IVZ · 10-Q · 2026Q2 · Full report
Liquidity and Debt Position
Invesco Ltd. · 2026-08-04 · Importance 68 · Surprise 58 · From source text
Debt carrying value decreased to $1,624.0 million at June 30, 2026 from $1,825.1 million at December 31, 2025 after redemption of $500.0 million of senior notes that matured on January 15, 2026 and net Revolving Credit Agreement borrowings of $298.3 million. The weighted average cost of debt increased to 4.97% for the six months ended June 30, 2026 from 4.71% in the prior-year period. Invesco remained compliant with its covenants, reporting a 0.54:1.00 leverage ratio against a 3.25:1.00 maximum and a 19.66:1.00 interest-coverage ratio against a 4.00:1.00 minimum. The company reported investment-grade ratings of BBB+/Stable from S&P, A3/Stable from Moody’s, and A/Stable from Fitch.
Key facts
- Reduced debt in the second quarter by $342.7 million. source
- Financing cash outflows excluding CIP for the six months ended June 30, 2026 included $192.1 million of common dividend payments (January and April 2026), $75.2 million of preferred dividend payments (January and April), $30.1 million paid to meet employees’ withholding tax obligations on common share vestings, purchases of common shares through the open market of $89.5 million, and redemption of $500.0 million of senior notes which matured on January 15, 2026; the company had net borrowings on the Revolving Credit Agreement of $298.3 million for the six months ended June 30, 2026. source
- Interest expense for the six months ended June 30, 2026: $47.9 million versus $33.8 million for the six months ended June 30, 2025, primarily due to higher borrowings on the Revolving Credit Agreement and the five-year Term Loan Agreement entered into on May 16, 2025; partially offset by repayment in second half of 2025 of three-year Term Loan and redemption of $500.0 million senior notes matured Jan 15, 2026. source
- Covenant Adjusted EBITDA total: $1,899.4 million; quarterly components Q2 2026: $531.9 million, Q1 2026: $455.8 million, Q4 2025: $486.3 million, Q3 2025: $425.4 million. source
- Carrying value of debt at June 30, 2026: $1,624.0 million (December 31, 2025: $1,825.1 million). source
- As of June 30, 2026 the company was in compliance with financial covenants; leverage ratio was 0.54:1.00 (December 31, 2025: 0.73:1.00) and interest coverage ratio was 19.66:1.00 (December 31, 2025: 20.34:1.00). source
- Adjusted debt as defined in the Credit Agreements and shown was $1,027.1 million (Adjusted debt equals debt of $1,624.0 million plus $3.1 million in letters of credit less $600.0 million of excess unrestricted cash). source
- As of June 30, 2026, the balance on the Revolving Credit Agreement was $736.0 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -3.2% | Financing cash outflows excluding CIP for the six months ended June 30, 2026 included $192.1 million of common dividend payments (January… |
| liability | negative | realized | -1.8% | Financing cash outflows excluding CIP for the six months ended June 30, 2026 included $192.1 million of common dividend payments (January… |
| liability | positive | realized | +1.3% | Reduced debt in the second quarter by $342.7 million. |
| cash | positive | realized | +1.1% | Financing cash outflows excluding CIP for the six months ended June 30, 2026 included $192.1 million of common dividend payments (January… |
| liability | negative | realized | -1.1% | Financing cash outflows excluding CIP for the six months ended June 30, 2026 included $192.1 million of common dividend payments (January… |
| net_income | negative | realized | -0.8% | Interest expense for the six months ended June 30, 2026: $47.9 million versus $33.8 million for the six months ended June 30, 2025,… |
| liability | positive | realized | +0.7% | Carrying value of debt at June 30, 2026: $1,624.0 million (December 31, 2025: $1,825.1 million). |
| operating_income | positive | realized | — | Covenant Adjusted EBITDA total: $1,899.4 million; quarterly components Q2 2026: $531.9 million, Q1 2026: $455.8 million, Q4 2025: $486.3… |
| liability | positive | realized | — | As of June 30, 2026 the company was in compliance with financial covenants; leverage ratio was 0.54:1.00 (December 31, 2025: 0.73:1.00)… |
| liability | unclear | realized | — | Adjusted debt as defined in the Credit Agreements and shown was $1,027.1 million (Adjusted debt equals debt of $1,624.0 million plus $3.1… |