Federated Hermes Reports Record Assets Under Management with Q2 2025 Earnings

Federated Hermes, Inc., a global leader in active investment management, has reported its financial results for the second quarter of 2025. The company achieved record assets under management (AUM) and significant growth in earnings per share (EPS) compared to the same period last year.

Financial Highlights

For Q2 2025, Federated Hermes reported an EPS of $1.16, a substantial increase from $0.20 in Q2 2024. The net income for the quarter was $91.0 million, up from $21.0 million in the same quarter last year. The company's total revenue for Q2 2025 was $424.8 million, a 6% increase from $402.6 million in Q2 2024.

Operating expenses decreased by 15% to $307.8 million, primarily due to lower intangible asset-related expenses. Nonoperating income also saw a significant increase, contributing to the overall positive financial performance.

Business and Operational Highlights

Federated Hermes' total managed assets reached a record $845.7 billion as of June 30, 2025, an 8% increase from $782.7 billion at the same time last year. The company's equity assets grew by 14% to $89.0 billion, while fixed-income assets increased by 4% to $98.7 billion. Alternative/private markets assets also saw a 3% rise to $20.7 billion.

Top-selling equity funds included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes Asia ex-Japan Equity Fund. In the fixed-income segment, the Federated Hermes Conservative Municipal Microshort Fund and the Federated Hermes Total Return Bond ETF were among the top performers.

Strategic Initiatives and Corporate Developments

The board of directors declared a dividend of $0.34 per share, payable on August 15, 2025. Additionally, the board authorized a new share repurchase program, allowing the buyback of up to 5 million shares of Federated Hermes class B common stock. This new program complements the existing repurchase program, which has approximately 1.1 million shares remaining.

Management's Perspective

J. Christopher Donahue, president and CEO of Federated Hermes, highlighted the continued interest in the company's MDT equity and alternative quantitative investment solutions. He noted that the disciplined, repeatable process of these strategies offers the opportunity for outperformance. Donahue also mentioned the strong demand for microshort and ultrashort funds, driven by investors' interest in capital preservation and liquidity.

Future Outlook

Federated Hermes remains optimistic about its future performance, with plans to strategically introduce complementary offerings of its most popular investment strategies. The company aims to sustain its growth momentum by focusing on investor preferences and market conditions.

SEC Filing: FEDERATED HERMES, INC. [ FHI ] - 8-K - Jul. 31, 2025