Power Corporation of Canada (POW) Q2 2024 earnings summary

Executive summary

• Q2 2024 net earnings from continuing operations rose to $730 million ($1.12/share), up from $550 million ($0.82/share) in Q2 2023, while adjusted net earnings were $761 million ($1.17/share), down from $842 million ($1.26/share) due to prior-year one-time gains.

• Great-West Lifeco delivered record base earnings exceeding $1 billion, with Empower leading growth and all segments contributing; IGM reported strong earnings and year-over-year growth in both wealth and asset management.

• Alternative asset managers Sagard and Power Sustainable raised over $1 billion in 2024, with AUM reaching $37.5 billion; Sagard’s private equity funds performed well and fundraising remained strong despite industry headwinds.

• GBL proposed a record-high dividend of €5.00 per share, representing an 82% increase in dividend income for Power, funded by asset sales.

• Active capital return to shareholders continued through dividends and share repurchases, with 4.9 million shares repurchased for $189 million year-to-date.

Financial highlights

• Adjusted net asset value per share was $50.48 at June 30, 2024, down from $53.10 at March 31, mainly due to declines in Great-West Lifeco and GBL share prices.

• Book value per share increased to $33.53 at June 30, 2024, up from $33.04 at March 31, 2024.

• Quarterly dividend declared at $0.5625 per share, up 7.1% year-over-year.

• Publicly traded operating companies contributed $827 million to net earnings in Q2, up 51.7% year-over-year.

• Share buybacks contributed $0.03 to adjusted EPS.

Outlook and guidance

• Empower is on track to become Great-West Lifeco’s largest segment by year-end, aligning with long-term growth strategy.

• IGM and alternative platforms are positioned for long-term growth despite challenging macro conditions, with continued investment in future-oriented businesses.

• Management remains focused on execution, capital efficiency, and navigating macroeconomic volatility.

• Continued execution of M&A transactions and ongoing assessment of new opportunities.

• Further capital returns to shareholders expected through buybacks and dividends, with ongoing fundraising at Sagard and Power Sustainable.