Power Corporation Reports Record Quarterly EPS as New CEO Takes Helm
The Canadian holding company posted adjusted earnings per share of $1.55 in Q2 2026, its highest on record, while navigating a leadership transition.
Record Quarter Amid Leadership Change
Power Corporation of Canada delivered its strongest quarterly performance on record, reporting adjusted earnings per share of $1.55 for the second quarter of 2026, up 12% from the prior year period (earnings call, 2026-07-31). The results came as James O'Sullivan assumed the role of President and CEO on July 1, 2026, succeeding Jeff Orr.
Adjusted net earnings reached $974 million, a 10% increase year-over-year, while reported net earnings totaled $690 million, or $1.10 per share (earnings call, 2026-07-31). The holding company's net asset value per share surged 74% year-over-year to $1.12, driven primarily by its publicly traded operating companies.
Operating Companies Drive Performance
Great-West Lifeco contributed $871 million to Power's adjusted net earnings, up 10% from the prior year, with base return on equity exceeding 19% for the second consecutive quarter (earnings call, 2026-07-31). The company's Empower retirement business crossed $2 trillion in client assets for the first time and announced the acquisition of Milliman's defined benefit business, adding 1.5 million participants and $130 billion in assets.
IGM Financial delivered particularly strong results, contributing $211 million to adjusted net earnings, a 34% year-over-year increase (earnings call, 2026-07-31). The wealth and asset manager reported record adjusted EPS of $1.41, surpassing its 9% medium-term earnings target, and posted $2.2 billion in net flows across its IG Wealth and Mackenzie operations.
NAV-Based Investments Show Momentum
Wealthsimple, one of Power's key strategic investments, increased its fair value by 15% during the quarter to $1.7 billion, net of carried interest (earnings call, 2026-07-31). The digital wealth platform recorded its largest quarter-over-quarter growth in history, adding $30.8 billion in assets under administration driven by approximately $17 billion in net flows.
Sagard, Power's alternative asset management platform, saw an 11% increase in fair value and reported total assets under management of $69.4 billion following the April 2 acquisition of Unigestion, which added $15.1 billion in AUM (earnings call, 2026-07-31).
Capital Allocation and Strategic Direction
Power Corporation returned $1.5 billion to shareholders in the first half of 2026 and continues to view share buybacks as attractive given the company's 20% discount to net asset value (earnings call, 2026-07-31). MarginX data shows recent repurchase activity including transactions of 53,200 and 67,200 shares.
O'Sullivan emphasized continuity, stating that "Power will maintain continuity and strategy and no major changes are anticipated" while noting that "return of capital through dividends and share buybacks will remain a key priority" (earnings call, 2026-07-31). EVP and CFO Jake Lawrence noted that 91% of the company's $77.4 billion in gross asset value relates to publicly traded companies Great-West, IGM, and GBL, rising to 94% when including cash holdings of $2.2 billion.
The company also completed a portfolio simplification move by agreeing to sell its interest in LNPG, resulting in a $41 million NAV reduction (earnings call, 2026-07-31). Power Corporation is expected to report Q3 2026 results on November 13, 2026, according to MarginX data.
This article was generated by MarginX from the earnings call on 2026-07-31. It is not investment advice.