Onex (ONEX) Q1 2025 earnings summary

Executive summary

• Net earnings rose to $168M ($2.36 per diluted share) in Q1 2025, up from $10M ($0.13 per share) year-over-year.

• Investing capital per share increased to $116.97 (C$168.28), up 3% in Q1 and 9% year-over-year, with a 17% five-year CAGR.

• Private equity and credit teams raised $2.5B in fee-generating capital in Q1, with $5.3B raised or extended YTD.

• ONCAP V and OP Opportunities Fund both closed above targets, increasing third-party capital and adding new investors.

• Debt-free balance sheet with $1.6B in liquidity supports share repurchases and flexibility.

Financial highlights

• Q1 net earnings were $168M, up from $10M in Q1'24; LTM net earnings reached $461M.

• Investing segment earnings were $123M in Q1, with $413M over LTM; asset management segment earnings were $25M in Q1.

• Fee-generating AUM reached $36.9B, up 5% year-over-year; credit AUM up 8%, private equity AUM down 1%.

• Run-rate management fees increased to $202M as of March 31, 2025.

• Repurchased ~1.4M shares for $98M in Q1, with continued buybacks supported by $1.6B in liquidity.

Outlook and guidance

• Strong liquidity of $1.6B supports ongoing share buybacks and investment in priority areas.

• Management highlights ongoing operational enhancements and a focus on proven competitive areas.

• Continued advancement of near- and long-term value creation plans across business segments.

• Expect continued active share repurchases as long as shares trade below NAV.

• Run rate for total FRE expected to be consistent with Q1, with credit fee growth offsetting one-time PE catch-up fees.