Barings BDC, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net investment income for the three months ended September 30, 2026, was $27.2 million ($0.26 per share), compared to $29.0 million ($0.28 per share) for the three months ended June 30, 2026.
• Net realized losses for the quarter were $4.8 million ($0.05 per share), compared to net realized gains of $18.8 million ($0.18 per share) in the prior quarter.
• Net unrealized appreciation for the quarter was $2.2 million ($0.02 per share), compared to net unrealized depreciation of $29.4 million ($0.28 per share) in the prior quarter.
• Net increase in net assets resulting from operations was $24.6 million ($0.24 per share) for the quarter, compared to $18.3 million ($0.18 per share) in the prior quarter.
• Total investment income for the quarter was $64.3 million.
• Total operating expenses for the quarter were $36.4 million.
• Investment portfolio at fair value increased to $2,509.8 million as of September 30, 2026, from $2,458.6 million as of June 30, 2026.
• Total assets were $2,634.9 million as of September 30, 2026, compared to $2,584.2 million as of June 30, 2026.
• Debt outstanding (principal) increased to $1,467.2 million as of September 30, 2026, from $1,409.7 million as of June 30, 2026.
• Total net assets (equity) were $1,143.3 million as of September 30, 2026, compared to $1,145.9 million as of June 30, 2026.
• Net asset value (NAV) per share was $10.92 as of September 30, 2026, a decrease of $0.02 from $10.94 as of June 30, 2026.
• Debt-to-equity ratio was 1.28x as of September 30, 2026, compared to 1.23x as of June 30, 2026.
• Net debt-to-equity ratio (adjusted for unrestricted cash and net unsettled transactions) was 1.24x as of September 30, 2026, compared to 1.18x as of June 30, 2026.
• For the nine months ended September 30, 2026, net investment income was $82.1 million ($0.78 per share), compared to $89.8 million ($0.85 per share) for the nine months ended September 30, 2025.
• Net increase in net assets resulting from operations for the nine months ended September 30, 2026, was $63.0 million ($0.60 per share), compared to $76.7 million ($0.73 per share) for the nine months ended September 30, 2025.

Guidance and Future Outlook:

• Management stated the company believes its liquidity position and the breadth of the Barings platform position it well to continue delivering value for shareholders.
• The company intends to use net proceeds from the Barings BDC CLO 2026-1 transaction, together with borrowings under its senior secured credit agreement, to repay in full its $350.0 million of 3.300% notes due November 23, 2026.

Business Segments and Product Lines:

• The company funded $196.0 million of investments during the quarter, including 20 new portfolio companies.
• New portfolio company investments totaled $121.4 million, while additional investments in existing portfolio companies totaled $74.6 million.
• Total investments sold or repaid were $145.9 million, consisting of $66.8 million in loans repaid and $78.5 million in principal payments and sales proceeds.
• The portfolio consists of 349 portfolio company investments as of September 30, 2026, up from 342 as of June 30, 2026.
• 92.8% of the portfolio at fair value consisted of floating rate securities as of September 30, 2026.
• Weighted average yield on debt investments other than non-accrual debt investments was 9.5% as of September 30, 2026, compared to 9.4% as of June 30, 2026.
• Portfolio composition as of September 30, 2026, included $1,771.7 million in senior debt and 1st lien notes, $233.3 million in subordinated debt and 2nd lien notes, and $445.0 million in equity shares.

Market and Competitive Landscape:

• The company is an externally managed investment company managed by Barings, a global asset manager with $500 billion of AUM firm-wide as of September 30, 2026.
• The company seeks to invest primarily in senior secured loans in middle-market companies operating across a wide range of industries.

Risks and Challenges:

• Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from plans, estimates, or expectations, including economic, market, or other conditions.
• There is no assurance that the market price of shares will increase as a result of share repurchases or that any repurchase plan will enhance stockholder value over the long term.
• There is no assurance that Barings or any affiliates will purchase additional shares at specific discount levels or amounts.

Management Commentary and Tone:

• Thomas McDonnell, Chief Executive Officer, stated that third quarter results reflect the stability of the predominantly senior secured portfolio.
• Management noted that net investment income of $0.26 per share fully covered the dividend.
• Management highlighted that NAV per share was largely unchanged at $10.92.
• Management expressed confidence in the company's liquidity position and the breadth of the Barings platform.

Other Key Points:

• The Board declared a quarterly cash dividend of $0.26 per share, payable on December 9, 2026, to shareholders of record on December 2, 2026.
• On October 30, 2026, the company priced Barings BDC CLO 2026-1, an approximately $396.3 million collateralized loan obligation, consisting of $304.0 million of rated secured notes and $92.3 million of subordinated notes retained by the Company.
• The CLO floating rate notes carry a weighted average interest rate of Term SOFR plus 1.64%.
• Subsequent to September 30, 2026, the company made approximately $70.9 million of new commitments, of which $36.2 million closed and funded.
• The $36.2 million of subsequent investments consisted of $35.8 million of first lien senior secured debt investments and $0.4 million of equity investments, with a weighted average yield of 11.1%.
• The company funded an additional $35.0 million of previously committed revolvers and delayed draw term loans subsequent to the quarter end.
• The company has a dividend reinvestment plan (DRIP) allowing stockholders to automatically reinvest dividends in additional shares.
• A conference call to discuss results was scheduled for November 6, 2026, at 8:30 a.m. ET.