Affiliated Managers Group Inc (AMG) Q4 2025 Earnings Call Highlights: Record Earnings and …

GuruFocus News

Fri, February 13, 2026 at 6:07 AM GMT+9 4 min read

In this article:

AMG

+6.77%

This article first appeared on GuruFocus.

**Economic Earnings Per Share (EPS):** $26.05 for the full year 2025, a 22% increase year over year.

**Annual Net Client Cash Flows:** $29 billion, representing an organic growth rate of 4%.

**Share Repurchases:** Approximately $700 million, reducing shares outstanding by 11%.

**Alternative Assets Under Management (AUM):** Increased by $97 billion, a 35% rise in total alternative AUM.

**Adjusted EBITDA:** $1.1 billion for the full year 2025, up 11% versus 2024.

**Net Performance Fee Earnings:** $161 million for the full year 2025.

**Fourth Quarter Net Client Cash Inflows:** $12 billion, contributing to a 6% annualized organic growth rate for the quarter.

**Liquid Alternatives Net Inflows:** $51 billion for the full year, a 36% annualized organic growth rate.

**Private Markets Fundraising:** $24 billion for the full year, representing an 18% annualized organic growth rate.

**Equities Net Outflows:** $45 billion for the full year 2025.

**First Quarter 2026 Guidance for Adjusted EBITDA:** Expected to be between $310 million and $330 million.

**First Quarter 2026 Guidance for Economic EPS:** Expected to be between $7.98 and $8.52.

**Capital Committed to Growth Investments in 2025:** More than $1 billion.

**Debt Refinancing:** Issued a 10-year $425 million senior note at a 5.5% coupon rate.

Warning! GuruFocus has detected 12 Warning Signs with FTS.

Is AMG fairly valued? Test your thesis with our free DCF calculator.

Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Affiliated Managers Group Inc (NYSE:AMG) reported record annual economic earnings per share of $26.05, a 22% increase year over year.

The company achieved substantial organic growth with $29 billion in annual net client cash flows, the highest level since 2013.

AMG added approximately $97 billion in alternative assets under management, representing a 35% increase in total alternative AUM.

The company repurchased approximately $700 million of its shares, reducing the share count by 11%.

AMG's strategic investments in new Affiliates and partnerships, such as with NorthBridge and Verition, are expected to be accretive to earnings in 2026.

Negative Points

AMG experienced $45 billion in outflows in active equities, reflecting industry headwinds.

The company faces competition in the wealth channel, particularly in liquid alternatives, which could impact growth.

Despite strong performance, the growth in performance fees is expected to be back-ended, as AMG generally does not buy in-ground carry in new investments.

AMG's multi-asset and fixed income segments were flat for both the quarter and the year.

The company anticipates repurchasing at least $400 million in shares in 2026, which may be subject to market conditions and capital allocation activity.

 






Story Continues  

Q & A Highlights

Q: Can you expand on AQR’s growth outlook for 2026, particularly regarding their tax strategies and competition? A: Jay Horgen, CEO, highlighted that AQR is experiencing significant growth due to their innovative tax-aware solutions in the wealth channel. AQR’s diverse client base, including institutional and retail, is contributing to their momentum. Dava Ritchea, CFO, added that AQR’s long-standing track record and unique offerings give them a competitive edge, despite potential competition.

Q: Could you discuss the pipeline for private and liquid alternatives in 2026 and their impact on organic growth? A: Jay Horgen noted that Pantheon, a specialist in secondaries, is well-positioned with products designed for both US and international investors. Tom Wojcik, COO, emphasized the strategic collaboration with Brown Brothers Harriman to develop multiple structured credit products, which will drive growth in private markets.

Q: How does AMG plan to leverage its $100 billion in global wealth management assets for future growth? A: Jay Horgen explained that AMG is focusing on both US and international wealth channels, with significant growth in alternatives. Dava Ritchea added that AMG’s strategy includes product development and distribution through both AMG’s platform and its Affiliates, particularly Pantheon and AQR.

Q: What is the expected contribution of AQR to EBITDA in 2026, and how does it compare to 2025? A: Dava Ritchea stated that AQR contributed double digits to EBITDA in 2025 and is expected to exceed 20% in 2026, driven by strong organic growth and performance fees. The growth is supported by AQR’s innovative products and strong client demand.

Q: How should we view the long-term trajectory of performance fees given the growth in private markets and liquid alternatives? A: Dava Ritchea explained that AMG uses a five-year average to guide performance fee expectations, with potential for growth as AUM in performance fee-eligible strategies increases. The shift towards higher management fee strategies is also enhancing fee-related earnings.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Terms and Privacy Policy

Privacy Dashboard

More Info