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. 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, while Sagard contributed $33 million. NAV per share was $112.94 at quarter-end, up 74% year over year and 34% quarter over quarter; adjusted NAV per share was $116.01 as of last night’s close. Power’s cash and cash equivalents were $2.2 billion; gross asset value was $77.4 billion, with 91% tied to public companies and 94% including cash. Forward, management reiterated that Great-West and IGM should continue to generate low- to mid-teens returns and that Power will keep returning capital through dividends and buybacks; Great-West expects total capital deployment of at least $1.6 billion in 2025-equivalent terms, and Power still has $1.8 billion of available cash.

James O’Sullivan framed the quarter as evidence of continuity and strong execution rather than a reset in strategy. He stressed active ownership, simplification, and capital allocation discipline, saying Power will keep investing organically, remain strategic in M&A, and prioritize dividends and share buybacks. His tone was confident and constructive, with repeated emphasis that the market discount to NAV can narrow if Power keeps demonstrating value creation and communicating it clearly.

Jake Lawrence highlighted the operating drivers behind the quarter: Great-West’s base EPS of $1.42 was up 15% year over year and its base ROE was 19.3%, while IGM’s adjusted EPS of $1.41 was up 32% year over year. He also pointed to Power’s $2.2 billion cash balance, Great-West holding company cash of $2.5 billion, and year-to-date shareholder returns including $925 million of Great-West buybacks and $386 million returned by IGM. On the portfolio side, he noted Wealthsimple’s fair value of $1.7 billion, up 15%, Sagard’s fair value up 11%, and the LMPG sale reducing NAV by $41 million, with proceeds expected in Q3 and treated as part of overall capital allocation.

Analysts pressed on simplification, Wealthsimple valuation, the LMPG sale, IGM buybacks, and Sagard fundraising. O’Sullivan said simplification is a multiyear process focused on consolidating overlapping assets and businesses where possible, but he would not give specific timelines. On Wealthsimple, he said the valuation is reviewed every quarter through a rigorous process and that more disclosure may be warranted as the business becomes a larger part of Power. On IGM buybacks, he said Power is happy to own more IGM and will revisit participation later in the year, while on Sagard he said fundraising has been solid at about $2.6 billion in the first half and the firm is optimistic despite a tougher fundraising backdrop.