NASDAQ$PFG

Principal Financial Group Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Principal Financial Group reported strong fourth quarter and full year 2024 results, driven by business growth, positive market performance, and effective capital deployment.

Principal Financial Group delivered strong financial results in the fourth quarter and full year 2024, with increased operating earnings and significant capital returned to shareholders. The company's strategic focus on higher growth markets and integrated product portfolio contributed to value creation and growth.

  • Full-year non-GAAP operating earnings per diluted share, excluding significant variances, increased 11% to $7.65, aligning with long-term guidance.
  • The company returned $1.7 billion of capital to shareholders in 2024, including $1.0 billion in share repurchases and $0.7 billion in common stock dividends.
  • The Board of Directors approved a new authorization for the repurchase of $1.5 billion of common stock, with approximately $0.8 billion remaining under the prior authorization.
  • Assets under management (AUM) reached $712 billion, contributing to total assets under administration (AUA) of $1.7 trillion.

Headline financials

Total Revenue

$729M

Previous: $2.69B-72.9%
EPS (adj)

$1.94

Previous: $1.83+6.0%
Assets under management

$712B

Previous: $695B+2.5%
Assets under administration

$1.66T

No prior period
Net cash flow to AUM

-$1.2B

Previous: -$4B+70.0%
Retirement & Income margin

38.4%

No prior period
Investment Mgmt margin

38.3%

No prior period
Intl. Pension margin

38.1%

No prior period
Specialty Benefits margin

17.9%

No prior period
Specialty Benefits loss ratio

56.5%

No prior period
Life Insurance margin

3.3%

No prior period
Capital Expenditures

-$16.9M

No prior period
Net Income

$905M

Previous: -$872M+203.8%
Operating Income

$448M

No prior period

Revenue & EPS history

Principal Financial · Revenue · Quarterly

$729M

Q4 2024-72.9%vs Q4 2023
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Forward guidance

Principal Financial Group's 2025 outlook is consistent with its long-term targets, projecting continued growth in non-GAAP operating earnings per diluted share, strong free capital flow conversion, and robust capital deployment.

Tailwinds

  • 9-12% annual non-GAAP operating earnings per diluted share (EPS) growth.
  • 75-85% free capital flow conversion.
  • 14-16% non-GAAP ROE.
  • $1.4-$1.7 billion capital deployment.
  • Raised first quarter 2025 common stock dividend to $0.75 per share, a 2-cent increase over the fourth quarter 2024 dividend and 9% increase over first quarter 2024 dividend.

Headwinds

  • No specific negative forward guidance was provided in the report.
  • No specific negative forward guidance was provided in the report.
  • No specific negative forward guidance was provided in the report.
  • No specific negative forward guidance was provided in the report.
  • No specific negative forward guidance was provided in the report.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.1%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.8%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+15.3%

Q1 2020

Best reaction

-8.9%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.3%+2.7%+7.1%
Q4 2025-2.4%-5.8%-10.2%
Q3 2025+3.2%+5.6%+6.3%
Q2 2025-0.2%-6.0%-0.2%
Q1 2025-2.6%+4.0%+12.7%
Q4 2024+2.5%+5.6%+1.6%
Q3 2024-5.8%-5.8%-4.4%
Q2 2024+1.3%+1.7%+7.1%
Q1 2024-0.8%-1.5%+1.4%
Q4 2023-0.3%+1.4%+2.0%
Q3 2023-0.9%-1.6%+6.3%
Q2 2023-4.0%-5.7%-8.3%
Q1 2023-0.9%-6.1%-8.7%
Q4 2022-0.5%-0.8%-2.0%
Q3 2022+7.7%+6.0%+13.0%
Q2 2022+10.7%+15.6%+11.6%
Q1 2022-2.5%-0.1%+4.3%
Q4 2021+5.4%+1.5%-12.5%
Q3 2021-3.7%-2.4%+2.0%
Q2 2021+0.5%-0.9%+8.9%
Q1 2021+2.1%+2.5%+4.0%
Q4 2020-4.6%-2.7%+7.7%
Q3 2020-8.9%-6.6%+23.8%
Q2 2020-1.9%-5.1%-0.8%
Q1 2020+15.3%+10.8%+28.7%
Q4 2019+1.1%+0.0%-17.6%
Q3 2019-4.9%-4.1%-4.7%
Q2 2019+0.2%-1.9%-13.7%
Q1 2019+4.2%+3.8%-1.6%
Q4 2018-3.3%-0.4%+5.7%
Q3 2018-6.0%-5.5%-1.3%
Q2 2018+4.9%+5.6%+0.9%
Q1 2018-1.0%-4.6%-4.7%
Q4 2017-8.7%-11.6%-16.9%
Q3 2017+0.6%-2.7%+1.4%
Q2 2017+1.1%+0.1%-5.0%
Q1 2017+1.3%+0.9%-2.4%
Q4 2016-1.6%+2.4%+10.4%
Q3 2016+4.3%+2.2%+10.0%
Q2 2016+4.4%+1.4%+8.1%
Q1 2016-3.1%
Q4 2015-7.7%
Q3 2015+3.8%
Q2 2015+2.7%
Q1 2015-0.2%
Q4 2014-2.1%
Q3 2014+1.0%
Q2 2014+0.2%
Q1 2014+2.5%
Q4 2013-3.0%
Q3 2013+1.3%
Q2 2013+7.2%
Q1 2013+0.4%
Q4 2012-0.7%
Q3 2012-1.0%
Q4 2011-2.3%
Q2 2012-0.4%
Q1 2012-3.6%
Q3 2011+5.2%
Q2 2011-4.6%
Q1 2011-0.2%
Q4 2010+5.0%
Q3 2010+7.6%
Q2 2010-1.0%
Q1 2009-4.1%
Q1 2010+2.2%
Q4 2007+0.7%
Q4 2009+0.7%
Q3 2008+1.1%
Q3 2009+1.1%
Q2 2008-2.4%
Q2 2009-2.4%
Q4 2008-2.4%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro