Marex Sets Pace for Strong Year with Record-Breaking Q1 Performance
Marex, a leading global derivatives broker and financial services company, has reported a stellar first quarter (Q1) performance, exceeding expectations with adjusted profit before tax of $96 million. This marks the top end of the preliminary range announced at its Investor Day and subsequent F1 filing.
Speaking on the Q1 2025 earnings call, Ian Lowitt, Group Chief Executive Officer, highlighted the company's strong first quarter driven by robust client activity in a favorable operating environment. Exchange volumes surged 15% year-on-year and 12% compared to the fourth quarter, with a "goldilocks" level of volatility across various asset classes that Marex was able to capitalize on.
The company's adjusted profit before tax rose 42%, with significant revenue growth across all business segments. Agency execution stood out as a particular highlight, with continued growth in prime services and a strong performance from the energy business. At the start of April, Marex successfully processed unusually high-volume days, confirming its operational resilience and the scalability of its platform.
Marex's risk management also shone through during this period, maintaining close dialogue with clients and adding significantly to its liquidity position, which has further increased following a $500 million senior notes issuance. This funding surplus serves as valuable insurance for the company in today's environment, albeit at the cost of net interest income.
The company completed the Aarna acquisition at the end of March and expects Hamilton Court to close later this quarter. Marex also successfully executed on its second equity follow-on transaction since its IPO and increased its dividend to $0.15 per share for Q1 2025, up from $0.14 per quarter in 2024.
"We've had a very busy few weeks since the end of the quarter," said Ian Lowitt during the earnings call. "We hosted our inaugural Investor Day on April 2 and had a highly successful equity offering on April 17 and a well-received debt offering on May 1. This has provided us with many opportunities to engage with our investors, both existing and new ones."
Marex's robust performance during Q1 reflects the increasing recognition of its platform's ability to deliver strong and reliable results through the cycle, as noted by Lowitt.
