EQH-PA — Equitable Holdings, Inc.

Summary of EQH-PA Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Full Year Non-GAAP Operating Earnings: $5.64 per share, adjusted to $6.21 per share after notable items, a 1% increase from 2024.
• Fourth Quarter Non-GAAP Operating Earnings: $513 million or $1.73 per share; net income was $215 million. Adjusted EPS would have been $1.76, up 8% year-over-year.
• Organic Cash Generation: $1.6 billion for 2025, with a target of $1.8 billion for 2026 and $2 billion by 2027.
• Assets Under Management (AUM): Reached a record $1.1 trillion, up 10% year-over-year.
• Shareholder Returns: $1.8 billion returned to shareholders in 2025, including $500 million in share repurchases.
• Payout Ratio: 68% excluding additional buybacks, at the high end of the 60%-70% target range.

2. Strategic Updates and Business Highlights

• Focus on three core growth engines: U.S. retirement, asset management, and wealth management.
• Successful life reinsurance transaction with RGA, freeing up $2 billion of capital and reducing mortality exposure by 75%.
• Strong performance in retirement with $5.9 billion in net flows (4% organic growth) and record RILA sales.
• Wealth Management achieved $8.4 billion in net inflows (13% organic growth) and exceeded the target of $200 million in annual earnings two years ahead of schedule.
• AllianceBernstein (AB) saw mixed results with $11.3 billion in net outflows, but strong growth in private markets, increasing AUM by 18%.

3. Forward Guidance and Outlook

• Expect EPS growth to accelerate in 2026, with a forecast of exceeding the 12%-15% target.
• Anticipate continued growth in cash generation, with $1.8 billion expected in 2026.
• Retirement segment projected to see mid- to high single-digit growth in pretax earnings, with spreads stabilizing in the second half of 2026.
• Wealth Management expected to sustain double-digit earnings growth, assuming normal market conditions.

4. Bad News, Challenges, or Points of Concern

• Elevated mortality claims impacted earnings in 2025, contributing to a slower EPS growth rate.
• AB faced significant net outflows, particularly related to low-fee outflows from the RGA transaction.
• Concerns about competition in the RILA market, with new entrants potentially impacting market share and pricing discipline.
• The corporate segment reported a loss of $123 million due to elevated mortality and other one-time expenses.

5. Notable Q&A Insights

• Discussion on the quality of the private credit portfolio revealed minimal exposure to high-risk sectors, with a focus on maintaining underwriting discipline.
• Wealth Management's growth attributed to both internal promotions and external hires, with a disciplined approach to adviser recruitment.
• Management acknowledged the valuation gap between Equitable and AB, emphasizing ongoing efforts to improve business performance and shareholder value.
• Clarification on mortality exposure indicated that while some volatility remains, the RGA transaction has significantly reduced risk.
• The company remains optimistic about the growth potential in the defined contribution market, particularly for in-plan annuities, supported by regulatory tailwinds.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges faced, and insights from the Q&A session, providing a comprehensive overview of Equitable Holdings' performance and outlook for 2025 and beyond.