Armour Residential Stock Earnings Reports

ARMOUR Residential REIT reported strong Q3 2025 results with GAAP net income available to common stockholders of $156.3 million ($1.49/share) and distributable earnings of $75.3 million ($0.72/share). Total economic return for the quarter was 7.75% and book value rose to $17.49 per share (most recent estimate $17.50 including the October dividend). The company paid a $0.24/month common dividend and declared the November $0.24 dividend. ARMOUR raised capital (~$99.5M via ATM and $298.6M via an underwritten sale in August), repurchased shares opportunistically, and executed a $300M overnight bought deal to deploy capital into attractive spread levels. Portfolio positioning: duration ~0.2 years, implied leverage 8.1x, ~87% of hedges in OIS/SOFR pay-fixed swaps, ~55% liquidity, and the portfolio is concentrated in specified Agency MBS/CMBS and U.S. Treasuries (92% specified pools). Management sees a constructive medium-term backdrop: Fed easing, tighter MBS spreads (~20 bps), lower volatility, potential increased demand from banks, GSE reform/privatization implications, and possible GSE reinvestment capacity. Prepayments rose moderately (October CPR ~9.6), reinforcing focus on specified pools and lower-optional assets (DUS, discount MBS, Agency CMBS) to manage negative convexity. Management expects hedges and funding (repo, standing facility) to remain adequate, sees hedged ROEs on incremental investments around 16%–18% (up to ~19% for higher premium pools), and remains disciplined on dividend, liquidity, and risk management.