Equitable Holdings Inc Earnings
Equitable Holdings Inc. (NYSE: EQH) has announced its financial results for the second quarter ended June 30, 2025. The company reported a challenging quarter, with a notable net loss, yet exhibited resilience through strategic reinsurance transactions and consistent operational progress. President and CEO Mark Pearson highlighted the completion of a significant Individual Life reinsurance transaction, signaling a pivotal step in the company's strategy to reduce future volatility and enhance its core businesses.
Equitable Holdings Inc Results
Below is a table summarizing the key financial metrics for Equitable Holdings in Q2 2025:
| Metric | Q2 2025 | Q2 2024 | Year-over-Year Change |
|---|---|---|---|
| Net Income (Loss) | $(349) million | $428 million | Down 181% |
| Non-GAAP Operating Earnings | $352 million | $495 million | Down 29% |
| Non-GAAP Operating EPS | $1.10 | Not Available | - |
| Non-GAAP Operating Earnings excl. notable items | $447 million | Not Available | - |
Despite a net loss, the company achieved non-GAAP operating earnings of $352 million, or $1.10 per share, though these figures fell short of the $495 million recorded in the same period last year. When adjusted for notable items, non-GAAP operating earnings improved to $447 million.
Revenue Breakdown
Equitable Holdings' revenue performance across its major segments is illustrated below:
| Segment | Q2 2025 Net Inflows | Q2 2024 Net Inflows | Year-over-Year % Change |
|---|---|---|---|
| Individual Retirement | $1.7 billion | Not Available | - |
| Group Retirement | $217 million | Not Available | - |
| Wealth Management | $2.0 billion | Not Available | - |
| Asset Management | $(4.8) billion* | Not Available | - |
| Legacy | $(0.58) billion | Not Available | - |
(* Net outflows in Asset Management segment)
Analysis of Segment Performance
- Individual Retirement saw solid inflows of $1.7 billion with a growth of 7% in first-year premiums, reflecting the segment's robust market presence and competitive product offerings.
- Group Retirement exhibited net inflows of $217 million, driven by institutional and tax-exempt channels despite net outflows from corporate products.
- Wealth Management experienced strong advisory net inflows of $2.0 billion, suggesting enhanced advisor productivity and solid client engagement.
- Asset Management faced net outflows of $4.8 billion, primarily due to market volatility, notably in April. Despite this, operating earnings rose to $131 million, benefiting from higher base fees.
- Legacy continues its anticipated runoff, with net outflows of $580 million, highlighting the company’s focus on phasing out this segment.
Key Developments
The quarter was marked by significant strategic initiatives notably: - The finalization of a major Individual Life reinsurance transaction with RGA, which created over $2 billion in value and trimmed mortality exposure by 75%. This move is expected to bolster the company's balance sheet and amplify liquidity, aiding future strategic investments. - Equitable Holdings reported a combined NAIC RBC ratio exceeding 500% following the reinsurance transaction, substantiating the company's robust capital position.
Comments from Company Officers
Mark Pearson, President and CEO, remarked, "We reported Non-GAAP operating earnings per share of $1.10, or $1.41 excluding notable items, down 8% from the prior year quarter. While results were below our expectations due to elevated mortality in our Individual Life block, we continue to see strong organic growth momentum... This will enhance focus on our core growth drivers of retirement, asset management, and wealth management and drive significant shareholder value."
Dividends and Share Repurchases
During the second quarter, Equitable Holdings returned $318 million to shareholders, including $82 million in quarterly cash dividends and $236 million in share repurchases, surpassing their 60-70% payout ratio target. Such measures underscore the company’s commitment to delivering shareholder value amid evolving market dynamics.
Equitable Holdings Inc Stock Forecast
Given the financial performance and significant business developments, Equitable Holdings Inc. exhibits dual prospects. On a high note, the completion of its Individual Life reinsurance transaction, combined with the strong capital position, sets a promising path for accelerated growth. Under favorable economic conditions, the stock could see a significant upside, potentially reaching a high price target of $40 per share considering improved earnings momentum and strategic capital deployment.
Conversely, challenges related to elevated mortality claims and market volatility could restrain immediate upside potential, with downside risks potentially dipping the stock to a low of $27 per share. NULLtheless, Equitable Holdings' strategic repositioning, focusing on core segments, bodes well for long-term growth and stability. With an emphasis on core operations aligning with strategic milestones, Equitable is positioned for advancement toward its 2027 financial targets, including a 12-15% EPS growth CAGR.
In conclusion, while Equitable Holdings faces immediate challenges, its proactive strategic measures and solid capital management provide a positive outlook for sustained future growth.
