Onex (ONEX) Q2 2024 earnings summary

Executive summary

• Achieved a 3% return on investing capital per share in Q2, with 11% return over the last twelve months and 13% annualized over five years; investing capital per share ended Q2 at $110.35.

• Net earnings for Q2 2024 were $168 million, with diluted EPS of $2.19; $2.2 billion in new fee-generating capital was raised in Q2.

• Major realizations included the sale of Englobe and Wyse, and agreements to sell PowerSchool and ASM, expected to return over $1.6 billion to Onex Partners.

• CLO platform raised or extended $7 billion in fee-generating AUM, exceeding 2024 growth targets.

• Falcon separated to operate independently, with Onex retaining a minority interest and future carried interest participation.

Financial highlights

• Investing capital per share ended Q2 at $110.35, up from $67 five years ago; net earnings for Q2'24 were $168M, with LTM net earnings at $807M.

• Repurchased 880,000 shares in Q2 and 3.9 million over the last twelve months, capturing $175 million of NAV for shareholders.

• Ended Q2 with $1.4 billion in cash and near cash, or 16% of investing capital.

• Private equity portfolio produced a $121 million net gain (2% return) in Q2; credit strategies delivered a $17 million net gain (1% return).

• Distributable earnings for Q2 2024 were $74 million.

Outlook and guidance

• Share buybacks remain a top capital allocation priority; no near-term plans to acquire other asset managers.

• Fundraising for larger cap buyout strategy contingent on further DPI and performance from Onex Partners Five.

• Management expects significant proceeds from pending asset sales in the second half of 2024 and will continue focusing on capital deployment and portfolio optimization.