Intermediate Capital Group (LON:ICG) Announces Quarterly Earnings Results

Key Points

• For the six months to September 2026, management fees rose 12% to £374 million and fee-related earnings climbed 18% to £199 million, with a 47% margin. The company reported quarterly earnings per share of GBX 82.30 and revenue of £532.10 million.
• Fundraising was strong, including the oversubscribed €12 billion Europe IX fund. ICG is limiting fund sizes and selecting investments carefully to maintain deployment discipline.
• ICG generated £613 million in operating cash flow over the past 12 months and reduced net financial debt to £93 million, but expects buyout activity and near-term performance fees to remain uncertain amid high valuations, elevated rates and a difficult exit environment.

Intermediate Capital Group (LON:ICG - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported GBX 82.30 earnings per share for the quarter, Digital Look Earnings reports. The business had revenue of £532.10 million for the quarter. Intermediate Capital Group had a net margin of 49.28% and a return on equity of 18.00%.

Here are the key takeaways from Intermediate Capital Group's conference call:

• For the six months to September 2026, management fees rose 12% to £374 million and FRE increased 18% to £199 million, with the FRE margin reaching 47%. Over the last 12 months, FRE was £380 million, up 18% year-on-year.
• Fundraising remained strong: Europe IX closed at €12 billion, significantly oversubscribed, and ICG said seven funds raised over the past two years closed at or above target. The firm said it is capping funds and carefully selecting investments to protect deployment discipline and performance.
• Operating cash flow was £613 million over the last 12 months, while net financial debt fell to £93 million and available liquidity stood at nearly £1.5 billion. ICG set a medium-term target of zero net debt and said excess capital may be returned to shareholders, including through a buyback if other uses do not offer better returns.
• Management expects muted buyout activity to persist, citing high valuations, elevated interest rates and uncertainty that continue to hinder deal-making. It said deployment is being handled cautiously; although structured capital had deals in exclusivity, the timing and pace of investment remain uncertain.
• Performance fee income was £24 million for the half, and executives said near-term performance fees are difficult to predict amid a challenging exit environment. They described recent exit activity as strong but noted that performance fees can be lumpy and depend on realizations and fund valuations.

Intermediate Capital Group Stock Up 0.1%

Shares of Intermediate Capital Group stock traded up GBX 1 during trading hours on Wednesday, reaching GBX 1,954. 896,174 shares of the company's stock were exchanged, compared to its average volume of 7,452,742. The business has a fifty day moving average of GBX 1,852.23 and a two-hundred day moving average of GBX 1,800.76. The company has a market capitalization of £5.68 billion, a P/E ratio of 11.92 and a beta of 1.45. Intermediate Capital Group has a 1 year low of GBX 1,424.88 and a 1 year high of GBX 2,148.

Wall Street Analysts Forecast Growth

Several research firms recently commented on ICG. Berenberg Bank reiterated a "buy" rating and set a GBX 2,640 price objective on shares of Intermediate Capital Group in a research note on Friday, September 25th. Jefferies Financial Group decreased their price objective on Intermediate Capital Group from GBX 2,800 to GBX 2,700 and set a "buy" rating for the company in a report on Monday, October 12th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, Intermediate Capital Group currently has a consensus rating of "Moderate Buy" and an average price target of GBX 2,505.

About Intermediate Capital Group

ICG LSE: ICG is a global alternative asset manager with $126bn* in AUM and more than three decades of experience generating attractive returns. We operate from over 20 locations globally and invest our clients' capital across Structured Capital; Private Equity Secondaries; Private Debt; Credit; and Real Assets. Our exceptional people originate differentiated opportunities, invest responsibly, and deliver long-term value. We partner with management teams, founders, and business owners in a creative and solutions-focused approach, supporting them with our expertise and flexible capital.

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