Q2 2026 Carlyle Secured Lending Inc Earnings Call Transcript
Key Points
- Carlyle Secured Lending Inc (CGBD) generated $0.35 per share of net investment income, fully covering its declared third-quarter dividend of $0.35 per share.
- The company's platform originations increased over 20% quarter-over-quarter, with $1.5 billion in new commitments and a high selectivity rate of less than 5% on pipeline deals.
- Both joint ventures, MMCF and SCP, delivered strong returns, with annualized dividend yields of 17.6% and 18.7%, respectively, and continued asset growth.
- Credit quality remained stable, with non-accruals at just 0.6% of investments at fair value and a zero-default track record on $7 billion in software commitments over six years.
- The company repurchased $12.5 million of shares at a 29% discount, adding $0.07 to NAV per share, and has $0.73 per share of spillover income to support future dividends.
- Net investment income declined quarter-over-quarter due to lower interest income from reduced OID accretion and decreased fee income, partially offset by higher JV dividends.
- Net asset value per share fell to $15.61 from $15.89, driven by a $24 million net loss from markdowns on a limited number of investments.
- The company added two investments to non-accrual status during the quarter, including US Infra and Project Castle, increasing non-accruals to 1.2% at amortized cost.
- The M&A environment remains muted due to geopolitical and macroeconomic uncertainty, limiting new deal activity and potentially delaying portfolio growth.
- The company expects the second quarter to be the near-term earnings trough, with earnings growth dependent on the successful ramp-up of JVs over the next four to six quarters.
Good day, and thank you for standing by. Welcome to the Carlyle Secured Lending, Inc., second quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Nishil Mehta, Head of Shareholder Relations. Sir, please go ahead.
Good morning, and welcome to Carlyle Secured Lending second quarter 2026 earnings call. I'm joined by Alex Chi, CGBD's Chief Executive Officer, and Tom Hennigan, our President and Chief Financial Officer.
Last night, we filed our Form 10-Q and issued a press release with a presentation of our results, which are available on the investor relations section of our website. Following our remarks today, we will hold a question-and-answer session for analysts and institutional investors. This call is being webcast, and a replay will be available on our website.
Today's earnings call may include forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
