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LC

LOEWS CORP (L)·Q3 2025 Earnings Summary

Executive Summary

  • Net income rose to $504 million and diluted EPS to $2.43 in Q3 2025, up 26% and 34% year over year; consolidated revenues were $4.671B, up 4.6% YoY, driven by CNA’s underwriting improvement and Boardwalk’s higher re-contracting rates and project contributions .
  • CNA’s combined ratio improved 4.4 points to 92.8% (cat losses only 1.5 points), while Boardwalk EBITDA increased 7% to $267M; Loews Hotels Adjusted EBITDA grew 8% to $69M, though reported a $3M net loss due to depreciation and interest from new Orlando properties .
  • Book value per share increased to $88.39, and BVPS ex-AOCI to $94.00; parent cash and investments ended the quarter at $3.6B. Share repurchases slowed to 0.6M shares ($56M) in Q3, with an additional 0.3M ($29M) in October as the stock reached all-time highs .
  • Boardwalk announced the Texas Gateway Project (1.5–2.5 Bcf/d; $1.2B) and expanded its growth slate to 4.2 Bcf/d ($3.0B capex) with a $15.6B revenue backlog (excluding ~$3.8B for Texas Gateway) — a medium-term catalyst underpinned by long-term contracts and robust LNG/data center demand .
  • No live earnings call/Q&A; Loews posted prepared “Earnings Remarks” by CEO and CFO; S&P Global consensus estimates for Loews Q3 2025 EPS and revenue were unavailable (Street typically focuses on subsidiaries), limiting formal beat/miss analysis .

What Went Well and What Went Wrong

What Went Well

  • CNA delivered strong underwriting with a combined ratio of 92.8% (underlying 91.3%), benefiting from an unusually light hurricane season and disciplined execution: “this quarter’s results underscore the discipline and prudence of Doug Worman and his team” .
  • Boardwalk’s performance and pipeline growth opportunity set expanded: “a wonderful time to be in the natural gas transportation business,” supported by LNG and AI data center demand; EBITDA rose to $267M and net income to $94M .
  • Capital allocation: book value per share excluding AOCI increased to $94.00, and parent company received $189M in Q3 subsidiary distributions ($114M CNA, $75M Boardwalk), underpinning cash returns and flexibility .

What Went Wrong

  • Corporate investment income fell YoY, reducing Corporate net income to $42M versus $73M last year, reflecting lower trading portfolio results .
  • Loews Hotels posted a $3M net loss despite stronger Adjusted EBITDA, with higher depreciation and interest from three new Orlando properties; Miami renovations reduced available room nights .
  • CNA’s underlying loss ratio saw pressure from higher loss cost trends in certain lines even as overall underwriting improved; management flagged social inflation and litigation costs earlier in the year .

Financial Results

Consolidated Results vs Prior Quarter and Prior Year

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Billions)$4.466 $4.494 $4.555 $4.671
Net Income ($USD Millions)$401 $370 $391 $504
Diluted EPS ($USD)$1.82 $1.74 $1.87 $2.43
Weighted Avg Shares (Millions)219.94 212.60 209.36 207.71

Segment Net Income and Key Measures

MetricQ3 2024Q1 2025Q2 2025Q3 2025
CNA Net Income ($MM)$259 $252 $274 $371
Boardwalk Net Income ($MM)$77 $152 $88 $94
Loews Hotels Net Income ($MM)$(8) $0 $28 $(3)
Corporate Investment Income, Net ($MM)$110 $0 $40 $77
Corporate Other ($MM)$(37) $(34) $(39) $(35)
Boardwalk EBITDA ($MM)$249 $346 $274 $267
Loews Hotels Adjusted EBITDA ($MM)$64 $81 $109 $69
CNA Combined Ratio (%)97.2 98.4 94.1 92.8
CNA Underlying Combined Ratio (%)91.6 92.1 91.7 91.3

Balance and Capital

MetricQ1 2025Q2 2025Q3 2025
Book Value per Share ($)$81.73 $84.42 $88.39
Book Value per Share (ex-AOCI) ($)$89.74 $91.66 $94.00
Parent Cash & Investments ($B)$3.5 $3.4 $3.6
Shares Outstanding (MM)210.3 207.5 206.9
Share Repurchases (Shares, $MM)4.5M; $376 (Q1) 2.9M; $251 (Q2) 0.6M; $56 (Q3)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Dividend per ShareQ4 2025N/A$0.0625 payable Dec 9, 2025Maintained policy/declared
Boardwalk Texas Gateway CapacityIn-service 2029N/A1.5–2.5 Bcf/d; ~$1.2B capex; 20-year anchor; Gulf Coast focusNew project announced
Boardwalk Kosci Junction CapacityIn-service 2029N/A1.2 Bcf/d; ~$1.0B capex; 20-year anchorOngoing; reiterated
Boardwalk Medium Projects2027–2028N/A6 projects; ~$700M capex; +1.4 Bcf/dExpanded slate
Boardwalk Revenue BacklogCurrent$14.7B (Q2)$15.6B (excl. $3.8B Texas Gateway)Raised backlog
Loews Hotels LT Adjusted EBITDA TargetMulti-yearN/A$400–$450M over next several yearsStrategic target reiterated

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
AI/Data Center demand on pipelinesData centers emerging as new load; growth projects FID totaling ~$1.7B; backlog $14.7B DOE: data centers 4% of U.S. power, potentially 7–12% in 3 years; supports Gulf Coast demand and Boardwalk’s expansion Strengthening tailwind
LNG export-led gas demandStrong LNG demand; Southeast system well-positioned Multiple large projects backed by long-term contracts; Texas Gateway precedent agreement Structural growth
CNA underwriting discipline & social inflationCommercial auto loss cost inflation; reserve strengthening in AY2024; conservative reserving philosophy Combined ratio 92.8%; slight underlying loss ratio pressure; proactive LTC reserve review immaterial change Improving headline; monitoring underlying trends
Catastrophe exposureQ1: $97M cat losses incl. CA wildfires; Q2: lower cat losses Cat losses 1.5 points; light hurricane season highlighted Favorable seasonal
Hotels ramp & mixOrlando (3 new; 2,000 rooms) and Arlington ramp; Miami renovations impact Adj. EBITDA +8% YoY; net loss due to D&A; Orlando/Arlington strength vs Miami renovation drag Mixed; improving operationally
Capital allocation (buybacks)5.1M shares ($429M) Q1; 2.9M ($251M) Q2; “steep discount to intrinsic value” 0.6M ($56M) Q3; 0.3M ($29M) Oct; stock at highs constrained repurchases; intrinsic value view reiterated Opportunistic; moderated in Q3

Management Commentary

  • Ben Tisch, CEO: “It’s a wonderful time to be in the natural gas transportation business… this project exemplifies Boardwalk’s disciplined approach to growth—investing where we have long-term visibility, strong counterparties, and durable demand.” .
  • Scott Hallam, Boardwalk CEO: “AI data centers have emerged as a major new load on the grid… DOE estimates that data centers now consume about 4% of U.S. electricity and they expect that this figure may rise to 7% to 12% within the next three years.” .
  • Jane Wang, CFO: “Book value per share excluding AOCI increased… to $94.00… CNA’s combined ratio improved 4.4 points year-over-year to 92.8%… cat losses only 1.5 points.” .
  • Ben Tisch on buybacks: “Activity this quarter was admittedly lighter than usual… we continue to believe that Loews trades meaningfully below our estimate of intrinsic value… serial share repurchasers.” .

Q&A Highlights

  • No live Q&A; Loews posted prepared “Earnings Remarks” with CEO/CFO commentary for Q3 2025, consistent with prior practice .
  • Clarifications provided in remarks: CNA LTC reserve assumption review resulted in an immaterial GAAP reserve change; Boardwalk revenue backlog excludes $3.8B from Texas Gateway until execution milestones .

Estimates Context

  • S&P Global consensus for Loews Q3 2025 EPS and revenue was unavailable, limiting formal beat/miss analysis; Street coverage generally centers on subsidiary-level performance (CNA, Boardwalk).*
  • Actual reported revenue was $4.671B and diluted EPS was $2.43 for Q3 2025; without Loews-level consensus, estimate-driven narrative is constrained .
MetricQ3 2025 Consensus
Primary EPS Consensus MeanN/A*
Revenue Consensus MeanN/A*

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Diversified earnings strength: CNA underwriting improvement (combined ratio 92.8%), Boardwalk EBITDA growth (+7% YoY), and Hotels’ operational momentum, despite higher D&A and interest .
  • Medium-term growth visibility at Boardwalk: Texas Gateway and Kosci Junction plus six medium projects add 2.6–3.9 Bcf/d capacity by 2027–2029, with ~$3.7B capex and long-term contracts, supporting durable backlog and cash flows .
  • Capital returns balanced with discipline: BVPS ex-AOCI climbed to $94.00; buybacks moderated in Q3 due to share price strength but continued in October; dividend declared ($0.0625) .
  • CNA investment income tailwind from fixed income yield/reinvestment rates persisted; watch underlying loss trends in certain lines (social inflation) despite headline improvement .
  • Hotels ramp: Orlando and Arlington strength should increasingly translate into earnings as new properties mature; Miami renovation is a temporary headwind .
  • Liquidity and optionality: $3.6B parent cash/investments and ongoing subsidiary distributions ($189M Q3; ~$1.1B YTD) underpin flexibility for buybacks and growth investments .
  • Trading implications: Positive narrative skew from Boardwalk growth and CNA underwriting, tempered by Hotels’ D&A/interest drag and reduced corporate investment income YoY; absence of Street consensus may dampen headline beat/miss catalysts but backlog and BVPS progression support valuation re-rating arguments .