Q4 2025 Onex Corp Earnings Call Transcript
Key Points
- Onex Corp (ONEXF) delivered strong financial results in 2025, with significant progress in business and capital allocation objectives.
- The acquisition of Convex and strategic relationship with AIG have enhanced growth prospects and earnings outlook.
- Convex delivered $711 million in net income for 2025, with a 20% return on equity, demonstrating industry-leading growth and profitability.
- Onex Partners and ONCAP completed successful fundraises and returned $8 billion to limited partners and co-investors in 2025.
- The credit team priced 28 CLOs, raising over $6 billion of new fee-generating AUM, exceeding Investor Day run rate FRE expectations.
- The credit investments were flat in Q4 due to spread compression on the CLO's underlying portfolio of loans.
- Onex Corp's firm-wide fee-related earnings (FRE) was a loss of $4 million for Q4 and $3 million for the year.
- The FRE projections for 2026 are conservative, with only 1/3 of AIG's expected commitments included and no additional allocations from Convex.
- The company faces a softening pricing environment in the property and casualty sector, which could impact Convex's earnings growth.
- Onex Corp's exposure to software and AI risk credits is underweight, which may limit potential gains in these high-growth sectors.
Welcome to Onex fourth-quarter and full-year 2025 conference call and webcast. (Operator Instructions) As a reminder, this conference is being recorded.
And now I'd like to turn the call over to Jill Homenuk, Managing Director, Shareholder Relations and Communications at Onex. Please go ahead.
Thank you. Good morning, everyone, and thanks for joining us. We're broadcasting this call on our website. Hosting the call today are Bobby Le Blanc, Onex's Chief Executive Officer; and Chris Govan, our Chief Financial Officer. Earlier this morning, we issued our fourth quarter and full-year 2025 press release, MD&A, and consolidated financial statements, which are available on the Shareholders section of our website and have also been filed on SEDAR.
Our supplemental information package is also available on our website. As a reminder, all references to dollar amounts on this call are in US, unless otherwise stated. I must also point everyone to our webcast
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