Press Release: Power Corporation Reports Second Quarter 2026 Financial Results

Dow Jones07-31 05:00
 
Readers are referred to the sections Non-IFRS Financial 
 Measures and Forward-Looking Statements later in this 
 release. All figures are expressed in Canadian dollars 
 unless otherwise noted. 
 

MONTRÉAL, July 30, 2026 /CNW/ -- Power Corporation of Canada (Power Corporation or the Corporation) (TSX: POW) (TSX: POW.PR.E) today reported earnings results for the three and six months ended June 30, 2026.

Power Corporation

Consolidated results for the period ended June 30, 2026

HIGHLIGHTS

POWER CORPORATION

   -- Net earnings [1] for the second quarter of 2026 were $690 million or 
      $1.10 per share [2], compared with $772 million or $1.20 per share in the 
      second quarter of 2025. Adjusted net earnings [1, 3] were $974 million or 
      $1.55 per share, compared with $883 million or $1.38 per share in the 
      second quarter of 2025. 
 
   -- Adjusted net asset value per share [3] was $112.94 at June 30, 2026, 
      compared with $85.77 at December 31, 2025, representing an increase of 
      31.7%,  primarily driven by the publicly traded operating companies. Book 
      value per share [4] was $37.74 at June 30, 2026, compared with $36.31 at 
      December 31, 2025, representing an increase of 3.9%. 
 
   -- The Corporation continued to execute on its value creation strategy, 
      delivering record adjusted net earnings per share driven by strong 
      operating company performance, with value creation across its alternative 
      asset investment platforms, and continued portfolio simplification 
      initiatives. 
 
          -- Great West reported adjusted return on equity $(ROE)$ [5] exceeding 
             19% for the second consecutive quarter, while IGM Financial 
             delivered record adjusted net earnings supported by strong 
             performance across its businesses. 
 
          -- Power group's interest in Wealthsimple, held collectively with IGM 
             Financial and Portage Ventures I, was valued at $4.7 billion, 
             representing an increase of 15% in the second quarter [6], 
             reflecting Wealthsimple's continued business momentum. 
 
          -- The fair value of Sagard Holdings Management Inc. increased by 11% 
             [7], contributing positively to value creation and reflecting the 
             continued scaling of the platform, including the recent closing of 
             the acquisition of Unigestion Private Equity Holding SA 
             (Unigestion). 
 
          -- The Corporation has entered into an agreement for the sale of 100% 
             of its interest in LMPG Inc. [8], the last investment previously 
             presented within Standalone businesses, further simplifying the 
             Power group. 
 
          -- In 2026, the Corporation has returned $1.5 billion in capital to 
             shareholders as at June 30, 2026, comprising of $0.8 billion in 
             dividends and $0.7 billion through share repurchases. 

GREAT-WEST LIFECO INC. (GREAT WEST)

   -- Second quarter net earnings were $1,039 million, compared with $894 
      million in the second quarter of 2025. Adjusted net earnings [9] were 
      $1,270 million, compared with $1,149 million in the second quarter of 
      2025. 
 
   -- Adjusted net earnings increased 11% from the second quarter of 2025, 
      driven by sustained momentum in Great West's Retirement and Wealth 
      businesses, led by Empower, and supported by strong Capital Solutions new 
      business growth in Capital and Risk Solutions. 
 
   -- On June 30, 2026, Empower announced the acquisition of Milliman, Inc.'s 
      retirement plan and benefits administration business for 
      US$340 million [10]. The acquisition will further extend Empower's 
      Workplace Solutions platform with approximately US$130 billion in client 
      assets and 1.5 million plan participants at closing, while expanding 
      defined benefit administration and health and welfare capabilities. 
 
   -- Great West delivered adjusted ROE [5] of 19.3% and ROE of 17.2%, 
      achieving Great West's 19%+ medium-term adjusted ROE objective for the 
      second consecutive quarter, as a result of its earnings growth, 
      disciplined capital deployment, and share buybacks. 

IGM FINANCIAL INC. $(IGM)$

   -- Second quarter net earnings were $261.5 million, compared with 
      $246.7 million in the second quarter of 2025.Adjusted net earnings 
      [3] were $330.0 million, compared with $252.7 million in the second 
      quarter of 2025. 
 
   -- Record adjusted net earnings demonstrate the diversified growth of IGM's 
      wealth and asset management businesses, reflecting the breadth of IGM's 
      platform and the value of its diversified portfolio of wealth and asset 
      management businesses. 
 
   -- Assets under management and advisement [4] were $343.3 billion at 
      June 30, 2026, an increase of 9.3% from March 31, 2026 and 20.9% from 
      June 30, 2025. 
 
   -- Assets under management and advisement including strategic investments 
      [4] were $622.1 billion at June 30, 2026, compared with $568.9 billion at 
      March 31, 2026 and $521.1 billion at June 30, 2025. 
 
[1]   Attributable to participating shareholders. 
[2]   All per share amounts are per participating share 
       of the Corporation. 
[3]   Adjusted net earnings, adjusted net earnings reported 
       by IGM and adjusted net asset value are non-IFRS financial 
       measures. Adjusted net earnings per share and adjusted 
       net asset value per share are non-IFRS ratios. Refer 
       to the Non-IFRS Financial Measures section later in 
       this news release. 
[4]   Refer to the Other Measures section later in this 
       news release. 
[5]   Defined as "base ROE" by Great West, a non-IFRS ratio; 
       refer to the Non-IFRS Financial Measures section later 
       in this news release. In April 2025, Great West updated 
       its medium-term growth objectives effective January 
       1, 2025, medium-term defined as 3-5 years. 
[6]   IGM classifies its investment in Wealthsimple as fair 
       value through other comprehensive income (FVOCI); 
       as such there is no impact on net earnings. The Corporation 
       controls and consolidates Wealthsimple; therefore, 
       the increase in fair value is not reflected in net 
       earnings. 
[7]   The Corporation controls and consolidates Sagard Holdings 
       Management Inc. (SHMI); therefore, the increase in 
       fair value is not reflected in net earnings. 
[8]   Expected to close in the third quarter of 2026, subject 
       to customary closing conditions. 
[9]   Defined as "base earnings" by Great West, a non-IFRS 
       financial measure; refer to the Non-IFRS Financial 
       Measures section later in this news release. 
[10]  Expected to close in the second half of 2026, subject 
       to customary closing conditions and regulatory approvals. 
 

HIGHLIGHTS (CONTINUED)

GROUPE BRUXELLES LAMBERT (GBL)

   -- GBL reported a net asset value [1] of EUR13.1 billion or EUR100.77 per 
      share at June 30, 2026, compared with EUR14.0 billion or EUR105.37 per 
      share at December 31, 2025. 
 
   -- In the second quarter of 2026, GBL completed a total of EUR77 million of 
      share buybacks. 
 
   -- GBL continued to advance its mid-term strategy focused on controlled or 
      co-controlled direct private investments, announcing EUR2.3 billion of 
      investments in 2026. During the second quarter, GBL launched a voluntary 
      tender offer for Recordati S.p.A. [2] alongside CVC Capital Partners and 
      completed its investment in Rayner. Subsequent to quarter-end, GBL also 
      completed the acquisition of BUKO Group. 

SAGARD HOLDINGS INC. (SAGARD)

   -- On April 2, 2026, Sagard completed the previously announced acquisition 
      of Unigestion, further advancing the growth of its asset management 
      platform. The transaction increased assets under management [1] to 
      US$46.9 billion as at June 30, 2026. 

WEALTHSIMPLE FINANCIAL CORPORATION (WEALTHSIMPLE)

   -- Wealthsimple's clients increased to 3.6 million at June 30, 2026, and 
      assets under administration [1] were $155.6 billion, an increase of 25% 
      from March 31, 2026 and 84% from June 30, 2025. 
 
 
[1] Refer to the Other Measures section later in this 
 news release. 
[2] Expected to close in the fourth quarter of 2026, 
 subject to shareholder approval and other customary 
 closing conditions. 
 

Second Quarter

Net earnings attributable to participating shareholders were $690 million or $1.10 per share, compared with $772 million or $1.20 per share in 2025.

Adjusted net earnings attributable to participating shareholders ([1]) were $974 million or $1.55 per share, compared with $883 million or $1.38 per share in 2025.

Adjustments in the second quarter of 2026, excluded from adjusted net earnings, were a net negative impact to earnings of $284 million or $0.45 per share, mainly comprised of the Corporation's share of Adjustments of:

   -- Great West of negative $197 million, mainly related to market experience 
      relative to expectations, amortization of acquisition-related finite life 
      intangible assets, assumption changes and management actions, and 
      includes the effect of consolidation; 
 
   -- IGM of negative $43 million, mainly related to restructuring and other 
      charges arising from a multi-year initiative to further simplify IGM's 
      organization, partially offset by a gain on partial sale of investment in 
      associates; 
 
   -- Sagard and Power Sustainable of negative $16 million, mainly related to a 
      revaluation adjustment on SHMI's non-controlling interests $(NCI)$ 
      liabilities in BEX Capital SAS $(BEX)$, partially offset by the revaluation 
      of NCI liabilities within Power Sustainable Energy Infrastructure 
      Partnership (PSEIP); and 
 
   -- Corporate operations and Other of negative $28 million, reflecting an 
      impairment charge on the Corporation's investment in LMPG Inc. (LMPG) in 
      connection with the sale agreement expected to close in the third quarter 
      of 2026. 

In the second quarter of 2025, Adjustments were a net negative impact to earnings of $111 million or $0.18 per share, mainly related to the Corporation's share of Adjustments of Great West, partially offset by the Corporation's share of Adjustments of IGM and Power Sustainable.

 
Contributions to Power Corporation's Earnings 
 (in millions of      Adjusted Net Earnings    Net Earnings 
 dollars, except per 
 share amounts) 
                      2026         2025        2026          2025 
Great West ([2])              871         790           712    615 
IGM ([2])                     211         158           167    154 
GBL ([2])                     (5)        (15)           (5)   (15) 
Effect of 
 consolidation - 
 Great West and IGM 
 ([3])                       (20)         (9)          (57)     10 
Publicly traded 
 operating companies        1,057         924           817    764 
 
Sagard and Power 
 Sustainable ([4])             29          93            13    142 
Corporate operations 
 and Other ([5, 6])         (112)       (134)         (140)  (134) 
                              974         883           690    772 
 
Per participating 
 share                       1.55        1.38          1.10   1.20 
Average shares 
 outstanding (in 
 millions)                  630.2       642.1         630.2  642.1 
 
 

Publicly traded operating companies: contribution to net earnings was $817 million, an increase of 6.9% from the second quarter of 2025, and contribution to adjusted net earnings was $1,057 million, an increase of 14.4% from the second quarter of 2025:

Great West: contribution to net earnings and to adjusted net earnings increased by $97 million or 15.8% and by $81 million or 10.3%, respectively.

IGM: contribution to net earnings and adjusted net earnings increased by $13 million or 8.4% and by $53 million or 33.5%, respectively.

GBL: contribution to net earnings and adjusted net earnings of negative $5 million in the second quarter of 2026, compared with a contribution to net earnings and adjusted net earnings of negative $15 million in the second quarter of 2025.

Sagard and Power Sustainable: Sagard's contribution to net earnings and adjusted net earnings was positive $10 million and positive $33 million, respectively. The contribution to Sagard's net earnings and adjusted net earnings in 2025 included a positive contribution of $98 million from investing activities, mainly related to fair value changes in the private equity portfolio. Power Sustainable's contribution to net earnings and adjusted net earnings was positive $3 million and negative $4 million, respectively.

 
[1]  A non-IFRS financial measure; refer to the Non-IFRS 
      Financial Measures section later in this news release. 
[2]  Contribution to net and adjusted net earnings based 
      on earnings reported by Great West and IGM. Contribution 
      to net earnings based on earnings reported by GBL. 
[3]  Refer to the detailed table in the Contribution to 
      Net Earnings and Adjusted Net Earnings section of 
      the Corporation's most recent Management's Discussion 
      and Analysis (MD&A) for additional information. 
[4]  Consists of earnings (losses) from the alternative 
      asset investment platforms, including controlled and 
      consolidated subsidiaries. 
[5]  In the first quarter of 2026, the Corporation modified 
      its presentation; the contribution to net earnings 
      and adjusted net earnings from Standalone businesses 
      has been presented within Corporate operations and 
      Other. The comparatives have been reclassified to 
      conform with the current presentation. 
[6]  Includes the contribution to net earnings and adjusted 
      net earnings from the Corporation's other investment 
      activities, including the Corporation's investment 
      in LMPG, as well as corporate operations of the Corporation 
      and Power Financial Corporation (Power Financial), 
      which includes operating expenses, financing charges, 
      depreciation, income taxes, and dividends on non-participating 
      and perpetual preferred shares. Refer to the section 
      "Corporate operations and Other" below. 
 

Six Months

Net earnings attributable to participating shareholders were $1,510 million or $2.39 per share, compared with $1,461 million or $2.27 per share in 2025.

Adjusted net earnings attributable to participating shareholders ([1]) were $1,879 million or $2.98 per share, compared with $1,670 million or $2.60 per share in 2025.

 
Contributions to 
Power Corporation's 
Earnings 
 (in millions of      Adjusted Net Earnings    Net Earnings 
 dollars, except per 
 share amounts) 
                      2026         2025        2026          2025 
Great West ([2])            1,722       1,493         1,531  1,202 
IGM ([2])                     391         307           347    301 
GBL ([2])                      15        (12)            15     10 
Effect of 
 consolidation - 
 Great West and IGM 
 ([3])                       (32)        (14)          (82)      3 
Publicly traded 
 operating companies        2,096       1,774         1,811  1,516 
 
Sagard and Power 
 Sustainable ([4])             11         127          (45)    164 
Corporate operations 
 and Other ([5])            (228)       (231)         (256)  (219) 
                            1,879       1,670         1,510  1,461 
 
Per participating 
 share                       2.98        2.60          2.39   2.27 
Average shares 
 outstanding (in 
 millions)                  632.1       642.6         632.1  642.6 
 
 
[1]  A non-IFRS financial measure; refer to the Non-IFRS 
      Financial Measures section later in this news release. 
[2]  Contribution to net and adjusted net earnings based 
      on earnings reported by Great West and IGM. Contribution 
      to net earnings based on earnings reported by GBL. 
[3]  Refer to the detailed table in the Contribution to 
      Net Earnings and Adjusted Net Earnings section of 
      the Corporation's most recent MD&A for additional 
      information. 
[4]  Consists of earnings (losses) from the alternative 
      asset investment platforms, including controlled and 
      consolidated subsidiaries. 
[5]  Includes the contribution to net earnings and adjusted 
      net earnings from the Corporation's other investment 
      activities, including the Corporation's investment 
      in LMPG, as well as corporate operations of the Corporation 
      and Power Financial, which includes operating expenses, 
      financing charges, depreciation, income taxes, and 
      dividends on non-participating and perpetual preferred 
      shares. Refer to the section "Corporate operations 
      and Other" below. 
 

Great-West Lifeco, IGM Financial and Groupe Bruxelles Lambert

Results for the quarter ended June 30, 2026

 
The information below is derived from Great West's 
 and IGM's second quarter MD&As, as prepared and disclosed 
 by the respective companies in accordance with applicable 
 securities legislation and which are included in Parts 
 B and C, respectively, of the Corporation's interim 
 MD&A for the period ended June 30, 2026, available 
 under the Corporation's profile on SEDAR+ (www.sedarplus.ca), 
 and are also available either under their respective 
 profiles on SEDAR+ (www.sedarplus.ca) or from their 
 websites, www.greatwestlifeco.com and www.igmfinancial.com. 
 The information below related to GBL is derived from 
 publicly disclosed information, as issued by GBL in 
 its half-year report at June 30, 2026. Further information 
 on GBL's results is available on its website at www.gbl.com. 
 

GREAT-WEST LIFECO INC.

Second Quarter

Net earnings attributable to common shareholders were $1,039 million or $1.16 per share, compared with $894 million or $0.96 per share in 2025.

Adjusted net earnings ([1]) attributable to common shareholders were $1,270 million or $1.42 per share, compared with $1,149 million or $1.24 per share in 2025.

Adjustments in the second quarter of 2026, excluded from adjusted net earnings, were a net negative impact of $231 million, compared with a net negative impact of $255 million in 2025. Great West's Adjustments consisted of:

   -- Market experience relative to expectations of negative $168 million; 
 
   -- Amortization of acquisition-related finite life intangible assets of 
      negative $34 million; 
 
   -- Assumption changes and management actions of negative $23 million; and 
 
   -- Business transformation and other impacts of negative $6 million. 

IGM FINANCIAL INC.

Second Quarter

Net earnings available to common shareholders were $261.5 million or $1.12 per share, compared with $246.7 million or $1.04 per share in 2025.

Adjusted net earnings ([2]) attributable to common shareholders were $330.0 million or $1.41 per share, compared with $252.7 million or $1.07 per share in 2025. Adjusted net earnings of IGM in the second quarter of 2026 excluded a net negative impact mainly related to restructuring and other charges of $70.1 million net of tax, arising from a multi-year initiative to further simplify IGM's organization, partially offset by a gain on partial sale of investment in associates.

Assets under management and advisement ([3]) at June 30, 2026 were $343.3 billion, an increase of 9.3% from March 31, 2026 and 20.9% from June 30, 2025. Net inflows ([4]) were $2.2 billion in the second quarter of 2026, compared with net inflows of $90 million in 2025.

GROUPE BRUXELLES LAMBERT

Second Quarter

GBL reported a net loss of EUR12 million, compared with a net loss of EUR50 million in 2025.

GBL reported a net asset value ([3]) of EUR13,079 million or EUR100.77 per share at June 30, 2026, compared with EUR14,035 million or EUR105.37 per share at December 31, 2025.

 
 
[1]  Defined as "base earnings" by Great West. For additional 
      information, refer to the Non-IFRS Financial Measures 
      section later in this news release. 
[2]  Adjusted net earnings reported by IGM is a non-IFRS 
      financial measure. Refer to the Non-IFRS Financial 
      Measures section later in this news release. 
[3]  Refer to the Other Measures section later in this 
      news release. 
[4]  Related to assets under management and advisement. 
 

Sagard and Power Sustainable

Results for the quarter ended June 30, 2026

 
Sagard and Power Sustainable comprise the results 
 of the Corporation's alternative asset investment 
 platforms, which includes income earned from asset 
 management and investing activities. Asset management 
 activities includes fee-related earnings (a non-IFRS 
 financial measure, see the Non-IFRS Financial Measures 
 section later in this news release), which is comprised 
 of management fees and fee-related performance revenues 
 less investment platform expenses. Asset management 
 activities also includes carried interest and income 
 from other management activities. Investing activities 
 comprises income earned on the capital invested by 
 the Corporation (proprietary capital) in the investment 
 funds managed by each platform and the share of earnings 
 (losses) of controlled and consolidated subsidiaries 
 held within the alternative asset investment platforms. 
 For additional information, refer to the table later 
 in this news release. 
 

Second Quarter

Net earnings of the alternative asset investment platforms were $13 million, compared with net earnings of $142 million in 2025. Adjusted net earnings ([1]) of the alternative asset investment platforms were $29 million, compared with adjusted net earnings of $93 million in 2025.

Adjusted net earnings are comprised of:

   -- A positive contribution of $33 million from Sagard comprised of a 
      positive contribution of $15 million from asset management activities and 
      a positive contribution of $18 million from investing activities. 
      Sagard's Adjustments in the second quarter of 2026, excluded from 
      adjusted net earnings, were a net negative impact of $23 million, 
      compared with an impact of nil in the corresponding period in 2025. 
      Adjustments consisted primarily of a revaluation adjustment of SHMI's NCI 
      liabilities in BEX, resulting from a positive revision to earnings 
      expectations; and 
 
   -- A negative contribution of $4 million from Power Sustainable comprised of 
      a negative contribution of $7 million from asset management activities 
      and a positive contribution of $3 million from investing activities. 
      Power Sustainable's Adjustments in the second quarter of 2026, excluded 
      from adjusted net earnings, were a net positive impact of $7 million, 
      compared with a positive impact of $49 million in the corresponding 
      period in 2025. Adjustments consisted primarily of the revaluation of NCI 
      liabilities [2] within PSEIP, due to a decrease in the fair value of 
      projects held within the fund. 

Summary of assets under management ([3]) (including unfunded commitments ([3]) ):

 
 (in billions of dollars)       June 30, 2026      June 30, 2025 
Sagard ([4])                             65.1               43.0 
Power Sustainable                         4.3                4.0 
Total                                    69.4               47.0 
Percentage of third-party and 
 associated companies 
 ([5])                                     94%                93% 
 
 
[1]  A non-IFRS financial measure; refer to the Non-IFRS 
      Financial Measures section later in this news release. 
[2]  The Corporation controls and consolidates the activities 
      of PSEIP in accordance with IFRS; however, limited 
      partner equity interests held by third parties have 
      redemption features and are classified as a financial 
      liability and remeasured at their redemption value. 
      Includes the share of losses from the consolidated 
      activities of PSEIP attributable to third-party investors. 
      The net asset value ([3]) of PSEIP was $2,499 million 
      at June 30, 2026, compared with $2,445 million at 
      December 31, 2025. In the second quarter of 2026, 
      there was an unrealized decrease in fair value of 
      the assets within the portfolio of $38 million, excluding 
      foreign exchange gains. 
[3]  Refer to the Other Measures section later in this 
      news release. 
[4]  Includes ownership in Wealthsimple valued at $4.4 
      billion at June 30, 2026 ($2.6 billion at June 30, 
      2025) and excludes assets under management of Sagard's 
      private wealth investment platform. In the second 
      quarter of 2026, Sagard acquired a controlling interest 
      in Unigestion, representing assets under management 
      ([3]) of $15.1 billion at June 30, 2026. 
[5]  Associated companies includes commitments from Great 
      West, IGM and GBL, as well as commitments from management. 
 

Adjusted Net Asset Value and Participating Shareholders' Equity

At June 30, 2026

Adjusted Net Asset Value

 
Adjusted net asset value is presented for Power Corporation 
 and represents management's estimate of the fair value 
 of the participating shareholders' equity of the Corporation. 
 Adjusted net asset value is calculated as the fair 
 value of the assets of the combined Power Corporation 
 and Power Financial holding company (the gross asset 
 value) less their net debt and preferred shares. Refer 
 to the Non-IFRS Financial Measures section later in 
 this news release for a description and reconciliation. 
 

The Corporation's adjusted net asset value per share was $112.94 at June 30, 2026, compared with $85.77 at December 31, 2025, an increase of 31.7%.

 
(in millions of dollars,        June 30, 2026  December 31,  Variation % 
except per share amounts)                      2025 
Publicly 
 traded 
 operating 
 companies    Great West               55,436        42,147           32 
 IGM                                   11,713         9,144           28 
 GBL                                    2,874         2,691            7 
                                       70,023        53,982           30 
 
Alternative   Sagard ([1]) 
 asset 
 investment 
 platforms 
 Asset management companies, 
  investment funds and other 
  ([2])                                 1,897         1,482           28 
 Wealthsimple ([3])                     1,682         1,465           15 
 Power Sustainable ([2])                  842           902          (7) 
                                        4,421         3,849           15 
 
              Cash and cash 
Other          equivalents              2,196         2,232          (2) 
 Other assets and investments 
  ([1])                                   782           890         (12) 
                                        2,978         3,122          (5) 
 
 Gross asset value                     77,422        60,953           27 
 Liabilities and preferred 
  shares                              (6,324)       (6,427)            2 
 Adjusted net asset value              71,098        54,526           30 
 
 Shares outstanding (in 
  millions)                             629.5         635.7 
 Adjusted net asset value per 
  share                                112.94         85.77           32 
 
 
[1]  Certain comparatives have been reclassified to conform 
      with the current presentation. 
[2]  Includes the management companies as well as the fair 
      value of proprietary capital invested in assets managed 
      within the platforms. The management company of Sagard 
      is presented at its fair value and the management 
      company of Power Sustainable is presented at its carrying 
      value. 
[3]  Consists of Power Financial's direct and indirect 
      investments in Wealthsimple, net of carried interest 
      payable to Sagard on its investment in Wealthsimple. 
      Excludes investment in Wealthsimple held by other 
      entities within the Power group. 
 
 
Power Corporation's Ownership in Publicly Traded Operating 
 Companies 
             Ownership ([1])  Shares held ([1])   Share price 
              (%)              (in millions) 
                                                  June 30,    December 
                                                  2026        31, 2025 
Great West              68.6              613.4       $90.37      $67.69 
IGM                     63.9              147.9       $79.18      $61.81 
GBL ([2])               17.5               22.8     EUR79.70    EUR75.95 
 
 
[1] At June 30, 2026. 
[2] Held through Parjointco, a jointly controlled 
 corporation (50%). 
 

Participating Shareholders' Equity

 
Book value per participating share represents Power 
 Corporation's participating shareholders' equity divided 
 by the number of participating shares outstanding 
 at the end of the reporting period. Participating 
 shareholders' equity is calculated as the total assets 
 of the combined Power Corporation and Power Financial 
 holding company, including investments in subsidiaries 
 presented using the equity method, less their net 
 debt and preferred shares. 
 

The Corporation's book value per participating share was $37.74 at June 30, 2026, compared with $36.31 at December 31, 2025, representing an increase of 3.9%.

 
(in millions of dollars,        June 30, 2026  December 31,  Variation % 
except per share amounts)                      2025 
Publicly 
 traded 
 operating 
 companies    Great West               18,003        17,237            4 
 IGM                                    4,441         4,337            2 
 GBL                                    3,120         3,291          (5) 
                                       25,564        24,865            3 
 
Alternative   Sagard ([1]) 
 asset 
 investment 
 platforms 
 Asset management companies, 
  investment funds and other            1,611         1,230           31 
 Wealthsimple ([2])                        96           116         (17) 
 Power Sustainable ([3])                   25           179         (86) 
                                        1,732         1,525           14 
 
              Cash and cash 
Other          equivalents              2,196         2,232          (2) 
 Other assets and investments 
  ([1])                                   788           887         (11) 
                                        2,984         3,119          (4) 
 
 Total assets                          30,280        29,509            3 
 Liabilities and preferred 
  shares                              (6,520)       (6,427)          (1) 
 Participating shareholders' 
  equity                               23,760        23,082            3 
 
 Shares outstanding (in 
  millions)                             629.5         635.7 
 Book value per participating 
  share                                 37.74         36.31            4 
 
 
[1]  Certain comparatives have been reclassified to conform 
      with the current presentation. 
[2]  Consists of Power Financial's direct and indirect 
      investments in Wealthsimple, net of carried interest 
      payable to Sagard on its investment in Wealthsimple. 
      Excludes investment in Wealthsimple held by other 
      entities within the Power group. 
[3]  In the six-month period ended June 30, 2026, the Corporation 
      received distributions of $154 million, which reduced 
      the carrying value of the investment in Power Sustainable. 
 

Dividend on Power Corporation Participating Shares

The Board of Directors declared a quarterly dividend of 66.75 cents per share on the Participating Preferred Shares and the Subordinate Voting Shares of the Corporation, payable October 30, 2026 to shareholders of record September 29, 2026.

Dividends on Power Corporation Non-Participating Preferred Shares

The Board of Directors also declared quarterly dividends on the Corporation's preferred shares, payable October 15, 2026 to shareholders of record at September 24, 2026:

 
Series     Stock Symbol   Amount    Series    Stock Symbol  Amount 
Series A   POW.PR.A            35c  Series G      POW.PR.G       35c 
Series B   POW.PR.B       33.4375c  Series H      POW.PR.H  35.9375c 
Series C   POW.PR.C         36.25c  Series I      POW.PR.I  35.3125c 
Series D   POW.PR.D         31.25c 
 

Investor Information

 
Access to Quarterly Results             Quarterly Earnings Conference Call: 
Materials: 
The second quarter earnings             Power Corporation will host an 
 news release and shareholder           earnings call and live 
 report are available on the            audio webcast on Friday, July 31, 2026 
 Power Corporation website at           at 
 www.powercorporation.com/en/           8:30 a.m. (Eastern Time). A 
 investors                              question-and-answer period 
                                        with analysts will follow the 
                                        presentation. 
                                        Shareholders, investors, and other 
                                        stakeholders are 
                                        welcome to participate on a 
                                        listen-only basis via 
                                        telephone and live audio webcast. 
                                        The live audio webcast and 
                                        presentation materials 
                                        will be available at: 
                                        www.powercorporation.com/en/investors/ 
                                        events-presentations. 
                                        To listen via telephone, please dial 
                                        1-833-752-3688 
                                        toll-free in North America or 
                                        1-647-846-8526 for international 
                                        calls. 
                                        A replay of the conference call will 
                                        be available 
                                        from July 31, 2026 at 11:30 a.m. 
                                        (Eastern Time) until 
                                        November 10, 2026 by calling 
                                        1-855-669-9658 toll-free 
                                        in North America or 1-412-317-0088 for 
                                        international calls, using the access 
                                        code 1429562#. 
                                        A webcast archive will also be 
                                        available on Power 
                                        Corporation's website. 
Investor Relations Contact: 
514-286-7400investor.relations@power 
corp.com 
 

About Power Corporation

Power Corporation is an international management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. To learn more, visit www.powercorporation.com.

At June 30, 2026, Power Corporation held the following economic interests:

 
100% -- Power Financial                       www.powerfinancial.com 
68.6 %  Great-West Lifeco ([1]) (TSX: GWO)    www.greatwestlifeco.com 
63.9 %  IGM Financial ([2]) (TSX: IGM)        www.igmfinancial.com 
17.5 %  GBL ([3]) (Euronext: GBLB)            www.gbl.com 
52.3 %  Wealthsimple ([) (4])                 www.wealthsimple.com 
 
Investment Platforms 
        Sagard ([) (5])                       www.sagard.com 
        Power Sustainable ([) (6])            www.powersustainable.com 
 
 
[1]  The Corporation held a 68.6% interest in Great West, 
      and IGM held an additional 2.5% interest in Great 
      West. 
[2]  The Corporation held a 63.9% interest in IGM, and 
      Great West held an additional 4.0% interest in IGM. 
[3]  Held through Parjointco, a jointly controlled corporation 
      (50%). 
[4]  Undiluted equity interest held by Portag3 Ventures 
      Limited Partnership (Portage Ventures I), Power Financial 
      and IGM, representing a fully diluted equity interest 
      of 40.7%. 
[5]  The Corporation held a 44.6% interest in Sagard Holdings 
      Management Inc., and Great West and GBL also held 
      interests of 10.8% and 4.1%, respectively. 
[6]  The Corporation held a 72.6% interest in Power Sustainable 
      Manager Inc., and Great West also held a 20.3% interest. 
 

Earnings Summary

Contribution to Adjusted Net Earnings and Net Earnings

 
                  Three months    Six months ended 
                  ended June 30,  June 30, 
(in millions of   2026    2025    2026     2025 
dollars, except 
per share 
amounts) 
Adjusted net 
earnings ([1]) 
Great West ([2])     871     790    1,722    1,493 
IGM ([2])            211     158      391      307 
GBL                  (5)    (15)       15     (12) 
Effect of 
 consolidation 
 -- Great West 
 and IGM ([3])      (20)     (9)     (32)     (14) 
                   1,057     924    2,096    1,774 
Sagard and Power 
 Sustainable          29      93       11      127 
Corporate 
 operations and 
 Other ([4])       (112)   (134)    (228)    (231) 
Adjusted net 
 earnings ([5])      974     883    1,879    1,670 
Adjustments 
 ([6])             (284)   (111)    (369)    (209) 
Net earnings 
([5]) 
Great West ([2])     712     615    1,531    1,202 
IGM ([2])            167     154      347      301 
GBL ([2])            (5)    (15)       15       10 
Effect of 
 consolidation 
 -- Great West 
 and IGM ([3])      (57)      10     (82)        3 
                     817     764    1,811    1,516 
Sagard and Power 
 Sustainable          13     142     (45)      164 
Corporate 
 operations and 
 Other ([4])       (140)   (134)    (256)    (219) 
Net earnings 
 ([5])               690     772    1,510    1,461 
Earnings per 
share -- basic 
([5]) 
Adjusted net 
 earnings           1.55    1.38     2.98     2.60 
Adjustments       (0.45)  (0.18)   (0.59)   (0.33) 
Net earnings        1.10    1.20     2.39     2.27 
 
 
[1]  For a reconciliation of Great West, IGM, Sagard and 
      Power Sustainable, and Corporate operations and Other's 
      non-IFRS adjusted net earnings to their net earnings, 
      and the contribution to adjusted net earnings from 
      GBL, refer to the Non-IFRS Financial Measures, Sagard 
      and Power Sustainable, and Corporate operations and 
      Other sections below. 
[2]  Contribution to net and adjusted net earnings based 
      on earnings reported by Great West and IGM. Contribution 
      to net earnings based on earnings reported by GBL. 
[3]  Refer to the detailed table in the Contribution to 
      Net Earnings and Adjusted Net Earnings section of 
      the Corporation's most recent MD&A for additional 
      information. 
[4]  Includes the contribution to net earnings and adjusted 
      net earnings from the Corporation's other investment 
      activities, including the Corporation's investment 
      in LMPG, as well as corporate operations, which includes 
      operating expenses, financing charges, depreciation, 
      income taxes, and dividends on non-participating and 
      perpetual preferred shares. Certain comparatives have 
      been reclassified to conform with the current presentation. 
[5]  Attributable to participating shareholders. 
[6]  Refer to the detailed table of Adjustments in the 
      Non-IFRS Financial Measures section below. 
 

Sagard and Power Sustainable

 
                         Three months  Six months 
                         ended June    ended June 30, 
                         30, 
(in millions of          2026   2025   2026   2025 
dollars) 
Contribution to Power 
Corporation's: 
Adjusted net earnings 
(loss) 
Asset management 
activities ([1]) 
Sagard                      15      8     10       4 
Power Sustainable          (7)   (14)   (17)    (20) 
Investing activities 
(proprietary capital) 
Sagard ([2])                18     98     18     139 
Power Sustainable ([3])      3      1      -       4 
Adjusted net earnings 
 (loss)                     29     93     11     127 
Adjustments ([4]) 
Sagard (asset 
 management activities)   (23)      -   (23)       - 
Power Sustainable 
 (investing activities)      7     49   (33)      37 
                          (16)     49   (56)      37 
Net earnings (loss)         13    142   (45)     164 
 
 
[1]  Includes management fees charged by the investment 
      platforms on proprietary capital. Management fees 
      paid by the Corporation are deducted from income from 
      investing activities. 
[2]  Includes the Corporation's share of earnings (losses) 
      of Wealthsimple. The second quarter of 2026 includes 
      a charge of $17 million related to the Corporation's 
      share of the carried interest payable due to the increase 
      in fair value of the investment held in Wealthsimple 
      ($14 million recognized in the second quarter of 2025). 
[3]  Consists mainly of the Corporation's share of earnings 
      (losses) from direct investments in energy infrastructure 
      and in the consolidated activities of PSEIP, as well 
      as fair value changes of other investments managed 
      within the Power Sustainable platform. 
[4]  Refer to the detailed table of Adjustments in the 
      Non-IFRS Financial Measures section below. 
 

Corporate operations and Other

 
                    Three months    Six months ended 
                    ended June 30,  June 30, 
(in millions of     2026    2025    2026    2025 
dollars) 
Adjusted net 
earnings (loss) 
LMPG ([1])               -     (2)     (6)     (7) 
Other corporate 
 investments ([2])      29    (18)      52       4 
Operating and 
 other expenses 
 ([3])                (86)    (67)   (163)   (133) 
Dividends on 
 non-participating 
 and perpetual 
 preferred 
 shares               (55)    (47)   (111)    (95) 
Adjusted net 
 earnings (loss)     (112)   (134)   (228)   (231) 
Adjustments ([4])     (28)       -    (28)      12 
Net earnings 
 (loss)              (140)   (134)   (256)   (219) 
 
 
[1]  The Corporation's investment in LMPG was previously 
      presented separately within Standalone businesses. 
      Certain comparatives have been reclassified to conform 
      with the current presentation. 
[2]  Includes fair value gains or losses on the Corporation's 
      investments held in investment funds, as well as foreign 
      exchange gains or losses and interest on cash and 
      cash equivalents. 
[3]  Includes operating expenses, fair value changes in 
      tandem share appreciation rights, financing charges, 
      depreciation and income taxes of the Corporation and 
      Power Financial. 
[4]  Refer to the detailed table of Adjustments in the 
      Non-IFRS Financial Measures section below. 
 

BASIS OF PRESENTATION

The condensed consolidated interim financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (IFRS) Accounting Standards unless otherwise noted and are the basis for the figures presented in this news release, unless otherwise noted.

NON-IFRS FINANCIAL MEASURES

Net earnings attributable to participating shareholders are comprised of:

   -- Adjusted net earnings attributable to participating shareholders; and 
 
   -- Adjustments, which include the after-tax impact of any item that in 
      management's judgment, including those identified by management of 
      Great West and IGM, would make the period-over-period comparison of 
      results from operations less meaningful. Includes the Corporation's share 
      of Great West's impact of market-related impacts, where actual market 
      returns in the current period are different than longer-term expected 
      returns; assumption changes and management actions that impact the 
      measurement of assets and liabilities; direct equity and interest rate 
      impacts on the measurement of surplus assets and liabilities; and 
      amortization of acquisition-related finite life intangible assets, as 
      well as items that management believes are not indicative of the 
      underlying business results which include those identified by management 
      of a subsidiary or a jointly controlled corporation, including: business 
      transformation and other impacts (including restructuring or 
      reorganization and integration costs, acquisition and divestiture costs); 
      material legal settlements; material impairment charges; material impacts 
      of the remeasurement of deferred tax assets and liabilities including 
      those as a result of income tax rate changes, and other tax impairments; 
      certain non-recurring material items, net gains, losses or costs related 
      to the disposition or acquisition of a business, including those related 
      to an investment in an associate or jointly controlled corporation; 
      impacts related to remeasurements due to market changes that result in an 
      accounting mismatch including the remeasurement of derivatives where the 
      hedged item is not also measured at fair value and hedge accounting is 
      not applied, and the revaluation of redemption liabilities, share 
      warrants and conversion options on convertible and exchangeable debt 
      obligations; the impact of the revaluation of non-controlling interests 
      liabilities related to PSEIP which result from changes in fair value of 
      assets held within the fund, and the share of earnings (losses) from the 
      consolidated activities of PSEIP attributable to third-party investors; 
      and other items that, when removed, assist in explaining underlying 
      operating performance. 

Management uses these financial measures in its presentation and analysis of the financial performance of Power Corporation, and believes that they provide additional meaningful information to readers in their analysis of the results of the Corporation. Adjusted net earnings, as defined by the Corporation, assists the reader in the comparison of the current period's results to those of previous periods as it reflects management's view of the operating performance of the Corporation and its subsidiaries, excluding items that are not considered to be part of the underlying business results.

Fee-related earnings is presented for Sagard and Power Sustainable and includes management fees and fee-related performance revenues earned across all asset classes, less investment platform expenses which include i) fee-related compensation including salary, bonus, and benefits, and ii) operating expenses. Fee-related performance revenues represents the realized portion of performance revenues from perpetual capital vehicles that are i) measured and expected to be received on a recurring basis, ii) not dependent on realization events from underlying investments, and iii) not subject to clawback. Fee-related earnings is presented on a gross pre-tax basis, including non-controlling interests. Fee-related earnings excludes i) share-based compensation expenses, ii) amortization of acquisition-related finite life intangible assets, iii) foreign exchange-related gains and losses, iv) net interest, and v) other items that in management's judgment are not indicative of underlying operating performance of the alternative asset investment platforms, which include restructuring costs, transaction and integration costs related to business acquisitions and certain non-recurring material items. Management uses this measure to assess the profitability of the asset management activities of the alternative asset investment platforms. This financial measure provides insight as to whether recurring revenues from management fees and fee-related performance revenues, which are not based on future realization events, are sufficient to cover associated operating expenses.

Adjusted net asset value is commonly used by holding companies to assess their value. Adjusted net asset value represents the fair value of the participating shareholders' equity of Power Corporation. Adjusted net asset value is calculated as the fair value of the assets of the combined Power Corporation and Power Financial holding company (also referred to as gross asset value) less their net debt and preferred shares. The investments held in public entities (including Great West, IGM and GBL) are measured at their market value and investments in private entities and investment funds are measured at management's estimate of fair value. The definition of adjusted net asset value involves a number of assumptions, judgments and estimates that may prove to be inaccurate, and the adjusted net asset value per share is not a representation or guarantee of the value a participating shareholder will be able to realize. This measure presents the fair value of the participating shareholders' equity of the holding company, and assists the reader in determining or comparing the fair value of investments held by the holding company or its overall fair value.

Adjusted net earnings attributable to participating shareholders, fee-related earnings, adjusted net asset value, adjusted net earnings per share and adjusted net asset value per share are non-IFRS financial measures and ratios that do not have a standard meaning and may not be comparable to similar measures used by other entities.

Presentation of Holding Company Activities

The Corporation's reportable segments include Great West, IGM and GBL, which represent the Corporation's investments in publicly traded operating companies, as well as the holding company. These reportable segments, in addition to the asset management activities, reflect Power Corporation's management structure and internal financial reporting. The Corporation evaluates its performance based on the operating segments' contributions to earnings.

The holding company comprises the corporate activities of the Corporation and Power Financial, on a combined basis, and presents the investment activities of the Corporation. The investment activities of the holding company, including the investments in Great West, IGM and controlled entities within the alternative asset investment platforms, are presented using the equity method. The holding company activities present the holding company's assets and liabilities, including cash, investments, debentures and non-participating shares. The discussions included in the sections Financial Position and Cash Flows of the Corporation's most recent MD&A present the segmented balance sheets and cash flow statements of the holding company, which are presented in Note 20 of the Interim Consolidated Financial Statements. This presentation is useful to the reader as it presents the holding company's (parent) results separately from the results of its consolidated operating subsidiaries.

RECONCILIATIONS OF IFRS AND NON-IFRS FINANCIAL MEASURES

Power Corporation

 
Adjusted net 
earnings 
                   Three months    Six months ended 
                   ended June 30,  June 30, 
 (in millions of   2026    2025    2026    2025 
 dollars) 
Adjusted net 
 earnings -- 
 Non-IFRS 
 financial 
 measure 
 ([1])                974     883   1,879    1,670 
Share of 
Adjustments ([2]) 
, net of tax 
Great West          (197)   (168)   (241)    (286) 
IGM                  (43)       8    (44)        6 
GBL                     -       -       -       22 
Sagard and Power 
 Sustainable         (16)      49    (56)       37 
Corporate 
 operations and 
 Other               (28)       -    (28)       12 
                    (284)   (111)   (369)    (209) 
Net earnings -- 
 IFRS financial 
 measure ([1])        690     772   1,510    1,461 
 
 
[1]  Attributable to participating shareholders of Power 
      Corporation. 
[2]  Refer to the Adjustments section for more details 
      on Adjustments from Great West, IGM, GBL, Sagard and 
      Power Sustainable and Corporate operations and Other. 
 
 
Adjustments (excluded 
from Adjusted net 
earnings) 
                         Three months  Six months 
                         ended June    ended June 30, 
                         30, 
 (in millions of         2026   2025   2026   2025 
 dollars) 
Great West ([1]) 
Market experience 
 relative to 
 expectations (pre-tax)  (152)   (80)  (131)  (157) 
Income tax (expense) 
 benefit                    37      8     27     23 
Assumption changes and 
 management actions 
 (pre-tax)                (18)    (3)   (17)   (32) 
Income tax (expense) 
 benefit                     2      1      3      8 
Business transformation 
 and other impacts 
 (pre-tax) 
 ([2])                     (6)  (124)   (35)  (133) 
Income tax (expense) 
 benefit                     2     41      9     43 
Amortization of 
 acquisition-related 
 finite life intangible 
 assets (pre-tax)         (32)   (34)   (63)   (69) 
Income tax (expense) 
 benefit                     8      8     16     18 
Tax legislative changes      -      -      3      - 
and other tax impacts 
Income tax (expense) 
 benefit                     -      8    (3)      8 
                         (159)  (175)  (191)  (291) 
Effect of consolidation 
 (pre-tax) ([3])          (41)      7   (53)      5 
Income tax (expense) 
 benefit                     3      -      3      - 
                         (197)  (168)  (241)  (286) 
IGM ([1]) 
Restructuring and other 
 (pre-tax)                (61)      -   (61)      - 
Income tax (expense) 
 benefit                    16      -     16      - 
Rockefeller equity 
 compensation (pre-tax)    (1)      -    (1)      - 
Income tax (expense)         -      -      -      - 
benefit 
Gain on partial sale of 
 investment in 
 associates (pre-tax)        7      -      7      - 
Income tax (expense) 
 benefit                   (1)      -    (1)      - 
Share of Great West 
 adjustments (pre-tax)     (4)    (4)    (4)    (6) 
                          (44)    (4)   (44)    (6) 
Effect of consolidation 
 (pre-tax) ([3])             1     14      -     14 
Income tax (expense) 
 benefit                     -    (2)      -    (2) 
                          (43)      8   (44)      6 
GBL 
Affidea's gain on debt 
 modification (pre-tax 
 and post-tax)               -      -      -     22 
 
Sagard and Power 
Sustainable 
Revaluation of Sagard 
 NCI liabilities 
 (pre-tax)                (24)      -   (24)      - 
Income tax (expense) 
 benefit                     1      -      1      - 
Revaluation of PSEIP 
 NCI liabilities and 
 other market-related 
 impacts (pre-tax)           7     38   (33)     24 
Income tax (expense) 
 benefit                     -     11      -     13 
                          (16)     49   (56)     37 
Corporate operations 
and Other 
Impairment charge on 
 LMPG (pre-tax)           (28)      -   (28)      - 
LMPG remeasurement of 
 deferred tax 
 liabilities                 -      -      -     12 
                          (28)      -   (28)     12 
                         (284)  (111)  (369)  (209) 
 
 
[1]  As reported by Great West and IGM. 
[2]  Business transformation and other impacts include 
      acquisition and divestiture costs as well as restructuring 
      and integration costs. 
[3]  The Effect of consolidation reflects: i) the elimination 
      of intercompany transactions; and ii) the application 
      of the Corporation's accounting method for investments 
      under common ownership to the Adjustments reported 
      by Great West and IGM, including a realized gain recognized 
      by IGM in the second quarter of 2025 on the sale of 
      a portion of its interest in Conquest Planning Inc., 
      a corporate investment classified by IGM as FVOCI. 
 
 
Adjusted net asset value 
 
Adjusted net asset value represents management's estimate 
 of the fair value of the participating shareholders' 
 equity of the Corporation. Adjusted net asset value 
 is calculated as the fair value of the assets of the 
 combined Power Corporation and Power Financial holding 
 company less their net debt and preferred shares. 
 The Corporation's adjusted net asset value per share 
 is presented on a look-through basis. 
 

The following table presents a reconciliation of the participating shareholders' equity reported in accordance with IFRS to the adjusted net asset value, a non-IFRS financial measure:

 
 (in millions of dollars,       June 30, 2026  December 31, 2025 
 except per share 
 amounts) 
Participating 
shareholders' equity -- 
IFRS financial 
measure 
Share capital -- participating 
 shares                                 9,123              9,159 
Retained earnings                      11,377             11,674 
Reserves                                3,260              2,249 
                                       23,760             23,082 
Fair value adjustments 
([1]) 
Great West                             37,433             24,910 
IGM                                     7,272              4,807 
GBL                                     (246)              (600) 
Sagard and Power Sustainable            2,689              2,324 
Other investments ([2])                   (6)                  3 
Adjustments to Other                      196                  - 
liabilities ([1]) 
                                       47,338             31,444 
Adjusted net asset value -- 
 Non-IFRS financial measure            71,098             54,526 
Per share ([3]) 
Participating shareholders' 
 equity (book value)                    37.74              36.31 
Adjusted net asset value               112.94              85.77 
 
 
[1]  Refer to the table below for more details on the fair 
      value and other adjustments. 
[2]  Certain comparatives have been reclassified to conform 
      with the current presentation. 
[3]  Attributable to participating shareholders. 
 

The Corporation's adjusted net asset value per share was $112.94 at June 30, 2026, compared with $85.77 at December 31, 2025, representing an increase of 31.7%. The Corporation's book value per participating share was $37.74 at June 30, 2026, compared with $36.31 at December 31, 2025, representing an increase of 3.9%.

 
                             June 30, 2026                  December 31, 2025 
(in millions of     Holding  Fair value  Adjusted  Holding  Fair value  Adjusted 
dollars, except                          net                            net 
per share amounts)  company  adjustment  asset     company  adjustment  asset 
                                         value                          value 
                    balance                        balance 
                    sheet                          sheet 
Holding company 
assets 
Investments 
Power Financial 
Great West           18,003      37,433    55,436   17,237      24,910    42,147 
IGM                   4,441       7,272    11,713    4,337       4,807     9,144 
GBL ([1])             3,120       (246)     2,874    3,291       (600)     2,691 
Alternative asset 
investment 
platforms 
Asset management 
companies ([2]) 
Sagard                  355         276       631      164         244       408 
Power Sustainable         7           -         7        -           -         - 
Investing 
activities 
Sagard ([3]) 
Investment funds 
 and other ([4])      1,256          10     1,266    1,066           8     1,074 
Wealthsimple ([5])       96       1,586     1,682      116       1,349     1,465 
Power Sustainable        18         817       835      179         723       902 
Cash and cash 
 equivalents          2,196           -     2,196    2,232           -     2,232 
Other assets and 
 investments ([3])      788         (6)       782      887           3       890 
Total holding 
 company assets      30,280      47,142    77,422   29,509      31,444    60,953 
Holding company 
liabilities and 
non-participating 
shares 
Debentures and 
 other debt 
 instruments            897           -       897      897           -       897 
Other liabilities 
 ([6, 7])             1,443       (196)     1,247    1,350           -     1,350 
Non-participating 
 shares and 
 perpetual 
 preferred shares     4,180           -     4,180    4,180           -     4,180 
Total holding 
 company 
 liabilities and 
 non-participating 
 shares               6,520       (196)     6,324    6,427           -     6,427 
Net value 
Participating 
 shareholders' 
 equity (IFRS) / 
 Adjusted net 
 asset value 
 (non-IFRS)          23,760      47,338    71,098   23,082      31,444    54,526 
Per share             37.74                112.94    36.31                 85.77 
 
 
[1]  The Corporation's share of GBL's reported net asset 
      value was $3.7 billion (EUR2.3 billion) at June 30, 
      2026 ($3.9 billion (EUR2.4 billion) at December 31, 
      2025). 
[2]  The management company of Sagard is presented at its 
      fair value. The management company of Power Sustainable 
      is presented at its carrying value. 
[3]  Certain comparatives have been reclassified to conform 
      with the current presentation. 
[4]  Includes Power Financial's investments in Portage 
      Ventures I and Portag3 Ventures II Limited Partnership 
      (Portage Ventures II). 
[5]  Represents Power Financial's direct and indirect investments 
      in Wealthsimple, net of carried interest payable to 
      Sagard on its investment in Wealthsimple. Excludes 
      investment in Wealthsimple held by other entities 
      within the Power group. 
[6]  In accordance with IAS 12, Income Taxes, no deferred 
      tax liability is recognized with respect to temporary 
      differences associated with investments in subsidiaries 
      and jointly controlled corporations as the Corporation 
      is able to control the timing of the reversal of the 
      temporary differences and it is probable that the 
      temporary differences will not reverse in the foreseeable 
      future. If the Corporation were to dispose of an investment 
      in a subsidiary or a jointly controlled corporation, 
      income taxes payable on such disposition would be 
      minimized through careful and prudent tax planning 
      and structuring, as well as with the use of available 
      tax attributes not otherwise recognized on the balance 
      sheet, including tax losses, tax basis, safe income 
      and foreign tax surplus associated with the subsidiary 
      or jointly controlled corporation. 
[7]  Other liabilities includes an adjustment in the net 
      asset value to remove the impact of the purchase obligation 
      under the automatic share purchase plan at June 30, 
      2026, as it relates to purchases of Subordinate Voting 
      Shares under the NCIB subsequent to quarter-end. 
 

This news release also contains other non-IFRS financial measures which are publicly disclosed by the Corporation's subsidiaries including adjusted net earnings and adjusted net earnings per share. The section below includes the description and reconciliation of the non-IFRS financial measures included in this news release as reported by the Corporation's subsidiaries. The information below is derived from Great West's and IGM's second quarter MD&As, as prepared and disclosed by the respective companies in accordance with applicable securities legislation, and which are also available either directly from SEDAR+ (www.sedarplus.ca) or from their websites, www.greatwestlifeco.com and www.igmfinancial.com.

Great West

Adjusted net earnings attributable to Great West's common shareholders

Adjusted net earnings ([1]) reflects Great West management's view of the underlying business performance of Great West and provides an alternate measure to understand the underlying business performance compared with net earnings. Adjusted net earnings excludes the following items from net earnings:

   -- Market-related impacts, where actual market returns in the current period 
      are different than longer-term expected returns; 
 
   -- Assumption changes and management actions that impact the measurement of 
      assets and liabilities; 
 
   -- Business transformation and other impacts, when removed, assist in 
      explaining Great West's underlying business performance, including 
      acquisition and divestiture costs and restructuring and integration 
      costs; 
 
   -- Material legal settlements, material impairment charges related to 
      goodwill and intangible assets, impacts of income tax rate changes on the 
      remeasurement of deferred tax assets and liabilities and other tax 
      impairments, net gains, losses or costs related to the disposition or 
      acquisition of a business; net earnings (loss) from discontinued 
      operations; 
 
   -- The direct equity and interest rate impacts on the measurement of surplus 
      assets and liabilities; 
 
   -- Amortization of acquisition-related finite life intangible assets; and 
 
   -- Other items that, when removed, assist in explaining Great West's 
      underlying business performance. 
 
                      Three months  Six months 
                      ended June    ended June 30, 
                      30, 
 (in millions of      2026   2025   2026   2025 
 dollars) 
Adjusted net 
 earnings -- 
 Non-IFRS financial 
 measure 
 ([1, 2])             1,270  1,149  2,509  2,179 
Adjustments ([3]) 
Market experience 
 relative to 
 expectations 
 (pre-tax)            (222)  (116)  (192)  (229) 
Income tax (expense) 
 benefit                 54     12     40     34 
Assumption changes 
 and management 
 actions (pre-tax)     (25)    (5)   (24)   (47) 
Income tax (expense) 
 benefit                  2      2      4     12 
Business 
 transformation and 
 other impacts 
 (pre-tax) 
 ([4])                  (9)  (181)   (51)  (194) 
Income tax (expense) 
 benefit                  3     60     13     63 
Amortization of 
 acquisition-related 
 finite life 
 intangible 
 assets (pre-tax)      (47)   (51)   (92)  (102) 
Income tax (expense) 
 benefit                 13     13     24     27 
Tax legislative           -      -      5      - 
changes and other 
tax impacts 
(pre-tax) 
Income tax (expense) 
 benefit                  -     11    (5)     11 
                      (231)  (255)  (278)  (425) 
Net earnings -- IFRS 
 financial measure 
 ([2])                1,039    894  2,231  1,754 
 
 
[1]  Defined as "base earnings" and identified as a non-GAAP 
      financial measure by Great West. 
[2]  Attributable to Great West common shareholders. 
[3]  Described as "items excluded from base earnings" by 
      Great West. 
[4]  Business transformation and other impacts include 
      acquisition and divestiture costs as well as restructuring 
      and integration costs. 
 

IGM Financial

Adjusted net earnings attributable to IGM's common shareholders

Adjusted net earnings attributable to common shareholders excludes Adjustments, which includes the after--tax impact of any item that management of IGM considers to be of a non--recurring nature, or that could make the period--over--period comparison of results from operations less meaningful. Adjusted net earnings also excludes IGM's proportionate share of items that Great West excludes from its IFRS-reported net earnings in arriving at Great West's base earnings.

 
                   Three months   Six months ended 
                   ended June     June 30, 
                   30, 
 (in millions of   2026    2025   2026    2025 
 dollars) 
Adjusted net 
 earnings -- 
 Non-IFRS 
 financial 
 measure 
 ([1])              330.0  252.7   614.3   490.5 
Adjustments ([2]) 
Restructuring and 
 other (pre-tax)   (95.3)      -  (95.3)       - 
Income tax 
 (expense) 
 benefit             25.2      -    25.2       - 
Rockefeller 
 equity 
 compensation 
 (pre-tax)          (0.9)      -   (0.9)       - 
Income tax              -      -       -       - 
(expense) benefit 
Gain on partial 
 sale of 
 investment in 
 associates 
 (pre-tax)            9.9      -     9.9       - 
Income tax 
 (expense) 
 benefit            (0.9)      -   (0.9)       - 
Great West other 
 items              (6.5)  (6.0)   (7.0)  (10.0) 
Net earnings -- 
 IFRS financial 
 measure ([1])      261.5  246.7   545.3   480.5 
 
 
[1]  Available to IGM common shareholders. 
[2]  Described as "Other items" by IGM. 
 

OTHER MEASURES

This news release and other continuous disclosure documents also include other measures used to discuss activities of the Corporation, its consolidated publicly traded operating companies and alternative asset investment platforms including, but not limited to, "accumulated unrealized carried interest", "assets under management", "assets under administration", "assets under management and advisement", "assets under management and advisement including strategic investments", "book value per participating share", "capital commitments", "carried interest", "net asset value", "non-fee-bearing assets" and "unfunded commitments". Refer to the section "Other Measures" in the Corporation's most recent MD&A, which can be located in the Corporation's profile on SEDAR+ at www.sedarplus.ca, for definitions of such measures, which definitions are incorporated herein by reference.

ELIGIBLE DIVIDENDS

For purposes of the Income Tax Act (Canada) and any similar provincial legislation, all of the above dividends on the Corporation's preferred shares (including the Participating Preferred Shares) and Subordinate Voting Shares are eligible dividends.

FORWARD-LOOKING STATEMENTS

Certain statements in this news release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation's current expectations, or with respect to disclosure regarding the Corporation's public subsidiaries, reflect such subsidiaries' disclosed current expectations. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Corporation's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and the reader is cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Corporation and its subsidiaries, and capital commitments to strategies of the investment platforms, the timing and expected impact of the Corporation's disposal of its investment in LMPG, the expected impact of SHMI's investment in Unigestion, GBL's strategy to simplify its portfolio and the expected timing and impacts of its investments in direct private assets, the timing and expected impacts of Great West's acquisition of the retirement plan and benefits administration business of Milliman, Inc., the expected impacts of IGM's acquisition of additional interests in Northleaf, the impacts of IGM's simplification initiatives and expected investments in artificial intelligence capabilities, and the Corporation's subsidiaries' disclosed expectations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the Corporation's and its subsidiaries' control, affect the operations, performance and results of the Corporation and its subsidiaries and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, fluctuations in interest rates, inflation and foreign exchange rates, monetary policies, business investment and the health of local and global equity and capital markets, management of market liquidity and funding risks, risks related to investments in private companies and illiquid securities, risks associated with financial instruments, changes in accounting policies and methods used to report financial condition (including uncertainties associated with significant judgments, estimates and assumptions), the effect of applying future accounting changes, business competition, operational and reputational risks, technological changes, cybersecurity risks, changes in government administrations, regulation, legislation and policies, changes in tax laws, the impacts of trade relations, ongoing trade tensions and fiscal policy developments, geopolitical tensions and related economic impacts, unexpected judicial or regulatory proceedings, catastrophic events, man-made disasters, terrorist attacks, wars and other conflicts, or an outbreak of a public health pandemic or other public health crises, the Corporation's and its subsidiaries' ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, the Corporation's and its subsidiaries' success in anticipating and managing the foregoing factors and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this news release, the factors identified by such subsidiaries in their respective MD&A.

The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, and that strategic transactions, acquisitions, divestitures or other growth or optimization strategies will be completed on expected terms, including that any required approvals will be received when and on such terms as are expected, as well as other considerations that are believed to be appropriate in the circumstances, including that the list of risks and uncertainties in the previous paragraph, collectively, are not expected to have a material impact on the Corporation and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this news release, that the risks identified by such subsidiaries in their respective MD&A and Annual Information Form are not expected to have a material impact on the Corporation. While the Corporation considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.

Other than as specifically required by applicable Canadian law, the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of the Corporation's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials, including its most recent annual MD&A and subsequent interim MD&A and Annual Information Form, filed with the securities regulatory authorities in Canada and available at www.sedarplus.ca.

SOURCE Power Corporation of Canada

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