Onex Reports Third Quarter 2025 Results
Executive Summary
- Onex Corp. reported Q3 2025 unaudited results: net earnings of $39 M ($0.57 per diluted share) versus $127 M a year earlier, with total segment net earnings of $70 M.
- The company announced the acquisition of a majority interest in Convex Group Ltd., with AIG committing $2 B to Onex’s private‑equity and credit strategies and taking a 9.9% equity stake.
- Several portfolio transactions were disclosed: sale of ~55% of OneDigital (≈$220 M proceeds), sale of 25% of WestJet (realized $94 M), and entry into an agreement to acquire Integrated Specialty Coverages.
Key Details
- Financial Highlights
- Net earnings Q3 2025: $39 M (down from $127 M YoY).
- Net earnings per diluted share: $0.57 (vs. $1.68 YoY).
- Total segment net earnings: $70 M (Investing $50 M, Asset Management $20 M).
- Distributable earnings Q3 2025: $111 M (down from $267 M YoY).
- Fee‑related earnings (non‑GAAP) for the quarter: $1 M (vs. a loss of $20 M prior year).
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Cash & near‑cash balance at Sep 30 2025: $1.5 B (≈18% of investing capital).
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Investing Capital
- Total investing capital: $8.48 B, or $121.61 per fully diluted share (U.S.).
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Year‑to‑date return on investing capital per share: 7% YTD, 8% LTM; 5‑year CAGR 13%.
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Private Equity & Credit Performance
- Private equity net gains Q3 2025: $21 M (≈<1% return).
- Credit strategies net gains Q3 2025: $17 M (2% return).
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Credit team has priced/extended 22 CLO transactions YTD, raising ~$10.7 B in fee‑generating assets; run‑rate credit fee‑related earnings ≈ $50 M.
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Strategic Transactions
- Convex Group Ltd. acquisition – majority interest with minority investor AIG; AIG to allocate $2 B over three years and acquire a 9.9% equity stake in Onex.
- Integrated Specialty Coverages – agreement to acquire; expected close later 2025.
- OneDigital sale – ~55% divestiture, anticipated proceeds ≈$220 M, closing later 2025.
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WestJet sale – 25% stake sold to airline consortium, realized $94 M cash.
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Leadership Changes
- Megan McClellan will become CFO in February 2026, succeeding Chris Govan.
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Tawfiq Popatia confirmed as Head of Onex Partners.
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Dividend Declaration
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Board declared a Q4 dividend of C$0.10 per Subordinate Voting Share, payable Jan 31 2026 (record date Jan 9 2026).
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Webcast
- Management webcast scheduled for Nov 7 2025, 11:00 a.m. ET; replay available for 90 days.
Notable Quotes
“Our Private Equity teams continue to return meaningful capital to investors… while planting the seeds for future growth through new investments.” – Bobby Le Blanc, CEO & President
“The acquisition of Convex and strategic relationship with AIG represent a step change… accelerate near‑term profitability…” – Bobby Le Blanc, CEO & President