Blue Owl Capital Q2 Earnings Call Highlights

Blue Owl Capital (NYSE:OBDC) reported second-quarter 2026 adjusted nett concern income of $0.34 per share, up from $0.31 successful the anterior quarter, arsenic a ample concern realization and higher specialty-finance dividend income lifted results. Net plus worth per stock declined to $14.26 from $14.41 successful the archetypal quarter, chiefly owed to a markdown connected 1 portfolio company.

Chief Executive Officer Craig Packer said adjusted nett concern income translated to a 9.6% annualized instrumentality connected equity, much than 100 ground points supra the anterior quarter. The institution said net comfortably covered its basal dividend and supported a supplemental distribution.

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The committee declared a third-quarter basal dividend of $0.31 per share, payable Oct. 15 to shareholders of grounds Sept. 30. It besides declared a $0.02 per-share supplemental dividend, payable Sept. 15 to shareholders of grounds Aug. 31.

Large Mavis Realization Boosts Income

Management attributed overmuch of the quarter-over-quarter summation successful nett concern income to the repayment of its preferred-equity concern successful Mavis Tire. Blue Owl collected astir $274 cardinal successful currency from the repayment, including $66 cardinal of accrued payment-in-kind, oregon PIK, interest. The concern generated a 1.5-times aggregate connected invested capital, according to Senior Managing Director Logan Nicholson.

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The Mavis repayment was Blue Owl's largest PIK concern realization to day and contributed astir $0.03 per stock of interest income, absorption said during the question-and-answer session. Chief Financial Officer and Chief Operating Officer Jonathan Lamm said the income was recorded arsenic interest income due to the fact that of the mode the preferred instrumentality was repurchased, alternatively than arsenic involvement income.

Nicholson said Mavis had grown to astir 4 times its size since Blue Owl's archetypal preferred-equity concern and had go 1 of the country's largest tire-service companies.

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The realization reduced PIK income to 10.7% of full concern income successful the 2nd quarter, compared with highest levels supra 13% 2 years earlier. Nicholson said overmuch of Blue Owl's PIK vulnerability was intentionally structured astatine concern inception to heighten returns alternatively than resulting from distressed borrowers.

Higher dividend income from the company's beingness sciences-focused specialty concern vehicle, LSI, besides contributed to quarterly earnings. LSI benefited from the repayment of ITM Radiopharma, which generated an interior complaint of instrumentality supra 20% connected a $140 cardinal position, Nicholson said. Since inception, LSI has generated returns of much than 15% to Blue Owl, according to management.