- Federated Hermes, Inc. (FHI, Financial) reported record Q1 2025 assets under management, reaching $839.8 billion, an 8% increase year-over-year.
- Earnings per diluted share climbed 40% to $1.25 from $0.89 a year earlier, with net income increasing 35% to $101.1 million.
- The company increased its quarterly dividend by 9.7% to $0.34 per share, payable on May 15, 2025.
Federated Hermes, Inc. (FHI), a prominent entity in active investment management, announced robust financial results for the first quarter of 2025. The company achieved record-breaking figures with total assets under management (AUM) hitting $839.8 billion, marking an 8% increase from the same period in the prior year. This achievement highlights the firm's ability to maintain a record streak for the tenth consecutive quarter.
For Q1 2025, FHI reported earnings per diluted share (EPS) of $1.25, which represents a substantial 40% increase from $0.89 in Q1 2024. The net income also saw significant growth, rising to $101.1 million, up from $75.0 million, showcasing strong operational performance and financial health.
Money market assets were a significant contributor to this performance, reaching a historic high of $637.1 billion, increasing by 10% year-over-year. These assets accounted for 53% of the company's revenue during the quarter, positioning FHI advantageously amidst current market dynamics.
In a demonstration of confidence in future prospects, Federated Hermes increased its quarterly dividend by 9.7% to $0.34 per share, with payments scheduled for May 15, 2025. Additionally, the company actively repurchased 3,057,542 shares at a total cost of $120.1 million, reflecting a strategic approach to capital allocation aimed at enhancing shareholder value.
Despite an overall positive performance, alternative/private markets assets experienced a 5% decline over the year to $19.4 billion, though they showed a 3% sequential improvement. The firm's operating expenses decreased by 2%, aided by a VAT refund in the UK, further establishing the firm’s operational efficiency.
The company's leadership remains optimistic, as reflected by the strategic investments and capital management decisions taken during the quarter. These results underscore Federated Hermes' ability to navigate market conditions effectively while delivering impressive returns to shareholders.
