Nuveen Churchill Direct Lending (NCDL) Q2 2025 earnings summary

Executive summary

• Net investment income for Q2 2025 was $0.46 per share, down from $0.53 in Q1, with a net increase in net assets from operations of $0.32 per share and annualized ROE on net investment income of 10.3%.

• NAV per share was $17.92 as of June 30, 2025, slightly down from $17.96 at March 31, 2025.

• Paid a regular distribution of $0.45 per share for Q2 2025 and declared the same for Q3 2025.

• Portfolio remains highly diversified with 207 companies across 26 industries, primarily first lien debt, and top 10 holdings representing 13.6% of fair value.

• Completed a share repurchase program, buying back approximately 5.9 million shares at a discount to NAV, totaling about $99.3–$100 million.

Financial highlights

• Total investment income for Q2 2025 was $53.1 million, down from $55.1 million in Q2 2024; net investment income per share was $0.46, and net asset value per share was $17.92 at quarter end.

• Net increase in net assets from operations was $16.0 million for Q2 2025.

• Net expenses rose to $30.3 million, mainly due to higher interest, management, and incentive fees.

• Net realized and unrealized losses on investments were $(6.8) million for Q2 2025, reflecting restructuring and underperformance in certain portfolio companies.

• Debt-to-equity ratio was 1.26x (1.21x net) as of June 30, 2025.

Outlook and guidance

• Management expects to maintain earnings at current levels, supported by redeployment of repayments into higher-yielding middle market loans.

• Pipeline is robust, with deal flow and quality at multi-year highs; optimism for strong activity into H2 2025.

• Management remains focused on disciplined underwriting and sourcing high-quality investments in resilient, service-oriented sectors.

• Continued focus on disciplined investment in private equity-backed U.S. middle market companies.

• Management expects continued market volatility due to macroeconomic and geopolitical factors, but believes the company is well-positioned with strong liquidity and a diversified portfolio.