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Loews reported revenue of $4.8 billion for Q3 FY2026, up from $4.7 billion a year earlier. Its filing showed net income attributable to Loews of $306.0 million, or $1.50 per share, down from $504 million, or $2.43 per share, a year earlier.
The filing attributed the decline in net income primarily to lower contributions from CNA, Boardwalk Pipelines and Corporate, partly offset by higher income at Loews Hotels. At CNA, Loews cited the impact of long-term care reserve assumption updates, lower property and casualty underwriting results and higher catastrophe losses. Boardwalk’s income fell primarily because of higher operating expenses, while Corporate had lower investment income from the parent company’s trading portfolio.
Loews Hotels reported $16.0 million in quarterly net income; the filing cited higher average daily rates and more occupied room nights across most of its portfolio. Loews’ operating margin was 8.53%, compared with 17.1% a year earlier, while free cash flow rose to $954.0 million from $765.0 million.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $4.8 billion | $4.7 billion | 1.88% |
| Diluted EPS | $1.57 | $2.43 | −35.2% |
| Gross margin | 50.7% | 56.5% | −5.8 percentage points |
| Operating margin | 8.53% | 17.1% | −8.6 percentage points |
| Free cash flow | $954.0 million | $765.0 million | 24.7% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.73 | $0.72 | Beat by 1.39% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, Loews said the long-term care reserve update reflected unfavorable cost-of-care inflation and morbidity, partly offset by premium rate actions. The company said anticipated investment cash flows from recent portfolio actions almost entirely offset the unfavorable expected cash flows economically, although accounting rules recognize the anticipated investment benefits over time.
Loews also said Boardwalk’s results, excluding charges tied to unrealized losses and an office relocation, improved from a year earlier as gas transportation revenue increased.
Guidance
In its filing, Loews said Boardwalk Pipelines expects its growth projects to add pipeline and storage capacity over the coming years. The company said the projects remain contingent on regulatory approvals and permits and are subject to construction risk.