AMG Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Adjusted EBITDA:: $317 million, up 39% year-over-year.

Economic Earnings per Share:: $8.23, representing a 58% increase year-over-year.

Assets Under Management (AUM):: Reached a record $882 billion.

Net Client Cash Flows:: Exceeded $22 billion for the quarter, totaling $52 billion over the last 12 months, with an organic growth rate of 7%.

Share Repurchases:: Approximately $186 million in Q1, totaling over $700 million in the past year, reducing shares outstanding by 10%.

2Strategic Updates and Business Highlights

AMG's diversified business model proved resilient amid market volatility, with strong performance in liquid alternatives and private markets.

Significant growth areas identified include:

Infrastructure Strategies:: $60 billion in AUM, driven by global investment needs.

Secondary Solutions:: Approximately $50 billion in AUM, addressing liquidity and exposure management.

Absolute Return Strategies:: $180 billion in AUM, appealing to institutional clients.

Tax-Aware Long/Short Strategies:: $69 billion in AUM, gaining traction among wealth clients.

New partnerships and investments include BBH Credit Partners and Highbrook Investors, enhancing AMG's alternative strategies.

3Forward Guidance and Outlook

Q2 2026 Guidance:: Adjusted EBITDA expected between $290 million and $305 million, with economic earnings per share projected between $7.60 and $8.01, reflecting approximately 45% growth versus Q2 2025.

AMG anticipates continued organic growth driven by strong demand in identified strategic areas and expects to maintain a robust capital allocation strategy.

4Bad News, Challenges, or Points of Concern

Equity Outflows:: Approximately $9 billion in net outflows from equities, reflecting ongoing industry headwinds.

Market Volatility:: The current credit market environment poses challenges, although it also presents opportunities for selective investments.

Competitive Pressures:: The landscape for new investments may become more competitive as public market valuations decline, potentially impacting M&A activity.

5Notable Q&A Insights

Focus on Diversification:: Management emphasized AMG's diversified business model and the balanced contribution of various growth drivers, countering concerns about reliance on any single affiliate.

Tax-Aware Strategies:: While tax-aware strategies represent less than 8% of AUM, they are growing and contributing positively to flows. Management highlighted the importance of education for advisers in understanding these products.

Investment Environment:: Management expressed optimism about capital deployment opportunities in the current market, noting that lower valuations may enhance their competitive position for acquisitions.

Long-Term Growth:: AMG's disciplined capital allocation strategy is expected to shape the business positively over the next several years, with a focus on returning capital to shareholders while investing in growth. Overall, AMG reported strong financial results and maintained a positive outlook, driven by strategic growth areas, despite facing challenges in equity markets and competitive pressures.