AMG Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Adjusted EBITDA: $316 million, up 44% year-over-year.

Economic Earnings per Share: $8.29, a 54% increase year-over-year.

Assets Under Management (AUM): Reached a record $942 billion, a 7% increase from the previous quarter.

Net Inflows: $13 billion in Q2, with alternative strategies attracting $29 billion in net flows for the quarter and approximately $100 billion over the past 12 months.

Fee-Related Earnings: Grew 39% year-over-year, contributing to overall EBITDA growth.

Share Repurchases: Approximately $189 million in Q2, totaling $375 million year-to-date, with plans for $600 million in repurchases for the full year.

2Strategic Updates and Business Highlights

AMG's diversified business model continues to thrive, with alternatives now accounting for over 60% of earnings, expected to grow further.

Key growth drivers identified include secondary strategies, infrastructure, absolute return strategies, and tax-aware investing.

The company is actively pursuing new investment opportunities, particularly in high-quality independent firms managing alternative strategies.

The balance sheet remains strong, with low leverage and a healthy cash flow generation of approximately $1 billion annually.

3Forward Guidance and Outlook

For Q3 2026, AMG expects adjusted EBITDA in the range of $315 million to $325 million, with economic earnings per share projected between $8.43 and $8.71, reflecting approximately 40% growth compared to Q3 2025.

The company anticipates continued strength in alternative strategies, driven by evolving client demands for differentiated returns and diversification.

4Bad News, Challenges, or Points of Concern

Long-Only Equity Strategies: Experienced net outflows of $14 billion, reflecting ongoing industry challenges and performance headwinds.

Multi-Asset and Fixed Income: Reported net outflows of $2 billion, primarily due to seasonal factors, with expectations for normalization in the future.

Market Conditions: A slight decline in market blend (down 2% quarter-to-date as of July 29) could impact future performance.

5Notable Q&A Insights

Tax-Aware Investing: Jay Horgen expressed confidence in the sustainability of tax-aware strategies, viewing them as a long-term trend driven by individual investor behavior.

Liquid Alternatives: There is strong demand for liquid alternatives, with AMG's affiliates seeing net inflows across various strategies, indicating a positive outlook for this segment.

Capacity Concerns: Horgen addressed potential capacity issues in quant strategies, noting that AMG's affiliates have a track record of managing investment returns effectively.

Investment Pipeline: The company is seeing an increase in new investment opportunities, particularly in private markets, suggesting a robust outlook for future growth. Overall, AMG's Q2 2026 results reflect strong financial performance and strategic positioning in the alternative investment landscape, despite some challenges in traditional equity strategies.