FS KKR Capital (NYSE:FSK) Issues Quarterly Earnings Results

FS KKR Capital (NYSE:FSK) announced its earnings results on Thursday. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.01, FiscalAI reports. The company had revenue of $290.00 million for the quarter, compared to the consensus estimate of $286.75 million. FS KKR Capital had a negative net margin of 28.52% and a positive return on equity of 9.43%. During the same period in the previous year, the business earned ($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 Up 4.5%

Shares of FSK traded up $0.54 during mid-day trading on Friday, hitting $12.42. 4,865,263 shares of the company’s stock were exchanged, compared to its average volume of 2,577,550. The stock has a market cap of $3.48 billion, a price-to-earnings ratio of -9.20 and a beta of 0.83. The firm has a fifty day moving average of $10.75 and a two-hundred day moving average of $11.26. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 1.38. FS KKR Capital has a twelve month low of $9.72 and a twelve month high of $18.85.

FS KKR Capital Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Wednesday, September 16th will be paid a dividend of $0.44 per share. This is a positive change from FS KKR Capital’s previous quarterly dividend of $0.42. The ex-dividend date is Wednesday, September 16th. This represents a $1.76 annualized dividend and a dividend yield of 14.2%. FS KKR Capital’s dividend payout ratio (DPR) is currently -85.28%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Royal Bank Of Canada reiterated a “sector perform” rating and set a $11.00 price target on shares of FS KKR Capital in a report on Tuesday, May 12th. Zacks Research downgraded FS KKR Capital from a “hold” rating to a “strong sell” rating in a research note on Monday, July 13th. Keefe, Bruyette & Woods decreased their price objective on FS KKR Capital from $15.00 to $11.00 and set a “market perform” rating for the company in a research report on Thursday, April 16th. Capital One Financial set a $12.00 target price on FS KKR Capital in a research note on Friday. Finally, Wall Street Zen raised FS KKR Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Six equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $10.93.

Institutional Investors Weigh In On FS KKR Capital

Large investors have recently bought and sold shares of the business. Jessup Wealth Management Inc bought a new position in FS KKR Capital during the fourth quarter valued at about $26,000. Smartleaf Asset Management LLC increased its holdings in shares of FS KKR Capital by 201.2% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,678 shares of the company’s stock valued at $40,000 after acquiring an additional 1,789 shares during the last quarter. Knott David M Jr bought a new position in shares of FS KKR Capital in the 4th quarter valued at approximately $43,000. Strive Financial Group LLC acquired a new stake in FS KKR Capital in the 4th quarter worth approximately $50,000. Finally, Advocate Investing Services LLC bought a new stake in FS KKR Capital during the fourth quarter worth approximately $59,000. 36.26% of the stock is currently owned by institutional investors.

Trending Headlines about 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

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.