Equitable (EQH) Q4 2025 earnings summary

Executive summary

• Achieved record AUM/A of $1.1 trillion, up 10% year-over-year, and organic cash generation of $1.6 billion in 2025, expected to rise to ~$1.8 billion in 2026 and $2 billion by 2027.

• Returned $1.8 billion to shareholders in 2025, including $500 million in share repurchases post-life reinsurance transaction, with a payout ratio of 68% excluding incremental buybacks.

• Completed RGA life reinsurance deal, freeing $2 billion in capital and reducing mortality exposure by 75%.

• Achieved $120 million in run-rate expense savings toward $150 million 2027 target.

• On track to meet 2027 financial targets, with momentum in all business segments.

Financial highlights

• Full-year Non-GAAP operating EPS was $5.64, or $6.21 adjusted for notable items; fourth quarter Non-GAAP operating earnings were $513 million ($1.73 per share).

• Net income for the year was a loss of $1.4 billion, or $(4.83) per share, but Q4 net income was $215 million.

• Adjusted book value per share ex-AOCI and with AB at market value was $33.84; book value per share ex-AOCI was $18.14 at year-end.

• Adjusted debt-to-capital ratio at 25%, improved from 36% year-over-year.

• Year-end holding company cash was $1.1 billion, above the $500 million minimum target.

Outlook and guidance

• 2026 organic cash generation expected to rise to ~$1.8 billion; on track for $2 billion in 2027.

• 2026 EPS growth (excluding notable items) expected to exceed 12%-15% target.

• Retirement pre-tax earnings to grow mid to high single digits; wealth management to see double-digit earnings growth; asset management performance fees expected at $80-$100 million in 2026.

• Total company tax rate forecast at ~20% for 2026.

• Payout ratios expected to remain at the upper end of the 60-70% target range.