Fiera Capital Reports Second Quarter 2025 Results

Executive Summary

• Fiera Capital reported its financial results for the second quarter ended June 30, 2025, showing a significant decline in net earnings attributable to shareholders compared to the first quarter of 2025, primarily due to a prior quarter gain on a real estate investment and current quarter restructuring costs.
• Assets Under Management (AUM) decreased by $1.1 billion (0.7%) to $160.5 billion at the end of the quarter, driven by negative net organic growth of $1.7 billion, partially offset by positive market impacts.
• The company announced a quarterly dividend of $0.108 per share and the renewal of its Normal Course Issuer Bid (NCIB) to purchase up to 4 million shares.

Key Details

• Financial Performance (Q2 2025 vs Q1 2025 vs Q2 2024):
  • Total Revenues: $162.97 million (Q2 2025) vs $162.87 million (Q1 2025) vs $164.79 million (Q2 2024).
  • Base Management Fees: $147.87 million (Q2 2025) vs $154.54 million (Q1 2025) vs $149.34 million (Q2 2024).
  • Performance Fees: $2.49 million (Q2 2025) vs $0.18 million (Q1 2025) vs $2.54 million (Q2 2024).
  • Net Earnings Attributable to Shareholders: $3.76 million (Q2 2025), a decrease of 82.6% from Q1 2025 ($21.79 million) and 23.3% from Q2 2024 ($4.90 million).
  • Adjusted EBITDA: $45.69 million (Q2 2025), an increase of 5.3% from Q1 2025 ($43.40 million) and 0.9% from Q2 2024 ($45.28 million).
  • Adjusted Net Earnings: $27.20 million (Q2 2025), an increase of 7.1% from Q1 2025 ($25.43 million) and 9.2% from Q2 2024 ($24.87 million).
  • LTM Free Cash Flow: $75.34 million.
• Assets Under Management (AUM):
  • End of Period AUM: $160.5 billion (June 30, 2025), down from $161.6 billion (March 31, 2025) and $158.9 billion (June 30, 2024).
  • Average AUM: $159.0 billion (Q2 2025).
  • Public Markets (excl. sub-advised): $103.8 billion.
  • Private Markets: $20.9 billion.
  • Net Organic Growth: -$1.7 billion in Q2 2025, driven by negative net contributions of $1.8 billion (mainly fixed income rebalancing) and lost mandates, partially offset by new mandates of $1.4 billion.
  • Sub-advised AUM Impact: Negative net organic growth of $1.1 billion, including $0.4 billion in lost mandates and $0.7 billion in negative net contributions.
  • Year-to-Date AUM Change: Decreased $6.6 billion (3.9%) from Dec 31, 2024, largely due to $5.7 billion in lost mandates from Canoe Financial LP in Jan 2025.
• Operational Updates:
  • New Mandates: Public Markets platform secured $1.4 billion in new mandates, the strongest gross flows in nine quarters.
  • Cost Management: SG&A expenses decreased 3% year-over-year.
  • Restructuring: Higher restructuring costs related to severance in Q2 2025 due to management and organizational changes.
  • Investment Gain: A $12.7 million gain on revaluation of an investment in a real estate platform occurred in Q1 2025, contributing to the higher prior quarter earnings.
• Capital Return & Corporate Actions:
  • Dividend: Board declared a quarterly dividend of $0.108 per Class A and Class B share, payable September 18, 2025, to shareholders of record on August 20, 2025.
  • Share Repurchases: Repurchased 1.1 million shares during the quarter.
  • NCIB Renewal: TSX approved renewal of NCIB to purchase up to 4,000,000 Class A Shares (approx. 4.6% of outstanding) from August 16, 2025, to August 15, 2026.
  • Previous NCIB Activity: Purchased and cancelled 1,862,016 shares at a weighted average price of $6.38 for $11.9 million under the expiring NCIB.

Notable Quotes

• "We are pleased with the momentum in our business during the second quarter. Our Public Markets platform secured $1.4 billion of new mandates, marking our strongest gross flows in nine quarters. Assets under management in our Private Markets platform grew year-over-year to reach nearly $21 billion... These results underscore the trust our clients continue to place in us, the depth of our investment capabilities and the momentum that has been built through our regionalized distribution model." — Maxime Ménard, Global President and Chief Executive Officer
• "Year-to-date base management fees increased from the same period last year, reflecting stable average AUM and a resilient fee rate which was driven by growing contribution from our Private Markets platform. SG&A expenses were down 3% year-over-year as we delivered on our commitment to streamline the organization and improve operating efficiency... During the quarter, we repurchased 1.1 million shares, reinforcing our commitment to return capital to shareholders." — Lucas Pontillo, Executive Director, Global Chief Financial Officer and Head of Corporate Strategy