Ares Capital Q2 adjusted EPS matches estimates

Overview

• US specialty finance firm's Q2 core EPS matched analyst expectations

• GAAP net income per share fell yr/yr due to higher unrealized losses

• Company declared Q3 2026 dividend of $0.48 per share

Outlook

• Company says it remains well positioned with $6.0 bln in available liquidity

• Ares Capital reports investment backlog of $1.5 bln as of July 23, 2026

Result Drivers

• STABLE CORE EARNINGS - Co said results were supported by consistent core earnings and healthy portfolio performance, with historically low levels of non-accruing loans and problem assets, per CEO Kort Schnabel

• SELECTIVE INVESTING - Co said slower transaction environment allowed it to be highly selective and capture enhanced economics in attractive credits

• BALANCE SHEET ACTIONS - Co cited raising $1.2 bln in new financing, upsizing and extending credit facilities, and launching a commercial paper program as steps to enhance liquidity and flexibility, per CFO Scott Lem

Company press release: ID:nPn3KNF6Ja

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "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 $21.00, about 10.3% above its July 28 closing price of $19.04

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 28 - Redwood Trust Q2 net loss narrows sequentially, mortgage banking production doubles y/y

• July 27 - FirstSun Capital Q2 adjusted EPS misses estimates as charge-offs weigh

• July 28 - Rithm Property Trust returns to profit in Q2 but distributable earnings stay negative

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)