Barings BDC, Inc. reported its third‑quarter 2025 results, posting net investment income of $33.6 million, or $0.32 per share, and a net increase in net assets of $23.6 million, or $0.22 per share. The company paid a regular dividend of $0.26 per share and a special dividend of $0.05 per share, bringing the total dividend payout to $0.31 per share for the quarter.
The earnings beat was driven by a stronger‑than‑expected portfolio performance. Net investment income rose to $33.6 million from $29.8 million in Q2 2025, and the weighted‑average yield of 9.8% remained stable. Cost controls and disciplined underwriting kept operating expenses in check, allowing the company to exceed the consensus EPS estimate of $0.27 by $0.05, an 18.5% beat.
Revenue also outperformed expectations, reaching $72.4 million versus the consensus estimate of roughly $70.7 million. The $1.7 million beat was largely attributable to higher interest income from new commitments and a favorable portfolio mix that kept default rates low. The company’s loan portfolio continued to generate robust cash flow, supporting the revenue growth.
On the balance‑sheet side, the investment portfolio was valued at $2,536.3 million at fair value, and total assets stood at $2,821.9 million. Debt outstanding was $1,629.0 million, giving a debt‑to‑equity ratio of 1.40x. Net unrealized depreciation of $8.8 million and a net realized loss of $1.3 million contributed to a net unrealized depreciation of $8.8 million for the quarter. NAV per share fell to $11.10, a 0.7% decline quarter‑over‑quarter, primarily due to market‑driven depreciation and foreign‑exchange effects.
Capital‑market activity included $73.5 million of new commitments, of which $41.1 million were closed and funded—$41.0 million of first‑lien senior secured debt and $0.1 million of equity. The company also issued $300 million of senior unsecured notes on September 15, 2025, and repaid its 4.25% Series B senior unsecured notes due November 2025. No shares were repurchased under the 12‑month share‑repurchase program authorized in March 2025.
Management emphasized the durability of the portfolio and the company’s strategic focus on middle‑market lending. CEO Eric Lloyd noted that the transition to Tom McDonnell as CEO effective January 1, 2026 would be a continuation of the current leadership team. CFO Elizabeth Murray highlighted that the NAV decline was driven by net unrealized depreciation on the portfolio credit support agreement and foreign‑exchange effects, but that the company’s credit quality remained strong. No forward guidance was disclosed, and market reaction to the results was measured, reflecting confidence in the company’s earnings strength while acknowledging the NAV dip.
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