Power Corporation Q2 2025 presentation: Adjusted earnings surge 19%, NAV up 28%

Introduction & Market Context

Power Corporation of Canada (TSX:POW) released its Q2 2025 investor presentation on August 8, 2025, highlighting strong financial performance across its portfolio of companies. The financial holding company reported significant year-over-year growth in adjusted net earnings and net asset value per share, while continuing to return capital to shareholders through dividends and share buybacks.

The company’s stock closed at $57.23 on August 7, 2025, up 0.72% for the day and approaching its 52-week high of $57.32. Over the past year, Power Corporation has delivered impressive shareholder returns, outperforming both the S&P TSX Financials index and the broader S&P TSX.

Quarterly Performance Highlights

Power Corporation reported adjusted net earnings of $883 million for Q2 2025, representing a 19% increase year-over-year, with earnings per share rising 21% to $1.38. Net earnings reached $772 million, up 6% from the same period last year, with earnings per share of $1.20, a 7% increase.

The company’s net asset value per share stood at $64.76 as of June 30, 2025, marking a 28% increase year-over-year, though down 6% quarter-over-quarter. Book value per share increased 7% year-over-year to $35.90.

As shown in the following financial highlights:

The company declared a quarterly dividend of 61.25¢ per share, representing a 9% increase from the previous year. Power Corporation also continued its share repurchase program, buying back $209 million worth of shares year-to-date at an average cost of $47.30, for a total of 4.4 million shares.

Detailed Financial Analysis

Power Corporation’s strong performance was primarily driven by its major operating companies, Great-West Lifeco and IGM Financial (OTC:IGIFF), with additional contributions from its alternative investment platforms.

Great-West’s contribution to adjusted net earnings increased by 12%, while IGM’s contribution rose by 15% as average assets under management and administration increased to $274 billion from $251 billion in the prior year. However, GBL (Groupe Bruxelles Lambert) reported a net loss of $15 million, driven by lower share of earnings from operating companies and fair value reductions in GBL Capital.

The following breakdown illustrates the contribution from each segment:

The company’s adjusted net asset value was supported by strong performance from its publicly traded operating companies, which accounted for 88.2% of gross asset value. Great-West represented 69.4% of gross asset value, followed by IGM at 13.4% and GBL at 5.4%.

Alternative asset investment platforms, including Sagard and Power Sustainable, contributed 7.0% to gross asset value. Notably, Wealthsimple’s fair value increased 77% year-over-year and 21% quarter-over-quarter, contributing to Sagard’s overall fair value increase.

The detailed breakdown of net asset value components is shown here:

Strategic Initiatives

Power Corporation’s alternative asset investment platforms continued to scale, with total assets under management reaching $47 billion as of June 30, 2025. The company closed the BEX transaction in June 2025, adding $3.1 billion in AUM, while Sagard raised over $2 billion in Q2 2025.

The following chart illustrates the ongoing fundraising efforts:

The company’s strategic investments through IGM Financial also delivered impressive client asset growth. Wealthsimple’s assets under administration increased by 94% year-over-year to $84.5 billion, while Rockefeller Capital Management’s client assets grew by 21% to $232.7 billion. In asset management, ChinaAMC’s AUM rose 33% to $542.3 billion, and Northleaf’s AUM increased 13% to $32.8 billion.

Power Corporation’s proprietary capital invested in Sagard and Power Sustainable strategies was valued at $2.7 billion, targeted to generate 10%+ net returns across multiple strategies including energy infrastructure, private credit, real estate, venture capital, and private equity.

The company’s investing activities across different strategies are detailed here:

Forward-Looking Statements

Power Corporation’s management expressed confidence in the company’s future prospects, highlighting that Great-West and IGM, which represent 83% of Power’s gross asset value, continue to have strong momentum. The company maintains a strong balance sheet with $1.7 billion in cash and cash equivalents as of June 30, 2025, of which $1.3 billion is available cash, providing flexibility for capital deployment.

The company’s discount to net asset value has continued to narrow, reaching 14.6% in June 2025, down significantly from nearly 35% in December 2015. This narrowing discount reflects the successful execution of Power Corporation’s strategy and has contributed to strong total shareholder returns of 64.9% over the past 12 months and annualized returns of 24.9% and 24.2% over the last 3 and 5 years, respectively.

Looking ahead, Power Corporation identified several opportunities for further value creation, including organic growth at its operating companies, potential M&A activities, and continued capital return to shareholders through buybacks and dividends. The company also plans to continue fundraising at its alternative asset investment platforms and enhance communication with stakeholders.

As the company moves forward, it aims to leverage its strong capital position and diverse portfolio to generate attractive returns for shareholders while maintaining financial flexibility for strategic initiatives.

Full presentation:

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