IGM Financial (IGM) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 adjusted EPS of $1.00 (CAD 1), up 6.4% year-over-year, with consolidated AUM & A including strategic investments reaching $503.6 billion, up 19.1% year-over-year and 4.2% sequentially.

• Net earnings rose to $237.8 million, up 5.9% year-over-year, with reported EPS at $0.98, up 4.3%.

• Total client assets surpassed CAD 500 billion, with strong diversification and growth across wealth and asset management segments.

• Strategic investments (Northleaf, Rockefeller, Wealthsimple, ChinaAMC) delivered strong client asset growth, with Wealthsimple AUA up 89% year-over-year.

• Returned $213 million to shareholders in Q1 2025 through $134 million in dividends and $79 million in share repurchases.

Financial highlights

• Adjusted net earnings available to common shareholders rose 6% to $237.8 million; adjusted EPS was $1.00, up 6.4% year-over-year.

• Consolidated AUM & A including strategic investments was $503.6 billion, up 19% year-over-year and 4% sequentially.

• Net flows were $4.2 billion, reversing net outflows of $128 million in Q1 2024.

• Unallocated capital increased to $615 million, with a leverage ratio of 1.5x.

• Dividend declared at $0.5625 per share, unchanged from prior year.

Outlook and guidance

• Reaffirmed full-year expense growth targets: 4% overall, 6% for Mackenzie; Q2 consolidated expenses expected to be approximately $290 million, with Mackenzie Q2 expenses expected to decline to ~$120 million.

• Management expects continued strong business momentum and medium-term earnings growth, supported by strong client inflows and record AUM & A.

• Continued focus on technology, digital enablement, and product innovation to drive productivity and growth.

• Forward-looking statements highlight potential for further expansion but caution on economic and market uncertainties.