New Mountain Finance misses Q4 earnings, stock dips

Published 26/02/2025, 23:52
New Mountain Finance misses Q4 earnings, stock dips

NEW YORK - New Mountain Finance Corporation (NASDAQ:NMFC) reported fourth quarter earnings that fell short of analyst expectations, sending shares down 2.3% in after-hours trading.

The business development company posted net investment income of $0.32 per share for Q4 2024, missing the analyst consensus estimate of $0.33 per share. This compares to earnings of $0.40 per share in the same quarter last year.

New Mountain Finance declared a first quarter 2025 distribution of $0.32 per share, payable on March 31, 2025 to shareholders of record as of March 17, 2025. This represents an annualized dividend yield of 10.7% based on current share prices.

The company’s net asset value per share declined slightly to $12.55 as of December 31, 2024, compared to $12.62 at the end of the previous quarter.

"NMFC delivered steady results while preserving excellent credit performance in the fourth quarter of 2024," said CEO John R. Kline. He noted the company made progress on increasing its senior-oriented asset mix over the course of 2024.

New Mountain Finance reported a total investment portfolio of $3.10 billion as of year-end, spread across 121 portfolio companies. The weighted average yield to maturity on cost of the portfolio was approximately 11.0%.

The company highlighted that approximately 97% of its portfolio was rated "green" on its internal risk rating scale, indicating investments performing in-line with or above expectations.

New Mountain Finance’s statutory debt-to-equity ratio improved to 1.15x at year-end, down from 1.26x at the end of the third quarter. Excluding available cash, the ratio stood at 1.11x.

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