Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q4 2025 Earnings Presentation
22 slides from Principal Financial's earnings presentation, Feb 10, 2026
Slide 1: Fourth Quarter 2025 Earnings and 2026 Outlook
RETIREMENT ASSET MANAGEMENT BENEFITS & PROTEC TION Fourth Quarter 2025 Earnings and 2026 Outlook P R I N C I PA L F I N A N C I A L G R O U P February 9, 2026
Slide 2: Key takeaways
Key takeaways 12% 92% 15.7% Delivered on FY EPS growth1 FY FCF %2 ROE3 2025 outlook (9-12% target) (75-85% target) (14-16% target) • Enterprise net revenue5 growth outpaced expense growth, resulting in margin expansion of 80 bps 2025 • Retirement and Income Solutions pre-tax operating earnings up 6%
Slide 3: Strategic priorities are driving sustained growth
Strategic priorities are driving sustained growth Leverage Leverage Expand market leadership in privileged leadership by recordkeeping to partnerships to serving SMBs grow Retirement grow Global Asset holistically Ecosystem Management1 HIGHLIGHTS 2025 HIGHLIGHTS 2025 HIGHLIGHTS 2025 Retirement platf
Slide 4: Full year 2025 financial highlights
Full year 2025 financial highlights Delivered on 2025 outlook Capital & liquidity Excess and available capital Debt to capital ratio4 12% 92% 15.7% $1.6B 22.0% FY EPS growth1 FY FCF %2 ROE3 $800M at Hold Co (9-12% target) (75-85% target) (14-16% target) PLIC RBC ratio $300M excess subsidiary capital
Slide 5: 4Q 2025 financial highlights
4Q 2025 financial highlights Capital deployments 4Q 2025 Operating results 4Q 2025 capital deployments Reported non-GAAP Non-GAAP operating earnings, $448M returned to shareholders: operating earnings1 excluding significant variances (xSV)2 $275M of share repurchases $488M $499M $172M of common stoc
Slide 6: Retirement and Income Solutions
Retirement and Income Solutions Delivered strong business growth and margin expansion Highlights • Pre-tax operating earnings xSV1 increased 3% vs. 4Q24 and Pre-tax operating earnings, xSV1 6% vs. FY 2024 ($ in millions) +6% • FY 2025 margin expanded 90 bps to 41% due to higher net 1,222 revenue and
Slide 7: Principal Asset Management
Principal Asset Management Strong margin expansion Highlights • Pre-tax operating earnings xSV1 increased 4% vs. FY 2024 Pre-tax operating earnings, xSV1 +4% +4% supported by growth in management fees; Investment ($ in millions) 889 Management margin expanded 60 bps to 36% and 853 International Pens
Slide 8: Benefits and Protection
Benefits and Protection Strong earnings growth and underwriting results Highlights • Pre-tax operating earnings xSV1 of $177M increased 7% vs. Pre-tax operating earnings, xSV1 +7% 4Q24 and margin expanded 50 bps driven by growth in ($ in millions) 627 Specialty Benefits and Life 586 Specialty Benefi
Slide 9: 2026 Outlook
2026 Outlook
Slide 10: 2026 Outlook
2026 Outlook Well-positioned to deliver strong enterprise growth aligned with our financial targets • 2026 outlook o 9-12% growth in EPS1 o 75-85% free capital flow conversion2 Enterprise o 15-17% ROE3 outlook • Committed to returning excess capital to shareholders: targeting $1.5B - $1.8B of capita
Slide 11: 2026 Outlook
2026 Outlook Ranges excluding significant variances 2025 EPS1 x-SV 2026 target Total Company EPS growth $8.55 9 - 12% Effective tax rate 17 - 20% 2025 x-SV2 Medium-term target 2026 modeling considerations (2026-2028) Retirement and Income Solutions Retirement and Income Net revenue $2,999M 2 - 5% So
Slide 12: Appendix
Appendix © Principat’
Slide 13: High quality and diversified investment portfolio
High quality and diversified investment portfolio Portfolio uniquely matches our liability profile which has lower liquidity needs Real Estate Private Fixed Income Equity & Equity Cash Securities 4% Other CMLs REITs 2% RMLs 4% 15% 8% 5% Private ABL Non-Agency MBS 10% 3% CMBS IG Private 5% Direct Cor
Slide 14: Investment performance
Investment performance 47% of fund-level AUM has 4 or 5 star rating from Morningstar1,2 Asset Weighted % of AUM outperforming Morningstar median3 % of composite AUM outperforming benchmarks4 As of 12/31/2025 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 33% 77% 54% 82% 42% 80% 63%
Slide 15: Disciplined capital management strategy
Disciplined capital management strategy With emphasis on actively returning excess capital to shareholders Targeted range as a percentage of net income1: Organic capital deployment 15-25% Capital efficient business mix Consistent dividend payout ratio 40% Growth of dividend will track growth in net
Slide 16: Market sensitivities
Market sensitivities Estimated impacts of changes in key macroeconomic conditions on annual non-GAAP pre-tax operating earnings relative to the next 12 months, prior to management expense actions: Certain alternative If macroeconomics change Equity market return1 Interest rates +/-100 bps FX: U.S. D
Slide 17: 4Q25 and FY 2025 significant variances
4Q25 and FY 2025 significant variances Earnings impacts of significant variances (in millions) 4Q25 FY 2025 Total significant 3Q Actuarial Variable investment Total significant Encaje and inflation Other2 variances1 assumption review income variances Retirement and $(6.5) $12.0 $(67.5) - $19.4 $(36.
Slide 18: Full year 2025 significant variances
Full year 2025 significant variances Revenue impacts of significant variances (in millions) 2025 revenue, Actuarial assumption Variable investment Encaje and 2025 revenue, Business Unit Revenue metric as reported review income inflation X-SV Retirement and Net revenue $2,944 $12 $(67) - $2,999 Incom
Slide 19: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Three months ended Three months ended (in millions) Diluted earnings per common share 12/31/25 12/31/24 Investment Management operating revenues less 12/31/25 12/31/24 pass-through expenses Net income $2.32 $3.92 Net realized capital (gains) losses, as adju
Slide 20: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Twelve months ended Twelve months ended (in millions) (in millions) Non-GAAP operating earnings (Losses) 12/31/25 12/31/24 Income taxes 12/31/25 12/31/24 Total GAAP income taxes $160.5 $291.7 Net income attributable to PFG $1,185.1 $1,571.0 Net realized cap
Slide 21: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Period ended Period ended (in millions) Stockholders’ equity x- cumulative change in fair value of funds Non-GAAP operating earnings ROE (x- cumulative change in fair value withheld embedded derivative and AOCI other than foreign currency 12/31/25 of funds
Slide 22: Additional Disclosures
Additional Disclosures Use of non-GAAP financial measures A non-GAAP financial measure is a numerical measure of performance, financial position, or cash flow that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP. The company uses a number of non-GAAP f
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