Blackstone Inc. (BX) Q2 2025 Earnings Summary

Executive Summary

Strong Q2: EPS and revenue beat Wall Street consensus; fee-related earnings rose 31% YoY to $1.5B and DE per share reached $1.21, supported by broad fund appreciation and record AUM of $1.21T . EPS $0.98 (GAAP diluted) and DE/share $1.21 versus consensus EPS $1.10 and revenue $2.81B; Blackstone declared a $1.03 dividend . EPS and revenue beat (S&P Global data)*.
Engines of growth: Private wealth ($10B sales), credit & insurance (AUM +23% YoY to $407B), and infrastructure (sustained returns) drove fee and performance revenues; Net Accrued Performance Revenues rose to $6.6B ($5.37/share) .
Realization trajectory improving: Management expects acceleration in net realizations exiting 2025 and into 2026; sale of Resolution Life stake anticipated to close in 2H 2025, adding to near-term realization potential .
Strategic update: Post-quarter, Blackstone agreed to acquire Enverus (energy-market SaaS), reinforcing data/energy and AI-infrastructure themes that underpin fund deployment and appreciation .

What Went Well and What Went Wrong

What Went Well
- Fee and earnings power up: Base management fees hit a record $1.88B; FRE rose 31% YoY to $1.46B and DE/share reached $1.21, reflecting scaled perpetuals and drawdown activation .
- Broad fund appreciation: Corporate PE +5.1%, secondaries +6.6%, infrastructure +2.9%, private credit +3.0% gross—highest overall fund appreciation in nearly 4 years . “We grew earnings significantly…with the highest overall amount of fund appreciation in nearly four years.” — Stephen Schwarzman .
- Capital formation and deployment: Inflows $52.1B; deployment $33.1B; dry powder $181.2B; private wealth sales $10B led by BCRED ($3.7B), BXPE ($1.7B), BREIT $1.1B .
What Went Wrong
- Real estate headwinds: Core+ declined (0.4)% and opportunistic appreciated just 0.1%; segment realizations and revenues softer YoY; Segment DE grew 10% but FRE mix remains less robust than PE/Credit .
- Muted net realizations: Total net realizations $325.9M were below Q4 2024; ongoing macro uncertainty tempered pace despite improving pipelines .
- Seasonality and OpEx: Management reiterated seasonally higher operating expenses in 2H and sensitivity of FRE margins to fee-related performance revenues, tempering near-term margin gearing .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenues ($MM, GAAP)	$3,082.6	$3,289.5	$3,711.9
GAAP Net Income ($MM)	$1,328.8	$1,208.8	$1,626.1
Diluted EPS (GAAP) ($)	$0.92	$0.80	$0.98
Distributable Earnings ($MM)	$2,169.5	$1,410.8	$1,565.8
DE per Common Share ($)	$1.69	$1.09	$1.21
Fee Related Earnings ($MM)	$1,835.9	$1,262.1	$1,459.5
FRE per Share ($)	$1.50	$1.03	$1.19
Adjusted EBITDA ($MM)	$2,558.2	$1,738.7	$1,912.5
Dividend per Share ($)	$1.44	$0.93	$1.03

Metric vs Estimates (S&P Global)*	Q2 2025
EPS (Consensus Mean vs Actual) ($)	$1.10 vs $1.21 (Beat)*
Revenue (Consensus Mean vs Actual) ($MM)	$2,809.3 vs $3,801.1 (Beat)*
# of EPS Estimates	15*
# of Revenue Estimates	4*

Segment Breakdown (Q2 2025)	Revenues ($MM)	Segment DE ($MM)
Real Estate	$847.3	$565.9
Private Equity	$1,327.5	$751.4
Credit & Insurance	$753.9	$395.8
Multi-Asset Investing	$145.9	$72.3
Total	$3,074.6	$1,785.4

KPIs	Q4 2024	Q1 2025	Q2 2025
Total AUM ($B)	$1,127.2	$1,167.5	$1,211.2
Fee-Earning AUM ($B)	$830.7	$860.1	$887.1
Perpetual Capital AUM ($B)	$444.8	$464.4	$484.6
Inflows ($B, QTD)	$57.5	$61.6	$52.1
Deployment ($B, QTD)	$41.6	$36.4	$33.1
Realizations ($B, QTD)	$25.9	$25.5	$23.4
Net Accrued Perf. Rev. ($B)	$6.3	$6.4	$6.6
NAPR per Share ($)	$5.14	$5.24	$5.37
Dry Powder ($B)	$168.6	$177.2	$181.2

* Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Base Management Fees growth	FY 2025	“Reasonable starting point” 10% YoY (Q4 run-rate context)	“Continue on a strong positive trajectory; 2H growth resembles 1H”	Maintained
FRE margin/OpEx	FY 2025	Margin stability; OpEx low double-digit growth	Reiterated margin stability; seasonally higher OpEx in 2H	Maintained
Fee-Related Performance Revenues (Infrastructure)	Q3–Q4 2025	Large crystallization occurred in Q4’24; lighter cadence in 2025	Modest amounts in Q2 and Q3; none in Q1 and Q4 (institutional); BXINFRA first crystallization in Q4 then quarterly	Clarified cadence
Realizations	2H 2025–2026	Improving vs cyclical lows	Acceleration exiting 2025 into 2026; Resolution Life stake sale closing 2H 2025	Raised trajectory
Dividend	Q2 2025	Variable policy ~85% of DE	$1.03 declared; record Aug 4, payable Aug 11	N/A (Declared)

Earnings Call Themes & Trends

Topic	Q4 2024 (Prev Mentions)	Q1 2025 (Prev Mentions)	Q2 2025 (Current Period)	Trend
AI/data centers & power	Data centers (QTS) underpin infra/RE returns; 17% net in BIP	Infra appreciation 7.5% Q1; strong data center momentum	“Enormous need for capital to build AI infrastructure; data centers led real estate appreciation”	Strengthening
Private credit expansion	Largest third-party platform; $100B+ IG, 200bps excess spread	Default rates low; origination breadth; IG credit scaling	Demand “extraordinarily robust”; IG and non-IG; BCRED/BXSL FRPR contributions	Strengthening
Private wealth channel	$3.7B Jan fundraising; launch of infra perpetual	$11B Q1 sales; BMAX launch planned	$10B Q2 sales; BCRED $3.7B; BXPE $1.7B; BREIT $1.1B	Strengthening
Real estate recovery	Headwinds from rate spike; cyclical recovery underway	Core+ +1.2%; opportunistic +0.2%; bottoming call reiterated	Gradual recovery; new supply down; cost of capital improving	Improving but gradual
Tariffs/macro/Fed	Pro-growth policy expectations; volatility in yields	Tariff uncertainty; disinflation view from portfolio data	“Despite volatile backdrop, fund appreciation highest in 4 years”; lower rates positive	Mixed, improving clarity
DC/401(k) access	—	Strategic alliance with Wellington & Vanguard toward public-private solutions	Executive order potential; target-date pathway; Blackstone uniquely positioned	Building optionality
Secondaries	Strong appreciation; infra secondaries fundraising	Large new secondary deal drove returns	40%+ YoY pipeline volume; fundraises advancing	Strengthening
Life sciences	Funds appreciated strongly; 11.3% Q4	Platform with 20% annualized since inception	6.7% Q2; 27% LTM; resilient innovation	Strengthening

Management Commentary

“Blackstone delivered outstanding second-quarter results…earnings power, particularly in private wealth, credit and insurance, and infrastructure…AUM increased 13% year-over-year to more than $1.2 trillion—a new industry record.” — Stephen Schwarzman .
“Our robust growth in private credit…$484B across corporate and real estate credit, up threefold in five years…open-architecture insurance channel now 30 relationships.” — Jonathan Gray .
“Fee-related performance revenues reached $472M in Q2, up over two and a half fold…eight different perpetual strategies contributed including BCRED, BXSL, BXPE, VIP, and BREIT.” — Michael Chae .

Q&A Highlights

Private credit spread premium durability: Despite tightening spreads and lower base rates, private credit’s relative premium and bespoke solutions sustain demand; insurance clients earned ~185–190bps excess spread over 18 months .
Real estate recovery drivers: New supply collapse, improving financing spreads, and rising transaction activity signal a “when, not if” recovery; allocations gradually re-opening .
FRPR cadence: Infrastructure incentives expected modestly in Q2 and Q3; BXINFRA’s first crystallization in Q4 with quarterly thereafter .
DC channel: Potential executive order could open defined contribution target-date pathways; Blackstone’s perpetual platforms and brand seen as advantaged .
L&G partnership and Vanguard/Wellington: Targeting up to $20B with Legal & General across IG private credit and wealth; Wellington filed first product with Vanguard (SEC approval pending) .

Estimates Context

Q2 2025 EPS and revenue beat: Consensus EPS $1.10 vs actual DE/share $1.21 (GAAP diluted EPS $0.98); revenue consensus $2.81B vs reported GAAP revenue $3.71B (S&P actual $3.80B)* .
Given beats across EPS and revenue, estimate revisions likely skew upward for fee and performance revenue contributors, notably BXPE, infrastructure, and credit.
* Values retrieved from S&P Global.

Key Takeaways for Investors

Earnings power compounding: Scaled perpetuals (BCRED, BXPE, BXINFRA, BREIT) and activated drawdown funds drive recurring fee growth; watch FRPR cadence shift to infra/private wealth crystallizations .
Realizations turning: Expect higher disposition activity in 2H 2025 and into 2026, starting with private equity; monitor Resolution Life stake sale closing (2H) as a near-term catalyst .
Private credit leadership: Continued outperformance with low defaults and durable spread premiums; insurance AUM growth and partnerships (e.g., L&G) broaden IG credit runway .
AI/data centers/power thematic: Sustained investment and tenant-led development support infra and real estate segments; positive for infra returns and BREIT performance mix .
Dividend and capital returns: $1.03 dividend declared; cumulative LTM dividends $4.26/share; buybacks ongoing—supports income profile while earnings grow .
Risk monitor: Real estate remains gradual; FRE margin sensitivity to FRPR and seasonal OpEx in 2H; macro-policy evolution (tariffs, rate cuts, DC access) can shift trajectories .
Strategic expansion: Enverus acquisition strengthens data/energy intelligence capability tied to electricity demand growth and energy transition; supports infrastructure and energy themes .

Citations: All figures and quotes sourced from Blackstone’s Q2 2025 8-K and earnings materials and prior quarter filings and calls unless marked with an asterisk as S&P Global data.