Fiera Capital (TSE:FSZ) reported fourth-quarter and full-year 2025 results, highlighting modest asset growth excluding sub-advised strategies, continued expansion in private markets, and improved profitability metrics alongside ongoing efforts to reduce leverage.
Assets under management: growth excluding sub-advised strategies
Global President and CEO Maxime Ménard said total assets under management (AUM) ended the year at CAD 164.1 billion. Excluding sub-advised strategies, AUM increased 0.4% in the fourth quarter and rose by more than CAD 7 billion, or 5.7%, for the full year. Management attributed the annual increase to approximately CAD 1 billion of net inflows and “strong equity markets growth in 2025.”
In public markets, AUM ended the year at CAD 142.1 billion. Excluding sub-advised strategies, public markets AUM reached CAD 108 billion, up 0.5% in the fourth quarter and 4.7% for the year.
Private markets AUM ended the year at CAD 22 billion, up 11.4% year-over-year, reflecting roughly CAD 900 million of net inflows and the acquisition of a controlling interest in a real estate investment platform during the year. Private markets AUM was flat sequentially as net inflows and positive market action were offset by negative foreign exchange impacts.
In private wealth, AUM totaled $14 billion at the end of the fourth quarter, down 2% sequentially and down 6% versus the prior year-end, with the quarter impacted by negative net contribution primarily from Treasuries and sub-advised strategies.
Public markets: mandate wins, flows, and performance
For the fourth quarter, Fiera reported about CAD 500 million in new public markets mandates, with demand cited for Canadian Large Cap and U.S. Growth Equity strategies. Excluding sub-advised AUM, net outflows were CAD 450 million, “largely” reflecting outflows from U.S. fixed income.
Ménard noted that approximately CAD 550 million of sub-advised assets within a balanced mandate were reallocated into Fiera’s U.S. equity strategy; including that transfer, combined net inflows into non-sub-advised AUM were CAD 100 million for the quarter.
For the full year, public markets captured CAD 3.2 billion of new mandates, reflecting interest in Canadian Large Cap, U.S., and emerging market strategies. Management said several mandates came from relationships established with new financial intermediary clients, and that approximately CAD 700 million of positive net contribution in 2025 was directly attributed to those new mandates. For the year, net inflows excluding sub-advised assets were approximately CAD 100 million.
Fiera’s four largest core public market franchises—Canadian Equity, U.S. Growth Equity, Active and Strategic Fixed Income, and Integrated Fixed Income—representing more than 50% of public market AUM, captured CAD 2.8 billion in net inflows for the year. Management said those were “largely offset” by Treasury and U.S. fixed income outflows within its U.S. financial intermediary channel, which it attributed mostly to “structural changes at investment advisory partners and not related to performance.”
On performance, Ménard said fixed income strategies “continue to perform exceptionally well,” with nearly all strategies adding value in the quarter. He said about 95% of fixed income assets outperformed their benchmark over one-year and five-year periods, and 97% outperformed over three years. In equities, most strategies delivered positive absolute returns in the quarter, but outperformance was challenged by benchmark dynamics; management characterized 2025 as difficult for “value and high conviction managers.”
Private markets: real assets driving inflows and deployment
In private markets, Fiera reported roughly CAD 300 million of new mandates in the fourth quarter, primarily into real estate strategies, and net organic growth of CAD 75 million. For the full year, new subscriptions were CAD 1.9 billion and net inflows were close to CAD 900 million, driven mainly by real assets strategies—real estate, infrastructure, and agriculture—where management cited investor demand for inflation and downside protection.
Management said capital returned to clients totaled approximately CAD 100 million in the quarter and CAD 600 million for the year. It also deployed about CAD 450 million into new projects in the fourth quarter and close to CAD 2 billion year-to-date, while maintaining a pipeline of CAD 2 billion in committed, undeployed capital.
On investment performance, management said private market strategies performed well in the quarter and for the year. In real estate, core and small cap industrial strategies produced positive absolute returns for the quarter, with returns of 8% and 13%, respectively, since inception. Infrastructure returns were positive for the quarter and close to 8% for the year, while agriculture returns were supported by consistent income generation, with management stating full-year performance was tracking ahead of industry benchmarks. In private credit, management cited full-year absolute returns of 10% for real estate debt and infrastructure debt strategies and gross internal rates of return of 12% and 11% since inception, respectively.
In a Q&A exchange, management said it expects the “strongest pillars” of private markets growth to remain real assets—real estate, infrastructure, and natural capital—while also continuing to grow credit and private equity. On infrastructure, management said the platform had “stabilized” following a leadership change, and it expects to deploy capital in 2026 on a CAD 420 million separately managed account (SMA) mandate won last year.
Financial results: adjusted earnings, margins, revenue mix, and expenses
Executive Director, Global CFO and Head of Corporate Strategy Lucas Pontillo reported adjusted net earnings of CAD 30 million for the quarter, up from CAD 25 million in the prior quarter and CAD 23 million in the year-ago quarter. Adjusted diluted EPS was CAD 0.24, up CAD 0.01 sequentially and CAD 0.03 year-over-year, despite an estimated CAD 0.03 adverse impact from share dilution tied to the company’s 6% hybrid debenture.
For the full year, adjusted net earnings were CAD 108 million, up 5% from CAD 103 million. Adjusted diluted EPS was CAD 0.87 versus CAD 0.94 in the prior year, which management attributed to dilution from the hybrid debenture (estimated EPS impact of about CAD 0.09 for the year). Excluding that impact, management said adjusted EPS would have increased by approximately CAD 0.02 year-over-year.
Adjusted EBITDA was CAD 55 million in the quarter, up 9% sequentially and up 2% year-over-year, with adjusted EBITDA margin of 30.4% (versus 30.1% in Q3 and 29% in the year-ago quarter). For the full year, adjusted EBITDA was CAD 194 million, down by less than 1% year-over-year, while adjusted EBITDA margin improved to 28.8% from 28.4%.
Total revenue was CAD 180 million in the fourth quarter, up 8% sequentially on higher performance fees and higher commitment and transaction fees, but down 2% year-over-year due to lower public markets base management fees partially offset by private markets. For the full year, total revenues declined CAD 16 million (2%), which management linked to lower sub-advised mandate revenue, lower share of earnings from joint ventures, and lower public market performance fees.
Pontillo also highlighted the shifting contribution of private markets: private markets AUM represented 13% of total AUM but generated 37% of total revenues for the year, up from 35% in the prior year.
On costs, SG&A expenses excluding share-based compensation were CAD 125 million in Q4, up 7% sequentially due to higher sub-advisory fees connected to recognizing performance fees, and down 4% year-over-year on lower compensation costs, sub-advisory fees, and operating expenses. For the full year, SG&A excluding share-based compensation was CAD 479 million, down 3% year-over-year, reflecting cost containment initiatives and lower sub-advisory fees.
Capital allocation, leverage, and dividend
Over the last 12 months, free cash flow totaled CAD 79 million, compared with CAD 87 million in the prior quarter and the year-ago period. Pontillo said the decrease primarily reflected higher dividends paid to non-controlling interests as Fiera harvested dividends from some operating platforms to reduce leverage.
Net debt was CAD 664 million at quarter-end, down CAD 16 million sequentially, and the net debt ratio declined to 3.4x from 3.5x. The company also redeemed CAD 67 million of senior subordinated unsecured debentures using its credit facility and cash generated during the period.
During 2025, Fiera repurchased 1.6 million shares for total consideration of close to CAD 10 million. The board approved a quarterly dividend of CAD 0.108 per share, payable April 9, 2026, to shareholders of record on March 11, 2026.
Looking ahead, management discussed a three-year plan beginning in 2026, centered on five strategic initiatives: strengthening distribution, centering the organization on investment performance, positioning private markets as a growth driver, optimizing operations for efficiency and scalability, and creating greater financial capacity for reinvestment. Pontillo said the company is targeting a net debt ratio of 2.5x over the plan period, which he clarified extends to the end of 2028.
About Fiera Capital (TSE:FSZ)
Fiera Capital Corporation is an employee owned investment manager. The firm primarily provides its services to institutional investors, mutual funds, charitable organizations, and private clients. It manages separate client-focused equity, fixed income, and balanced portfolios. The firm also launches and manages equity, fixed income, and balanced mutual funds and income trusts for its clients. It invests in the public equity and fixed income markets across the globe with a focus on Canada. The firm primarily invests in growth and value stocks of small-cap companies.
