KKR Co Inc (0Z1W.L) Q2 2025 Earnings Report

- Q2 2025 revenue rose 21.8% year-over-year to $5.00 billion and 63.8% quarter-over-quarter, supported by a combination of core activity and non-operating items. Reported EBITA and operating metrics reflect a sizable contribution from non-operating income, with total EBITDA of $2.31 billion and operating income of $327.3 million, resulting in an EBITDA margin of 46.1% and an operating margin of 6.54%. Net income was $510.1 million with EPS of $0.53 (diluted $0.50). The substantial delta between operating performance and pretax income underscores the impact of non-operating items on reported results.

- On the liquidity and balance sheet front, KKR maintains robust liquidity and a fortress-like asset base: cash and cash equivalents plus short-term investments total about $41.2 billion, and total cash, investments, and assets under management reflect a highly liquid balance sheet. Free cash flow for the quarter was $371.4 million, while cash from operations was $438.8 million. The company ended the period with roughly $18.06 billion in cash and a net debt position of ~$34.66 billion vs. total capitalization, indicating a net debt to capitalization of ~0.65.

- Despite strong cash generation, earnings quality is sensitive to non-operating items. Interest expense remains a material component, and the reported interest coverage ratio is sub-one (0.42x), signaling a leverage-sensitive profile that could pressure earnings through interest costs in a sustained downturn. Valuation remains rich relative to peers, with P/E around 58x and EV/EBITDA around 66x, highlighting the market’s pricing of growth and platform scale as much as current earnings power.

- Outlook is not quantitatively guided in the data provided. Absence of explicit guidance means investors should monitor fundraising momentum, carried interest realization, portfolio performance, and changes in the macro rate environment. The combination of durable fee-related earnings potential and ongoing portfolio activity supports a constructive long-term view, but near-term earnings quality and valuation remain key considerations for risk-adjusted returns.