Introduction & Market Context
Power Corporation of Canada (TSX:POW) released its Q1 2025 results on May 14, 2025, showcasing solid performance across its portfolio of companies. The diversified international management and holding company reported significant growth in adjusted earnings and net asset value, while continuing to execute on strategic initiatives across its core businesses and alternative investment platforms.
The company’s share price closed at $50.49 on May 13, 2025, representing a 0.18% increase on the day and reflecting the strong shareholder returns Power Corporation has delivered over the past year.
Quarterly Performance Highlights
Power Corporation reported adjusted net earnings from continuing operations of $787 million or $1.22 per share for Q1 2025, representing an 11% increase compared to $710 million or $1.09 per share in Q1 2024. Net earnings from continuing operations were $689 million or $1.07 per share, compared to $758 million or $1.17 per share in the same period last year, with the decrease primarily attributed to unfavorable market experience at Great-West Lifeco.
As shown in the following breakdown of net and adjusted net earnings by segment:
The company’s adjusted net asset value (NAV) per share reached $68.99 at March 31, 2025, marking a significant 14% increase from $60.44 at December 31, 2024. This growth was primarily driven by the strong performance of Great-West Lifeco, which represents 71.4% of Power’s gross asset value. The company’s book value per participating share also increased to $36.10 at March 31, 2025, compared to $35.56 at the end of 2024.
The following chart illustrates the composition of Power’s gross asset value and the significant increase in NAV per share:
Power Corporation continued its commitment to shareholder returns, declaring a quarterly dividend of 61.25¢ per share, representing a 9% increase compared to Q1 2024. Additionally, the company repurchased 3.0 million shares for $135 million during the quarter, contributing to approximately $500 million in total capital returned to shareholders in Q1 2025.
Detailed Financial Analysis
Great-West Lifeco, Power Corporation’s largest subsidiary, delivered solid results in Q1 2025 with base earnings per share of $1.11, up 6% compared to $1.05 in Q1 2024. This growth was driven by double-digit performance in both Retirement and Wealth businesses, particularly in the U.S. segment. However, net earnings per share from continuing operations decreased to $0.92 from $1.10 in the prior year due to unfavorable market experience.
As shown in the following performance metrics for Great-West Lifeco:
Notably, Great-West Lifeco updated its medium-term objectives at its 2025 Investor Day, increasing its Base ROE target to 19%+ and introducing a Base Capital Generation target of 80%+, while reaffirming its 8-10% Base EPS Growth target.
IGM Financial (OTC:IGIFF) also delivered strong results, with record high first quarter adjusted net earnings of $238 million. The company achieved record high quarter-end assets under management and advisement (AUM&A) of $141.5 billion at IG Wealth and $218.6 billion at Mackenzie, along with record gross inflows of $4.2 billion at IG Wealth and total net sales of $3.4 billion at Mackenzie.
The following chart highlights IGM’s earnings performance:
IGM’s strategic investments continued to deliver impressive growth, with Wealthsimple assets under administration increasing by 89% year-over-year to $73.0 billion, and Rockefeller Capital Management client assets growing by 23% to $222.1 billion. In asset management, ChinaAMC and Northleaf saw their AUM increase by 35% and 20% respectively.
As illustrated in the following breakdown of IGM’s strategic investments:
Groupe Bruxelles Lambert (GBL) continued to execute on its value creation strategy, with a significant rotation from public to private assets. GBL reduced its stake in SGS (SIX:SGSN) by €0.8 billion, contributing to €2.4 billion of listed asset disposals since 2024. The company also created value through direct private assets, with an increased value of €149 million during the quarter.
Strategic Initiatives
Power Corporation continues to drive value creation through its alternative asset investment platforms, Sagard and Power Sustainable. In April 2025, Sagard announced a strategic partnership with BEX Capital, acquiring a strategic stake in the specialized secondaries investment firm with over US$2 billion of assets under management. This partnership marks a significant step in Sagard’s expansion into private equity secondaries and complements its existing private equity strategies.
In May 2025, Power Sustainable announced the launch of its fourth investment strategy: Power Sustainable Decarbonization Private Equity. The strategy has secured up to $450 million in commitments and seeks superior risk-adjusted returns by investing in established middle-market companies that contribute to a more resource-efficient and resilient North American economy.
The following chart shows the ongoing fundraising efforts at Power’s alternative asset investment platforms, which have reached $43.4 billion in AUM as of March 31, 2025:
Power Corporation’s discount to NAV remains an attractive opportunity for upside, with the current discount at 20.6% compared to an average discount of 24% since the company’s reorganization. This presents a potential lever for value creation as the company continues to execute on its strategy.
As shown in the historical discount to NAV chart:
Forward-Looking Statements
Looking ahead, Power Corporation is well-positioned to continue generating attractive returns for shareholders. Great-West and IGM, which account for 84% of Power’s gross asset value, remain the largest sources of potential returns. Great-West is targeting 8-10% base EPS growth and offers a dividend yield of 4.8%, while IGM is targeting 9%+ adjusted EPS growth per annum plus its 5.1% dividend yield.
The company maintains a strong financial position with $1.4 billion of cash and cash equivalents at March 31, 2025, of which $1.0 billion is available cash. This provides capacity for further share buybacks, as Power generally targets to maintain minimum available cash of 2x fixed charges.
Power Corporation’s shareholder returns have outperformed the S&P TSX and S&P TSX Financials indices in recent periods, with a total shareholder return of 33.7% over the last 12 months (as of May 13, 2025), compared to 27.0% for the S&P TSX Financials and 18.6% for the S&P TSX.
The company’s ongoing focus on organic growth at its operating companies, potential M&A opportunities to scale existing businesses, and capital return to shareholders through buybacks and dividends positions Power Corporation for continued success in creating long-term shareholder value.
Full presentation:
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