Q4 2025 Invesco Ltd Earnings Call Transcript
Key Points
- Invesco Ltd (IVZ) achieved significant milestones in 2025, focusing on clients, transforming business aspects, and unlocking organizational value.
- The company successfully recapitalized its balance sheet, pulling forward $1.5 billion in preferred stock, enhancing balance sheet flexibility and freeing up earnings for common shareholders.
- Invesco Ltd (IVZ) reported a 6% growth in net revenues for 2025, with ETF and index investment capabilities producing record revenues and growing the topline by 22%.
- The China joint venture reached a record high AUM of $132 billion, delivering $8.9 billion of net long-term inflows, marking a 36% annualized organic growth rate.
- Invesco Ltd (IVZ) continued to strengthen its balance sheet by repurchasing $1.5 billion of preferred stock in 2025, expected to generate a $0.20 EPS benefit once associated debt is repaid.
- Invesco Ltd (IVZ) recorded $5.5 billion in net outflows in the fundamental equities segment, reflecting broader secular outflow trends in actively managed equities, particularly in the United States.
- The company anticipates higher costs related to the hybrid investment platform in 2026, with combined implementation costs and expenses expected to be $25 to $30 million higher than in 2025.
- The net revenue yield continued to decline, albeit at a slower pace, due to a shift towards lower fee products like ETFs and index funds.
- Invesco Ltd (IVZ) expects a short-term operating income drag from the strategic partnership in Canada, with impacts starting in the third quarter of 2026.
- Deployment challenges persist in private credit due to fewer transactions in the current environment, despite robust fundraising.
Welcome to the Invesco's fourth quarter earnings conference call. (Operator Instructions). Now, I would like to turn the call over to Greg Ketron, Invesco's Head of Investor Relations.
All right. Thanks, [Shirley] and to all of you joining us today. In addition to the press release, we have provided a presentation that covers the topics we plan to address. The press release and presentation are available on our website, Invesco.com, this information can be found by going to the Investor Relations section of the website.
Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on slide 2, as well as the appendix for the appropriate reconciliations to GAAP.
Finally, Invesco is not responsible for the accuracy of our earnings transcripts provided by third parties. The only authorized webcasts are located on our website. Andrew Schlossberg, President and CEO; and Allison Dukes, Chief Financial Officer will present our
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