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FS KKR Capital Corp. Announces Second Quarter 2026 Results

FS KKR Capital Corp. (NYSE: FSK) has recently reported its financial and operating results for the quarter ending on June 30, 2026. The company's performance reflects robust operational stability and a commitment to shareholder returns, as evidenced by a recently declared distribution of $0.44 per share for the third quarter of 2026.

Financial Highlights

During this second quarter, the company achieved a net investment income of $0.44 per share. This marks an improvement from the previous quarter's income of $0.42 per share as reported for the period ending March 31, 2026. Moreover, the adjusted net investment income also showed a positive trajectory, increasing from $0.41 to $0.43 per share in the same timeframe. The net asset value per share saw a minor decrease, landing at $18.30 on June 30, 2026, compared to $18.83 at the end of March 2026.

In terms of realized and unrealized losses, FSK reported a loss of $0.56 per share, a notable decrease compared to the $2.00 per share loss in the previous quarter, indicating a significant recovery in performance metrics. The earnings per share reflected an overall loss of $0.13, representing an improvement from a loss of $1.57 reported earlier.

Strategic Financial Decisions

FS KKR’s strategic maneuvers included total purchases amounting to $590 million alongside substantial sales and repayments totaling $1,334 million. The debt to equity ratio showed a favorable reduction to 127%, and the net debt to equity ratio improved to 122%, compared to 138% and 131% respectively in the prior quarter. These changes underscore the company's proactive approach to managing leverage and liquidity, thereby enhancing operational stability and investor confidence.

Executive Insights

Michael C. Forman, the Chief Executive Officer and Chairman, commented on the company's performance, stating, “In the second quarter, FSK generated Net Investment Income of $0.44 per share, reduced net leverage to within our target range, and made progress reducing our non-accrual assets.” This sentiment was echoed by Daniel R. Pietrzak, President and Chief Investment Officer, who highlighted that executed strategic actions are coalescing into a solid foundation for long-term value creation.

Share Repurchase Program

Additionally, FSK has been active in its share repurchase plan, having bought back 3,348,353 shares from July 1, 2026, to August 5, 2026, at an average price of $10.75 per share, totaling approximately $36 million. This buyback is part of an ongoing effort to bolster shareholder value and optimize the company’s capital structure.

Upcoming Dividend Payment

The board of directors declared a distribution of $0.44 per common share for the third quarter, scheduled for payment around October 2, 2026. Shareholders of record as of September 16, 2026, will be eligible for this distribution. In addition, a dividend of $0.315972 per share of convertible preferred stock has been declared for the period from June 29, 2026, to September 30, 2026.

Portfolio Overview

As of June 30, 2026, the total fair value of FSK’s investments reached approximately $11.4 billion, with a majority (63.0%) invested in senior secured securities. The weighted average annual yield on accruing debt investments stood at 9.8%, slightly down from 9.9% in the previous quarter, while the yield on all debt investments rose to 8.8%.

Overall, investments on non-accrual status represented 3.8% of the total investment portfolio, indicating a continued focus on improving asset quality within the portfolio.

In summary, FS KKR Capital Corp. has demonstrated a noteworthy performance for Q2 2026 with significant growth in key financial indicators, reduced leverage, and a solid commitment to returning value to shareholders. The proactive strategies employed underlines the company's resilience and long-term vision.