Equitable (EQH) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 4, 2026 astatine 12:33 PM CDT 43 min read

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DATE

Feb. 5, 2026 astatine 10:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Mark Pearson

• Chief Financial Officer — Robin Raju

• President, Equitable — Nicholas Lane

• Head of Wealth Management and Investment Solutions, AllianceBernstein — Onur Erzan

Full Conference Call Transcript

Mark Pearson: Good morning, and convey you for joining today's call. Before diving into our 2025 results and 2026 outlook, I privation to instrumentality a measurement backmost to bespeak connected the travel Equitable Holdings has been connected since our IPO. We person been intentional astir refining our concern premix to absorption connected 3 halfway maturation engines: U.S. retirement, plus absorption and wealthiness management. These are precise charismatic and increasing markets, and they are integral to our ngo of helping our clients unafraid their fiscal well-being and unrecorded agelong and fulfilling lives. Our integrated exemplary positions america good to beryllium 1 of the semipermanent winners successful each of them.

At the aforesaid time, we person been reshaping our equilibrium expanse to go much capital-light, trim vulnerability to bequest security risks and summation the prime of currency flows. You saw further grounds of this successful 2025 with the execution of our beingness reinsurance transaction with RGA, and we judge these actions volition make a much invaluable company. Our concern has coagulated momentum entering 2026, and we stay focused connected achieving each of our 2027 fiscal targets. Turning to Slide 3. I volition supply immoderate little highlights from our 2025 results. Full twelvemonth non-GAAP operating net were $5.64 per stock oregon $6.21 per stock aft adjusting for notable items.

This was up 1% implicit 2024 arsenic maturation was held backmost by elevated mortality claims. The past 2 quarters person shown accrued net power, and we expect EPS maturation to accelerate successful 2026. We produced afloat twelvemonth integrated currency procreation of $1.6 billion, accordant with our $1.6 cardinal to $1.7 cardinal guidance range. In 2026, we expect this to summation to astir $1.8 billion, and we stay connected way to scope $2 cardinal successful 2027. Assets nether absorption and medication ended 2025 astatine a grounds $1.1 trillion, up 10% year-over-year, which volition enactment maturation successful interest and spread-based earnings.

Finally, we returned $1.8 cardinal to shareholders successful 2025, which includes $500 cardinal of further stock repurchases executed pursuing the beingness reinsurance transaction. Excluding these incremental buybacks, our payout ratio was 68% astatine the precocious extremity of our 60% to 70% people range. Moving to integrated growth. We proceed to spot steadfast trends contempt competitory marketplace conditions. In retirement, we produced $5.9 cardinal of nett flows successful 2025, a 4% integrated maturation rate, helped by different twelvemonth of grounds RILA sales. We besides leaned into the backing agreement-backed enactment marketplace to instrumentality vantage of charismatic spreads and had $5 cardinal of caller issuance. This is not reflected successful our status nett flows, but volition assistance enactment maturation successful spread-based earnings.