ARMOUR Residential REIT (2AR) Q3 2026 Earnings Report
CH:2AR Q3 2026 EPS Results
- Actual EPS
- CHF 0.59
- Consensus EPS
- CHF 0.59
- Beat/Miss
- Missed by -CHF 0.00
- One Year Ago EPS
- CHF 0.60
CH:2AR Q3 2026 Revenue Results
- Actual Revenue
- -CHF 752.43M
- Expected Revenue
- CHF 99.19M
- Beat/Miss
- Missed by -CHF 851.63M
- YoY Revenue Growth
- -331.03%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- After Close
- Conference Call
- Wednesday, October 21, 2026
ARMOUR Residential REIT's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was cautiously constructive on the medium-term Agency MBS outlook, supported by wide mortgage spreads, stable funding conditions, strong liquidity, maintained dividends and portfolio repositioning opportunities. However, those positives were balanced by a $327 million GAAP loss, a negative 12.9% total economic return, a 17% book-value decline and significant rate, spread and macroeconomic volatility during the quarter.
ARMOUR expects liquidity to remain near $1.02 billion through the end of October, leverage was 7.9 turns as of Monday, October 19, and it has dry powder to add leverage as warranted when it has greater clarity on the macroeconomic outlook as well as inflation; it plans to eventually reinvest sales proceeds and paydowns into moderate discount priced MBS, with levered returns running from 15% to 18% depending on the coupon, expects prepayment speeds to remain broadly stable in the coming months, targets around flat duration at the back end and a very slight positive duration at the front end within very tight bands, and expects about an 80-20 mix of swaps versus futures; earnings available for distributions are expected to be in the range of the dividend for the coming quarter, with a $0.24 common dividend payable on November 27, and the base case is 2 cuts by the end of 2027 versus markets pricing about 3 to 4 cuts by the end of 2027.
- Positive Distributable Earnings Despite GAAP LossQ3 net interest income was $83.7 million, while distributable earnings available to common stockholders were $102.3 million, or $0.71 per common share.
- Capital Raised Through Common and Preferred OfferingsARMOUR raised approximately $205.7 million by issuing approximately 12.4 million common shares and $2.5 million by issuing approximately 123,000 preferred shares through its at-the-market offering programs.
- Continued Common Share RepurchasesThe company repurchased 363,700 common shares at the end of September and stated that it seeks to act on both sides of the market when issuing or repurchasing shares is attractive relative to book value.
- Monthly Dividend MaintainedARMOUR paid a monthly common dividend of $0.24 per share, totaling $0.72 for the quarter, and declared additional $0.24 per-share dividends payable on October 29 and November 27, 2026. Management said earnings available for distribution are expected to be in the range of the dividend for the coming quarter.
- Mortgage Spreads Present Attractive ValuationsManagement said mortgage spreads were near their widest levels of the year, offering more compelling valuations and supporting a constructive medium-term outlook for Agency MBS.
- Supportive Agency MBS Supply-Demand BackdropElevated mortgage rates continue to constrain origination and net Agency MBS supply, while limited financing activity and favorable repo conditions support portfolio carry. Management also said the GSEs have more than $100 billion of capacity remaining under their regulatory caps and could act as meaningful potential backstop buyers at wider spreads.
- Low Starting Leverage and Limited Duration Helped During VolatilityARMOUR entered the quarter with historically low leverage and limited net duration exposure, which management said helped the company navigate heightened market volatility.
- Strong Liquidity PositionAvailable liquidity was $1.02 billion at the end of Q3 and was expected to remain near that level through the end of October. Management also said the company did not have to sell assets because of liquidity pressure.
- Portfolio Repositioning Captured Relative OutperformanceARMOUR net added approximately $1.4 billion of MBS assets during the quarter and sold approximately $900 million, primarily 5-year and 10-year DUS pools and deep-discount seasoned MBS. Management said the sales captured relative outperformance, supported liquidity and leverage objectives, and generated proceeds for reinvestment.
- Reinvestment Opportunities Offer High Levered ReturnsThe company plans to reinvest proceeds and paydowns into moderate-discount-priced MBS, which widened the most in September and offered levered returns running from 15% to 18%, depending on the coupon.
- Prepayment Speeds ImprovedPortfolio prepayments averaged 8.5% CPR in Q3, down 25% from the prior quarter. With 30-year conforming mortgage rates nearing 7.5%, management expects prepayment speeds to remain broadly stable, providing greater predictability for portfolio earnings and improving the convexity profile of mortgage assets.
- Concentrated Agency MBS PortfolioThe mortgage portfolio remains invested exclusively in Agency MBS and DUS securities, consistent with the strategy since the third quarter of 2020, and more than 96% of MBS holdings are concentrated in specified pools with favorable prepayment characteristics.
- Robust Hedging and Funding StructureThe swap hedge-to-repo ratio was approximately 89%, its highest level since 2022. The company continues to target approximately an 80% swaps and 20% futures mix, and its hedges are designed to protect earnings against further increases in short-term rates.
- Stable Repo Markets and Diversified Financing AccessRepo spreads to SOFR remained tight through September and early Q4. Approximately 50% of the portfolio was financed through affiliated broker-dealer Buckler Securities, while the company maintained access to roughly 20 counterparties across the global market and could use overnight or term financing.
- Dry Powder and Robust Liquidity Stress TestingLeverage was 7.9 turns as of October 19, excluding Treasury loans and with adjustments for expected paydowns. Management said it had dry powder to add leverage when there was greater clarity on the macroeconomic and inflation outlook, while its existing liquidity stress testing used extreme, COVID-like scenarios and had not required modification.
CH:2AR Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | 0.58- | 0.59 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 0.590.59 | 0.6 | -1.39% (-0.01) | |
| Jul 22, 2026 | 2026 (Q2) | 0.600.60 | 0.64 | -6.49% (-0.04) | |
| Apr 22, 2026 | 2026 (Q1) | 0.640.63 | 0.71 | -11.63% (-0.08) | |
| Feb 18, 2026 | 2025 (Q4) | 0.640.59 | 0.65 | -8.97% (-0.06) | |
| Oct 22, 2025 | 2025 (Q3) | 0.650.60 | 0.83 | -28.00% (-0.23) | |
| Jul 23, 2025 | 2025 (Q2) | 0.670.64 | 0.89 | -28.70% (-0.26) | |
| Apr 23, 2025 | 2025 (Q1) | 0.750.71 | 0.68 | 4.88% (+0.03) | |
| Feb 12, 2025 | 2024 (Q4) | 0.810.65 | 0.89 | -27.10% (-0.24) | |
| Oct 23, 2024 | 2024 (Q3) | 0.810.83 | 0.89 | -7.41% (-0.07) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.