Loews Q2 2025 slides show rising net income, ongoing focus on ’Loews Discount’

Loews Corporation (NYSE:L) reported a 6% increase in quarterly net income, continuing its strategy of share repurchases and highlighting what it calls the "Loews Discount" in its Q2 2025 investor presentation. The diversified holding company, which owns stakes in insurance, natural gas pipelines, hotels, and packaging businesses, saw mixed performance across its subsidiaries.

Quarterly Performance Highlights

Loews reported net income of $391 million ($1.87 per share) for the second quarter of 2025, up from $369 million ($1.67 per share) in the same period last year. The company’s book value per share increased to $84.42 as of June 30, 2025, from $79.49 at the end of 2024. Excluding accumulated other comprehensive income (AOCI), book value per share rose to $91.66 from $88.18.

As shown in the following financial highlights chart, the company maintained strong liquidity with parent company cash and investments of $3.4 billion as of June 30, 2025:

Performance varied across Loews’ subsidiaries in Q2 2025. Boardwalk Pipelines showed significant improvement with net income attributable to Loews increasing to $88 million from $70 million in Q2 2024. However, CNA Financial’s contribution declined to $274 million from $291 million, and Loews Hotels saw net income decrease to $28 million from $35 million. Corporate results improved substantially, turning positive at $1 million compared to a $27 million loss in the prior-year period.

The following segment breakdown illustrates these performance variations:

Capital Allocation Strategy

Loews has maintained a consistent capital allocation approach, focusing primarily on share repurchases. The company bought back 3.0 million shares for $260 million since March 31, 2025, continuing its long-term strategy of reducing outstanding shares. Since year-end 2014, Loews has retired 45% of its common shares outstanding.

The following chart demonstrates this consistent share repurchase strategy over time:

This share repurchase activity has been supported by strong and consistent cash flow from subsidiaries. Dividends from subsidiaries totaled $189 million in Q2 2025, and $875 million year-to-date through June 30, 2025. The company’s presentation highlighted the growth in dividends per Loews share, which increased from $3.28 in 2021 to $6.05 in 2024, with year-to-date 2025 at $4.15.

As illustrated in the following cash flow chart, Loews has maintained strong dividend income from its subsidiaries over the years:

Subsidiary Performance

CNA Financial, Loews’ largest subsidiary at approximately 92% ownership, reported core income of $335 million for Q2 2025, up from $326 million in Q2 2024. However, net investment losses of $36 million after tax led to a decrease in net income attributable to Loews to $274 million from $291 million. The insurer maintained a solid underlying combined ratio of 91.7%, nearly unchanged from 91.6% in the prior-year period.

Boardwalk Pipelines, which is 100% owned by Loews, showed strong performance with operating revenue increasing to $534 million from $477 million in Q2 2024. Net income attributable to Loews rose to $88 million from $70 million, while EBITDA grew to $274 million from $240 million.

The following chart illustrates Boardwalk’s strong financial position, including its revenue profile and substantial contract backlog:

Loews Hotels & Co, also 100% owned by Loews, reported relatively flat operating revenue of $222 million compared to $219 million in Q2 2024. However, pretax income decreased to $39 million from $44 million, resulting in net income attributable to Loews of $28 million, down from $35 million in the prior-year period. Adjusted EBITDA improved to $109 million from $98 million.

As shown in the following map, Loews Hotels & Co operates a portfolio of owned, joint venture, and managed properties across the United States:

Altium Packaging (NYSE:PKG), approximately 53% owned by Loews, was highlighted as operating in a fragmented industry with acquisition opportunities. The company focuses on short- and mid-run volumes in recession-resistant, consumer-oriented segments.

Strategic Positioning

A key theme in Loews’ presentation was what the company calls the "Loews Discount" – the notion that Loews’ market capitalization ($18.7 billion as of August 1, 2025) is less than the sum of its parts. According to the company, the market value of its stake in publicly-traded CNA ($10.9 billion), plus its net cash ($1.6 billion), plus the implied market value of its private subsidiaries ($6.2 billion) exceeds its current market cap.

The following visualization illustrates this "Loews Discount" concept:

Loews maintains a strong balance sheet with $3.4 billion in parent company cash and investments as of June 30, 2025, compared to $1.8 billion in debt. The company’s cash position increased slightly from $3.3 billion at the end of 2024, despite significant share repurchases during the period.

The following waterfall chart shows the changes in parent company cash and investments during the first half of 2025:

Loews stock closed at $90.29 on August 1, 2025, down 0.28% for the day. The stock has traded between $75.16 and $93.23 over the past 52 weeks, according to market data.

Full presentation:

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