Principal Financial Group (PFG) Q1 2025 earnings summary

Executive summary

• First quarter 2025 delivered 10% EPS growth year-over-year, with adjusted non-GAAP earnings of $439 million ($1.92 per diluted share), reflecting disciplined execution and a diversified business model.

• Net income attributable to shareholders was $48.1 million, down from $532.5 million in Q1 2024, primarily due to derivative losses and asset write-downs related to the Hong Kong MPF exit.

• ROE reached 14% for the quarter, within the long-term target range of 14–16%.

• Returned $370 million to shareholders, including $200 million in share repurchases and a raised dividend of $0.76 per share for Q2 2025.

• The company was recognized for ethical leadership and technology innovation, including a CIO 100 award for its AI-powered assistant and being named one of the World's Most Ethical Companies.

Financial highlights

• Adjusted non-GAAP earnings were $439 million ($1.92 per diluted share), up 10% year-over-year; non-GAAP operating earnings were $415 million ($1.81 per share), up 5%.

• Net income, excluding exited business, was $299 million; basic and diluted EPS were $0.21, down from $2.26 and $2.22, respectively.

• Total company-managed AUM increased to $718 billion, with net cash outflow of $4.4 billion, mainly due to institutional outflows.

• Net investment income rose to $1.17 billion, reflecting higher yields and invested assets.

• Non-GAAP operating ROE was 14%, up 100 basis points year-over-year.

Outlook and guidance

• EPS growth guidance for 2025 remains at 9–12%, with a strong start to the year and a path to achieve the target, contingent on market volatility.

• Expense management and flexibility to align costs with revenue are key focuses to maintain margins.

• Free capital flow is expected to increase throughout the year, with the first quarter typically being the lightest.

• Management remains confident in liquidity and ability to meet long-term obligations, supported by strong capital and access to credit facilities.

• Forward-looking statements caution that actual results may differ due to risks and uncertainties detailed in SEC filings.