DWS Group (DWS) Q2 2025 earnings summary

Executive summary

• Q2 2025 EPS reached €1.07, with net income up 32% year-over-year to €214m, supported by strong cost discipline and resilient revenues, keeping on track for the €4.50 EPS target for 2025 and setting a foundation for 10% annual EPS growth in 2026 and 2027.

• Growth is driven by sustainable, recurring earnings, underpinned by structural improvements and strategic investments in digital, alternatives, and platform efficiency.

• Long-term investments include expansion of Xtrackers, digital infrastructure (notably the AllUnity stablecoin JV), and talent development, especially in India and the Philippines.

• Assets under management (AuM) stable at €1,010bn, with total net flows of €8.5bn and long-term net flows of €3.7bn.

• Cost-income ratio improved to 59.2%, reflecting effective cost management.

Financial highlights

• Revenues stable at €746m, up 7% year-on-year, with management fees at €630m and performance fees at €58m.

• Net income rose to €214m, up 32% year-on-year, and EPS increased to €1.07 from €0.81 in Q2 2024.

• Costs decreased 6% quarter-over-quarter to €442m, driven by lower compensation and general expenses.

• Total net flows of €8.5bn, with long-term net flows of €3.7bn; AuM stable at €1,010bn.

• €0.8bn in excess capital, providing flexibility for growth and shareholder returns.

Outlook and guidance

• Confident in achieving €4.50 EPS for 2025, with performance and management fees expected to close the gap in Q4.

• Clear path to 10% annual EPS growth in 2026 and 2027, assuming 2% annual cost growth and 5.5% revenue growth.

• Management expects cumulative ~€150bn long-term net flows from 2025–2027, mainly from Xtrackers and Alternatives.

• Passive AuM expected to be considerably higher and Alternatives slightly higher by year-end; overall AuM to increase.

• Macro outlook: Eurozone GDP growth to accelerate to 1.4% in 2026; US growth to slow, with inflationary pressures from tariffs.