LOEWS CORP (L)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 EPS was $1.87 on net income of $391 million, up 6% year over year; consolidated revenue was $4.56B. Strength at Boardwalk Pipelines and higher parent investment income offset lower contributions from CNA and Loews Hotels, including an $81 million after-tax mass tort reserve charge at CNA net of noncontrolling interest .
• Boardwalk EBITDA rose 14% to $274 million and net income rose 26% to $88 million on higher re‑contracting rates and growth projects; revenue backlog increased to $14.7B (+$0.4B in Q2) and several new projects totaling $1.7B capex reached final investment decision with double‑digit ROA, largely backed by investment-grade utility customers .
• Loews Hotels Adjusted EBITDA increased 11% to $109 million, driven by Orlando openings and Arlington strength; net income fell to $28 million due to higher depreciation/interest and lower JV equity income. Management targets Adjusted EBITDA of $400–$450 million over the next several years, nearly double pre‑COVID levels .
• Capital allocation remains a catalyst: Loews repurchased 2.9M shares for $251M in Q2 (7.5M YTD; $636M), ended Q2 with $3.4B cash/investments and $1.8B debt; book value per share rose to $84.42 (ex‑AOCI $91.66) .

What Went Well and What Went Wrong

• What Went Well

  • Boardwalk strength: EBITDA +14% to $274M and net income +26% to $88M, supported by higher transportation/storage rates and completed growth projects; backlog reached $14.7B and new FIDs total $1.7B capex with double‑digit ROA. “Our reticulated system in the southeast is extremely well positioned to capitalize on the concurrent LNG and AI data center booms” — Ben Tisch .
  • Hotels operating momentum: Adjusted EBITDA +11% to $109M, benefiting from three new Orlando hotels and Arlington ramp; management expects Adjusted EBITDA to reach $400–$450M over several years — Alex Tisch .
  • Parent investment income: after‑tax investment income rose sharply to $40M vs $7M in Q2’24, driving corporate segment breakeven; Loews received $189M from subsidiaries in Q2 ($114M CNA dividends, $75M Boardwalk distributions) .

• What Went Wrong

  • CNA headwinds: net income fell to $274M from $291M on unfavorable mass tort reserve development and higher investment losses; combined ratio improved to 94.1% (cat losses down), but an $81M after‑tax charge at the Loews level hit results .
  • Hotels net income down: despite EBITDA growth, net income dropped to $28M from $35M due to higher depreciation/interest tied to new Orlando properties and debt refinancing; Miami renovations reduced occupied room nights .
  • Investment losses at CNA: higher realized losses on disposal of fixed maturities, partially offset by preferred stock mark‑to‑market gains, pressured CNA’s contribution .

Financial Results

• Consolidated Revenue, Net Income, EPS

• Segment Net Income Attribution to Loews

• CNA P&C Ratios

• KPIs

• Estimates vs Actuals
  • S&P Global consensus EPS and revenue estimates for Loews were unavailable for Q2 2025; therefore, a beat/miss determination cannot be made. Values retrieved from S&P Global. [GetEstimates — no consensus returned]*

Guidance Changes

Earnings Call Themes & Trends

Note: Loews did not hold a live earnings call; management posted written “Earnings Remarks.” No Q&A transcript was available .

Management Commentary

• Ben Tisch, President & CEO: “It was, by all accounts, a decent quarter, and would have been a great one were it not for CNA’s mass tort reserve charge… Boardwalk standing out in particular with its stellar results… projects totaling $1.7 billion of capex… modeled to have double digit return on assets… well positioned to capitalize on the concurrent LNG and AI data center booms” .
• Alex Tisch, President & CEO of Loews Hotels: “Adjusted EBITDA will grow to between $400–$450 million over the next several years… our room count has expanded by almost 50% since 2018… we opened three new hotels totaling 2,000 rooms adjacent to Universal’s Epic Universe… properties in Arlington are well on their way to surpassing our underwriting goals” .
• Jane Wang, CFO: “The 6% year‑over‑year increase in net income was primarily driven by robust results at Boardwalk and higher net investment income at the parent company… CNA recorded an $81 million after‑tax charge… Boardwalk added $400 million to its revenue backlog, bringing the total to $14.7 billion… Loews repurchased about 7.5 million shares YTD at a cost of $636 million” .

Q&A Highlights

No live Q&A session; Loews provided written earnings remarks only . Key clarifications from management:

• CNA impact: Unfavorable mass tort reserve development (after‑tax $81M at Loews) and higher investment losses were the primary drags despite stronger net investment income and improved P&C underwriting .
• Boardwalk trajectory: EBITDA +14% YoY; backlog $14.7B; $1.7B of new projects with double‑digit ROA, largely utility‑backed, and positioned for LNG and AI‑driven demand .
• Capital returns: Q2 subsidiary cash to Loews totaled $189M (CNA dividends $114M; Boardwalk $75M); buybacks continued with 2.9M shares repurchased in Q2 for $251M; cash/investments $3.4B at quarter‑end .

Estimates Context

• S&P Global consensus EPS and revenue estimates for Loews were unavailable for Q2 2025; as a diversified holding company, Loews is not widely covered with consolidated consensus, limiting beat/miss comparisons. Values retrieved from S&P Global. [GetEstimates — no consensus returned]*
• Implication: Near‑term estimate revisions are more likely at subsidiary levels (e.g., CNA, Boardwalk) rather than consolidated Loews. CNA’s mass tort development and investment losses may prompt cautious revisions; Boardwalk’s backlog expansion and rate strength support upward bias to its EBITDA trajectory .

Key Takeaways for Investors

• Boardwalk is the growth engine: rising re‑contracting rates, expanding backlog (+$0.4B in Q2 to $14.7B), and $1.7B of new projects with double‑digit ROA provide multi‑year visibility; exposure to LNG and AI data centers is a structural tailwind .
• CNA’s underlying franchise remains solid, but casualty loss inflation and legacy mass tort reserves create episodic charges; watch development trends and investment loss cadence alongside improving net investment income and lower cat losses (cat 2.4 points in Q2 vs 3.5 a year ago) .
• Hotels are ramping: Orlando openings and Arlington momentum lifted Adjusted EBITDA +11% YoY; medium‑term target of $400–$450M Adjusted EBITDA suggests material value creation despite near‑term net income headwinds from depreciation/interest .
• Capital allocation discipline: robust subsidiary dividends/distributions ($189M in Q2; $875M YTD), large buybacks (7.5M shares YTD), and strong parent liquidity ($3.4B cash/investments) underpin per‑share value accretion; continued repurchases are likely if discount persists .
• Short‑term trading: Expect stock sensitivity to CNA reserve/investment developments and additional Boardwalk project announcements; buyback cadence provides downside support .
• Medium‑term thesis: Sum‑of‑parts accretion from Boardwalk growth + Hotels ramp + CNA core profitability, amplified by ongoing share count reduction and rising book value per share (ex‑AOCI $91.66) .
• Dividend continuity: Quarterly dividend maintained at $0.0625; not a primary driver but supportive of capital return profile .

Sources: Q2 2025 press release and 8‑K exhibits (including earnings remarks); prior Q1 2025 and Q4 2024 press releases and 8‑K; dividend and board appointment press releases .