Summary of Equitable Holdings Q1 2026 Earnings Call

1Key Financial Results and Metrics

Non-GAAP Operating Earnings: $1.62 per share, adjusted to $1.68 per share after notable items, reflecting a 25% increase year-over-year.

Net Income: $621 million or $2.14 per share.

Assets Under Management (AUM): $1.1 trillion, up 9% year-over-year.

Return on Equity (ROE): Projected to exceed 15% post-merger.

Cash Flow: Ended Q1 with $1.2 billion in cash at the holding company, above the $500 million target.

Share Buybacks: $147 million executed in Q1; committed to a 60%-70% payout ratio for 2026.

2Strategic Updates and Business Highlights

Merger Announcement: Planned merger with Corebridge, expected to create a diversified financial services company with $1.5 trillion in AUM and over 12 million customers.

Organic Growth: Retirement sales increased by 10% year-over-year; Wealth Management reported $2 billion in advisory net inflows.

Acquisition: Closed on the acquisition of Stifel Independent Advisors to enhance Wealth Management capabilities.

Expense Synergies: Anticipated at least $500 million from the merger, with potential for revenue synergies to be quantified in 2027.

3Forward Guidance and Outlook

Earnings Growth: Expecting EPS growth to exceed the high end of the 12%-15% target range for 2026.

Cash Generation: Targeting $1.8 billion in cash generation for 2026, with an increase to $2 billion in 2027.

Market Positioning: The merger is expected to enhance competitive positioning and profitability through scale and diversified offerings.

4Bad News, Challenges, or Points of Concern

Market Volatility: Equity markets declined modestly in Q1, impacting overall performance; however, they have since recovered.

Alternative Investment Returns: Projected returns for the alternative portfolio are now expected to be below prior guidance of 8%-9% for the full year.

AllianceBernstein Outflows: Experienced net outflows of $7.1 billion in Q1, primarily due to active equities and taxable fixed income.

Competitive Pressures: Increased competition in the retirement sector, although Equitable maintains strong sales momentum.

5Notable Q&A Insights

Retirement Segment: Spreads are stabilizing, with expectations for continued improvement in net interest margins (NIM).

Merger Integration: Integration planning is underway, confirming the complementary strengths of both companies.

Buyback Strategy: Plans to resume share buybacks with attractive valuations; coordination with Corebridge will ensure shareholder accretion.

Mortality Experience: Favorable mortality results in Q1 with a benefit ratio of 83.1%, the lowest in a year; guidance remains stable for the full year.

Capital Deployment: Focus on balancing share buybacks and growth investments post-merger, with a strong emphasis on maintaining a resilient balance sheet. This summary encapsulates the key points from the earnings call, providing a balanced view of Equitable Holdings' performance, strategic direction, and outlook.