Lazard’s profit tops estimates on record advisory revenue from dealmaking
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Lazard’s profit tops estimates on record advisory revenue from dealmaking
Dealmaking activity bounced back sharply in May and June, after grinding to a halt in April. Financial advisory revenue jumped 21% to $497 million in the quarter on robust activity in Europe. In asset management, Lazard registered net inflows of $677 million. Lazard has hired 14 managing directors in 2025 after setting an earlier target to add 10 to 15 per year, as part of its goal to double revenue by 2030. The largest U.S. banks last week struck an optimistic tone about the outlook for the rest of the year after their profits beat expectations. For confidential support call the Samaritans in the UK on 08457 90 90 90, visit a local Samaritans branch or see www.samaritans.org. In the United States, call the National Suicide Prevention Line on 1-800-273-8255.
July 24 (Reuters) – Investment bank Lazard (LAZ.N) , opens new tab surpassed second-quarter profit estimates on Thursday, as a rebound in dealmaking helped power record revenue in its advisory business, sending its shares up 1.5%.
Dealmaking activity bounced back sharply in May and June, after grinding to a halt in April as uncertainty over U.S. tariffs weighed on corporate confidence.
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Lazard’s financial advisory revenue jumped 21% to $497 million in the quarter on robust activity in Europe. The business generated record revenue in France and Germany in the first half.
“We are super busy,” CEO Peter Orszag told journalists on a conference call. “We also see an increasingly constructive environment for dealmaking going forward.”
Orszag said on a post-earnings call Lazard saw a bit more of an uptick in European activity in the first half that may get balanced as the year progresses and U.S. activity expands.
Lazard expects that private equity will play an increasingly active role in M&A, Orszag said, as pressure from investors to return cash continues to mount.
The largest U.S. banks last week struck an optimistic tone about the outlook for the rest of the year after their profits beat expectations.
Lazard has hired 14 managing directors in 2025 after setting an earlier target to add 10 to 15 per year, as part of its goal to double revenue by 2030.
On an adjusted basis, it earned 52 cents per share in the quarter, beating expectations of 40 cents, according to estimates compiled by LSEG.
Adjusted revenue jumped 12% to $770 million, topping estimates of $683.4 million.
Column chart depicting Lazard’s net flows since Q1 2020
TURNAROUND TAKES ROOT
In asset management, Lazard registered net inflows of $677 million in the quarter, after grappling with outflows since the second quarter of 2023.
“Asset management achieved positive net flows in the quarter and record gross inflows for the first half of the year, demonstrating progress towards our goal for this year to serve as an inflection point for the business,” Orszag said.
Analysts said the inflows could be an early signal of a turnaround for the business.
The real highlight of this quarter was in asset management, said Wolfe Research analyst Steven Chubak.
Orszag told journalists there are inorganic growth opportunities on the asset management side, but Lazard has not yet found the “right match”.
Asset management provides a durable source of revenue and helps diversify revenue from investment banking businesses that are driven by economic cycles.
Revenue in the asset management business rose 2% to $292 million, while assets under management rose 2% to $248 billion, as of June 30.
Line chart depicting Lazard’s stock performance against rival advisory firms
Reporting by Arasu Kannagi Basil in Bengaluru and Lananh Nguyen in New York; Editing by Sriraj Kalluvila and Arun Koyyur
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