OMF - Trimming EPS and Target on Credit, But Feel Good About Outlook and Valuation

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OMF - Trimming EPS and Target on Credit, But Feel Good About Outlook and Valuation

Truist Securities

Equity Research Report July 1, 2026

FINANCIALS: Consumer Finance OneMain Holdings, Inc. (OMF)

OMF - Trimming EPS and Target on Credit, But Feel Good About Arren Cyganovich, CFA

212-319-2334 Outlook and Valuation

Arren.Cyganovich@truist.com

We are lowering our 2Q26 adjusted EPS to $1.16 from $1.40 to reflect higher expected

net charge-offs as we now expect the elevated roll-rate to charge-off that occurred in 1Q to

Stock Rating BUY carry over into 2Q results. We are lowering our 2026 and 2027 estimates to $6.80 and $8.80

Unchanged from $7.35 and $9.10 respectively to reflect higher expected credit losses and increased

Price Target provisioning from its growing credit card portfolio. With our 2027 estimate falling 4% we $70.00 lower our price target to $70 from $73 (8.0x target P/E multiple unchanged). We remain Buy

↓ rated as we continue to expect credit to improve in 2H26 as the remaining pre-tightening from personal loans roll off. $73.00

Higher NCOs likely remain high in 2Q. Delinquencies rose higher than normal in 4Q25

and the roll rate from late stage delinquencies (90+ days) was elevated in 1Q leading to TR to Target 21.7%

higher NCO rates in the quarter than we modeled. From the ABS trust data that we see it

Price (Jun. 30, 2026) $60.97 appears that the spike in delinquencies from last year end will be putting some pressure

52-Wk Range $71.37-$49.26 on NCOs in 2Q (Figure 1). The good news is that delinquencies improved since year end

Market Cap ($M) $7,048 both on an absolute and y/y basis. We believe this should lead to 2H NCO improvement

ADTV 796,076 that management has guided (albeit partly also due to seasonally low NCOs in 3Q vs. the