Evercore (EVR) Q1 2025 earnings summary

Executive summary

• Achieved #1 ranking in advisory revenues among independent firms for Q1 2025, with over 50% of revenue from non-M&A sources and strong year-over-year growth in nearly all areas.

• Net income attributable to Evercore Inc. rose 71% year-over-year to $146.2M, with diluted EPS up over 60% to $3.49 (Adjusted).

• Expanded global presence, now serving clients in 50+ countries, and continued investment in talent with new and promoted Senior Managing Directors.

• Returned a record $454M to shareholders in Q1 2025 through share repurchases and dividends, maintaining 17 consecutive years of dividend increases.

• Notable transactions included Calpine's $29.1B sale to Constellation Energy and Ampere's $6.5B sale to SoftBank.

Financial highlights

• Q1 2025 adjusted net revenues were $700M, up 19% year-over-year; LTM Q1 2025 adjusted net revenues reached $3.1B.

• Adjusted operating income was $116M, up 28% year-over-year; LTM adjusted operating income was $582.9M.

• Adjusted EPS was $3.49, up 64% year-over-year; LTM adjusted diluted EPS was $10.75.

• Adjusted operating margin rose to 16.6% from 15.4% a year ago; LTM margin was 18.7%.

• Significant net tax benefit of $78M from RSU vesting and share price appreciation, resulting in a negative 39.7% adjusted tax rate.

Outlook and guidance

• Expect Q2 and Q3 results to be impacted by ongoing market volatility and uncertainty, but backlogs and activity levels remain strong.

• Positioned for growth as global M&A activity as a percent of market cap remains near 20-year lows, presenting significant upside potential.

• Focused on expanding sector coverage, especially in high-growth areas like biotech, fintech, green tech, and infrastructure.

• Continued investment in talent and technology to support growth.