be $326.3 million.

Total consolidated expenses rose 34.2% to $526.6 million. We had estimated total expenses to be $420.7 million.

Affiliated Managers’ AUM Rises

As of Dec. 31, 2025, total AUM was $813.3 billion, which increased 14.9%. Our estimate for total AUM was $854.1 billion. 

Moreover, average AUM totaled $821.3 billion, up 14.5% year over year.

Net client cash inflows were $12.1 billion in the reported quarter.

AMG’s Capital & Liquidity Position Decent

As of Dec. 31, 2025, Affiliated Managers had $586 million in cash and cash equivalents compared with $950 million as of Dec. 31, 2024. The company had $2.69 billion of debt, up from $2.62 billion as of Dec. 31, 2024.

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

Update on AMG Share Repurchases

During the fourth quarter, Affiliated Managers repurchased shares worth $350 million.

Additionally, the company announced an additional share buyback authorization of approximately 6 million shares.

AMG to Acquire Minority Stake in HighBrook Investors

Concurrently, Affiliated Managers announced its acquisition of a minority equity stake in HighBrook Investors, a real estate investment manager specializing in thematic value-add opportunities in the United States and Europe. 

The financial terms of the deal were not disclosed. The partnership is expected to diversify AMG’s business and expand participation in global private markets.

Our View on Affiliated Managers

Affiliated Managers is well-positioned for growth given the successful partnerships, focus on alternative strategies, global distribution capability and a diverse product mix. However, substantial intangible assets on the company's balance sheet and elevated expense levels remain major 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

Apollo Global Management Inc.’s APO fourth-quarter 2025 adjusted net income per share of $2.47 surpassed the Zacks Consensus Estimate of $2.03. Further, the reported figure compared favorably with the year-ago adjusted net income of $2.22.

Results were primarily aided by an increased AUM balance. However, rising expenses acted as a headwind for APO.

KKR & Co. Inc.’s KKR fourth-quarter 2025 net income per share of $1.12 missed the Zacks Consensus Estimate of $1.16. The bottom line declined from $1.32 in the prior-year quarter.

KKR’s results were adversely impacted by an increase in expenses. Nonetheless, growth in AUM and transaction fees for the capital markets business were tailwinds.

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

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