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Brighthouse Financial (BHF) Down 2.6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Brighthouse Financial (BHF - Free Report) . Shares have lost about 2.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Brighthouse Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Brighthouse Financial, Inc. reported fourth-quarter 2025 adjusted net income of $3.93 per share, which missed the Zacks Consensus Estimate by 24.3%. The bottom line decreased 33.2% year over year. Total operating revenues of $2.2 billion decreased 4.5% year over year. The top line missed the Zacks Consensus Estimate by 2.7%
The underperformance can be attributed to lower premiums and policy fees, softer net investment income and higher expenses. Nevertheless, a combined risk-based capital (RBC) ratio of 456%, above the company’s 400-450% target range, provides support for long-term investment.
BHF’s Q4 Results in Detail
Premiums of $173 million were down 16.4% year over year. This metric missed the Zacks Consensus Estimate by 13.9%. Adjusted net investment income was $1.3 billion in the quarter under review, down 3.1% year over year. The decrease was primarily due to reduced institutional spread margin business and the effect of lower short-term interest rates. The adjusted net investment income yield was 4.44%.
Total expenses were $1.5 billion, which surged 314.8% year over year. The year-over-year increase was primarily attributable to unfavorable changes in market risk benefits, along with higher amortization of DAC and VOBA and other expenses. Corporate expenses, pretax, totaled $234 million, up 11.4% year over year, reflecting costs incurred in connection with the pending acquisition of the company.
BHF’s Full-Year 2025 Update
Brighthouse reported full-year adjusted earnings, less notable items, per share of $16.1, down 18.1% year over year. Total adjusted revenues amounted to $8.66 billion, down 0.7% year over year. Adjusted net investment income of $5.2 billion was down 0.4% year over year. Total expenses were $6.8 billion, which surged 43.2%.
BHF’s Quarterly Segmental Update
Annuities recorded adjusted earnings of $304 million, which rose 9% year over year but missed the Zacks Consensus Estimates by 5.1%. Annuity sales increased 22.1% to $2.7 billion, driven by record sales of Shield Level Annuities. Life’s adjusted earnings were $18 million, down 65.4% year over year. Life insurance sales increased 9.1% to $36 million, primarily driven by sales of Brighthouse SmartCare.
The Run-off segment posted an adjusted loss of $58 million, wider than the adjusted loss of $27 million in the year-ago quarter. On a year-over-year basis, the adjusted loss, less notable items, reflected lower net investment income and a lower underwriting margin, partially offset by lower expenses.
Corporate & Other recorded an adjusted loss of $50 million compared to breakeven results in the prior-year quarter. The decline was primarily due to higher acquisition-related expenses and lower net investment income.
BHF’s Financial Update
Cash and cash equivalents were $5.4 billion, up 6.8% year over year. Total stockholders’ equity totaled $6.8 billion as of Dec. 31, 2025, up 36% year over year. Book value per share, excluding accumulated other comprehensive income, was $153.89 as of Dec. 31, 2025, up 5.7% year over year.
Statutory combined total adjusted capital was $5.3 billion as of Dec. 31, 2025, down 1.9% year over year. As of Dec. 31, 2025, the combined risk-based capital ratio was 456%, above the 400-450% target range.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.27% due to these changes.
VGM Scores
At this time, Brighthouse Financial has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Brighthouse Financial has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Brighthouse Financial (BHF) Down 2.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Brighthouse Financial (BHF - Free Report) . Shares have lost about 2.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Brighthouse Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Brighthouse Financial's Q4 Earnings & Revenues Miss, Expenses Rise Y/Y
Brighthouse Financial, Inc. reported fourth-quarter 2025 adjusted net income of $3.93 per share, which missed the Zacks Consensus Estimate by 24.3%. The bottom line decreased 33.2% year over year. Total operating revenues of $2.2 billion decreased 4.5% year over year. The top line missed the Zacks Consensus Estimate by 2.7%
The underperformance can be attributed to lower premiums and policy fees, softer net investment income and higher expenses. Nevertheless, a combined risk-based capital (RBC) ratio of 456%, above the company’s 400-450% target range, provides support for long-term investment.
BHF’s Q4 Results in Detail
Premiums of $173 million were down 16.4% year over year. This metric missed the Zacks Consensus Estimate by 13.9%. Adjusted net investment income was $1.3 billion in the quarter under review, down 3.1% year over year. The decrease was primarily due to reduced institutional spread margin business and the effect of lower short-term interest rates. The adjusted net investment income yield was 4.44%.
Total expenses were $1.5 billion, which surged 314.8% year over year. The year-over-year increase was primarily attributable to unfavorable changes in market risk benefits, along with higher amortization of DAC and VOBA and other expenses. Corporate expenses, pretax, totaled $234 million, up 11.4% year over year, reflecting costs incurred in connection with the pending acquisition of the company.
BHF’s Full-Year 2025 Update
Brighthouse reported full-year adjusted earnings, less notable items, per share of $16.1, down 18.1% year over year. Total adjusted revenues amounted to $8.66 billion, down 0.7% year over year. Adjusted net investment income of $5.2 billion was down 0.4% year over year. Total expenses were $6.8 billion, which surged 43.2%.
BHF’s Quarterly Segmental Update
Annuities recorded adjusted earnings of $304 million, which rose 9% year over year but missed the Zacks Consensus Estimates by 5.1%. Annuity sales increased 22.1% to $2.7 billion, driven by record sales of Shield Level Annuities.
Life’s adjusted earnings were $18 million, down 65.4% year over year. Life insurance sales increased 9.1% to $36 million, primarily driven by sales of Brighthouse SmartCare.
The Run-off segment posted an adjusted loss of $58 million, wider than the adjusted loss of $27 million in the year-ago quarter. On a year-over-year basis, the adjusted loss, less notable items, reflected lower net investment income and a lower underwriting margin, partially offset by lower expenses.
Corporate & Other recorded an adjusted loss of $50 million compared to breakeven results in the prior-year quarter. The decline was primarily due to higher acquisition-related expenses and lower net investment income.
BHF’s Financial Update
Cash and cash equivalents were $5.4 billion, up 6.8% year over year.
Total stockholders’ equity totaled $6.8 billion as of Dec. 31, 2025, up 36% year over year. Book value per share, excluding accumulated other comprehensive income, was $153.89 as of Dec. 31, 2025, up 5.7% year over year.
Statutory combined total adjusted capital was $5.3 billion as of Dec. 31, 2025, down 1.9% year over year. As of Dec. 31, 2025, the combined risk-based capital ratio was 456%, above the 400-450% target range.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.27% due to these changes.
VGM Scores
At this time, Brighthouse Financial has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Brighthouse Financial has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.