Onex (ONEX) Q4 2024 earnings summary

Executive summary

• Investing capital per share reached $113.70 (USD), up 6% year-over-year, with a five-year CAGR of 13%.

• Private equity portfolio was flat in Q4 but up 5% for the year; credit portfolio returned 2% in Q4 and 9% for 2024.

• Over $3 billion of capital was returned to investors in 2024, including $1 billion to the company.

• Repurchased 5.7 million shares in 2024, reducing shares outstanding by 28% over five years; strong liquidity of $1.6 billion.

• $8.8 billion in new fee-generating AUM raised in 2024, with structured credit FGAUM up 34% year-over-year.

Financial highlights

• Net earnings for 2024 were $303 million, with Q4 net earnings of ($2) million; diluted EPS for 2024 was $4.00.

• Investing segment earnings totaled $344 million for 2024; Q4 investing segment earnings were $29 million.

• Distributable earnings reached $617 million for 2024, with $231 million in Q4.

• Fee-generating AUM ended at $35.2 billion, up 4% year-over-year, with credit AUM up 6% and private equity AUM up 2%.

• Asset management fee-related earnings were $6 million in Q4 and $44 million from structured credit for the year.

Outlook and guidance

• Strong liquidity position of $1.6 billion supports continued share buybacks and investment in priority areas.

• Expecting continued strong FRE growth from credit, targeting $55 million run rate by end of 2025.

• Anticipate slightly positive consolidated FRE in 2025, with PE FRE remaining modest due to episodic fundraising.

• Final close for ONCAP V expected at end of Q1 2025.

• Plans for further capital returns from OP and ONCAP platforms in 2025, market conditions permitting.