third quarter 2026
Filed Nov 5, 2026BARINGS BDC, INC. REPORTS THIRD QUARTER 2026 RESULTS AND ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.26 PER SHARE
Net investment income of $0.26 per share fully covered the $0.26 dividend and NAV per share was largely unchanged, but total investment income and net investment income declined from the prior-year quarter, while the Company recorded net realized losses of $(4.8) million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total investment income, three months ended September 30, 2026GAAP | $64.29M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $36.36M | – | – |
| Net investment income after taxes, three months ended September 30, 2026GAAP | $27.23M | – | – |
| Net investment income per share, three months ended September 30, 2026GAAP | $0.26 | – | – |
| Net realized gains (losses), three months ended September 30, 2026GAAP | −$4.78M | – | – |
| Net unrealized appreciation (depreciation), three months ended September 30, 2026GAAP | $2.18M | – | – |
| Net increase (decrease) in net assets resulting from operations, three months ended September 30, 2026GAAP | $24.63M | – | – |
| Net increase (decrease) in net assets resulting from operations per share, three months ended September 30, 2026GAAP | $0.24 | – | – |
| Total investment income, nine months ended September 30, 2026GAAP | $190.1M | – | – |
| Net investment income after taxes, nine months ended September 30, 2026GAAP | $82.09M | – | – |
| Net investment income per share, nine months ended September 30, 2026GAAP | $0.78 | – | – |
| Net increase (decrease) in net assets resulting from operations, nine months ended September 30, 2026GAAP | $62.95M | – | – |
| Net increase (decrease) in net assets resulting from operations per share, nine months ended September 30, 2026GAAP | $0.60 | – | – |
| Investment portfolio at fair valueGAAP | $2.51B | – | – |
| Total assetsGAAP | $2.63B | – | – |
| Total net assets (equity)GAAP | $1.14B | – | – |
| Net asset value per shareGAAP | $10.92 | – | – |
| Debt outstanding (principal)GAAP | $1.47B | – | – |
| Debt-to-equity ratioGAAP | 1.28x | – | – |
| Total net debtnon-GAAP | $1.41B | – | – |
| Net debt-to-equity rationon-GAAP | 1.24x | – | – |
| Net cash provided by (used in) operating activities, nine months ended September 30, 2026GAAP | $58.91M | – | – |
| Net cash provided by (used in) financing activities, nine months ended September 30, 2026GAAP | −$49.54M | – | – |
| Cash and foreign currencies, end of period, nine months ended September 30, 2026GAAP | $76.16M | – | – |
Capital returns
- Dividends paid were $0.26 per share for the three months ended September 30, 2026.
- The Board declared a fourth quarter 2026 cash dividend of $0.26 per share.
- The fourth quarter 2026 dividend record date is December 2, 2026 and the payment date is December 9, 2026.
- Cash dividends / distributions paid were $(81,671) thousand for the nine months ended September 30, 2026.
What drove it
- The Company funded $196.0 million of investments, including $121.4 million in new portfolio company investments and $74.6 million in additional investments in existing portfolio companies.
- The Company made 20 new portfolio company investments during the quarter.
- The investment portfolio at fair value increased to $2,509.8 million from $2,458.6 million as of June 30, 2026.
- Senior debt and 1st lien notes were $1,771.7 million of the portfolio at fair value as of September 30, 2026.
- Floating rate securities represented 92.8 % of the portfolio at fair value.
- The weighted average yield on debt investments other than non-accrual debt investments was 9.5 %.
Concerns
- Total investment income was $64,294 thousand for the quarter, compared with $72,404 thousand in the prior-year quarter.
- Net investment income after taxes was $27,234 thousand, compared with $33,613 thousand in the prior-year quarter and $29.0 million in the preceding quarter.
- Net realized gains (losses) were $(4,782) thousand for the quarter.
- Net asset value per share decreased by $0.02 from the prior quarter to $10.92.
- Debt outstanding (principal) increased to $1,467.2 million from $1,409.7 million as of June 30, 2026, while the debt-to-equity ratio increased to 1.28x from 1.23x.
What to watch
- The expected mid-November 2026 closing of Barings BDC CLO 2026-1, subject to customary closing conditions.
- The Company's stated intention to use CLO net proceeds and credit-facility borrowings to repay in full its $350.0 million of 3.300% notes due November 23, 2026.
- Subsequent commitments of approximately $70.9 million, of which $36.2 million closed and funded.
- The 11.1% weighted average yield on the subsequent debt investments.
Balance sheet and cash flow
- Cash and foreign currencies were $76.2 million, including restricted cash of $25.0 million, as of September 30, 2026.
- Borrowings outstanding under the $821.5 million senior secured credit agreement were $334.7 million as of September 30, 2026.
- Unsecured notes outstanding had an aggregate principal amount of $1,132.5 million as of September 30, 2026.
- Total debt (principal) was $1,467.2 million as of September 30, 2026.
- Net cash provided by operating activities was $58,915 thousand for the nine months ended September 30, 2026.
- On October 30, 2026, the Company priced Barings BDC CLO 2026-1, an approximately $396.3 million collateralized loan obligation.
Analysis
Barings BDC reported third-quarter net investment income after taxes of $27,234 thousand, or $0.26 per share, which fully covered its $0.26 regular quarterly dividend. Total investment income was $64,294 thousand and total operating expenses were $36,360 thousand. Net investment income was lower than $33,613 thousand, or $0.32 per share, in the prior-year quarter and lower than $29.0 million in the prior quarter. For the nine months ended September 30, 2026, net investment income after taxes was $82,089 thousand, compared with $89,813 thousand in the prior-year period.
Portfolio activity remained constructive. The Company funded $196.0 million of investments during the quarter, including $121.4 million in new portfolio company investments, and made 20 new portfolio company investments. Total investments funded exceeded $145.9 million of investments sold or repaid, and the portfolio at fair value rose to $2,509.8 million from $2,458.6 million as of June 30, 2026. The portfolio remained concentrated in senior debt and 1st lien notes, which stood at $1,771.7 million, while floating rate securities were 92.8 % of fair value.
Credit performance and valuation remain important. The Company recorded net realized losses of $(4,782) thousand in the quarter, partly offset by net unrealized appreciation of $2,178 thousand. Net asset value per share declined by $0.02 sequentially to $10.92, with management attributing the change primarily to net realized losses of $0.05 per share that were partially offset by net unrealized appreciation of $0.02 per share. The weighted average yield on debt investments other than non-accrual debt investments increased to 9.5 % from 9.4 % as of June 30, 2026.
Leverage increased alongside portfolio growth. Debt outstanding on a principal basis was $1,467.2 million, compared with $1,409.7 million as of June 30, 2026, and the debt-to-equity ratio was 1.28x versus 1.23x. Net debt-to-equity ratio was 1.24x versus 1.18x. The Company reported $76.2 million of cash and foreign currencies, including $25.0 million of restricted cash, and $334.7 million outstanding under its $821.5 million senior secured credit agreement.
Capital actions include a declared fourth-quarter cash dividend of $0.26 per share, payable December 9, 2026 to stockholders of record on December 2, 2026. Subsequent to quarter-end, the Company priced an approximately $396.3 million CLO that is expected to close in mid-November 2026, subject to customary conditions. Management intends to use the CLO net proceeds together with senior secured credit agreement borrowings to repay in full $350.0 million of 3.300% notes due November 23, 2026. The release did not provide forward earnings, portfolio, yield, leverage, or dividend guidance.
Management, verbatim
Our third quarter results reflect the stability of our predominantly senior secured portfolio. Net investment income of $0.26 per share fully covered our dividend, and NAV per share was largely unchanged at $10.92. We remained active in the market, funding $196 million of investments, including 20 new portfolio companies, and grew the portfolio to $2.5 billion. We believe our liquidity position and the breadth of the Barings platform position us well to continue delivering value for our shareholders.
Thomas McDonnell, Chief Executive Officer of Barings BDC
Not in the filing
stated, not guessed- Forward financial guidance
- Prior-period guidance for comparison
- Revenue guidance
- Gross margin
- Operating margin
- Tax rate
- Segment reporting
- Quarterly operating cash flow
- Quarterly free cash flow
- Share repurchase amount for the third quarter of 2026
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.