Harbor PanAgora Dynamic Large Cap Core ETF

Q3 revenue was $1.18 billion, up 10% total and 9% organically; on a BPVC-normalized basis, organic growth was 8%. Adjusted EBITDA was $516 million, up $29 million year over year, with a 43.7% margin; adjusted EBITDA grew 6%. GAAP net income was $161 million, GAAP EPS was $0.40, and adjusted EPS was $0.85, up 10% year over year. Free cash flow was $344 million, trailing 12-month free cash flow conversion was 56%, ending debt was $4.9 billion, and cash was $338 million. For FY2021, revenue guidance was raised to $4.61 billion-$4.63 billion, adjusted EBITDA guidance was maintained at $2.02 billion-$2.03 billion, and adjusted EPS guidance was raised to $3.18-$3.20. Management said the new revenue range implies 7% to 8% organic growth, with margin expansion of about 100 basis points adjusted for FX and cash conversion in the upper 50s due to the OSTTRA JV and S&P Global merger costs.

Lance Uggla described the quarter as another very strong one and said the company was happy with both Q3 and year-to-date results. He emphasized broad-based strength across Financial Services, Transportation, Resources, and CMS, and said the business is benefiting from improved end markets, new product investments, and strong execution. He also framed the ongoing supply-chain disruption as mostly short term, while noting some long-term geopolitical dynamics could help certain parts of the portfolio.

Jonathan Gear focused on the quarter’s financial outperformance and the mechanics behind guidance changes. He cited $1.18 billion of revenue, $516 million of adjusted EBITDA, a 43.7% margin, $161 million of net income, $0.40 GAAP EPS, and $0.85 adjusted EPS; he also noted $344 million of free cash flow and 56% trailing 12-month conversion. On guidance, he said the company added $20 million at the midpoint from operating strength, removed $45 million of Q4 revenue due to the MarkitSERV JV consolidation change, and cut $10 million from FX, resulting in the new FY revenue range and higher EPS outlook.

Analysts asked whether supply-chain disruption was mostly a short-term shock or a structural reshoring trend; management said most of the impact is short term, though China/geopolitics could create longer-term benefits in some information products. Questions about the auto business drew a clarification that bookings in areas like Automotive Mastermind and digital marketing are temporarily softer until inventory recovers, but the effect was described as not material overall and not changing the outlook. Other questions focused on the OSTTRA JV, where management said the revenue hit should roughly annualize to about four times the Q4 reduction, with no absolute EBITDA or EPS impact, and on S&P merger synergies, especially fixed income indices, ESG, private markets, and multi-asset opportunities.