Power Corporation Reports Second Quarter 2025 Financial Results

POWER CORPORATION 

• Net earnings from continuing operations ¹ for the second quarter of 2025 were $772 million or $1.20 per share ², compared with $730 million or $1.12 per share in the second quarter of 2024.
  Adjusted net earnings from continuing operations ^{1 3 4} were $883 million or $1.38 per share, compared with $739 million or $1.14 per share in the second quarter of 2024.
• Adjusted net asset value per share ³ was $64.76 at June 30, 2025, compared with $60.44 at December 31, 2024.
  Book value per share ⁵ was $35.90 at June 30, 2025, compared with $35.56 at December 31, 2024.
• Power group's interest in Wealthsimple, held collectively with IGM Financial and Portage Ventures I, was valued at $2.7 billion, an increase of 21% in the second quarter ⁶, reflecting Wealthsimple's strong business performance and an increase in peer multiples. The Corporation's direct investment, valued at $997 million, was reflected in the second quarter adjusted net asset value.
• The Corporation purchased for cancellation 4.4 million subordinate voting shares for a total of $209 million at June 30, 2025.

GREAT-WEST LIFECO INC. (LIFECO)

• Second quarter net earnings from continuing operations were $894 million, compared with $1,005 million in the second quarter of 2024.
  Adjusted net earnings from continuing operations ⁷ were $1,149 million, compared with $1,038 million in the second quarter of 2024.
• Adjusted net earnings from continuing operations increased 11% from the second quarter of 2024, reflecting double-digit growth in Lifeco's Wealth and Group Benefits businesses. Second quarter net earnings from continuing operations primarily reflect higher charges from previously announced business transformation initiatives and unfavourable market experience.
• Lifeco announced its intention to purchase an additional $500 million of its common shares under its existing Normal Course Issuer Bid (NCIB), increasing the total in fiscal 2025 to $1 billion ⁸.

IGM FINANCIAL INC. (IGM)

• Second quarter net earnings were $246.7 million, compared with $216.2 million in the second quarter of 2024.
  Adjusted net earnings ³ were $252.7 million, compared with $220.4 million in the second quarter of 2024.
• Adjusted net earnings increased 15% from the second quarter of 2024, reflecting strong results across IGM's core operating companies and strategic investments.
• Record high assets under management and advisement ⁵ of $283.9 billion, represented an increase of 3.2% from the first quarter of 2025 and 12.5% from June 30, 2024.
• Assets under management and advisement including strategic investments ⁵ were $521.1 billion at June 30, 2025, compared with $503.6 billion at March 31, 2025 and $431.7 billion at June 30, 2024.

GROUPE BRUXELLES LAMBERT (GBL)

• GBL reported a net asset value ⁵ of €14.4 billion or €107.75 per share at June 30, 2025, compared with €15.7 billion or €113.30 per share at December 31, 2024.
• GBL completed a total of €170 million of share buybacks at June 30, 2025, and cancelled 5.2 million treasury shares.

SAGARD HOLDINGS INC. (SAGARD) AND POWER SUSTAINABLE CAPITAL INC. (POWER SUSTAINABLE)

• Sagard raised US$1.5 billion in new commitments ⁹ in the second quarter of 2025, including US$0.6 billion raised at Sagard's subsidiary, Performance Equity Management.
• In the second quarter, the Corporation received cash proceeds of $262 million from the sale of wind projects, representing 425 MW ¹⁰, to the Power Sustainable Energy Infrastructure Partnership (PSEIP). The projects were developed by Potentia Renewables Inc., a wholly owned subsidiary of the Corporation.

Second Quarter

Net earnings from continuing operations attributable to participating shareholders were $772 million or $1.20 per share, compared with $730 million or $1.12 per share in 2024.

Adjusted net earnings from continuing operations attributable to participating shareholders ¹ were $883 million or $1.38 per share, compared with $739 million or $1.14 per share in 2024.

Net earnings attributable to participating shareholders were $772 million or $1.20 per share, compared with $730 million or
$1.12 per share in 2024.

Adjustments in the second quarter of 2025, excluded from adjusted net earnings from continuing operations, were a negative net impact to earnings of $111 million or $0.18 per share, mainly comprised of the Corporation's share of Adjustments of:

• Lifeco of negative $168 million, mainly related to business transformation impacts which include a restructuring charge recognized in the second quarter;

       Partially offset by:

• IGM of positive $8 million, mainly related to the effect of consolidation which includes a realized gain, recognized on the sale of a corporate investment classified by IGM as FVOCI, reflecting the application of the Corporation's accounting method for investments under common ownership; and
  
  
• Power Sustainable of positive $49 million, mainly related to a recovery on the revaluation of non-controlling interests (NCI) liabilities within the Power Sustainable Energy Infrastructure Partnership, due to a decrease in the fair value of projects held within the fund, and other market-related impacts.

In the second quarter of 2024, Adjustments were a negative net impact to earnings of $9 million or $0.02 per share, mainly related to the Corporation's share of Adjustments of Lifeco, partially offset by the Corporation's share of Adjustments of Standalone businesses.

Publicly traded operating companies: contribution to net earnings from continuing operations was $764 million, a decrease of 7.6% from the second quarter of 2024, and contribution to adjusted net earnings from continuing operations was $924 million, an increase of 8.3% from the second quarter of 2024:

Lifeco: contribution to net earnings decreased by $71 million or 10.3% and contribution to adjusted net earnings increased by $82 million or 11.6%.

IGM: contribution to net earnings and adjusted net earnings increased by $19 million or 14.1% and by $21 million or 15.3%, respectively.

GBL: contribution to net earnings and to adjusted net earnings of negative $15 million in the second quarter of 2025, compared with a contribution to net earnings and adjusted net earnings of positive $21 million in the second quarter of 2024.

Sagard and Power Sustainable: Sagard had a contribution to net earnings and adjusted net earnings of $106 million, mainly driven by fair value changes in the private equity portfolio. Power Sustainable's contribution to net earnings and adjusted net earnings was $36 million and negative $13 million, respectively.

Six Months

Net earnings from continuing operations attributable to participating shareholders were $1,461 million or $2.27 per share, compared with $1,488 million or $2.29 per share in 2024.

Adjusted net earnings from continuing operations attributable to participating shareholders ¹ were $1,670 million or $2.60 per share, compared with $1,449 million or $2.23 per share in 2024.

Net earnings attributable to participating shareholders were $1,461 million or $2.27 per share, compared with $1,439 million or
$2.21 per share in 2024.

GREAT-WEST LIFECO INC.

Second Quarter

Net earnings from continuing operations attributable to common shareholders were $894 million or $0.96 per share, compared with $1,005 million or $1.08 per share in 2024.

Adjusted net earnings from continuing operations ¹ attributable to common shareholders were $1,149 million or $1.24 per share, compared with $1,038 million or $1.11 per share in 2024.

Net earnings attributable to common shareholders were $894 million or $0.96 per share, compared with $1,005 million or $1.08 per share in 2024.

Adjustments in the second quarter of 2025, excluded from adjusted net earnings, were a net negative impact of $255 million, compared with a net negative impact of $33 million in 2024. Lifeco's Adjustments consisted of:

• Market experience relative to expectations of negative $104 million;
• Assumption changes and management actions of negative $3 million;
• Business transformation impacts, primarily related to a restructuring charge in Canada, of negative $121 million; and
• Amortization of acquisition-related finite life intangible assets of negative $38 million;
• Partially offset by tax legislative changes and other tax impacts of positive $11 million.

IGM FINANCIAL INC.

Second Quarter

Net earnings available to common shareholders were $246.7 million or $1.04 per share, compared with $216.2 million or $0.91 per share in 2024.

Adjusted net earnings attributable to common shareholders were $252.7 million or $1.07 per share, compared with $220.4 million or $0.93 per share in 2024.

Assets under management and advisement (AUM&A) ² at June 30, 2025 were $283.9 billion, an increase of 3.2% from March 31, 2025 and 12.5% from June 30, 2024. Net inflows ³ were $90 million in the second quarter of 2025, compared with net outflows of $1.1 billion in 2024.

GROUPE BRUXELLES LAMBERT

Second Quarter

GBL reported a net loss of €50 million, compared with net earnings of €85 million in 2024.

GBL reported a net asset value ² of €14,352 million or €107.75 per share at June 30, 2025, compared with €15,681 million or €113.30 per share at December 31, 2024.

Second Quarter

Net earnings of the alternative asset investment platforms were $142 million, compared with a net loss of $5 million in 2024. The adjusted net earnings of the alternative asset investment platforms were $93 million, compared with an adjusted net loss of $1 million in 2024.

The adjusted net earnings are comprised of:

• A positive contribution of $106 million from Sagard comprised of a positive contribution of $8 million from asset management activities and a positive contribution of $98 million from investing activities, mainly related to fair value changes in the private equity portfolio; and
• A negative contribution of $13 million from Power Sustainable comprised of a negative contribution of $14 million from asset management activities and a positive contribution of $1 million from investing activities. Adjustments in the second quarter of 2025, excluded from adjusted net earnings, were a positive impact of $49 million, compared with a negative impact of $4 million in 2024. Power Sustainable Adjustments consisted primarily of a recovery from the revaluation of NCI liabilities ¹ within PSEIP, due to a decrease in the fair value of projects held within the fund, and other market-related impacts.

Adjusted Net Asset Value

The Corporation's adjusted net asset value per share was $64.76 at June 30, 2025, compared with $60.44 at December 31, 2024, an increase of 7.1%.

Participating Shareholders' Equity

The Corporation's book value per participating share was $35.90 at June 30, 2025, compared with $35.56 at December 31, 2024, an increase of 1.0%.

The Board of Directors declared a quarterly dividend of 61.25 cents per share on the Participating Preferred Shares and the Subordinate Voting Shares of the Corporation, payable October 31, 2025 to shareholders of record September 29, 2025.

The Board of Directors also declared quarterly dividends on the Corporation's preferred shares, payable October 15, 2025 to shareholders of record at September 24, 2025:

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, 2025, Power Corporation held the following economic interests:

BASIS OF PRESENTATION

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

NON-IFRS FINANCIAL MEASURES

Net earnings from continuing operations attributable to participating shareholders are comprised of:

• Adjusted net earnings from continuing operations (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 Lifeco and IGM, would make the period-over-period comparison of results from operations less meaningful. Includes the Corporation's share of Lifeco'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 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.

Adjusted net earnings from continuing operations (or adjusted net earnings) represents net earnings from continuing operations excluding Adjustments. In 2024, the Corporation modified the definition of adjusted net earnings, a non-IFRS earnings measure, to better reflect the underlying performance of the Corporation. Effective the fourth quarter of 2024, the definition of Adjustments was modified to include the impacts from applying the definition of Adjustments to the net earnings disclosed by GBL, the results of the Corporation's investing activities and the standalone businesses. The definition was also expanded to include impacts related to remeasurements due to market changes that result in an accounting mismatch. The comparative periods have been restated to conform with the current definition.

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 less their net debt and preferred shares. The investments held in public entities (including Lifeco, 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, gross asset value, adjusted net earnings from continuing operations per share (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 Lifeco, 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 segment's contribution 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 Lifeco, 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 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: