Federated Hermes Inc

Latest Results (04.10.2025):

Federated Hermes Inc reported its financial results for the second quarter of 2025, achieving record assets under management and significant earnings growth compared to the same period last year.

Record Assets Under Management

Total assets under management reached a record $845.7 billion in Q2 2025, marking an 8% increase from $782.7 billion in Q2 2024 and a 1% rise from Q1 2025. This growth reflects strong investor confidence and successful asset management strategies.

Significant Earnings Growth

In Q2 2025, Federated Hermes reported earnings per diluted share of $1.16, up from $0.20 in Q2 2024. Net income also surged to $91.0 million, compared to $21.0 million in the same quarter last year, excluding a $66.3 million non-cash impairment charge in Q2 2024.

Dividend and Share Repurchase Program

The board declared a dividend of $0.34 per share, payable on August 15, 2025. Additionally, the company authorized a new share repurchase program, allowing the buyback of up to 5 million shares of class B common stock, enhancing shareholder value and supporting stock liquidity.

Strong Performance in Investment Strategies

Federated Hermes' MDT strategies grew to $23.2 billion in Q2 2025, up $6.4 billion from Q1 2025 and $8.9 billion year-to-date. Top-selling equity funds included the MDT Mid Cap Growth Fund and the Asia ex-Japan Equity Fund, highlighting the effectiveness of their diverse investment offerings.

Operational Efficiency

Operating expenses decreased by 15% in Q2 2025, falling by $54.1 million primarily due to lower intangible asset expenses and reduced foreign currency exchange fluctuations. This efficiency contributed to the overall improvement in the company's profitability.