ARMOUR Residential REIT Q2 2026 Earnings Call: Complete Transcript

ARMOUR Residential REIT (NYSE: ARR ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

86 per common share. 1 million through preferred stock offerings, with continued capital raising efforts through July 14, 2026. 53 per common share. Strategically, the company focuses on agency MBS with a portfolio size of over $22 billion, and adjusts its hedging strategy to manage interest rate risks effectively.

Management highlighted the impact of market supply-demand dynamics on MBS valuations and emphasized a cautious approach given potential macroeconomic and Federal Reserve policy shifts. Full Transcript OPERATOR Good morning and welcome to ARMOUR Residential REIT's second quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad.

After today's presentation there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded.

I would now like to turn the conference over to Scott Ulm, CEO. Please go ahead, sir. Scott Ulm, CEO Good morning and welcome to ARMOUR Residential REIT's second quarter 2026 conference call. This morning I'm joined by our Chief Financial Officer, Gordon Harper, as well as our Co-Chief Investment Officers, Sergei Loesyev and Desmond McCauley.

Now I'd like to turn the call over to Gordon to run through the financial results. Gordon Harper, CFO Thank you, Scott. By now everyone has access to ARMOUR's earnings release and our Q2 2026 investor presentation, which can be found on ARMOUR's website at This conference call includes forward-looking statements, which are intended to be subject to the safe harbor protection provided by the Private Securities Litigation Reform Act of 1995.

The risk factors section of ARMOUR's periodic reports filed with the Securities and Exchange Commission describe certain factors beyond ARMOUR's control that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements. Those periodic reports can be found on the SEC's website at All of today's forward-looking statements are subject to change without notice. We disclaim any obligation to update them unless required by law. Also, today's discussions refer to certain non-GAAP measures.

These measures are reconciled with comparable GAAP measures in our earnings release. An online replay of this conference call will be available on ARMOUR's website shortly and will continue for one year. Our portfolio benefited from MBS spreads tightening. 8%.

86 per common share. 8 million. 72 per common share. This non-GAAP measure is defined as net interest income plus TBA drop income, adjusted for income or expense on our interest rate swaps and futures contracts, minus operating expenses.

1 million of capital by issuing approximately 198,000 shares of preferred stock through our at-the-market offering programs. 2 million shares of common stock through our common stock at-the-market offering program. 72 for the quarter. We aim to pay an attractive dividend that is appropriate in context and stable over the medium term.

24 per outstanding common share will be paid to the holders of record on July 15, 2026. 24 per outstanding common share payable August 28, 2026 to the holders of record on August 17, 2026. 6% from March 31, 2026. 24 per share.

I will now turn the call over to Chief Executive Officer Scott Ulm to discuss our portfolio position and current strategy. Scott Ulm, CEO Thanks, Gordon. Agency MBS delivered a positive second quarter performance despite a macroeconomic backdrop that would normally weigh on the sector. S.

Treasury curve continued to bear flatten, with the 2-year yield rising 38 basis points compared with a 15 basis point increase in the 10-year yield, while geopolitical uncertainty in the Middle East remained elevated. Strong economic data and an energy-driven rise in headline inflation exposed division within the Federal Reserve and led markets to shift from pricing year-end rate cuts to rate hikes under Chairman Walsh's new leadership. With traditional forward guidance receding and the Fed's broader policy framework under review, a less predictable central bank could push interest rate volatility higher. Historically, this combination of elevated uncerta