Canada alternative asset manager Onex's Q1 distributable earnings surge

Onex

15/05/2026 12:09

Overview

Canada alternative asset manager's Q1 net earnings and EPS declined yr/yr after Convex acquisition

Q1 distributable earnings rose sharply, driven by realized gains on investments

Convex segment contributed to Q1 results, with adjusted net income of $106 mln

Outlook

Onex says Convex remains well positioned for continued growth in 2026

Company expects Convex to benefit from asset leverage and investment yield improvement as it scales

Convex plans to transition its investment portfolio accounting to reduce non-operational earnings volatility

Result Drivers

CONVEX CONTRIBUTION - Convex delivered strong underwriting profitability and adjusted net income, contributing to segment results

INVESTMENT GAINS - Realized gains on investments and carried interest drove a sharp increase in distributable earnings

CREDIT MARKET VOLATILITY - Credit investment returns were negatively impacted by unrealized mark-to-market losses and market volatility

Company press release: ID:nGNX81xPCN

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$1.76
Q1 Net Income
$129 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the investment management & fund operators peer group is "buy"

Wall Street's median 12-month price target for Onex Corp is C$147.50, about 30.6% above its May 14 closing price of C$112.94

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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.)