NYSE$TSLX

Sixth Street Specialty Lending Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Sixth Street Specialty Lending, Inc. reported its full year and fourth quarter 2024 earnings results, including net investment income of $0.62 per share and net income of $0.55 per share for the fourth quarter.

Sixth Street Specialty Lending, Inc. reported strong fourth quarter results with net investment income of $0.62 per share and net income of $0.55 per share, driven by higher interest rates and increased activity-based fee income. The company also declared a first quarter 2025 base dividend of $0.46 per share and a fourth quarter supplemental dividend of $0.07 per share.

  • Net investment income per share for Q4 2024 was $0.62, reflecting the impact of higher interest rates and increased activity-based fee income.
  • Net income per share for Q4 2024 was $0.55.
  • The company's net asset value (NAV) per share increased to $17.16 at December 31, 2024, up from $17.12 at September 30, 2024.
  • A first quarter 2025 base dividend of $0.46 per share and a fourth quarter supplemental dividend of $0.07 per share were declared.

Headline financials

Total Revenue

$124M

Previous: $112M+10.7%
EPS (adj)

$0.54

Previous: $0.62-12.9%
Net Asset Value Per Share

$17.16

No prior period
Yield at Fair Value

12.3%

No prior period
Yield at Amortized Cost

12.5%

No prior period
Annualized ROE (NII)

14.4%

No prior period
Annualized ROE (NI)

12.8%

No prior period
Supplemental Dividend Per Share

$0.07

No prior period
Adjusted Net Asset Value Per Share

$17.09

No prior period
Total Investment Income

$124M

No prior period
Net Investment Income

$57.6M

No prior period
Accrued Capital Gains Incentive Fee Expense

-$1M

No prior period
Adjusted Net Investment Income

$56.6M

No prior period
Adjusted Net Income

$50M

No prior period
Net Investment Income Per Share

$0.62

No prior period
Accrued Capital Gains Incentive Fee Expense Per Share

-$0.01

No prior period
Adjusted Net Investment Income Per Share

$0.61

No prior period
Annualized ROE (Adj. NII)

14.2%

No prior period
Annualized ROE (Adj. NI)

12.5%

No prior period
New Investment Commitments

$388M

No prior period
Principal Amount of Investments Funded

$352M

No prior period
Principal Amount of Investments Sold or Repaid

$303M

No prior period
Capital Expenditures

$0.00

Previous: $0.00
Net Income

$51M

Previous: $51.2M-0.4%
Operating Income

$58.8M

Previous: $199M-70.4%

Revenue & EPS history

Sixth Street · Revenue · Quarterly

$124M

Q4 2024+10.7%vs Q4 2023
Beat estimate in 4 of 13 quarters(31%)
ActualEstimate

Forward guidance

The company anticipates marginally lowering the drawn spread and undrawn fee on its revolving credit facility upon closing of the amendment in Q1 2025. The weighted average remaining life of investments funded with debt is ~2.6 years, compared to a weighted average remaining maturity on debt of ~4.32 years.

Tailwinds

  • Anticipates marginally lowering drawn spread on revolving credit facility.
  • Anticipates marginally lowering undrawn fee on revolving credit facility.
  • Expected closing of revolving credit facility amendment in Q1 2025.
  • Maintains a weighted average duration on liabilities that meaningfully exceeds the weighted average life of assets funded by debt.
  • Continued focus on asset-liability matching principle.

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 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.9%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-0.5%

Avg return

30 days after

68%

13 / 19 earnings

Positive

+4.6%

Q3 2023

Best reaction

-4.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-11.3%-11.8%
Q4 2025-4.4%-4.3%-11.5%
Q3 2025-1.4%-6.4%-1.6%
Q1 2025-0.6%-0.9%+11.5%
Q4 2024+2.2%+2.9%-3.0%
Q3 2024+1.0%+1.3%+7.2%
Q2 2024-0.8%-5.0%+1.1%
Q1 2024-3.7%-3.0%+1.5%
Q4 2023+1.9%+1.6%-2.8%
Q3 2023+4.6%+2.9%+6.3%
Q2 2023+4.5%+2.5%+1.4%
Q1 2023+0.4%-2.6%+4.3%
Q4 2022+3.2%+0.3%-9.4%
Q3 2022+0.2%+1.2%+3.2%
Q2 2022-0.5%-0.6%-2.8%
Q1 2022+1.7%-0.2%-3.7%
Q4 2021+1.7%+0.0%-4.0%
Q3 2021+0.3%+1.5%+0.4%
Q4 2020+3.1%-0.1%+3.6%

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