Blue Owl Capital(DE:1D6)
€9.75-0.10 (-1.04%)
DE:1D6
Blue Owl Capital earnings date
€9.75
At close:-0.10 (-1.04%)
Blue Owl Capital (1D6) Q3 2026 Earnings Report
5 Followers
DE:1D6 Q3 2026 EPS Results
- Actual EPS
- EUR 0.30
- Consensus EPS
- EUR 0.29
- Beat/Miss
- Beat by +EUR 0.01
- One Year Ago EPS
- EUR 0.33
DE:1D6 Q3 2026 Revenue Results
- Actual Revenue
- EUR 344.08M
- Expected Revenue
- EUR 345.89M
- Beat/Miss
- Missed by -EUR 1.81M
- YoY Revenue Growth
- -15.48%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
DE:1D6 Upcoming Earnings
Blue Owl Capital's next earnings date is estimated for February 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:1D6 Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Management reported earnings above the base dividend, modest NAV growth, stable credit quality, improving spreads, strong liquidity, accretive share repurchases, and favorable performance across the portfolio. The main challenges were below-historical deal flow, lower repayments than in recent years, modest non-recurring fee income, a slight increase in Category 3 investments, refinancing cost pressure from maturing fixed-rate notes, and continued investor concern about the public stock discount. Management characterized these issues as manageable and expressed confidence in improving earnings and portfolio resilience.
Company Guidance
Management said “we expect things to continue to improve from here,” with wider spreads and higher base rates providing “an additional tailwind in the coming quarters”; with 95% of debt investments floating rate, a 100 basis point rise in base rates would increase quarterly earnings by approximately $0.02, with the September rate-hike benefit expected to begin flowing through in the fourth quarter. The $0.31 per share base dividend and $0.01 per share supplemental dividend remain well-supported, while net leverage is targeted at 0.9x to 1.25x and total liquidity remains approximately $3.6 billion. Management expects continued deployment through existing portfolio companies, refinancings, add-ons, and new transactions, intends to continue evaluating share repurchases alongside other investment opportunities, and said adding a percentage point or two to the eight specialty investments’ just over 13% portfolio share is something it would continue to look to do in any given year.
- Adjusted Net Investment Income Covered DividendThird-quarter adjusted net investment income was $0.33 per share, exceeding the $0.31 base dividend and resulting in an annualized ROE of approximately 9.2%. The company also declared a $0.01 per share supplemental dividend.
- NAV and Net Income ROE ImprovedNet asset value per share increased to $14.32 from $14.26, driven by improved portfolio marks and accretive share repurchases. Earnings and NAV growth resulted in a net income ROE of 10.3%.
- Strong Credit Quality and Portfolio PerformanceBorrowers continued to perform well, with revenue and EBITDA growing in the mid-single digits year-over-year. No new issuers were added to non-accrual during the quarter, and non-accruals remained at 0.8% of the portfolio at fair value.
- Share Repurchases Accretive to NAVThe company repurchased $35 million of stock during the quarter, which was accretive to NAV per share by $0.02. Total repurchases over the past year reached $254 million, with approximately $195 million of capacity remaining under the $300 million authorization.
- Improved Spreads and Higher-Rate Earnings TailwindWeighted average spreads on new floating-rate investments increased to 5.2% from 4.8% since the fourth quarter of last year. With 95% of debt investments floating rate, a 100 basis point rise in base rates would increase quarterly earnings by approximately $0.02, all else equal.
- New Investment Commitments and Incumbency AdvantageNew investment commitments exceeded $890 million, with fundings above $700 million. More than 50% of fundings went to incumbent borrowers, and origination activity was spread across 14 new names.
- Attractive Big Brand Tire FinancingThe company provided additional financing to Big Brand Tire & Service to support an add-on acquisition. New and existing loans were repriced to S+575 from S+450, reflecting wider market spreads and the benefit of scale, incumbency, and market expertise. The company's equity co-investment was marked well above cost.
- Diversified Senior-Secured PortfolioOBDC remained diversified across 233 companies in 29 industries, with an average position size of approximately 40 basis points. Senior secured loans represented 79% of the portfolio at fair value.
- Stable Leverage, Coverage, and LTV MetricsNet leverage was 1.13x, within the target range of 0.9x to 1.25x. Borrower interest coverage was approximately 2x, portfolio company net leverage averaged 5.9x, and loan-to-value ratios remained stable at approximately 47%, reflecting significant equity cushions beneath the loans.
- Watch List Performance ImprovedSeveral existing watch-list names showed modest improvement in operating performance. More companies met or exceeded earnings expectations than in the prior quarter, and management described the quarter as slightly stronger than expected, with some watch-list companies showing positive revenue trends.
- Limited Impact from Macro PressuresHigher rates, elevated energy prices, and mixed consumer trends had minimal impact on the portfolio to date. Management highlighted limited exposure to more cyclical areas and a focus on larger companies in defensive industries with stable demand and diversified revenue streams.
- Software Portfolio Continued to Perform WellSoftware exposure represented approximately 18% of the portfolio and had modestly higher marks during the quarter. The investments are primarily first-lien, senior-secured loans to large, mission-critical enterprise software companies with weighted average EBITDA above $300 million.
- PIK Income Declined and Collections Exceeded AccrualsPIK income declined to 9.9% of total investment income from 10.7% in the prior quarter and from peak levels above 13% two years ago. Year-to-date PIK cash collections were greater than PIK accruals, and management said the PIK investments were performing as intended and paying off regularly.
- Resolved Larger Non-Accrual PositionsSubsequent to quarter end, the company resolved several larger non-accrual positions, including National Dentex, QC Supply, and Loparex. Management said quarter-end marks already reflected visibility on these outcomes and expected limited, if any, future impact to NAV.
- Strong Liquidity and Diversified FundingTotal liquidity, including cash and undrawn credit-facility capacity, was approximately $3.6 billion and comfortably exceeded unfunded commitments. The company also closed a $292 million CLO at SOFR plus 160 basis points, marginally reducing its cost of secured financing while maintaining a diverse funding mix.
- OBDC II Realizations Validated Portfolio MarksSince the beginning of the year, OBDC II exited approximately $1 billion of investments, representing more than 60% of its portfolio across all or part of approximately 130 investments. The portfolio declined from approximately $1.6 billion to $600 million, and every exit was at or above the company's marks.
- Long-Term NAV Stability and Low Loss RateManagement stated that NAV per share has remained stable over the past decade and that the annualized loss rate has averaged 33 basis points, below broader industry rates.
- Specialty and Joint-Venture Investments Generated Consistent ReturnsThe company continued to deploy into eight joint-venture and specialty equity investments. Their returns have been in the low double digits on an ROE basis, and together they represented just over 13% of OBDC. Management said it would consider adding one to two percentage points in any given year through slow, steady, and disciplined deployment.
- Selective Equipment Finance ActivityOBDC participated selectively in equipment finance transactions involving power generation and GPUs with contractual investment-grade off-takers. These investments were just over 1% of the portfolio, were secured by collateral, and had average duration of around two years or less.
- Upper Middle-Market Lending Environment ImprovedManagement described the upper middle-market direct-lending environment as attractive, with wider spreads, reasonable leverage, and good documentation. Public BDCs were benefiting from better supply-demand characteristics as non-traded funds experienced outflows.
- Dividend Remains Well-SupportedThe board declared a fourth-quarter base dividend of $0.31 per share and a $0.01 per share supplemental dividend. Management said the dividend remained well-supported by earnings coverage, expected higher-base-rate benefits, and spillover income.
DE:1D6 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 24, 2027 | 2026 (Q4) | 0.30- | 0.34 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 0.290.30 | 0.33 | -10.81% (-0.04) | |
| Aug 05, 2026 | 2026 (Q2) | 0.290.31 | 0.38 | -19.05% (-0.07) | |
| May 06, 2026 | 2026 (Q1) | 0.310.28 | 0.37 | -24.39% (-0.09) | |
| Feb 18, 2026 | 2025 (Q4) | 0.320.34 | 0.42 | -19.15% (-0.08) | |
| Nov 05, 2025 | 2025 (Q3) | 0.360.33 | 0.42 | -21.28% (-0.09) | |
| Aug 06, 2025 | 2025 (Q2) | 0.360.38 | 0.43 | -12.50% (-0.05) | |
| May 07, 2025 | 2025 (Q1) | 0.390.37 | 0.42 | -12.77% (-0.05) | |
| Feb 19, 2025 | 2024 (Q4) | 0.410.42 | 0.46 | -7.84% (-0.04) | |
| Nov 06, 2024 | 2024 (Q3) | 0.430.42 | 0.44 | -4.08% (-0.02) |
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.
Beat Missed
