Power Co. of Canada (TSE:POW) reported higher first-quarter adjusted earnings and net asset value, with management citing broad-based strength at Great-West Lifeco and IGM Financial, continued growth in private assets platforms and a larger cash balance that is supporting share repurchases.
On the company’s first-quarter 2026 earnings call, President and CEO R. Jeffrey Orr said he was “very pleased” with the results and the momentum across Power’s businesses, noting supportive market conditions despite elevated global risks. “The stock market levels continue to rise. Interest rates have been supportive. Investors have made a lot of money,” Orr said, adding that business conditions have remained favorable.
Adjusted earnings rise 15%
EVP and CFO Jake Lawrence said adjusted net earnings were CAD 905 million in the quarter, up 15% from a year earlier. Net earnings per share were CAD 1.43, which Lawrence described as the company’s second-highest quarterly EPS since its 2019 reorganization. EPS increased 17% year over year.
Lawrence said Power’s earnings-based businesses, Great-West Lifeco and IGM Financial, both delivered strong results. Great-West’s contribution to Power’s adjusted net earnings rose 21% from a year earlier, supported by its eighth consecutive quarter of base earnings above CAD 1 billion and double-digit growth across all segments. Great-West also reported base return on equity above 19%, reaching a medium-term objective for the first time.
IGM’s contribution to Power’s adjusted earnings also increased 21% year over year. Lawrence pointed to strong net flows at IG Wealth and Mackenzie Investments, record ending assets under management and advisement that were up 14% year over year, and a higher earnings contribution from ChinaAMC. He also said IGM reported its highest quarter ever for dividends and buybacks.
Net asset value increases year over year
Power reported net asset value per share of CAD 84.54 as of March 31, 2026. Lawrence said 83% of Power’s gross asset value continues to come from Great-West and IGM. On a year-over-year basis, Power’s NAV increased 23%, including a 51% increase in NAV related to IGM, a 22% increase at GBL and a 12% increase at Great-West.
Lawrence said Wealthsimple’s NAV rose approximately 90% year over year, while Power’s cash balance increased 50% to CAD 2.1 billion. After factoring in dividends to be received and paid, Power had about CAD 1.7 billion available.
The company returned CAD 650 million to shareholders through buybacks and dividends in the quarter, ahead of CAD 500 million returned in the first quarter of 2025. Lawrence said Power remained active under its normal course issuer bid and continued to participate in Great-West’s buyback program.
Great-West and IGM show operating momentum
Orr said Great-West delivered “a very strong quarter of earnings growth” across geographies and segments. He noted that Great-West estimates about 80% of its earnings are available as cash and said the insurer has increased dividends while stepping up buyback activity.
Orr highlighted continued strength at Empower, Great-West’s U.S. retirement and wealth platform. On a constant-currency, U.S.-dollar basis, Empower delivered 23% earnings growth from the first quarter of 2025. Orr said retirement earnings increased about 18%, helped by market conditions, franchise growth and operating leverage, while the wealth business posted 65% earnings growth and positive flows.
At IGM, Orr said the Canadian retail investment market has rebounded after pressure from inflation and higher interest rates. He said IG Wealth and Mackenzie are participating in stronger inflows, with IG Wealth continuing to improve its competitive position and Mackenzie benefiting from institutional flows. Orr also said he sees “positive developments” in Mackenzie’s Canadian retail investment fund flows, though some strategies continue to experience outflows.
Orr also pointed to growth in IGM’s strategic investment portfolio, including Wealthsimple, Rockefeller and Northleaf. He said Wealthsimple continues to post strong growth, Rockefeller is also growing strongly, and Northleaf’s 10% year-over-year AUM growth is “terrific in the alternative space” because it is organic fundraising.
GBL shifts further toward private assets
GBL contributed CAD 20 million to Power’s net earnings in the quarter, up from CAD 3 million a year earlier. Lawrence attributed the improvement to higher contributions from operating companies within GBL and higher interest income on cash balances.
Orr said GBL, led by CEO Johannes Huth, is pursuing its strategy with “vigor,” reducing exposure to publicly listed companies and shifting toward direct private assets. He said direct private assets currently represent about 32% of GBL’s portfolio. GBL had set a target to sell EUR 5 billion of its public portfolio, and Orr said it is “basically done” with that objective over the past 12 months.
During the question-and-answer session, Orr said investors should continue to view GBL as a net asset value-based business rather than an earnings-based business. “I don’t look to it for earnings. I look to it for good growth and value,” he said.
Alternative platforms continue to scale
Sagard posted a CAD 5 million loss contribution in the quarter, down from a positive CAD 37 million contribution a year earlier, primarily due to lower private equity gains. Power Sustainable reported a CAD 13 million loss, reflecting lower asset management activity and operating losses on energy infrastructure assets.
Orr said Sagard continues to grow organically and through acquisitions. After quarter-end, Sagard closed its acquisition of Unigestion, a European private equity solutions provider. Orr said Unigestion will be combined with Performance Equity Management and BEX to create Sagard Private Equities, with US$22 billion in assets and a presence in Europe and North America. He said the acquisition brings Sagard’s total AUM to US$46 billion.
Lawrence said Unigestion is profitable, but he declined to provide profitability guidance for Sagard, saying the focus remains on building scale, brand strength and capital formation rather than meeting a quarterly earnings target.
On private credit, Orr said the main impact of recent market headlines has been on fundraising, especially among individual investors. He said Power is not seeing credit problems in its exposure at Sagard, Northleaf, Great-West or Power’s own seed capital. Lawrence described Sagard’s private credit strategy as focused on first-lien, senior secured mid-market loans, with no loans currently in arrears and minimal software exposure.
Orr, who said the call was his last as CEO before James O’Sullivan takes over, said Power’s value creation strategy remains intact. He noted leadership transitions across the group, including David Harney at Great-West, Damon Murchison at IGM and Huth at GBL, and said the company is “well set up to move forward.”
About Power Co. of Canada (TSE:POW)
Power Corp. of Canada is a diversified holding company with interests in financial services, communications, and other business sectors through its controlling interests in Power Financial. Power Financial in turn holds controlling interests in Great-West Life (an insurance conglomerate), IGM Financial (Canada's largest nonbank asset manager), and Pargesa (a holding company with interests in European companies). Power Corp. bought out the remaining shares of Power Financial in February 2020.
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