FS KKR Capital Faces Crucial Financial Health Check

Investors are bracing for a pivotal moment for FS KKR Capital as the company prepares to release its full-year 2025 financial statements. The upcoming report, set against a backdrop of recent stock price weakness and a critical rating agency review, is expected to provide crucial insights into the resilience of its investment portfolio and its capacity to maintain shareholder payouts.

The financial data for the fourth quarter and the complete 2025 fiscal year will be disclosed after the U.S. market closes on Wednesday, February 25, 2026. This announcement follows a period of significant pressure for the company's equity, which slumped to a fresh 52-week low earlier in the month on February 6.

• Earnings Release Date: February 25, 2026 (after U.S. market close)
• Investor Conference Call: February 26, 2026, at 3:00 PM CET
• Q4 Forecast: Adjusted net investment income of $0.56 per share
• Portfolio Stress: Non-accruals represented 5% of the portfolio at fair value as of September 30, 2025

A central concern for the market is whether FS KKR Capital can uphold its ambitious distribution targets. Management has reaffirmed its commitment to an aggressive dividend policy, targeting an approximate 10% yield for 2026. This is based on a core annual distribution of about $0.45 per share, supplemented by additional payouts from net investment income (NII).

The company's ability to generate sufficient NII is key. For Q3 2025, it reported a figure of $0.57 per share, surpassing expectations. The internal benchmark for the final quarter is a GAAP net investment income of $0.51 per share. The forthcoming results will reveal if this level was achieved, directly impacting the dividend outlook.

Should investors sell immediately? Or is it worth buying FS KKR Capital?

Portfolio Quality in the Spotlight

The focal point of the upcoming report will undoubtedly be the credit quality within FS KKR Capital's portfolio. The rating agency Fitch revised its outlook for the company to "Negative" in August 2025, citing persistently elevated levels of non-accruing investments. These troubled assets accounted for 5% of the total portfolio at cost by the end of Q3.

Market participants will meticulously analyze whether this trend showed signs of stabilization during the fourth quarter or if further credit deterioration and potential write-downs emerged. The findings are fundamental to assessing the firm's ongoing financial strength and its reputation as a reliable income stock.

The February 25th release will deliver the essential facts regarding the true health of the portfolio and the sustainability of its capital returns. Further strategic commentary is scheduled for the following morning, Eastern Time, when the leadership team hosts a conference call to detail its plans for the current fiscal year.