Record Adjusted EBITDA
Adjusted EBITDA of approximately $317 million in Q1 2026, representing year-over-year growth of 39%.
Affiliated Managers
· AMG
May 1st, 2026
Summary
- Earnings Call Date:
- 2026-05-01
- Change Since:
- +16.51%
- Next Earnings Date:
- 2026-08-03
Earnings Call Sentiment
PositiveThe call emphasized strong, broad-based growth with record AUM, record flows into alternatives, double-digit organic momentum and very strong year-over-year profitability and EPS growth. Management highlighted disciplined capital allocation, active M&A/partnership activity and large share repurchases, underpinning confidence in future growth. Notable headwinds include equity outflows, some near-term market volatility and expected seasonally lower performance fees in Q2, but these were framed as manageable relative to the firm’s diversified alternatives-driven momentum.
Company Guidance
AMG guided second‑quarter adjusted EBITDA of $290–$305 million, assuming seasonally lower net performance fees of up to $10 million and a market blend that was up ~5% quarter‑to‑date as of April 30; using an adjusted weighted‑average share count of 26.7 million, management expects Q2 economic earnings per share of $7.60–$8.01 (midpoint ≈45% growth versus Q2 2025). For context, AMG reported Q1 adjusted EBITDA of ~$317 million and economic EPS of $8.23 (up 39% and 58% year‑over‑year, respectively), AUM of $882 billion, record Q1 net client cash inflows of >$22 billion (12‑month net flows $52 billion), repurchased ~$186 million of stock in Q1 (>$700 million over the past 12 months, reducing shares outstanding ~10%), expects full‑year repurchases of ~ $500 million, settled a $174 million conversion premium that effectively removed ~600,000 adjusted diluted shares, and said after‑tax cash flows run at roughly $1 billion annually.
Strong Earnings Per Share Growth
Economic earnings per share of $8.23 in Q1 2026, up 58% year-over-year.
Record Net Client Cash Flows and AUM
Record quarterly net client cash inflows of more than $22 billion; assets under management reached a record $882 billion. Net flows over the last 12 months totaled $52 billion, an organic growth rate of 7% over the period.
Robust Alternative Flows
Substantial momentum in alternatives: management cited $29 billion of alternative flows in the quarter and $90 billion into alternatives over the past year; liquid alternatives delivered a record quarter with $25 billion of flows (broad-based across institutional, wealth and retail channels).
Fee-Related and Performance Fee Improvement
Fee-related earnings (ex-performance fees) grew 29% year-over-year. Net performance fee earnings were $49 million in the quarter, an increase of $29 million versus prior year, contributing to margin expansion.
Private Markets and Key Growth Verticals
Private markets affiliates manage $148 billion in assets; strongest momentum in infrastructure and real estate (combined >$60 billion) and secondary solutions (~$50 billion). Private markets fundraising was $4 billion in the quarter.
Specific Product AUM Highlights
Within liquid alternatives, absolute return strategies represent ~ $180 billion of AUM and tax-aware long/short strategies represent ~$69 billion (about 8% of AMG's AUM).
Capital Allocation and Share Repurchases
Repurchased approximately $186 million of shares in Q1 and more than $700 million over the past 12 months, reducing shares outstanding by about 10%. Company expects to repurchase approximately $500 million for the full year (subject to market conditions).
Balance Sheet and Cash Generation
After-tax cash flows at record levels (~$1 billion annually), long-dated debt profile, low leverage and access to revolver. Convertible trust preferred conversion removed associated dilution (600,000 adjusted diluted shares repurchased via $174 million conversion premium).
Positive Near-Term Guidance
Q2 2026 guidance: adjusted EBITDA expected in the range $290 million–$305 million and economic earnings per share $7.60–$8.01; midpoint EPS guidance implies approximately 45% growth versus Q2 2025.
Operator
Greetings, and welcome to the AMG First Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the call over to your host, Patricia Figueroa, Head of Investor Relations for AMG. Thank you. You may begin.
Patricia Figueroa
Good morning, and thank you for joining us today to discuss AMG's results for the first quarter of 2026. Before we begin, I'd like to remind you that during this call, we may make a number of forward-looking statements, which could differ from our actual results materially due to a number of factors, including those described in today's earnings press release and our most recent Form 10-K and subsequent filings with the SEC, and AMG assumes no obligation to update these statements. Also, please note that nothing on this call constitutes an offer of any products, investment vehicles or services of any AMG affiliates. A replay of today's call will be available on the Investor Relations section of our website, along with a copy of our earnings release and reconciliations for any non-GAAP financial measures, including any earnings guidance provided. In addition, we have posted an updated investor presentation to our website and encourage investors to consult our site regularly for updated information. With us today to discuss the company's results for the quarter are Jay Horgen, President and Chief Executive Officer; and Dava Ritchea, Chief Financial Officer. With that, I'll turn the call over to Jay.
Jay Horgen
Thanks, Patricia, and good morning, everyone. AMG reported record results for the first quarter with adjusted EB...
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