FS KKR Capital (NYSE:FSK) Issues Earnings Results

FS KKR Capital (NYSE:FSK) issued its quarterly earnings results on Thursday. The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.42 by $0.01, FiscalAI reports. The company had revenue of $290.00 million during the quarter, compared to analysts’ expectations of $286.75 million. FS KKR Capital had a positive return on equity of 9.43% and a negative net margin of 28.52%.During the same quarter in the previous year, the firm posted ($0.75) EPS.

Here are the key takeaways from FS KKR Capital’s conference call:

• Net asset value declined 2.8% to $18.30 per share, driven by a $0.56-per-share decline in portfolio valuations despite $0.44 per share of GAAP net investment income.
• Second-quarter net investment income was $0.44 per share, while adjusted net investment income was $0.43; management expects annualized net investment income of 8%–9% of NAV for the remainder of 2026.
• FSK reduced leverage, with debt-to-equity falling to 127% from 138%, and reported $3.5 billion of available liquidity. KKR also completed a $150 million share purchase and a $150 million preferred-stock investment, while FSK repurchased approximately $40 million of common stock through early third quarter.
• Portfolio rotation accelerated through roughly $500 million of third-party loan sales and $1.3 billion of net sales and repayments, helping reduce the portfolio by $735 million and shift its composition toward first-lien and senior-secured assets.
• Credit quality remains a concern: two investments entered non-accrual status, and non-accruals still represented 7.1% of the portfolio at cost and 3.8% at fair value, although both measures improved from the prior quarter.

FS KKR Capital Stock Performance

Shares of FSK stock traded up $0.54 on Friday, hitting $12.42. The company had a trading volume of 4,865,263 shares, compared to its average volume of 2,577,550. FS KKR Capital has a twelve month low of $9.72 and a twelve month high of $18.85. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 1.38. The firm has a market cap of $3.48 billion, a P/E ratio of -9.20 and a beta of 0.83. The company has a 50-day moving average price of $10.75 and a 200-day moving average price of $11.26.

FS KKR Capital Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Wednesday, September 16th will be issued a $0.44 dividend. This is a boost from FS KKR Capital’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $1.76 annualized dividend and a dividend yield of 14.2%. FS KKR Capital’s payout ratio is presently -85.28%.

Key Headlines Impacting FS KKR Capital

Here are the key news stories impacting FS KKR Capital this week:

• Positive Sentiment: FSK reported second-quarter adjusted net investment income of $0.43 per share, exceeding the $0.42 consensus estimate, while revenue of $290 million also topped expectations of $286.75 million. Results improved substantially from the prior-year loss of $0.75 per share. FS KKR Capital Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: The board declared a third-quarter distribution of $0.44 per share, up 4.8% from $0.42 previously and equivalent to an approximately 14.8% annualized yield. The dividend is payable October 2 to shareholders of record September 16. FS KKR Capital Announces Second Quarter Results and Distribution
• Positive Sentiment: Management expects 8%–9% annualized net investment income for the remainder of 2026 and is advancing share repurchases and portfolio rotation. Debt-to-equity declined to 127% from 138%, moving leverage closer to the company’s target range. FSK Expects 8% to 9% Annualized Net Investment Income
• Positive Sentiment: A Seeking Alpha analysis upgraded FSK to a “Buy,” reflecting a more favorable view of its income outlook, valuation and improving credit trends. FS KKR Time to Get Bullish Again
• Neutral Sentiment: Truist raised its price target from $11 to $12 but maintained a “Hold” rating, indicating limited expected upside at recent trading levels. Benzinga
• Negative Sentiment: Net asset value fell to $18.30 per share from $18.83, and FSK posted a second-quarter GAAP loss of $0.13 per share because of $0.56 per-share realized and unrealized investment losses. Continued portfolio losses and non-accrual assets remain important risks. FS KKR Capital Second Quarter Results

Analyst Ratings Changes

Several brokerages have recently issued reports on FSK. Capital One Financial set a $12.00 price objective on FS KKR Capital in a research note on Friday. Wells Fargo & Company dropped their target price on FS KKR Capital from $11.00 to $10.00 and set an “equal weight” rating on the stock in a research report on Tuesday, May 12th. Truist Financial increased their price target on shares of FS KKR Capital from $11.00 to $12.00 and gave the stock a “hold” rating in a report on Friday. Weiss Ratings reissued a “sell (d+)” rating on shares of FS KKR Capital in a research report on Tuesday, June 2nd. Finally, Royal Bank Of Canada restated a “sector perform” rating and set a $11.00 price objective on shares of FS KKR Capital in a research note on Tuesday, May 12th. Six analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, FS KKR Capital currently has an average rating of “Reduce” and an average target price of $10.93.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Sunbelt Securities Inc. boosted its position in FS KKR Capital by 13.7% in the 4th quarter. Sunbelt Securities Inc. now owns 59,903 shares of the company’s stock worth $887,000 after purchasing an additional 7,203 shares in the last quarter. Strive Financial Group LLC purchased a new position in shares of FS KKR Capital during the 4th quarter valued at approximately $50,000. Mercer Global Advisors Inc. ADV increased its holdings in shares of FS KKR Capital by 72.8% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 128,097 shares of the company’s stock valued at $1,897,000 after purchasing an additional 53,978 shares in the last quarter. Summit Global Investments lifted its stake in shares of FS KKR Capital by 28.8% in the 4th quarter. Summit Global Investments now owns 37,399 shares of the company’s stock valued at $554,000 after purchasing an additional 8,352 shares during the period. Finally, Elliott Investment Management L.P. acquired a new position in shares of FS KKR Capital in the 4th quarter valued at $3,922,000. 36.26% of the stock is currently owned by hedge funds and other institutional investors.

About FS KKR Capital

FS KKR Capital Corp (NYSE:FSK) is a closed-end, externally managed business development company that primarily invests in private middle-market U.S. companies. The firm seeks to generate current income and capital appreciation by structuring investments in floating-rate senior secured loans, unitranche financings, second lien debt and mezzanine instruments. As a business development company, FSK provides financing solutions designed to support growth initiatives, acquisitions, leveraged buyouts and recapitalizations for privately held enterprises.

Established in 2018 through a strategic partnership between FS Investment Corporation and KKR Credit Advisors, a division of global investment firm KKR & Co Inc, FSK combines the credit underwriting capabilities of KKR’s global platform with FS’s expertise in private credit markets.