01—Abstract
Summary
Summary of the 10-Q filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Principal Financial Group, Inc. (PFG) reported net income attributable to Principal Financial Group, Inc. of $406.2 milliona for the three months ended June 30, 2025, compared with $353.1 million in the same period of 2024, and $454.3 million for the six months ended June 30, 2025, compared with $885.6 million a year earlier.
Total revenues were $3.67 billionb for the quarter versus $4.31 billion in 2024, and $7.37 billion for the six months versus $8.36 billion. The six-month decline reflects a $189.4 million loss on the funds withheld embedded derivative (versus a $429.9 million gain in 2024), and a $111.7 million net realized capital loss that includes a $77.0 million held-for-sale write-down of a Hong Kong MPF-related customer relationship intangible asset. Diluted earnings per share were $1.79 for the quarter and $2.00 for the six months, compared with $1.49 and $3.72 in 2024, with the prior-year six-month figure affected by a one-time $158.1 million unfavorable impact from yearly renewable term reinsurance transactions.
Total assets rose to $323.10 billionc at June 30, 2025, from $313.66 billion at December 31, 2024, and total stockholders' equity attributable to PFG was $11.42 billion. Cash and cash equivalents fell to $3.66 billion from $4.21 billion. Net cash provided by operating activities was $1.79 billion for the six months, while $400.0 million of 2025 senior notes were repaid at maturity, funded by the exercise of a contingent funding agreement that issued $400.0 million of 4.111% senior notes due 2028.
The company returned $732.2 milliond to common stockholders in the first half through $338.7 million of dividends and $393.5 million of share repurchases, and it declared $0.76 per share in dividends for the quarter. Management states it has no significant changes in credit ratings and that disclosure controls were effective as of June 30, 2025. The filing also notes a Hong Kong MPF transaction with Bank Consortium Trust Company, expected to close in the first half of 2026 subject to regulatory approval, and a Public Law 119-21 tax legislation enacted July 4, 2025, whose financial impact the company says cannot yet be reasonably estimated.
02—Key points
Key Highlights
- Net income attributable to PFG was $406.2 million in Q2 2025, up from $353.1 million in Q2 2024; six-month net income attributable to PFG was $454.3 million versus $885.6 million a year earlier.
- Total revenues were $3.67 billion for Q2 2025 versus $4.31 billion for Q2 2024, and $7.37 billion for the six months versus $8.36 billion, with the change in fair value of the funds withheld embedded derivative swinging to a $189.4 million loss for the six months from a $429.9 million gain.
- Diluted EPS was $1.79 for Q2 2025 versus $1.49 in Q2 2024; six-month diluted EPS was $2.00 versus $3.72, which included a prior-year one-time $158.1 million unfavorable impact from yearly renewable term reinsurance transactions.
- Total assets were $323.10 billion at June 30, 2025, up from $313.66 billion at December 31, 2024, and total stockholders' equity attributable to PFG was $11.42 billion.
- The company repaid $400.0 million of 3.400% senior notes at maturity in May 2025, funded by exercising a contingent funding agreement that issued $400.0 million of 4.111% senior notes due 2028.
- Capital returns to common stockholders totaled $732.2 million for the first six months, including $338.7 million of dividends and $393.5 million of share repurchases; the company declared $0.76 per share for Q2 2025.
- A $77.0 million held-for-sale write-down of a customer relationship intangible and $65.4 million of impairments tied to the pending Hong Kong MPF transaction with Bank Consortium Trust Company were recognized in Q1 2025, with closing expected in the first half of 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $3.67B$4.31B | −14.8% |
| Net Income | $406.20M$353.10M | +15.0% |
| EPS (Basic) | $1.81$1.51 | +19.9% |
| EPS (Diluted) | $1.79$1.49 | +20.1% |
| Shares Outstanding (Basic) | 224.10M233.80M | −4.1% |
| Shares Outstanding (Diluted) | 226.50M236.60M | −4.3% |
05—Questions
Frequently Asked Questions
Why did net income fall so much for the first six months of 2025 compared with 2024?
Net income attributable to PFG for the six months was $454.3 million versus $885.6 million in 2024. The filing attributes the decline mainly to the change in fair value of the funds withheld embedded derivative, which produced a $189.4 million loss in 2025 versus a $429.9 million gain in 2024, and to $119.7 million of asset write-downs related to exiting the Hong Kong MPF sponsor and trustee roles. These were partially offset by the absence of the $158.1 million one-time 2024 impact of yearly renewable term reinsurance transactions.
How did second-quarter 2025 results compare with second-quarter 2024?
Net income attributable to PFG rose to $406.2 million in Q2 2025 from $353.1 million in Q2 2024, and diluted EPS rose to $1.79 from $1.49. The filing cites the lapping of the $158.1 million one-time 2024 reinsurance impact and a $32.4 million one-time expense accrual release in 2025, partially offset by a $167.8 million decrease from the funds withheld embedded derivative change.
How much cash did the company return to shareholders in 2025?
For the six months ended June 30, 2025, the company returned $732.2 million to common stockholders, consisting of $338.7 million in dividends and $393.5 million in repurchases of common stock. The company declared dividends of $0.76 per common share for the second quarter. The Board's February 2025 authorization allows up to $1.5 billion of share repurchases with no expiration date.
Did the company change its debt position during the first half of 2025?
Yes. Long-term debt was $3.92 billion at June 30, 2025, compared with $3.96 billion at year-end 2024. The company repaid $400.0 million of 3.400% senior notes that matured May 15, 2025, using proceeds from exercising a contingent funding agreement that issued $400.0 million of 4.111% senior notes due 2028. Short-term debt fell to $24.1 million from $152.7 million.
What regulatory or tax developments does the filing flag as affecting future results?
The filing states that Public Law 119-21, enacted July 4, 2025, was not reflected in the second-quarter financial statements because the enactment date fell after the reporting period, and that a reasonable estimate of its future impacts cannot be made at this time. The company also notes it is monitoring global Pillar Two minimum tax rules and has elected to recognize related tax expense as incurred.
06—Continue