Federated Hermes, Inc. reported a significant increase in financial performance for the second quarter of 2025, with total revenue reaching $424.8 million, up from $402.6 million in the same period last year. For the first half of 2025, revenue totaled $848.4 million, compared to $799.0 million in the first half of 2024. The company's net income for the second quarter was $91.0 million, a substantial rise from $21.0 million in the prior year, while net income for the first half increased to $192.1 million from $96.1 million. This growth in profitability was attributed to higher average assets under management (AUM) and increased performance fees.
In terms of operational metrics, Federated Hermes managed assets totaled $845.7 billion as of June 30, 2025, reflecting an 8% increase from $782.7 billion a year earlier. The company saw growth across various asset classes, with equity assets rising by 14% and fixed-income assets increasing by 4%. The firm also reported a 9% increase in average managed assets for the first half of 2025, driven primarily by higher money market and equity assets. The company’s revenue from U.S. operations accounted for the majority of its total revenue, amounting to $370.4 million in the second quarter.
Strategically, Federated Hermes completed the acquisition of a 60% equity interest in Rivington Energy Management Limited, a U.K.-based renewable energy project development firm, for approximately $30 million. This acquisition is expected to enhance Federated Hermes' growth prospects in international markets. The company also continued its share repurchase program, buying back approximately 4.6 million shares of its Class B common stock for $184.7 million during the first half of 2025.
The company’s balance sheet showed total assets of $2.15 billion as of June 30, 2025, an increase from $2.08 billion at the end of 2024. Current assets rose to $760.7 million, while total liabilities decreased to $874.5 million. Federated Hermes reported a decrease in accrued compensation and benefits, reflecting the payment of 2024 incentive compensation, which contributed to a more favorable cash flow position. The firm’s liquidity remains strong, with liquid assets totaling $576.9 million.
Looking ahead, Federated Hermes anticipates continued growth driven by its strategic initiatives and market conditions. The company expects to maintain its focus on expanding its international presence and enhancing its product offerings. Management remains cautious about potential regulatory changes and market volatility but believes it has sufficient liquidity to meet its operational needs and capitalize on future opportunities.
About FEDERATED HERMES, INC.
Federated Hermes, Inc. is a global investment management firm offering active strategies across equity, fixed-income, money market, and alternative/private markets. Serving institutional, retail, and international clients, it manages over $829 billion in assets. The company provides investment advisory, stewardship, and real estate services, leveraging proprietary research and ESG integration to deliver long-term, risk-adjusted financial value. Its business model centers on asset-based fees from diverse investment products and client segments.
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