Onex, a Canadian investment management firm, has announced a swing to profitability in the third quarter. The company’s core segments, investments, and asset management have all contributed to this strong performance.
The net earnings for the quarter were $256 million, or $3.23 per share, marking a significant improvement from the prior-year period’s loss of $180 million, or $2.12 per share. Total segment earnings also saw a positive shift, rising to $283 million from a loss of $179 million.
The investment segment, which represents Onex’ largest unit, played a key role in driving this improvement. It reported earnings of $245 million, compared to a loss of $114 million in the same period last year. Meanwhile, the asset management segment also showed positive results, with earnings of $38 million, a significant increase from the previous year’s loss of $65 million.
Private Equity Investments
Onex highlighted that the value of its private equity investments increased by 4% in the period, in contrast to a 2% decrease in the previous year.
Focus on Cost Reduction
Bobby Le Blanc, the Chief Executive of Onex, emphasized the company’s efforts in cost reduction during the quarter. He stated that Onex is prioritizing controllable levers across the business to drive sustainable improvement and growth in the face of a challenging market environment.
In conclusion, Onex’s third-quarter results demonstrate a solid performance across its core segments. The company’s focus on cost reduction and strategic management of investments has resulted in a swing to profitability.