Pershing Square Holdings (PSH) Q3 2025 Investor Call earnings summary

Executive summary

• Achieved over 20% year-to-date return, outperforming the S&P 500, despite some underperforming investments.

• Exited long-term positions in Chipotle and Nike due to deteriorating fundamentals and increased uncertainty.

• Strong operational and financial performance from core holdings including Alphabet, Uber, Brookfield, Amazon, Restaurant Brands, Hilton, and Howard Hughes.

Financial highlights

• Chipotle: Realized IRR of 22% and $2.4B in profits over nine years; exited after a 50% stock decline driven by multiple compression and weak sales.

• Nike: Exited with a -30% return and $600M loss; margins and revenues fell short due to tariffs and inventory clearance.

• Universal Music: Revenue up 10%, adjusted EBITDA up 12% year-over-year; share price down 25% since July due to technical factors.

• Alphabet: Q3 revenue $100B, up 15% year-over-year; cloud business at $50B run rate, up 32%.

• Uber: Mobility and delivery segments grew 19% and 23% respectively; adjusted EBITDA up 33%, EPS up over 50%.

• Brookfield: BAM fee revenues up 15%, fee earnings up 16-17%; carried interest at BN up 150% in recent quarters.

• Amazon: AWS growth accelerated to 20%; retail margins expected to expand; share price up 30% from April entry.

• Restaurant Brands: System-wide sales up 7%, operating income up 9%, Tim Hortons Canada same-store sales up 4%.

• Hilton: Adjusted EBITDA up 8% despite 1.5% RevPAR decline; continues 5% annual share buybacks.

• Hertz: Achieved first positive EPS in two years; utilization at 84%, DPU at $273, liquidity over $2.2B.

Outlook and guidance

• Alphabet, Uber, Brookfield, Amazon, and Restaurant Brands expected to sustain high earnings growth rates.

• Brookfield targets $7 EPS by 2030, implying 25% compounded growth.

• Hilton expected to deliver 16-17% EPS growth in normal macro conditions.

• Hertz targets $1B annual EBITDA by 2027.