Golub Capital BDC Delivers Consistent Performance in Fiscal 2025

Golub Capital BDC has reported a year of resilient operational and financial results for fiscal 2025. The business development company, which focuses on providing financing to middle-market companies, demonstrated strength through key metrics, underscoring its stability even within a complex economic landscape.

The company has indicated it will review its dividend policy in early 2026. This review aims to align distributions with core objectives: maintaining a stable net asset value (NAV) per share, minimizing tax liabilities for shareholders, and ensuring the dividend yield remains sustainable over the long term.

Investors should note the upcoming ex-dividend date of December 12, 2025, for the next distribution of $0.390 per share. In the previous trading session on Friday, December 5, 2025, Golub Capital BDC shares closed at $14.27.

Earnings Resilience and Portfolio Metrics

For the completed fiscal year, Golub Capital BDC generated adjusted net investment income (NII) of $0.39 per share. This result translates to an adjusted return on equity (ROE) of 10.4%. The company's earnings remained firm despite a slight 20-basis-point contraction in the portfolio's yield, which settled at 10.4%. This modest decline is attributed to lower average reference interest rates and compression in portfolio margins—industry-wide trends affecting the broader leveraged loan market.

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Credit Discipline and Financial Stewardship

A cornerstone of the company's performance is its exceptional credit quality and proactive balance sheet management. Golub Capital BDC successfully reduced its effective cost of debt to an annualized rate of 5.6%. This achievement was facilitated by the repricing of a revolving credit facility and the early repayment of a legacy securitization.

The underlying loan portfolio exhibits remarkable health:
* Investments on non-accrual status represent a mere 0.3% of the portfolio at fair value.
* Approximately 90% of the portfolio is held in the two highest internal credit rating categories.
* The underwriting process remains highly selective, with only 3.8% of reviewed deals ultimately receiving financing. The average loan-to-value (LTV) ratio on new commitments was a conservative 42%.

This combination of rigorous credit standards, a high-quality asset base, and a clear capital distribution framework reinforces Golub Capital BDC's standing as a disciplined player in the BDC sector.