OAKS, PA — SEI Investments Company (NASDAQ: SEIC) delivered a robust second quarter, reporting a 70% year-over-year increase in earnings per share, driven by both operational gains and a one-time $94.4 million gain from the sale of its Family Office Services business.
Diluted EPS rose to $1.78, including a $0.58 lift from items not expected to recur, such as the asset sale and the settlement of a longstanding vendor negotiation. Revenue climbed 8%, while operating income increased 9%. SEI’s operating margin improved to 27%, despite higher spending on talent and technology intended to support long-term growth.
“SEI achieved another strong quarter across our core businesses,” said CEO Ryan Hicke. “We are executing with conviction and discipline, positioning the company for sustained growth.”
The company highlighted its recent investment in Stratos Wealth Holdings as part of a broader push to solidify its position in the wealth management sector. Hicke emphasized SEI’s focus on deploying capital in high-conviction opportunities to generate long-term value.
Key Financial and Operational Metrics
- Net Sales Events: Reached $29.2 million for the quarter, bringing the trailing 12-month total to a record $160.4 million. Investment Managers led the way with a balanced mix of wins across alternative, traditional, and international segments.
- Segment Performance:
- Private Banks saw operating profit grow 11%, fueled by new client implementations.
- Investment Managers posted 7% profit growth, led by double-digit gains in alternatives, though traditional revenue dipped slightly due to market volatility.
- Investment Advisors experienced 19% profit growth, bolstered by a $21 million contribution from SEI’s integrated cash program.
- Institutional Investors remained relatively flat in revenue but posted improved net flow performance compared to last year.
- Assets: Average assets under administration rose 4% quarter-over-quarter, while average assets under management grew 2%. Ending AUM increased 6%, supported by favorable market conditions in May and June.
- Share Repurchases: SEI bought back 2.2 million shares during the quarter at an average price of $83.60, totaling $180.8 million. Over the past year, the company has repurchased 9.0 million shares.
Despite a slight decline in operating margin from the previous quarter due to upfront hiring and technology investments, SEI remains optimistic. “We will continue to invest capital in areas where we have conviction that the long-term opportunity will maximize the return for our clients, employees, and shareholders,” said Hicke.
SEI also expanded its board of directors, adding Karin Risi and Tom Naratil, two seasoned executives expected to support the company’s strategic growth initiatives.
As SEI scales its platform to meet client demand and pursue innovation in asset and wealth management, the company appears well-positioned for continued momentum through the second half of 2025.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.