Carlyle Q1 Earnings Top Estimates, Revenues & AUM Increase Y/Y

The Carlyle Group Inc. CG reported first-quarter 2025 post-tax distributable earnings per share of $1.14, which topped the Zacks Consensus Estimate of 97 cents. The figure compared favorably with earnings of $1.01 per share in the year-ago quarter.

Results benefited from increases in segmental revenues and fee revenues. A rise in the assets under management (AUM) balance offered support. A decline in expenses was a tailwind.

Net income attributable to Carlyle was $130 million compared with $65.6 million in the year-ago quarter.

Carlyle’s Revenues Rise & Expenses Fall

First-quarter segmental revenues were $1.04 billion, up 1.9% from the year-ago quarter. The top line missed the Zacks Consensus Estimate by 7.2%.

Total segment fee revenues were up 12.5% year over year to $642.9 million. An increase in transaction and portfolio advisory fees, as well as fee-related performance revenues, led to the rise.  

Realized performance revenues fell 10.7% from the year-ago quarter to $355.1 million.

Total segmental expenses fell marginally to $587.8 million.

CG’s Total AUM Rises

As of March 31, 2025, total AUM was $453 billion, up 6.6% from the prior-year quarter.

The fee-earning AUM was $314 billion, which rose 3% year over year.

Carlyle’s Capital Distribution Activities

In the reported quarter, CG repurchased or withheld 3.3 million shares of common stock for $177 million. As of March 31, 2025, $0.7 billion worth of shares were available under the authorization.

The company also declared a quarterly dividend of 35 cents per share. The dividend will be paid out on May 27, 2025, to shareholders of record as of May 19, 2025.

Our View on CG

A rising total AUM balance, along with efforts to expand its investment platforms, will likely support Carlyle’s revenue growth in the long run. A decline in expenses is another positive. However, a competitive financial environment, along with the volatile macroeconomic backdrop, is concerning.

Carlyle Group Inc. Price, Consensus and EPS Surprise

Carlyle Group Inc. price-consensus-eps-surprise-chart | Carlyle Group Inc. Quote

CG 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 Other Asset Managers

Invesco’s IVZ first-quarter 2025 adjusted earnings of 44 cents per share surpassed the Zacks Consensus Estimate of 39 cents. Moreover, the bottom line jumped 33.3% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

IVZ’s results primarily gained from higher adjusted net revenues. An increase in the AUM balance due to decent inflows was positive, too. However, higher adjusted operating expenses were worrisome.

KKR & Co. Inc.’s KKR first-quarter 2025 adjusted net income per share of $1.15 surpassed the Zacks Consensus Estimate of $1.13. The bottom line increased from 97 cents in the prior-year quarter.

KKR’s results primarily reflected impressive growth in assets under management and record transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.

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

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