Power Corporation of Canada (POW) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2025 results, with adjusted net earnings from continuing operations rising to $3,400 million ($5.31/share), and adjusted net asset value per share up 42% year-over-year to $85.77, driven by robust performance in public operating companies.

• Leadership transitions were successfully executed across all major operating companies and at the parent level, with new changes announced effective July 1, 2026, ensuring continuity and strategic alignment.

• Great-West and IGM exceeded medium-term EPS growth targets and increased dividends by 10%, while quarterly dividend rose 9% to $0.6675 per share.

• Returned over $2.3 billion to shareholders via buybacks and dividends in 2025, with more than $10 billion returned since 2019.

• Reported net earnings declined due to significant impairment and revaluation charges, falling to $2,572 million ($4.01/share) for 2025.

Financial highlights

• Q4 adjusted net earnings reached $867 million ($1.36/share), up from $829 million ($1.28/share) in Q4 2024, while reported net earnings for Q4 were $408 million ($0.64/share), down from $933 million ($1.44/share) in Q4 2024.

• Adjusted net asset value per share was $85.77 at year-end, up 42% year-over-year and 19% quarter-over-quarter.

• Book value per share at year-end was $36.31, up from $35.56 a year earlier.

• Total shareholder return for the last 12 months was 41.3%, outperforming the S&P TSX and S&P TSX Financials.

• Completed a $200 million preferred share offering and repurchased 12.4 million shares for $711 million in 2025.

Outlook and guidance

• Entering 2026 with strong momentum, high cash balances, and a focus on continued earnings and NAV growth, with Great-West targeting 8-10% base EPS growth and IGM targeting 9%+ adjusted EPS growth per annum.

• GBL targets medium-term double-digit total shareholder return, and proprietary capital investments in Sagard and Power Sustainable aim for 10%+ returns.

• Management remains optimistic about fundraising and scaling alternative asset platforms, despite challenging market conditions.

• Lifeco exceeded its medium-term adjusted EPS growth objective and is on track for its medium-term ROE target.

• GBL completed 95% of its €5 billion portfolio simplification and announced the exit of its Umicore position.