Power Corporation of Canada Q1 2026 Earnings Recap

Shares declined 1.1% despite reported 15% earnings growth, reflecting investor caution amid weaker contributions from alternative investments and rising corporate costs, tempering optimism from strong earnings-based business momentum.

Key Takeaways

• Adjusted net earnings rose 15% year-over-year to $905 million, with EPS at $1.43, the second highest since the 2019 reorganization.
• Great-West and IGM each contributed 21% higher earnings, underpinned by sustained positive business momentum, strong net flows, and record AUM&A growth.
• NAV per share increased 23% year-over-year to $84.54, driven primarily by robust growth across key operating companies and a 50% increase in cash balances.
• Alternative investment platforms Sagard and Power Sustainable reported losses of $5 million and $13 million respectively, with Sagard impacted by lower private equity gains and Power Sustainable affected by lower asset management activity and infrastructure losses.
• Corporate expenses were largely stable year-over-year but included higher dividends on preferred shares due to a recent $400 million issuance, contributing to elevated corporate operating losses.