Brookfield Corporation Reports Strong Second Quarter Results and Announces Three-for-Two Stock Split

Executive Summary

• Brookfield Corporation reported strong financial results for the quarter ended June 30, 2025, with distributable earnings before realizations increasing 13% to $1.3 billion ($0.80 per share) compared to the prior year quarter.
• The company executed over $55 billion in asset monetizations year-to-date, diversifying returns across asset classes and geographies, while maintaining a record $177 billion in deployable capital.
• Key operational highlights include a 16% increase in fee-related earnings for Asset Management, strong inflows of $22 billion, and significant strategic moves including the acquisition of Just Group and a landmark power agreement with Google.

Key Details

• Financial Performance (Q2 2025):
  • Distributable earnings before realizations: $1.3 billion ($0.80/share), up 13% from $1.1 billion ($0.71/share) in Q2 2024.
  • Total Distributable Earnings (including realizations): $1.4 billion ($0.88/share).
  • Net income attributable to Brookfield shareholders: $272 million.
  • Last Twelve Months (LTM) Distributable earnings before realizations: $5.3 billion ($3.36/share).
  • LTM Total Distributable Earnings: $5.9 billion ($3.71/share).
• Asset Monetization:
  • Over $55 billion in asset sales year-to-date, including over $35 billion since the last quarter.
  • Substantially all sales completed at or above carrying values.
  • Breakdown of recent monetizations: $12 billion in real estate (including largest real estate transaction in Australia), $9 billion in infrastructure (including one of UK’s largest port businesses), nearly $6 billion in renewable assets, and $9 billion in other diversified assets.
  • Realized carried interest: $129 million for the quarter; $554 million for the LTM.
  • Accumulated unrealized carried interest: $11.3 billion at quarter-end.
• Segment Performance:
  • Asset Management: Distributable earnings of $650 million ($0.41/share). Fee-bearing capital grew to $563 billion. Fee-related earnings increased 16% YoY. Total inflows were $22 billion, including over $5 billion from retail/wealth clients.
  • Wealth Solutions: Distributable earnings of $391 million ($0.25/share). Originated over $4 billion in annuity sales. Deployed $3.5 billion into managed strategies at an average net yield of 8%. Insurance assets reached $135 billion.
  • Operating Businesses: Distributable earnings of $350 million ($0.22/share). Strong cash flows supported by resilient fundamentals.
• Strategic Transactions & Operations:
  • Acquisition: Announced acquisition of Just Group, a U.K. leader in pension risk transfer solutions, expected to add ~$40 billion to insurance assets.
  • Google Partnership: Signed landmark agreement to deliver up to 3,000 megawatts of hydroelectric capacity across the U.S.
  • Real Estate: Signed nearly 4 million square feet of office and retail leases. Core office and retail portfolios are 94% and 97% leased, respectively.
• Capital & Financing:
  • Record deployable capital of $177 billion ($71 billion in cash, financial assets, and undrawn credit lines).
  • Executed $94 billion of financings year-to-date, including $53 billion in Q2.
  • Recent financing highlights:
    • Brookfield Renewable Partners: C$250 million 30-year notes.
    • Brookfield Infrastructure Partners: $250 million 30-year subordinated notes.
    • Brookfield Asset Management: $750 million 10-year senior notes.
    • Poland offshore wind: €6.3 billion project financing.
    • Private equity debt raised: $2.1 billion (modular leasing), $1.2 billion (advanced energy storage), $900 million (electric heat tracing).
    • Real estate refinancing: $2.4 billion loan for U.S. open-air shopping center; C$425 million for Toronto hotel; €300 million high-yield bonds via German office REIT.
• Shareholder Returns:
  • Returned $432 million to shareholders via regular dividends and share repurchases in Q2.
  • Repurchased over $300 million of Class A shares since last quarter at an average price of $49.03 (52% discount to intrinsic value of $101.52).
  • Declared quarterly dividend of $0.09 per share, payable September 29, 2025.
• Corporate Actions:
  • Approved a three-for-two stock split of Class A Limited Voting Shares, implemented via stock dividend payable October 9, 2025, to shareholders of record on October 3, 2025.
  • Brookfield Wealth Solutions concurrently announced a three-for-two split of its Class A exchangeable shares.

Notable Quotes

• Nick Goodman, President: “We had strong financial performance in the second quarter supported by the continued positive momentum across our core businesses and a significant increase in monetization activity. To date this year, we had over $55 billion of asset monetizations diversified across asset class and geography, returning substantial capital to our investors at excellent returns.”
• Nick Goodman, President: “With a record $177 billion of deployable capital and an increasingly constructive market backdrop, we are well-positioned to capitalize on investment opportunities, drive strong organic earnings growth, and deliver 15%+ returns on a per share basis to our shareholders over the long term.”