Power Corporation of Canada

Power reported adjusted net earnings of $974 million, up 10% year over year, and adjusted EPS of $1.55, up 12% versus Q2 last year. Reported net earnings were $690 million and reported EPS was $1.10. By segment, Great-West contributed $871 million to adjusted net earnings, up 10%; IGM contributed $211 million, up 34%; GBL and Power Sustainable were modest losses of $5 million and $4 million; Sagard contributed $33 million; and corporate operations and other were a loss of $112 million. NAV per share was $112.94 at the end of Q2, up 74% year over year and 34% quarter over quarter, and adjusted NAV per share was $116.01 at last night’s close. Looking ahead, management said Great-West and IGM should continue to deliver low- to mid-teens returns as they track against their medium-term objectives; GBL is targeting medium-term double-digit TSR; and Power has $1.8 billion of available cash supporting dividends and buybacks.

James O’Sullivan framed the quarter as evidence that Power’s active-ownership model is working and said he intends to keep strategy broadly unchanged. He emphasized continuity, stronger communication, and a longer-term capital allocation approach centered on organic investment, selective M&A, dividends and buybacks. He also said the company wants to continue simplifying the structure, growing NAV, and narrowing the stock’s discount to NAV, while maintaining momentum built under prior leadership.

Jake Lawrence highlighted the core financials: adjusted net earnings of $974 million, adjusted EPS of $1.55, reported net earnings of $690 million, and NAV per share of $112.94. He noted Power’s cash and cash equivalents were $2.2 billion, up from $1.7 billion a year ago, and said 91% of gross asset value is in the public companies, rising to 94% including cash. He also pointed to Great-West’s $2.5 billion of holding-company cash, $925 million of Great-West share repurchases year to date, and expected total capital deployment at Great-West of at least $1.6 billion in 2025-equivalent terms. He said the LMPG stake was marked at just under $90 million, with proceeds expected in Q3, and described them as fungible within the broader capital pool.

Analysts asked about simplification, Wealthsimple valuation, the LMPG sale, IGM buybacks, and Sagard fundraising. O’Sullivan said simplification is a multiyear process that could involve consolidating overlapping holdings or similar businesses, but he would not give specific initiatives or timelines yet. On Wealthsimple, he said the valuation is reviewed every quarter, driven by performance against plan and the outlook, and that management will try to provide more disclosure as the business becomes more material. On IGM buybacks, he said Power is happy to own more of IGM if it does not participate, though the decision will be revisited later in the year. On Sagard, he said fundraising has started well at about $2.6 billion in the first half and they hope the pace continues, while stressing credit exposure is mainly mid-market and not software-heavy.