Core FFO per share reached a record $1.87, up 13% year-over-year and 6% higher than last quarter, reflecting strong upside from hyperscale commencements and better-than-expected 0-1 megawatt plus interconnection bookings.
Data center revenue increased 11% year-over-year, supported by strong renewal spreads, rent escalators and new lease commencements, offsetting disposition impacts.
Development CapEx was over $900 million gross, $700 million net to Digital Realty, with 96 megawatts of new capacity delivered (98% pre-leased) and 16 megawatts of new projects started construction.
Digital Realty posted double-digit growth in revenue, adjusted EBITDA and core FFO this quarter, driven by record lease commencements, low churn and higher fee income.
Gross data center development pipeline stands at $9 billion with a 12.2% expected stabilized yield; land bank grew to 3.7 gigawatts, extending runway to 5 gigawatts.
Leasing in the quarter totaled $177 million at 100% share, including $135 million at Digital Realty's share, with $90 million in the 0-1 megawatt plus interconnection category, an 18% increase over the prior record.
Renewal leases signed in the quarter totaled $177 million with a blended 7.3% cash basis increase, exceeding prior guidance.
Same-capital cash NOI grew 4.4% year-over-year, driven by 5.9% growth in data center revenue; on a constant currency basis, same-capital cash NOI rose 1.8%.
Total churn declined to 1%, with negligible churn in the greater than a megawatt category.
Adjusted operating margin was 18.5% for the quarter, a 150 basis point improvement over prior year, driven by strong organic growth and expense management.
Free cash flow for the first half of 2025 was $217 million, down $88 million from prior year due to increased incentive costs, retirement program redesign, higher cash taxes, and absence of TRANZACT cash inflows.
Health, Wealth & Career (HWC) segment revenue grew 4% with strong growth in Health at 8%, Wealth at 3%, Career at 1%, and flat growth in Benefits Delivery & Outsourcing (BD&O).
HWC operating margin increased 190 basis points to 23.8%, and R&B operating margin improved 60 basis points to 21.2%, or 100 basis points excluding foreign exchange impact.
Returned $591 million to shareholders via $500 million in share repurchases and $91 million in dividends during the quarter.
Risk & Broking (R&B) segment revenue grew 6%, with Corporate Risk & Broking (CRB) growing 6% or 7% excluding book of business activity and fiduciary interest income.
WTW delivered 5% organic revenue growth and 150 basis points of adjusted operating margin expansion in Q2 2025, with adjusted EPS of $2.86, up roughly 20% year-over-year.
Adjusted net income was $96.5 million or $1.22 per diluted share, with a 16.3% adjusted return on equity.
Claims expense was $13.4 million in the quarter.
Defaults declined to 6,709 at June 30 from 6,859 at March 31, with a default rate of 1%.
GAAP net income was $96.2 million and diluted EPS was $1.21.
Investment income was $24.9 million, up from $23.7 million in Q1 and $20.7 million in Q2 2024.
National MI generated $12.5 billion of new insurance written (NIW) volume in Q2 2025, ending with a record $214.7 billion of primary insurance in force.
Net premiums earned were $149.1 million, slightly down from $149.4 million in Q1 2025 but up from $141.2 million in Q2 2024.
Net yield was 28 basis points; core yield (excluding reinsurance and cancellation earnings) was 34.2 basis points, up from 34.1 basis points in Q1.
Shareholders' equity was $2.4 billion with book value per share of $31.14, up 4% from Q1 and 16% from Q2 2024.
The company repurchased $23.2 million of common stock in Q2, retiring 628,000 shares at an average price of $36.90, with $281 million of repurchase capacity remaining.
Total cash and investments were $3 billion, including $169 million at the holding company.
Total revenue was a record $173.8 million, up from $173.2 million in Q1 2025 and $162.1 million in Q2 2024.
Underwriting and operating expenses were $29.5 million, down from $30.2 million in Q1, resulting in a record low expense ratio of 19.8%.
Capital ratios and tangible book value per share increased linked quarter driven by improved profitability and strategic balance sheet repositioning.
Consumer loan balances decreased by $41 million due to strategic run down of indirect auto portfolio; residential mortgage lending modestly grew.
Credit quality remained strong with substandard loans at 1.29%, nonperforming loans at 54 basis points, and net charge-offs near $254,000 or 2 basis points for the quarter.
Horizon Bancorp reported strong second quarter 2025 earnings driven by core community banking franchise strength, significant net interest margin expansion, low net charge-offs of 2 basis points annualized, and improved ROAA and ROATCE metrics.
Loan growth was solid with net loans held for investment growing $75.5 million or 1.5% in the quarter and 6.2% annualized, led by commercial loans growth of $117 million (14.8% quarterly growth).
Net interest margin increased by 19 basis points to 3.23%, including 7 basis points of outsized interest recoveries; excluding recoveries, margin expanded driven by improved asset and liability mix and disciplined pricing.
Noninterest income was stable with seasonal strength in interchange fees and mortgage gain on sale; expenses were well managed at $39.4 million, with full year expense outlook now approximately flat versus 2024.
Reported earnings per share grew by 58% for the first six months of 2025 compared to the prior year.
Adjusted EBITDA grew 20% this quarter, outpacing the 13% growth in cash collections.
Cash collections grew 13% year-over-year to $536 million, driven by recent portfolio purchases and investments in the U.S. legal channel.
Ending ERC reached a record $8.3 billion, up 22% year-over-year and 6% sequentially.
Net income attributable to PRA was $42 million or $1.08 diluted EPS, including a $30 million after-tax gain from the sale of equity interest in Brazil's RCB; excluding this gain, net income was $13 million or $0.32 EPS.
Net interest expense increased by $7 million to $62 million due to higher debt balances.
Net leverage (net debt to adjusted EBITDA) was 2.81x, within the long-term target range of 2x to 3x.
Operating expenses were $203 million, up 4%, mainly due to higher professional services and legal collection costs.
Overall business overperformed by 7%, with Europe exceeding expectations by 14% and Americas by 3%.
PRA Group purchased $347 million of portfolios in Q2 2025, with $199 million in the Americas and $147 million in Europe.
Q2 U.S. legal cash collections increased 24% year-over-year to $119 million.
The 2025 purchase price multiple was 2.14x for Americas Core and 1.82x for Europe Core, continuing an upward trend over recent years.
The company repurchased $10 million of stock during the quarter, limited by debt covenant constraints.
Total portfolio revenue was $284 million, up 1%, with portfolio income up 20% to $251 million reflecting higher portfolio investments at elevated multiples.
Dafinchi