Federated Hermes wants $30 million in savings. What changes in London?
Federated Hermes targets $30 million in annual savings from a proposed London restructuring. We examine the staffing changes, upfront charges and stronger group earnings.
Ticker Byline
Federated Hermes, Inc.
Federated Hermes manages investment funds and institutional portfolios. A proposed London restructuring targets lower annual costs as group revenue and profit grow.
- Ticker
- FHI
- Exchange
- XNYS
- SEC CIK
- 0001056288
Federated Hermes, Inc. (NYSE: FHI) is a Pittsburgh-based investment manager. It offers equity, fixed-income, alternative and private-market, multi-asset and money-market strategies. Revenue mainly comes from investment-management and related service fees.
Proposed London restructuring
On November 4, 2026, Federated Hermes announced proposed changes at its London-based subsidiary, Federated Hermes Limited. About 200 positions could be eliminated or transferred to the United States. Consultation has begun, with completion anticipated by the end of 2027.
The company expects about $15 million in pretax charges, primarily termination benefits: $7 million in 2026 and $8 million in 2027. It targets roughly $30 million of annual pretax savings, mainly compensation and related expenses. The filing does not split the affected positions between eliminations and transfers.
Latest financial results
| Measure | 2026 | 2025 |
|---|---|---|
| Revenue | 507.3 | 469.4 |
| Operating income | 153.3 | 129.5 |
| Net income attributable to Federated Hermes | 111.9 | 104.1 |
| Basic and diluted EPS | $1.50 | $1.34 |
Quarterly revenue increased 8%, operating income 18% and attributable net income 7%. Higher average equity assets and the completed second-quarter acquisition of FCP supported revenue. FCP also added compensation costs. These are reported group results, including the acquired business.
Nine-month revenue was $1.489 billion, up from $1.318 billion. Attributable net income rose to $312.6 million from $296.3 million.
Assets and demand
Assets under management ended September at $884.4 billion, compared with $911.6 billion in June and $871.2 billion a year earlier. Money-market assets fell to $649.9 billion from $676.9 billion in June. A change in ending assets combines flows, market movements and other changes; it is separate from measured net sales.
Equity assets reached $110.5 billion. Long-term net sales were positive $2.4 billion in the quarter, recovering from $1.7 billion of net redemptions in Q2.
Cash and debt
Nine-month operating cash flow was $243.9 million, compared with $136.1 million. Lower net purchases of trading securities contributed $80.1 million to that improvement. Cash spending on property and equipment was $20.0 million.
September cash and equivalents totaled $373.7 million, down from $582.5 million at the end of 2025. The earnings release's broader $580.3 million cash-and-investments subtotal includes investments. Cash uses during the year included the FCP acquisition, share repurchases and dividends.
Senior-note principal was $350 million, with a $348.6 million balance-sheet carrying amount after issuance costs. The notes pay 3.29% and mature in March 2032. A separate $350 million committed revolving facility was undrawn; an optional increase requires further conditions.
Read our analysis of the proposed London overhaul for the staffing changes and their place alongside the group's stronger earnings.
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