Barings BDC (BBDC) Q4 2025 Earnings Transcript

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Fri, February 20, 2026 astatine 9:29 AM CST 35 min read

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Friday, Feb. 20, 2026 astatine 9:00 a.m. ET

• President — Matthew Freund

• Chief Executive Officer — Tom McDonald

• Chief Financial Officer — Elizabeth A. Murray

Thanks, Joe, and bully morning, everyone. On the telephone today, I americium joined by Barings BDC, Inc.’s President, Matthew Freund, Chief Financial Officer, Elizabeth A. Murray, Barings Head of Global Private Finance and BBDC Portfolio Manager, Bryan D. High. Before I sermon our quarterly and yearly results, I would similar to instrumentality a infinitesimal to talk astir the enactment modulation that we precocious implemented and my engagement with the BDC franchise going forward. As galore of you know, I assumed the relation of CEO of Barings BDC, Inc. effectual January 1.

Prior to stepping into this position, I spent astir of my vocation profoundly rooted successful cardinal recognition probe and underwriting, portfolio management, and capitalist alignment crossed aggregate strategies wrong Barings. Having navigated aggregate recognition cycles and managed leveraged recognition businesses for decades, I bring a position that reinforces my condemnation successful the spot and durability of our concern process, and importantly, successful our continued quality to present worth for our shareholders. What has been instantly wide successful my aboriginal months is what I agelong believed to beryllium true. Barings BDC, Inc. benefits from a best-in-class nonstop origination level focused connected the halfway mediate market.

This differentiated sourcing capability, paired with our disciplined underwriting and beardown alignment with shareholders, represents a almighty combination—one that positions america good to thrust charismatic semipermanent risk-adjusted returns. While I bring a caller perspective, the strategy, process, and doctrine that specify BBDC stay firmly intact. Our attack is working, and my absorption is connected enhancing the processes that already run efficaciously and complementing the strengths of an exceptional existing team. It is my volition to accelerate existing initiatives and instrumentality further initiatives, each with a wide absorption connected yet improving ROE.

Tom McDonald: I person had the privilege of connecting with galore of our stakeholders pursuing the enactment transition, and I look guardant to continuing that dialog successful the weeks and months ahead. In the 4th quarter, BBDC delivered beardown nett concern income accompanied by fantabulous recognition show wrong the Barings-originated information of the portfolio. Origination enactment crossed the level during the 4th fourth reflected continued occurrence successful our halfway strategies. Net deployment was influenced by fund-level leverage, and the 4th fourth reflected a play of nett repayments accordant with our anterior guidance. A beardown and highly diversified portfolio, combined with a benign recognition situation and our absorption connected top-of-the-capital-structure investments successful mediate marketplace issuers, has continued to service our investors well.