Ares Capital Q4 adjusted EPS meets expectations, declares dividend

Overview

• Specialty finance firm's Q4 adjusted EPS met analyst expectations

• Q4 GAAP net income per share fell compared to last year

• Company declared Q1 2026 dividend of $0.48 per share

Outlook

• Ares Capital did not provide specific financial guidance for future periods

Result Drivers

• RECORD INVESTMENT COMMITMENTS - Ares Capital originated a record $5.8 bln in new investment commitments in Q4 2025, primarily in first lien senior secured loans

• STRONG CREDIT PERFORMANCE - Co maintained strong credit performance with stable non-accruals, supporting its financial results

• BALANCE SHEET ENHANCEMENT - Ares Capital enhanced its balance sheet by adding $4.5 bln of new gross debt commitments, maintaining liquidity

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "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 "hold."

• Wall Street's median 12-month price target for Ares Capital Corp is $22.50, about 17.6% above its February 3 closing price of $19.13

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBwFzQ61a

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