Onex (ONEX) Q4 2025 earnings summary

Executive summary

• Delivered strong 2025 results with the completed $7 billion Convex acquisition, now Onex's largest contributor, and established a strategic partnership with AIG, setting up for accelerated value creation and earnings growth in 2026.

• Investing capital per share reached $124.70, up 10% for the year and 3% in Q4, with a five-year CAGR of 11%.

• Fee-generating AUM rose 24% year-over-year to $43.9 billion, with private equity and credit segments up 21% and 26%, respectively.

• New CFO appointed and ONCAP leadership succession completed, ensuring management continuity.

• Entering 2026 with momentum, confidence, and a focus on growing net income and free cash flow.

Financial highlights

• Convex delivered $711 million in net income for 2025, up 40% year-over-year, with a 20% return on equity and an 89% combined ratio.

• Net earnings for 2025 were $617 million, with diluted EPS of $8.88; Q4 net earnings were $181 million.

• Asset management segment earnings reached $130 million for the year, $49 million in Q4.

• Investing segment earnings totaled $514 million for the year, with $110 million in Q4.

• Fee-generating AUM at $43.9 billion, with credit at $29.8 billion and private equity at $14.0 billion.

Outlook and guidance

• Management expects Convex to continue earnings and tangible book value growth in 2026, even in a softening P&C rate environment, leveraging market share gains and operating leverage.

• Asset management platform to benefit from incremental fee-generating capital from AIG and Convex commitments.

• Firm-wide run rate fee-related earnings projected to reach low- to mid-$20 million in 2026, with a year-end run rate target of $35 million, not fully reflected in Q4 2026 earnings.

• Only one-third of AIG's $2 billion expected commitments included in 2026 AUM assumptions; no Convex allocations included, considered conservative.

• Continued focus on direct investments and asset-lighter commitments to PE and credit funds.