Great Elm Capital Q3 NAV declines

Great Elm Capital

04/11/2025 21:41

Overview

GECC Q3 NAV declines from $12.10 to $10.01 per share due to First Brands bankruptcy

Company announces $10 mln share repurchase authorization, strengthening shareholder returns

Net investment income lower due to uneven CLO JV distributions and refinancing costs

Outlook

Company expects NII to recover in Q4 with increased CLO JV distributions

Company has ample liquidity and plans to deploy capital into cash-generating investments

Result Drivers

FIRST BRANDS LOSSES - NAV decline primarily driven by losses on First Brands investments

CLO JV DISTRIBUTIONS - NII lower due to uneven CLO JV distributions and lack of preference share dividend

DEBT REFINANCING - Refinancing of high-cost debt expected to lower future borrowing costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
-$1.79
Q3 Net Asset Value Per Share
$10.01


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the closed end funds peer group is "hold"

Wall Street's median 12-month price target for Great Elm Capital Corp is $10.00, about 25.2% above its November 3 closing price of $7.48

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNX9JcBw2

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)