BN

On August 13, Brookfield (NYSE:BN) held its second-quarter earnings call, and the story management told was less about property spreadsheets and more about power lines and reactors. Distributable earnings before realizations climbed 15% year over year to $1.4 billion for the quarter, and executives spent much of the call explaining how a $100 billion Kentucky data center project and a nuclear buildout fit into that growth. Brookfield's pitch centers on a gap between AI's appetite for electricity and the grid's ability to supply it. CEO Bruce Flatt described a $100 billion partnership with the US Department of Energy to build an AI campus in Kentucky on federally owned land, a deal he said requires few approvals because of that federal ownership. Alongside that, the Department of Energy committed a further $17.5 billion to Brookfield and its utility partners to acquire long lead time items for Westinghouse's reactor pipeline, which the company says is now under construction on 14 reactors with visibility into 40 more and another 100 beyond that. The asset management engine backing these bets had its own strong quarter. Fundraising hit a record $77 billion, pushing fee-bearing capital up 19% to $672 billion and fee-related earnings up 20% from a year earlier. The Oaktree acquisition closed in July, and Wealth Solutions distributable earnings rose 23% year over year to $480 million as the newly acquired Just Group added $45 billion of insurance assets. Real estate leasing added another data point: office tenants signed 4.5 million square feet globally at net rents 19% above what was expiring, including leases in Canada priced more than double prior rates. Flatt opened his remarks by naming the risks directly, pointing to geopolitical conflict, higher energy prices and uncertainty around interest rates as factors shaping the near-term market environment. That acknowledgment sits alongside a Just Group integration that is still a work in progress. Management said it exited an early-stage direct-to-consumer initiative and is still working through reducing the business's cost base, and Just contributed just $29 million of earnings in its first quarter under Brookfield ownership, a starting return on equity of about 12%. Capital return also raises questions for income-focused shareholders. The board declared a quarterly dividend of only $0.07 per share, while the company spent roughly $580 million on buybacks year to date at an average price of $42, showing where management prefers to direct spare cash. Separately, the approved simplification of Brookfield's capital structure requires taxable Canadian and UK shareholders to actively file an election if they want a tax-deferred share exchange, an administrative step that falls on investors rather than the company. Management also acknowledged the annuity business operates in a competitive market, even as it held spreads above 200 basis points. Hedge fund ownership ticked up only slightly, from 46 funds in the prior quarter to 47 in the most recent one, a small gain rather than a rush of new institutional buying. Brookfield's forward price-to-earnings ratio sits at 11.89 as of August 21, a multiple that does not look like it is pricing in aggressive growth assumptions. Put together, these suggest the market has not yet fully credited the AI and nuclear buildout that dominated management's commentary. Brookfield laid out a quarter with real growth numbers and a set of headline-grabbing infrastructure commitments, but the two do not automatically converge. For the AI and nuclear story to change the valuation picture, the Kentucky campus and the Westinghouse reactor pipeline need to move from announced financing to delivered, earning assets. While we acknowledge the potential of BN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 10:00 a.m. ET Vice President, Investor Relations - Katie Battaglia Chief Executive Officer - Bruce Flatt President - Nick Goodman Chief Executive Officer, Wealth Solutions - Sachin Shah Operator: Good day, and welcome to the Brookfield Corporation's Second Quarter 26 Conference Call and Webcast. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference call over to our first speaker, Ms. Katie Battaglia, Vice President, Investor Relations. Please go ahead. Katie Battaglia: Thank you, operator, and good morning. Welcome to Brookfield Corporation's Second Quarter 26 Conference Call. On the call today are Bruce Flatt, our Chief Executive Officer Nick Goodman, President of Brookfield Corporation and Sachin Shah, Chief Executive Officer of our wealth solutions business. Bruce will start off by giving a business update followed by Nick, who will discuss our financial and operating results for the quarter. And finally, Sachin will provide an update on our Wealth Solutions business. After our formal comments, we will turn the call over to the operator and take analyst questions. In order to accommodate all those who want to ask questions, we request that you refrain from asking more than 2 questions. I would like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward looking statements. Including forward looking statements within the meaning of applicable Canadian and U.S. securities laws. These statements reflect predictions of future events and trends and do not relate to historic events. They are subject to known and unknown risks and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. In addition, when we speak about our wealth solutions business or Brookfield Wealth Solutions, we are referring to Brookfield Investments in this business that supported the acquisition of its underlying operating subsidiaries. With that, I will turn the call over to Bruce. James Bruce Flatt: Thank you, Katie, and welcome to the call. Our business performed well in the second quarter and through the first half. Distributable earnings before realizations increased 15% year over year to $1.4 billion in the quarter, and $5.7 billion for the last 12 months. In the first half of the year, we were active. We raised $98 billion of capital, deployed 100 billion into opportunities, and monetized $40 billion of assets while a further $130 billion of assets were financed. We advanced several important strategic initiatives. We expanded our insurance business with the acquisition of Just in the U.K., Our assets through that increased to $190 billion. Shareholders approved the simplification of our capital structure bringing our insurance and investment capabilities together. This creates a stronger and simpler Brookfield. Last, we completed the acquisition of Oaktree. Combined, our credit business is now 1 of the most comprehensive globally. Turning briefly to the market environment. There is no shortage of noise in the markets today. Geopolitical conflict higher energy prices, and uncertainty around interest rates. While these factors may influence markets in the near term, our focus remains on firmly building long term value across the business. None of these factors in the short term will matter too much to our long term business success. The market environment continues, though, to be constructive Economic resilience and functioning capital markets are supporting operating performance throughout the business and transaction activity. While uncertainty around growth and inflation is increasing demand for high quality heavy assets, with low obsolescence risk. Precisely the type of assets and businesses which we own. At the same time, long term investment themes shaping our opportunity set are accelerating. Digitalization, decarbonization, and deglobalization which we have been talking about for years, are now creating opportunities unlike anything we have ever seen. The opportunities are accelerating. Across AI infrastructure energy transition, supply chain reorganization, and data sovereignty, the opportunities are larger more multifaceted, and more capital intensive. Participating in these investments requires a broad range of capabilities, and our advantage sits with our ability to deliver integrated solutions at scale. We have invested decades deliberately building and strengthening the capabilities needed to pursue opportunities of this scale. Together, they have become 1 of the defining advantages of our business and position us to capitalize on these transformational investment opportunities in the years ahead. For us, this starts with relationships. Many of the opportunities we pursue are not broadly marketed. They come to us through bilateral discussions and strategic partnerships. Due to our scale, or because certainty of execution matters. We aim to be the first call because of the relationship we have built across industries, geographies, and capital markets to originate differentiated opportunities and give our partners access to transactions they could not typically source or pursue directly. Our global presence helps us determine where the best opportunities exist at any point in time. With teams on the ground across markets and asset class, we see where demand is building. Where capital is moving, and where risks are emerging. That perspective helps us focus on the best risk adjusted opportunities. Our operating expertise is then what allows us to execute. Many of today's most attractive opportunities span multiple disciplines, and we can bring together teams across Brookfield to deliver integrated solutions that address full scope of the opportunity. Our ability to source and execute is driven by the capital we have available to deploy. Decades of strong investment performance have therefore enabled us to build a diversified capital base that draws on public markets, institutions, private wealth, long duration insurance, and our own balance sheet. These 5 things make us quite unique. This allows us to match the right capital to each investment and continue deploying through cycles. Nowhere is this more important of integrating these complementary capabilities more evident than in the rapid build out of AI infrastructure. The build out of AI infrastructure brings together the capabilities of our real estate, energy, infrastructure, and credit businesses, each a leader in their field. At the same time, the rapid adoption of AI is driving tremendous demand for electricity. And while constraints across the grid are limiting how quickly new supply can come online, The result is a widening gap between insatiable power and compute demand with constrained supply. Together, these trends are creating 1 of the most compelling investment opportunities we have seen in years and precisely the type of opportunities our scale enables us to pursue without taking undue risks. We are bringing together power generation transmission land entitlement skills, financing, and long term relationships to deliver solutions that few organizations can provide. Our recent $100 billion to build 1 of the world's most advanced AI factories in Kentucky. In partnership with the US government, illustrates this well. We were selected by the US Department of Energy to repurpose a federally owned industrial site and deliver a major world class AI campus. Drawing on our certainty of execution, our ability to bring together land, power, transmission, and capital at scale. This is federal land that the DOE has DOE uses on it, and as a result, today needs few approvals to move forward. Turning now to Westinghouse. This is another example of how these long term trends are creating new opportunities. No business we own today is more directly positioned to benefit from the growing importance of energy transition and energy security, than Westinghouse. Governments and companies increasingly want reliable domestically available generation. Baseload nuclear due to its scale is really important. We are supporting the next wave of nuclear deployment. Building on our strategic partnership with the US Department of Commerce announced last year, the US Department of Energy recently announced a further $17.5 billion financing commitment to us alongside our utility partners to acquire long lead time items to advance the production of the reactors we are going to build. It will reduce the time periods dramatically. It will shorten development timelines and establish a repeatable model for large scale nuclear construction. Westinghouse is in various stages of construction today on 14 reactors, has line of sight on another 40, and another 100 coming. This is part of a $6 trillion industry build out where we hold a very dominant position. Turning to our capital base, it is also continuing to evolve. 1 of the most significant developments today is the role of private markets and retirement savings. Most individual savers have had very little access to private assets with their savings invested largely in public stocks and bonds even as the investment world has evolved over the last 20 years. Businesses today are staying private longer meaning a growing share of the world's essential assets and value creation now sits outside the public markets. As a result, retirement savers are increasingly missing out on a meaningful share of global value creation and only participate once meaningful value has already been created. Recent changes to U. S. Federal policy are beginning to open the door to greater private market participation in retirement portfolios. Savers will soon have access to diversification resilient cash flows inflation protected assets, and all these types of investment products. This will become another important choice of long term duration capital for us further growing and diversifying our capital. base. I will end by saying that we look forward to seeing all of you at our Investor Day on September 17th in Manhattan. Additional details are on our website. As always, thank you for your continued support and interest in Brookfield. I will now turn the call over to Nick. Nicholas H. Goodman: Thank you, Bruce, and good morning, everyone. We delivered another quarter of strong financial results supported by broad based momentum across the business. Distributable earnings or DE before realizations were $1.4 billion or $0.61 per share for the quarter, representing an increase of 15% per share over the prior year quarter. Over the last 12 months, DE before realizations was $5.7 billion $2.39 per share. Total DE including realizations was $1.5 billion or $0.66 per share for the quarter and $6.2 billion or $2.61 per share over the last 12 months. Starting with our operating performance, Our Asset Management business delivered another strong quarter. Generating distributable earnings of $740 million or $0.31 per share in the quarter and $2.9 billion or $1.24 per share over the last 12 months. Fundraising was a record $77 billion during the quarter reflecting continued strong demand across our flagship and complementary strategies as well as growth Hold on. This included $17 billion raised across our flagship strategies, including $7 billion for the 7 vintage of our private equity strategy and $9 billion for the sixth vintage of our infrastructure strategy. Both are progressing well and are on track to be the largest in their respective series. Fee bearing capital increased by 19% to $672 billion at quarter end driving a 20% increase in fee related earnings compared to the prior year quarter. With the momentum we have across the platform, we are on track for what should be another record fundraising year. In July, we completed the acquisition of Oaktree, bringing the organizations fully together. Further enhancing the scale and breadth of our global platform and strengthening our ability to serve clients with a broader range of investment solutions. Turning briefly to Wealth Solutions, which Sachin will cover in more detail in his remarks, the business generated distributable earnings of $480 million or $0.20 per share in the quarter, an increase of 23% compared to the prior year quarter and $1.8 billion or $0.75 per share over the last 12 months. Results were driven by strong organic inflows growth in net investment income and the first full quarter contribution from Just Group. We originated $5 billion of annuity sales during the quarter, Total insurance assets increased to over $190 billion driven by positive net annuity flows and the closing of Just Group which added $45 billion of insurance assets. Our North American business' investment performance remained strong. During the quarter, we deployed $5 billion into real asset investments contributing to an average net investment income yield of 5.7%. Disciplined underwriting in our P and C business contributed to a 99% combined ratio lowering our overall cost of funds, supporting a gross spread of 2.2% for the quarter further contributing to strong results on our invested capital. Turning to our operating businesses. They continue to generate resilient and stable cash flows, with distributable earnings of $361 million or $0.15 per share in the quarter and $1.5 billion or $0.65 per share over the last 12 months. Underlying performance across our infrastructure energy and private equity businesses remained strong supported by long term secular trends increasing demand for their essential products and services. Our real estate business also continues to perform well, The operating fundamentals across our high quality portfolio remain very strong. Our supercore and core plus portfolios finished the quarter over 95% occupancy supported by continued tenant demand and very limited new supply. And our retail portfolio, nearly 1 million square feet of lease commenced during the quarter, at rents 12% higher than those expiring. In office, we signed 4.5 million square feet of leases globally, with average net rents 19% above expiring levels. That is worth emphasizing Net rents on the leases we signed during the quarter were 19% higher than those expiring. Providing meaningful embedded cash flow growth as these tenants take occupancy. A few highlights include, in The U. S, we signed 1.3 million square feet of leases at rents 25% above expiring levels. Including 2 leases totaling 673 thousand square feet at 1 Liberty Plaza a core plus asset at net rents 44% above expiring levels. In Canada, we signed over 700 thousand square feet at rents more than 70% above expiring levels including a 433 thousand-square-foot lease at Bay Adelaide Centre a supercore asset at rents more than double expiring levels. And our leasing pipeline remains strong, with more than 2 million square feet under active discussion. This leasing activity continues to demonstrate the strength of demand for high quality real estate and the advantage of owning the best assets in supply constrained markets. Turning to monetizations. Transaction activity continued to build momentum through the first half of the year. We executed approximately $40 billion of asset sales year to date returning capital to our investors and crystallizing attractive returns. A few notable examples include infrastructure, we completed the IPO of Evoque our US colocation data center platform, generating approximately $1.2 billion of proceeds at an attractive valuation. We retain a 64% interest in the business and will continue to participate in future value creation as demand for AI infrastructure accelerates. In real estate, we sold 1 Churchill Place, a premier office tower on our estate at Canary Wharf, £750 million further demonstrating the recovery of high quality real estate. And in private equity, we completed the $650 million sale of Multiplex, our construction business. During the quarter, we realized $121 million of net carried interest into income and ended the quarter with $12.5 billion of accumulated unrealized carried interest. Shifting now to capital allocation and liquidity. We continue to return capital to shareholders during the quarter through a combination of dividends and share repurchases totaling $270 million. We maintain a disciplined approach to capital allocation, In addition to reinvesting in our existing businesses and completing the acquisition of Oaktree, we have repurchased approximately $580 million of BN shares in the open market year to date at an average price of $42 per share keeping us on pace with the repurchases of the last 2 years. Capital markets remain constructive. And year to date, we have completed $130 billion of financings across the franchise. Notably, the corporation, we issued CAD750 million of 10 and 30 year notes, The transaction was 4x oversubscribed, underscoring strong market demand and the strength of our credit profile. We continue to maintain a strong liquidity position and a conservatively capitalized balance sheet. And with record deployable capital of $210 billion we have substantial flexibility to invest at scale as attractive opportunities arise. Bringing it all together, we had a very strong and active second quarter. Earnings grew 15% per share fundraising reached record levels, transaction activity continued to build, and we completed several important strategic initiatives that will continue to support our growth. Enter the second half with strong momentum across each of our businesses and are very well positioned to continue to grow earnings and compounding intrinsic value per share. Before I hand over to Sachin, I want to briefly touch on the simplification Shareholders approved the transaction at our annual meeting on July 16th. Marking an important step in bringing our insurance and investment capabilities together in a simpler and stronger structure. Shareholders who are in non-taxable accounts or in all jurisdictions other than Canada and The UK do not need to do anything. You will receive new shares in your account once the transaction is complete. For taxable Canadian and UK shareholders who wish to complete their share exchange on a tax deferred basis, the election period is now open and additional information is available on our website for you to do this. With that, I am pleased to confirm that our board of directors has declared a quarterly dividend of $0.07 per share payable at the end of September to shareholders of record at the close of business on September 14, 2026. With that, I thank you for your time, and I will pass the call over to Sachin. Sachin Shah: Thank you, Nick, and good morning, everyone. With the recent addition of the Just Group, we thought it would be useful to start with an update on the progress we are making in The UK, then provide an update on our existing businesses and close with how we are thinking about the broader retirement markets. As always, our objective is to compound capital at 15%-plus returns over the long term while maintaining a disciplined approach to risk and generating stable predictable earnings. Turning first to the Just Group. We are very pleased with the progress since closing the acquisition in April. Just is a high quality retirement business with capabilities in both the pension risk transfer and retail annuity markets. It gives us meaningful scale in 1 of the largest and most developed retirement markets globally. It adds another important source of long duration predictable liabilities to our business. Since closing, we have focused on several areas. First, we have sharpened the business around its core pension risk transfer and retail franchises. We exited the early stage direct to consumer initiative and have been simplifying the organization around the areas where Just has an established track record and a real competitive advantage. We have also been working on reducing the cost base. There is more work to do, but the direction is clear. We want a simpler operating model a more efficient cost structure, and a business that can scale. Second, on the investment side, we have started bringing Brookfield's origination capabilities into the portfolio with a strong investment pipeline for the remainder of the year that we expect to drive further growth into our investment yields, our spreads and the returns on the overall business. Third, on the liability side, we have adopted the same discipline we apply across the broader wealth solutions business, And since closing, all new business has been underwritten based on our targets. From an earnings perspective, Just generated approximately $29 million of earnings in our first quarter of ownership. Representing a going in return on equity of approximately 12%. We think that is a solid starting point with many near term and medium term levers to grow the business from here. So taken together, we feel very good about where the business is today, Just has a strong market position, a large opportunity ahead of it, and a clear pathway to improving performance. Our focus from here is execution. Keep the business simple, stay disciplined on capital, and capture the opportunity in The UK, which represents over half a trillion of pensions coming to market over the next decade. Turning to our existing annuity platform. We continue to make good progress in expanding the business. On product development, we have continued to broaden our retail annuity offering. Through American National, we continue to launch new products designed to offer pension like annuity, pension-like attributes to retirees. On distribution, we have expanded through bank and broker dealer channels with several new relationships launched this year. And additional channels expected over the balance of the year and into 2027. These new bank channels contributed approximately $200 million of sales during the quarter and we expect them to become a very meaningful source of growth as they scale. Importantly, despite a competitive market, our spreads remain above 200 basis points. This reflects the discipline we continue to apply in matching the liabilities we originate with attractive investment opportunities and allocating capital only where we can achieve our target returns. Our US property and casualty platform, Clearbrook, continues to make significant progress. We have derisked the liability profile and focused the business on profitable growth. By exiting volatile lines reducing catastrophe exposure, strengthening underwriting discipline. This has led to a stable and consistent underwriting income. As the P&C market sees pockets of softening, we believe there will be meaningful opportunities to continue scaling this platform both organically and through M&A. Bringing it all together, demand for retirement products continues to grow as populations age, and retirement savings shortfalls widen. The US fixed annuity market is expected to generate over $300 billion of sales in 2026, which would be the second best year on record. And we expect it will continue to grow in this interest rate environment. Across our key pension risk transfer markets in The UK, The US, and Canada, we see a large pipeline of potential transactions coming to market over the next decade as corporations continue to derisk pension plans and transfer them to insurance companies which have the capital and expertise to more appropriately manage them. With our now scaled platform across products, distribution channels, and geographies, we are well positioned to allocate capital to the most attractive opportunities while maintaining discipline on the returns we earn. Very few platforms have the depth and capabilities we have to originate attractive capital and the investment franchise to deliver strong risk adjusted returns over a long sustained period of time. We are excited about the future of the business and the returns it can provide to Brookfield shareholders for years to come. We continue to see a pathway more than $300 billion of insurance assets by the end of the decade. Thank you. With that, I will hand the call over to the operator for questions. Operator: Thank you. And as a reminder, if you have a question, please press *1 on your telephone. If your question has been answered or you want to remove yourself from the queue, please press *1 again. Our first question comes from the line of Michael Cyprys with Morgan Stanley. Your line is now open. Michael Cyprys: Hey, good morning. Thanks for taking the question. Maybe just starting off with a bigger picture question on the AI side. As you look across power, data centers, increasingly compute. Curious if you could speak to where you are seeing some of the most attractive risk adjusted returns there as there is clearly a lot of capital coming into the space. And then maybe more strategically, how much of the opportunity for Brookfield is not just simply owning and developing these assets, but also recycling them into stabilized homes with longer, lower-cost of capital, longer duration pools over time. Nicholas H. Goodman: Hey, Mike. it is Nick. So, listen, you are spot on. We are We are very excited about the opportunity. We see it as being significant and broad based and that touches many different parts of our business being real estate, energy, and infrastructure. And if the numbers are big right now, but we are, in our view, in the very early stages of what is a very significant investment cycle around AI digital and infrastructure and the whole power build out that is needed. And 1 of the easiest ways to think about it is we are generally just scratching the surface right now of AI adoption and implementation into the world and into business. And so as that takes hold, the need and the scale and the earnings power that is going to be backing that is going to be very significant. And you say where are we most excited? Bruce touched on a couple of the opportunities just recent examples across data center development opportunities, what we are seeing in our energy business across both renewable and nuclear, but it will be broader across infrastructure and real estate. So I think we see a lot of opportunity. That being said, given our position in the market, our scale, our access to capital and operating expertise that affords us the ability to be disciplined and patient. So we are focusing on the highest quality investment opportunities with the highest quality counterparties looking at stable structures where we can earn attractive risk adjusted returns. And your second point is right. Once we have developed and built these data centers into what will be very stabilized high core assets, They are very attractive for institutional owners for the long term. We have been recycling as late, as you know, in both Europe and North America, and we would expect to continue that to recycle capital to generate strong returns for our clients, but also to recycle capital to support the next build out and the future build out of these platforms. We expect to see that as we move forward. Michael Cyprys: And then could I ask a follow-up question, or should I get back in queue? Can I ask a second? And then just on wealth solutions with Just Group coming into the numbers here in the quarter. Was hoping you could maybe speak to how you were thinking about some of the near term versus medium term levers to expand the $29 million of earnings contribution there, a 12%, I think, ROE on that. How do you expect that performance to ramp as you look out over the next 12 to 18 months? Versus where do you see that over more of the medium term? Sachin Shah: Sure. First, on the short term, I alluded to it in my comments around focusing the business, exiting some areas of the business that I would say were more early stage venture type initiatives, direct to consumer, other new lines of business that really just were not profitable. We have shut those down, and we have exited them. So that in and of itself is a cost reduction exercise. To frame it, Just's cost structure is 2x to 3x what some of its competitors are as they bid for the same product. And in this market, you have to be a low cost operator. So that you are competitive when you are bidding on pension. So that is our first and foremost focus area. Then I would say the real big opportunity is bringing in our investment capabilities through Brookfield Asset Management. We source the perfect assets for long duration liabilities through our real estate capabilities, our infrastructure, and our energy businesses And if you think about pensions, they are different than annuities. there is no lapse risk in a pension. So when you offer a pension to someone who is retired, you are paying them really until mortality. And to be able to back that with long duration, very high quality assets whose cash flows grow over time and who have a real return type profile behind them. it is a tremendous competitive advantage for us. So I think between those 2 things, that will allow us to get the returns up to similar to what you see in our US business once you are there, you can capture a new business because you can bid more competitively than others in the marketplace. Operator: Our next question comes from the line of Bart Dziarski with RBC Capital Markets. Your line is now open. Bart Dziarski: Great. Thanks for taking the questions and good morning everyone. I wanted to ask a follow-up on the AI. So announced a partnership with NVIDIA to launch a, compute financing platform. Mobilizing about $500 billion of capital. So congrats on that. And recognizing it is early days, but would just be great to get your early views on will this be made available to retail institutional, maybe a bit more detail on how you are underwriting the downside case and, which asset classes could benefit from this partnership. Thanks. Nicholas H. Goodman: Thanks, Bart. So as you know, this is an MoU at this stage that we have signed with NVIDIA to gather large pools of capital. I would say generally we are very excited about the opportunity. If we take a step back as you know, compute is the critical part of the infrastructure stack supporting AI. Up until now, our business historically largely focused on new build development. But now we are focused on developing partnerships to finance the chips and accelerate growth with bespoke deals. And when you are building an AI factory, as you know, the GPUs can represent half of the required capital to complete the build. So finding efficient ways to finance the equipment is becoming increasingly important. We have been doing-- we have been working with NVIDIA closely for the last 18 to 24 months. A number of partnerships, a host of initiatives, including a recent transaction in Korea and we are building a real solid pipeline of investment opportunities. And the opportunity is very attractive and access to a large pipeline And to your question on risk, it is an attractive risk profile. We maintain focus on contractual cash flows. Counterparty quality and generating attractive risk adjusted returns that are ideal for our institutional clients and retail clients as they look to invest alongside us into strategies, but that is part of the catalyst for starting the AI fund because these types of opportunities are ideal for that capital and the return that is looking for partnering with different parts of Brookfield. Great. Bart Dziarski: For that, Nick. Very helpful. And then on Brookfield Wealth Solutions, so Sachin, you talked about seeing meaningful opportunities for both organic and inorganic ways to scale the business, especially on P&C with the softening pricing cycle. So could you just maybe talk through the latest view on the inorganic side? How are those conversations evolving? What you are seeing out there as you look to scale BWS further? Thanks. Sachin Shah: Sure. I touched on P and C in the prepared remarks. That market is softening pretty rapidly both along property lines and casualty lines. And we are seeing that really across the board in particular, in the specialty markets. I think what that will lead to over the next 36 months is there will be platforms that either need capital in particular, if they have too much cat exposure or if they have extended themselves too far in terms of aggressively pursuing new business. And they will need capital, Or there will be great businesses who are just unable to grow because they have to be super patient and being part of our overall apparatus at Brookfield could be very helpful to them in particular because we can drive the investment side of that business or those businesses. So I just think the next 36 months in the P&C side will be very interesting. Some players will get caught out. As markets soften. And for us, that could represent a meaningful opportunity to partner with somebody bring capital, bring investment expertise, and really then drive that business going forward. On the annuity and pension side, we are focused today on several things. 1 is much more organic growth both in Just in The UK which I discussed, in The US, we have a leading franchise in the IMO market. We sell you know, we are the we are the strongest seller of retail annuities through IMOs, but we are not really advanced in the bank and broker dealer market, which represents 60% of US sales of annuities. So our ability to get onto these platforms in this last 12 months and continue to get onto more platforms over the next 12 months will just open up new markets for us and scale our program to be able to sell more annuities to a wider audience. So making tremendous progress in that regard. But I would say it is more of an organic growth story, in the U.S. Very helpful. Thanks, Sachin. Thanks for taking my questions. Operator: Our next question comes from the line of Cherilyn Radbourne with TD Securities. Your line is now open. Cherilyn Radbourne: Thanks very much and good morning. As you know, concerns have been raised about circularity in the deals underpinning AI investment industry wide. So I would love to get your perspective on how much of that is perceived versus real and how Brookfield is staying disciplined with its counterparties and contract structures. Nicholas H. Goodman: Hey, Cherilyn. it is Nick. Listen, I think the I think when you look again at the cash flows being generated by these transactions, and the scale and the potential of the earnings that will be realized over time as compute is increasingly adopted into business. We have conviction that working with the highest quality hyperscalers off takers chip providers is an attractive risk profile for our business. And I think that a lot of what is happening is integrated and there is a lot of synergies with the different counterparties working together. But we believe we can invest around this with the right risk controls When we look at the relevance of the contracts we are signing, the revenue, and overall percentage of what we are doing, we have very diversified businesses. This is a strong driver of growth today, but we still have a broad infrastructure platform, a very broad energy platform and a very broad real estate platform. So I think we believe that the risk is well managed. We have been very active in capital recycling, and we have been very focused on the highest quality counterparties in the highest quality projects with the right contractual protections. I think we believe that we are not really stepping out from our historical focus on risk management and earning attractive returns while taking on moderate amounts of risk, And we can do it at scale here, which is what is the most exciting part. that is really helpful context. Cherilyn Radbourne: And then maybe this is at 1 thousand feet, but as you grow the insurance business, which hedges interest rate sensitivity elsewhere in the business, How do you think about your interest rate exposure and how that evolves over time? Sachin Shah: Hey, Cherilyn. I would say there is 2 models out there. there is the passive model where you just match your assets and liabilities, and you do not worry about rate risk to certain degree. You always worry about it, but you get my point. And then there is a more active model where you from time to time, understand where you are in the rate cycle, We got into this business 5-6 years ago because we were at historically low levels of rates, and we understood that. And we understood that was an asymmetric opportunity At that time, we kept meaningful exposure to rising rates by shortening our asset book, lengthening our liability, duration, and really keeping that exposure for the benefit of Brookfield shareholders. Today, I would say we are much more careful We are largely matched. Our asset and liability duration is almost entirely matched and cash flows are matched. Because we are at a point in cycle where as you heard from Bruce's opening remarks, there is just a lot of noise in the market, and there is some risk premium built into the rate curve. And, therefore, we will be patient. And once all of this what I would call short term noise comes out, we can see a clearer picture, and we will continue to take views. But for now, we are matched, and we are not taking an aggressive position either way. Thank you for the time. Operator: Thank you. Our next question comes from the line of Mario Saric with Scotiabank. Your line is now open. Mario Saric: Hi, good morning. I wanted to touch on your commentary on the importance of scale. it is really highlighted on the call as well as in the shareholder letter in terms of the relevance of scale and providing integrated solutions to global relationships. So my question is, more pertaining to the incremental benefits from incremental scale from here. Brookfield's already a large organization. Is it missing out on opportunities today because of your size? And if so, where are the opportunities going forward for Brookfield to increase its big deal market share or become, as you mentioned, the first call even more frequently? Nicholas H. Goodman: Hey, Mario. it is Nick. Listen, I think having access to scale, which, as Bruce said, is scale matters. it is the capital, it is the operating expertise. it is the reliability as a counterparty because what matters most is delivery. Of these projects when we talk about AI. So that is giving us access to those incremental projects. And I think that we are very well positioned now to grow with the market 1 of the established partners for the build out. I would say, though, that what that is not doing I did not get all your I did not hear all the question, but that is not eliminating the ability to do smaller transactions at the same time because we build platforms. We have large scale platforms, and those platforms are doing tuck ins and small acquisitions. To add incremental value every day. So we are operating across the spectrum of deal transactions, and all of that tuck ins and operating platforms that we have all feed into the overall scale of the business and the ability to participate in the large build out and the large transactions. Mario Saric: Got it. Okay. And then maybe my follow-up just for Sachin. Coming back to your organic growth vis a vis the bank broker network expansion, I think you mentioned there was $200 million of sales. This quarter. Can you help frame for us where you believe that can move to once you are at your desired number of relationships, but what is kind of what inning are we in? What is the potential upside? Sachin Shah: The upside is that we start to see I would say, half of our sales coming from the bank network and preservation of the sales that we have from the independent marketing organization. So if you look at The US where we are selling almost $12 billion to $13 billion through independent marketing organizations, and, little through the bank network. You can see us getting to an additional $10 billion to $12 billion just coming through banks over the next few years. And that is very meaningful. That would take our current, you know, $25 billion a year between pensions and annuities up to $35 billion a year pretty comfortably. And the opportunity is very meaningful, and for us, it just takes time to season those relationships and make sure that we are providing the necessary support to frontline agents who sell the product. Okay. that is great. Thank you. Operator: Thank you. Our next question comes from the line of Kenneth Worthington with JPMorgan. Your line is now open. Kenneth Worthington: Hi, good morning, and thank you for taking the questions. Maybe first on Carrie. Connor Teskey on the Brookfield Asset Management call, talked about the pull forward of Carrie for funds relevant for them. which should benefit you as well. To what extent are you also seeing the pull forward of carry in funds where carry is exclusive to BN And if you are seeing it, what is sort of the magnitude of the pull forward that you are seeing? Nicholas H. Goodman: Hi, Ken. it is Nick. I would say at the BN level, our outlook is largely consistent with what we have talked about recently. We are focusing on the next 12, 24 months. We think about the inflection point of our carry, And then now the material drivers, as you know, for BN are earlier vintage funds the earlier vintage infrastructure funds, Oaktree funds being big drivers. And I would say on both of those, we are making good progress. And while the second number fund is smaller than the third obviously is less impactful, but it is now worked its way through the preferred return and incremental sales from here will realize carry. The third infrastructure fund, is not far behind. We have a number of monetizations coming out of and the monetization pipeline is very strong. So we are bullish on the outlook, but it is largely consistent with what we would have talked about recently. I would note that there are some funds raised after the BAM spin where BAM is eligible for carry that are outperforming to Connor's comments. And they may realize carry ahead of schedule, but that I would not say that is necessarily material to the short term BN outlook. Kenneth Worthington: Okay. Perfect. And then just maybe broadly on the outlook of the pension risk market in The UK, to what extent did the announcement of the Just acquisition impact the new business pipeline? And where does that sort of pipeline for new business stand today maybe relative to, you know, prior to the announcement of the deal? Sachin Shah: For sure. Our entry through just our acquisition of Just has resulted in the company, Just, being invited to see and to bid on much more than they ever have. Just the fact that Brookfield is now behind them. And that people understand we have the capital and the expertise. I would say for Just who largely focused on very small pensions, they are now getting invited to all of the larger schemes that are coming to market. that is the good news. I would say where we are being very patient is pensions in that market today continue to be bid up to rates that drive a much lower return than we are comfortable with. So we are being patient. Again, these businesses we are not in this market to just grow at all costs. We are being patient in terms of the returns. And so, I would say for now, we are seeing we are seeing pensions trade at values that we are just not comfortable with the returns, but that will ebb and flow. And the good news is we are being invited to all the large auctions. And when the time is right, the business will scale. Great. that is great color. Thank you so much. Operator: Thank you. Our next question comes from the line of Alexander Blostein with Goldman Sachs. Your line is now open. Alexander Blostein: Good morning. Thank you for the question as well. First, would love to hit on the maybe interplay of the very large AI opportunity as you described with the balance sheet management and curious how you guys are thinking about allocating capital at the BN level and to what extent any of the AI opportunity will require more of BN's capital being invested along the alongside of, you know, third-party capital or some other way. Nicholas H. Goodman: Yeah. Alexander I mean, Alexander, first of all, I would say that we highlighted our access to scale capital. And I would say as we think about the strategies today, it is largely being funded within the funds with co invest from very large institutions around the world who have very large appetite for these kinds of transactions given how attractive they are. Participating alongside our listed issuers. So I would say that is largely how we expect to fund But as the opportunities become attractive, as you think about the integration of BN and BWS and the scale of capital that we will have available to us, We will have potentially the opportunity to participate alongside the funds but that is not the base assumption. That we have in the plan. This should be largely funded through our client business and through BAM. Okay. Gotcha. Alexander Blostein: And then I had a couple of just more specific questions around BWS. So if possible, we would love to run through that. So, Sachin, I heard your points around Just and the steps you guys will take to improve the spread. From what it looks like, I think today, on that 85 million the spread is, I think, below 80 basis points. So just from ripping out some of the operational costs as you described, what kind of magnitude of a benefit do you think the spread could get at Just over the next, like, 12 months? Because rotating the portfolio probably takes a little longer. So that is kind of the first part. And then on the existing kind of core annuities business, I think the spread is also below 180. I think you mentioned that you guys see spreads above 200. So just curious. Is that on new business, and that is kind of still the bogey as some of the old business runs off. I am just trying to reconcile the reported 81 to the 200 number you mentioned. Sachin Shah: Yeah. I will start with your second point first because I think it is that is a very important concept that I want to make sure people understand. The 81 is just the income spread. It excludes the fact that a large portion of our portfolio is invested in equities. Both our funds that are equity oriented and also public equities. Which makes us very different than some of our competitors. and therefore, so much of this business's value will be total return over time. If you just take the unrealized marks on our on our funds that are invested in equity oriented strategies that 180 spread goes to about 2.2 in the current quarter. And I think we provided some disclosure in that regard. What I would say is in that in that as we grow our equity base, and we start to see equity returns come in closer to the long term total return of that underlying position, we would assume that spreads would actually go up. We are using the word spread, but the reality is it is more of a total return concept. And therefore, we have been able to continue to outperform the broader market where spreads are much tighter closer to 100 to 110 basis points. Moving to just, I would say there is at least 50 basis points of opportunity to enhance spreads. Simply by taking costs out of the business. So that will take time. But, you know, from the 80, I could see us comfortably adding 50 on top of that. And then the asset rotation program and letting our asset strategy work through the system you can see a path to getting close to that 200-basis-point spread in that market as well. Great. Awesome. Super helpful. Thank you, guys. Operator: Thank you. Our next question comes from the line of Jaeme Gloyn with National Bank. Your line is now open. Jaeme Gloyn: Yes, thanks. Quick 1 just on the BBU shift from BN to BWS. Can you just talk about the benefits to each of the companies of shifting a portion of that holding. Nicholas H. Goodman: Yeah. Hi, Jaeme. it is Nick. Yeah. This was just as you know, we have lots of investments on the BN balance sheet that can be attractive for pools of capital within insurance. We have moved BBU shares across in the past, BEP shares, BIPC shares, and you have actually performed incredibly well for the insurance accounts. So this is this is just a continuation of we have almost a ready made investment pipeline for insurance accounts that can be highly attractive. And at certain times, you may choose to move them over and let the policyholders benefit from the great returns. Jaeme Gloyn: Okay. Great. And then in the in Bruce's letter, a couple of mentions of index inclusion. You feel like you have done enough at this stage? Or are there other strategies or initiatives you could take to achieve that, that outcome? Nicholas H. Goodman: Well, the first thing I would say is that we have now given ourselves optionality that did not exist before. So under our current structure, we had zero path to U.S. index inclusion. I would say now being in a domicile of convenience and with a fact pattern around our business, we have the option I think it will take time, but as rules emerge, as they evolve, and our footprint of our business evolves, I think there are things that could be done over time to enhance it that we can do and that the rules as they evolve, will accommodate our business. So I think we have the optionality today. It will take time. But it should be a significant positive as we move forward if we can if we can materialize it. Thank you. Operator: Thank you. Our next question comes from the line of Etienne Ricard with BMO Capital Markets. Your line is now open. Analyst: Thank you, and good morning. Just Group is the latest of a series of acquisitions you have made in Wealth Solutions. When you onboard new insurance leadership team, how do you make sure the acquired assets meet Brookfield's risk tolerance that returns are prioritized over volumes. Hi, Etienne. Sachin Shah: Look. I think the first thing for us is to make sure there is alignment throughout the system. So 1, all of the capital that we provide and that goes into these insurance companies comes from Brookfield. So we have complete alignment with policyholders. Number 2, we incentivize management teams to also have that long term alignment. Through LTIP programs that look and feel like Brookfield where there is a long term focus. And the focus is on capital compounding. Number 3, we spend time with management teams to make sure that the culture is strong and that the people who are leading these companies align with our culture, which is very value focused. And I think if you do those things I know it sounds soft, but if you do those things, then generally good things in a business will start to happen. And we have been fortunate that in all of the businesses that we have acquired, we have been we have been able to execute those simple steps. Thank you, Sachin. Analyst: And to follow-up on carried interest, we have seen quite an increase in asset sales in recent years. While the carried interest realizations have not picked up as meaningfully So, Nick, I am wondering what are your expectations for asset sales over the next year, and why should it translate into better carry realization? Nicholas H. Goodman: Yeah. Hi, Etienne. Look. You are right. The monetization have been very strong, a testament to the quality of the assets that we own and the value creation plans that we have executed and the breadth of the diversification of the assets we own across asset class, geography, allowing us to execute many sales at the same time to different investor pools. So the monetization progress is good, but as you know, the way we realize carry is on a very conservative basis. And we realize on a fund-by-fund basis, not investment by investment, and that just means it takes time. These are large funds. We have to return all of the original capital to investors. They have to work our way through the preferred return. And when there is limited to no risk of callback, we start to realize carry. that is why we have talked about an inflection point because it takes about it takes time to compound that return, to return the capital, at scale, and then to start realizing carry, and we are getting closer to that point, as I mentioned earlier, in our earlier vintage infrastructure funds and our Oaktree funds. And then it should be continued to scale as we then work through even larger funds as we move forward. Thank you very much. Operator: Thank you. As there are no more questions, I will now turn the call back to Ms. Katie Battaglia for closing remarks. Katie Battaglia: Thank you, everybody, for joining us today. And with that, we will end the call. Operator: This concludes today's conference call. Thank you for participating. And you may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Brookfield Corporation. The Motley Fool has a disclosure policy. Brookfield (BN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Distributable Earnings (DE) Before Realizations: $1.4 billion, or $0.61 per share, for Q2 2026, a 15% increase year-over-year. DE Before Realizations (Last 12 Months): $5.7 billion, or $2.39 per share. Total DE (Including Realizations): $1.5 billion, or $0.66 per share, for the quarter; $6.2 billion, or $2.61 per share, over the last 12 months. Asset Management Distributable Earnings: $740 million, or $0.31 per share, for the quarter; $2.9 billion, or $1.24 per share, over the last 12 months. Wealth Solutions Distributable Earnings: $480 million, or $0.20 per share, for the quarter, a 23% increase year-over-year; $1.8 billion, or $0.75 per share, over the last 12 months. Operating Businesses Distributable Earnings: $361 million, or $0.15 per share, for the quarter; $1.5 billion, or $0.65 per share, over the last 12 months. Fundraising: Record $77 billion raised during the quarter, including $17 billion across flagship strategies. Fee-Bearing Capital: Increased 19% to $672 billion at quarter end. Fee-Related Earnings: Increased 20% compared to the prior year quarter. Insurance Assets: Increased to over $190 billion, driven by positive net annuity flows and the closing of Just Group, which added $45 billion. Annuity Sales: Originated $5 billion during the quarter. Net Investment Income Yield: Average yield of 5.7% on real asset investments. Combined Ratio (P&C): 99% for the quarter. Gross Spread (Wealth Solutions): 2.2% for the quarter. Real Estate Occupancy: Super core and core class portfolio finished the quarter at over 95% occupancy. Retail Leasing: Nearly 1 million square feet of leases commenced at rents 12% higher than those expiring. Office Leasing: Signed 4.5 million square feet of leases globally with average net rents 19% above expiring levels. Asset Sales: Executed approximately $40 billion of asset sales year-to-date. Net Carried Interest Realized: $121 million during the quarter. Accumulated Unrealized Carried Interest: $12.5 billion at quarter end. Capital Returned to Shareholders: $270 million during the quarter through dividends and share repurchases. Share Repurchases: Approximately $580 million of BN shares repurchased year-to-date at an average price of $42 per share. Financings: Completed $130 billion of financings across the franchise year-to-date. Deployable Capital: Record $210 billion. Dividend: Quarterly dividend of $0.07 per share declared. Just Group Earnings: Generated approximately $29 million of earnings in the first quarter of ownership, representing a going-in return on equity of approximately 12%. Warning! GuruFocus has detected 10 Warning Signs with BN. Is BN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Distributable earnings before realizations increased 15% year-over-year to $1.4 billion in Q2 2026, with $5.7 billion over the last 12 months. Record fundraising of $77 billion in the quarter, with $100 billion raised in the first half, driving fee-bearing capital up 19% to $672 billion. Completed strategic acquisitions of Just Group and Oaktree, expanding insurance assets to $190 billion and enhancing credit capabilities. Strong real estate leasing momentum with net rents 19% above expiring levels in office and 12% higher in retail, indicating robust demand for high-quality assets. Wealth Solutions business delivered 23% growth in distributable earnings, with a clear pathway to $300 billion in insurance assets by the end of the decade. Executed $40 billion of asset sales year-to-date, including successful IPOs and sales, demonstrating strong monetization capabilities. Record deployable capital of $210 billion provides substantial flexibility to invest in attractive opportunities, particularly in AI infrastructure. Geopolitical conflicts, higher energy prices, and interest rate uncertainty create market noise that could impact near-term performance. The AI infrastructure opportunity, while significant, carries risks of circularity in deals, requiring careful counterparty and contract management. Just Group's initial return on equity is only 12%, with a cost structure 2-3x higher than competitors, requiring significant operational improvements. Pension risk transfer market in the U.K. is seeing bids at rates that drive lower returns than Brookfield is comfortable with, limiting near-term growth. Carried interest realizations remain conservative and slow, with an inflection point not expected until the next 12-24 months. The P&C market is softening, which could lead to challenges for some platforms, though it also presents opportunities for Brookfield. The simplification transaction and index inclusion efforts are still in progress, with no immediate benefits realized yet. Q: As you look across power, data centers, and increasingly compute, where are you seeing the most attractive risk-adjusted returns in AI infrastructure? And how much of the opportunity involves recycling these assets into stabilized, long-duration pools of capital over time?A: Nick Goodman (President & CFO) stated that the AI and digital infrastructure opportunity is significant, broad-based, and in its very early stages. He noted that Brookfield is focusing on the highest-quality investment opportunities with the highest-quality counterparties, utilizing stable structures to earn attractive risk-adjusted returns. He confirmed that once data centers are developed and stabilized, they become highly attractive core assets for institutional owners, and Brookfield expects to continue recycling capital to generate strong returns for clients and fund the next phase of the build-out. Q: With the Just Group now contributing earnings, what are the near-term versus medium-term levers to expand its $29 million earnings contribution and 12% return on equity?A: Sachin Shah (CEO, Wealth Solutions) explained that the immediate focus is on cost reduction, noting Just's cost structure is 2 to 3 times that of its competitors. The company has already exited early-stage, unprofitable initiatives. The bigger medium-term opportunity is integrating Brookfield's investment capabilities to source long-duration, high-quality assets with growing cash flows to back pension liabilities. He believes these actions will bring returns up to the level of the U.S. business, allowing Just to bid more competitively in the market. Q: Can you provide your early views on the partnership with NVIDIA to launch a compute financing platform mobilizing about $500 billion? How will it be made available to investors, and how are you underwriting the downside case?A: Nick Goodman (President & CFO) described the NVIDIA partnership as an MOU at this stage, focused on financing chips, which can represent half the capital required for an AI factory. He noted that Brookfield has been working with NVIDIA for 18-24 months and has a solid pipeline of opportunities with attractive risk profiles, focusing on contractual cash flows and counterparty quality. He added that this is a catalyst for starting an AI fund, as these opportunities are ideal for institutional and retail clients investing alongside Brookfield. Q: Concerns have been raised about circularity in AI investment deals industry-wide. How much of that is perceived versus real, and how is Brookfield staying disciplined with counterparties and contract structures?A: Nick Goodman (President & CFO) stated that Brookfield has conviction that working with the highest-quality hyperscalers, offtakers, and chip providers presents an attractive risk profile. He emphasized that the company is diversified across a broad infrastructure, energy, and real estate platform, and that risk is well-managed through a focus on the highest-quality counterparties, projects, and contractual protections. He believes Brookfield is not stepping out from its historical focus on risk management but can execute at scale. Q: As you grow the insurance business, which hedges interest rate sensitivity elsewhere, how do you think about your interest rate exposure and how it evolves over time?A: Sachin Shah (CEO, Wealth Solutions) explained that Brookfield entered the insurance business 5-6 years ago when rates were historically low, keeping meaningful exposure to rising rates. Today, the company is much more careful and largely matched on asset and liability duration and cash flows due to market noise and risk premium in the rate curve. He stated they will be patient and not take an aggressive position either way until the short-term noise clears. Q: What are the incremental benefits of scale for Brookfield? Is the company missing opportunities because of its size, and where can it increase its big-deal market share?A: Nick Goodman (President & CFO) said that scalecapital, operating expertise, and reliability as a counterpartygives Brookfield access to incremental projects, particularly in AI delivery. He clarified that this scale does not eliminate the ability to do smaller transactions, as the company's large-scale platforms continuously perform tuck-in acquisitions. All these activities feed into the overall scale and ability to participate in large build-outs and transactions. Q: Regarding the bank and broker-dealer network expansion, where do you see sales moving once you reach your desired number of relationships? What is the potential upside?A: Sachin Shah (CEO, Wealth Solutions) stated that the upside is seeing half of U.S. sales coming from the bank network. With current sales of almost $12-13 billion through independent marketing organizations, he sees potential for an additional $10-12 billion coming through banks over the next few years. This could take the company's total annual sales from $25 billion to $35 billion comfortably, as the bank relationships season and support for frontline agents is provided. Q: To what extent are you seeing a pull-forward of carried interest in funds where carry is exclusive to BN, and what is the magnitude?A: Nick Goodman (President & CFO) said the BN-level outlook is consistent with recent commentary, focusing on the next 12-24 months for the carry inflection point. Material drivers include earlier vintage infrastructure funds and Oaktree funds, where good progress is being made. He noted some funds raised after the BAM spin may realize carry ahead of schedule, but that is not material to the short-term BN outlook. Q: How did the announcement of the Just acquisition impact the new business pipeline in the U.K. pension risk transfer market, and where does it stand today?A: Sachin Shah (CEO, Wealth Solutions) said the acquisition has resulted in Just being invited to bid on much larger schemes than ever before, as Brookfield's backing provides capital and expertise. However, he noted the company is being patient as pensions in that market are currently being bid up to rates that drive lower returns than Brookfield is comfortable with. He expects the business to scale when the time is right, as Just is now invited to all large options. Q: How are you thinking about allocating BN's capital to the large AI opportunity, and will it require more of BN's capital being invested alongside third-party capital?A: Nick Goodman (President & CFO) explained that the AI strategies are largely being funded within the funds with co-investment from large institutions and alongside listed issuers. He noted that with the integration of BN and BWS, there is potential to participate alongside the funds, but that is not the base assumption. The plan is to largely fund through the client business. Q: Can you quantify the potential spread improvement for Just Group from cost reductions and asset rotation, and reconcile the reported sub-180 basis point spread on the core For the complete transcript of the earnings call, please refer to the full earnings call transcript.

TORONTO, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Partners Value Split Corp. (the “Company”, TSX: PVS.PR.H, PVS.PR.J, PVS.PR.K, PVS.PR.L, PVS.PR.M, PVS.PR.U, PVS.PR.V) announced today its financial results for the six months ended June 30, 2026. All amounts are in United States dollars ("US dollars"). Income available for distribution for the six-month period ended June 30, 2026, was $50 million compared to $48 million in the prior year period. The increase in income was primarily due to the increase in the dividend rate by Brookfield Corporation (“BN”, NYSE/TSX: BN) and Brookfield Asset Management Ltd. (“BAM”, NYSE/TSX: BAM). Net comprehensive loss of $729 million was primarily due to unrealized mark-to-market losses on BN and BAM shares, as compared to net comprehensive income of $533 million in the prior year period. As at June 30, 2026, the market prices of a BN share and a BAM share were $42.59 and $44.85, respectively. As at August 14, 2026, the market prices of a BN share and a BAM share were $43.85 and $54.31, respectively. A unit consists of one preferred share and one capital share. The net asset value per unit is posted monthly on our website at www.partnersvaluesplit.com. UNAUDITED INTERIM CONDENSED STATEMENTS OF COMPREHENSIVE INCOME 1 The weighted average number of units outstanding during the six months ended June 30, 2026, was 47.9 million (June 30, 2025 – 55.1 million). As at June 30, 2026, the Company owned 179 million Class A Limited Voting shares of BN, and 25 million Class A Limited Voting shares of BAM, which together generate cash flow through dividend payments that fund quarterly fixed cumulative preferential dividends for the holders of the Company’s preferred shares and provide the holders of the Company's capital shares the opportunity to participate in any capital appreciation of the Brookfield shares. Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. BN has three core businesses: alternative asset management, wealth solutions, and its operating businesses which are in energy, infrastructure, business and industrial services, and real estate. BN is publicly traded on the New York and Toronto stock exchanges under the symbol BN and BN.TO, respectively. The Company’s investment in BN represents approximately an 8% interest in BN. Brookfield Asset Management Ltd. is a leading global alternative asset manager, headquartered in New York, with over $1 trillion of assets under management across energy, infrastructure, private equity, real estate, and credit. BAM invests client capital for the long term with a focus on real assets and essential service businesses that form the backbone of the global economy. BAM offers a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. BAM draws on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for its clients, across economic cycles. BAM is publicly traded on the New York and Toronto stock exchanges under the symbol BAM and BAM.TO, respectively. The Company’s investment in BAM represents approximately a 2% interest in BAM. For further information, contact Investor Relations at (416) 359-8534. Notice to Readers The Company is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement. This news release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian provincial securities laws and any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of the Company, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which are in turn based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of the Company are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. In particular, forward-looking statements contained in this news release include statements with regard to the generation of cumulative preferential dividends for the holders of the Company’s preferred shares and potential participation by the holders of the Company’s capital shares in the capital appreciation of Brookfield Shares. Although the Company believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward‐looking statements and information include, but are not limited to: the financial performance of Brookfield Corporation, the impact or unanticipated impact of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; limitations on the liquidity of our investments; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including acquisitions and dispositions; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation; changes in tax laws; risks associated with the use of financial leverage; catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; failure of our information and technology systems; developments in artificial intelligence; and other risks and factors detailed from time to time in the Company’s documents filed with the securities regulators in Canada. We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release and such other date specified herein. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise. Past performance is not indicative, nor a guarantee of, future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns or growth objectives will be met or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).

TORONTO, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Partners Value Investments Inc. (the “Company”, TSXV: PVF.PR.V, PVF.A) announced today its financial results for the three and six months ended June 30, 2026. All amounts are stated in United States dollars ("US dollars"). The Company recorded a net loss of $145 million for the three months ended June 30, 2026, compared to a net loss of $135 million in the prior year period. The increase in net loss was primarily due to higher remeasurement losses associated with the Company's exchangeable shares and warrants of $35 million and $16 million, respectively, compared to remeasurement gains of $21 million and $119 million in the prior year period, respectively, partially offset by lower remeasurement losses associated with the Company's retractable common shares of $126 million compared to $247 million in the prior year period, and foreign currency gains of $21 million compared to foreign currency losses of $40 million in the prior year period. The Company recorded net income of $752 million for the six months ended June 30, 2026, compared to $837 million in the prior year period. The decrease in net income was primarily due to lower remeasurement gains associated with the Company's retractable common shares, exchangeable shares and warrants of $586 million, $1 million and $109 million, respectively, compared to remeasurement gains of $706 million, $21 million and $116 million, respectively, in the prior year period, partially offset by foreign currency gains of $32 million compared to foreign currency losses of $40 million in the prior year period. The Company's retractable common shares, exchangeable shares and warrants are classified as liabilities due to their retractable, exchangeable and convertible features, respectively. The remeasurement gains or losses on retractable common shares and exchangeable shares in a given period are driven by the respective depreciation or appreciation of the Partners Value Investments L.P.'s Equity LP unit ("Equity LP unit") price. The remeasurement gains or losses on warrants in a given period are driven by the respective depreciation or appreciation of the market price of a warrant. The Company's outstanding warrants expired on June 30, 2026, in accordance with the warrant terms. Adjusted Earnings is a non-IFRS measure that can be used to evaluate the performance of the Company, defined as net income (loss) attributable to the Company, excluding the impact of remeasurement gains (losses) on retractable common shares, exchangeable shares, and warrant liability, as well as dividends paid on retractable common shares. The Company recorded Adjusted Earnings of $39 million for the three months ended June 30, 2026, compared to a loss in Adjusted Earnings of $21 million in the prior year period. Adjusted Earnings increased due to favourable foreign currency movements as a result of the depreciation of the Canadian dollar against the US dollar and higher investment income, partially offset by valuation losses on our investment portfolio and higher preferred share dividends as a result of net new issuances compared with the prior year period. The Company recorded Adjusted Earnings of $71 million for the six months ended June 30, 2026, compared to $9 million in the prior year period. Adjusted Earnings increased primarily due to the same factors described above. As at June 30, 2026, the market prices of a Brookfield Corporation (“BN”, NYSE/TSX: BN) share and a Brookfield Asset Management Ltd. (“BAM”, NYSE/TSX: BAM) share were $42.59 and $44.85, respectively. As at August 14, 2026, the market prices of a BN share and a BAM share were $43.85 and $54.31, respectively. Financial Profile The Company’s principal investments are its interest in 181 million Class A Limited Voting Shares of BN and approximately 26 million Class A Limited Voting Shares of BAM, which it received pursuant to the spin-off of Brookfield Asset Management Ltd. from Brookfield Corporation in 2022 (collectively, the "Brookfield Shares"). This represents approximately an 8% interest in BN and a 2% interest in BAM as at June 30, 2026. In addition, the Company owns a diversified investment portfolio of marketable securities and private fund interests. The information in the following table has been extracted from the Company’s Unaudited Interim Condensed Consolidated Statements of Financial Position: 1 The investment in Brookfield Corporation consists of 181 million BN shares with a quoted market value of $42.59 per share as at June 30, 2026 (December 31, 2025 – $45.89).2 The investment in Brookfield Asset Management Ltd. consists of 26 million BAM shares with a quoted market value of $44.85 per share as at June 30, 2026 (December 31, 2025 – $52.39).3 Brookfield Wealth Solutions Ltd. Class A shares are exchangeable into BN Class A shares on a one-for-one basis.4 Comprises $875 million of retractable preferred shares less $14 million of deferred financing costs as at June 30, 2026 (December 31, 2025 – $895 million and $16 million, respectively).5 The Company's outstanding warrants expired on June 30, 2026, in accordance with the warrant terms. Reconciliation of Non-IFRS Measure The following table reconciles Adjusted Earnings to net income (loss) attributable to the Company for the three and six months ended June 30, 2026 and 2025: For further information, contact Investor Relations at [email protected]. Notice to Readers The Company is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement. This news release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian provincial securities laws and any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of the Company, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which are in turn based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of the Company are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. Although the Company believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward‐looking statements and information include, but are not limited to: the financial performance of Brookfield Corporation, the impact or unanticipated impact of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; limitations on the liquidity of our investments; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including acquisitions and dispositions; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation; changes in tax laws; risks associated with the use of financial leverage; catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; failure of our information and technology systems; developments in artificial intelligence; and other risks and factors detailed from time to time in the Company’s documents filed with the securities regulators in Canada. We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release and such other date specified herein. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise. Past performance is not indicative of, nor a guarantee of, future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, or growth objectives will be met or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).

TORONTO, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Partners Value Investments L.P. (the “Partnership”, TSXV:PVF.UN, PVF.PR.U) announced today its financial results for the three and six months ended June 30, 2026. All amounts are stated in United States dollars ("US dollars"). The Partnership recorded net income of $15 million for the three months ended June 30, 2026, compared to a net loss of $6 million in the prior year period. The increase in income was primarily driven by foreign currency translation gains and higher investment income, partially offset by higher valuation losses on our investment portfolio. Net income of $12 million was attributable to the Equity Limited Partners, and net income of $3 million was attributable to Preferred Limited Partners. The Partnership recorded net income of $46 million for the six months ended June 30, 2026, compared to $18 million in the prior year period. The increase in income was primarily due to the same factors described above. Net income of $41 million was attributable to the Equity Limited Partners, and net income of $5 million was attributable to Preferred Limited Partners. As at June 30, 2026, the market price of a Brookfield Corporation (“BN”, NYSE/TSX: BN) share and a Brookfield Asset Management Ltd. (“BAM”, NYSE/TSX: BAM) share was $42.59 and $44.85, respectively. As at August 14, 2026, the market price of a BN share and a BAM share was $43.85 and $54.31, respectively. Unaudited Interim Condensed Consolidated Statements of Operations Fully diluted NAV, a non-IFRS measure, is equal to total equity less General Partner equity, Preferred Limited Partners equity, carrying value of non-controlling interests, an adjustment for the fair value of non-controlling interests and deferred financing costs, plus the value of consideration to be received from the assumed exercise of outstanding warrants. The following table presents the changes in fully diluted NAV for the six months ended June 30, 2026 and 2025: Adjusted to reflect the ten-for-one unit split effective August 8, 2025. Attributable to Equity Limited Partners. As at June 30, 2026, the value of consideration to be received on exercising warrants was $nil (December 31, 2025 – $130 million) inclusive of the impact of foreign currency translation movements. The warrants expired on June 30, 2026, in accordance with the warrant terms. Preferred LP units surrendered in satisfaction of the warrant exercise price. Determined based on the net asset value of non-controlling interests held in certain subsidiaries of the Partnership. As at June 30, 2026, on a fully diluted basis there were 778.0 million (June 30, 2025 – 784.2 million) Equity LP units outstanding; this includes 700.4 million (June 30, 2025 – 697.9 million) outstanding Equity LP units, 77.6 million (June 30, 2025 – 25.9 million) Equity LP units which are issuable in exchange for Partners Value Investments Inc. shares, and nil (June 30, 2025 – 60.4 million) units from the assumed exercise of nil (June 30, 2025 – 27.9 million) warrants. Financial Profile The Partnership’s principal investments are its interest in approximately 181 million Class A Limited Voting Shares of BN and approximately 30 million Class A Limited Voting Shares of BAM, which it received pursuant to the spin-off of Brookfield Asset Management Ltd. from Brookfield Corporation in 2022 (collectively, the "Brookfield Shares"). This represents approximately an 8% interest in BN and a 2% interest in BAM as at June 30, 2026. In addition, the Partnership owns a diversified investment portfolio of marketable securities and private fund interests. The information in the following table has been extracted from the Partnership’s Consolidated Statements of Financial Position: Consolidated Statements of Financial Position The investment in Brookfield Corporation consists of 181 million BN shares with a quoted market value of $42.59 per share as at June 30, 2026 (December 31, 2025 – $45.89). The investment in Brookfield Asset Management Ltd. consists of 30 million BAM shares with a quoted market value of $44.85 per share as at June 30, 2026 (December 31, 2025 – $52.39). Brookfield Wealth Solutions Ltd. (“BWS”) Class A shares are exchangeable into BN Class A shares on a one-for-one basis. Comprises $875 million of retractable preferred shares of Partners Value Investments Inc. and Partners Value Split Corp. less $14 million of deferred financing costs as at June 30, 2026 (December 31, 2025 – $895 million and $16 million, respectively) and $236 million of three series of Preferred LP units of the Partnership (December 31, 2025 – $236 million). Reconciliation of Non-IFRS Measure The following table reconciles fully diluted NAV to total equity as at June 30, 2026, December 31, 2025, June 30, 2025 and December 31, 2024: The warrants expired on June 30, 2026, in accordance with the warrant terms. For further information, contact Investor Relations at [email protected] or (416) 359-8534. Notice to Readers The Partnership is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement. This news release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian provincial securities laws and any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of the Partnership, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which are in turn based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of the Partnership are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. Although the Partnership believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward‐looking statements and information include, but are not limited to: the financial performance of Brookfield Corporation, the impact or unanticipated impact of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; limitations on the liquidity of our investments; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including acquisitions and dispositions; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation; changes in tax laws; risks associated with the use of financial leverage; catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; failure of our information and technology systems; developments in artificial intelligence; and other risks and factors detailed from time to time in the Partnership’s documents filed with the securities regulators in Canada. We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release and such other date specified herein. Except as required by law, the Partnership undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise. Past performance is not indicative of, nor a guarantee of, future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, or growth objectives will be met or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).

Record Fundraising Increases Deployable Capital to $210 Billion Completed Acquisitions of Oaktree and Just Group While Continuing Share Repurchases BROOKFIELD, NEWS, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Brookfield Corporation (NYSE: BN, TSX: BN) announced strong financial results for the quarter ended June 30, 2026. Nick Goodman, President of Brookfield Corporation, said, “Our business performed well in the second quarter, with continued momentum driving 15% growth in earnings per share. We were active through the first six months of the year—raising $98 billion of capital, deploying $100 billion into large-scale opportunities, and monetizing $40 billion of assets at attractive returns.” He added, “We also advanced several strategic initiatives. We expanded our global insurance platform through the acquisition of Just Group in the U.K., completed the acquisition of Oaktree, and shareholders approved our simplification transaction. These initiatives set us up for our next phase of growth, and with over $200 billion of deployable capital we are well positioned to invest at scale in the opportunities ahead.” Operating Results Distributable earnings (“DE”) before realizations per share increased by 15% and 7% over the prior periods. See endnotes on page 9. Total consolidated net income was $703 million for the quarter and $3.7 billion for the last twelve months. Distributable earnings before realizations were $1.4 billion ($0.61/share) for the quarter and $5.7 billion ($2.39/share) for the last twelve months. Asset Management delivered strong results, with fee-related earnings increasing by 20% compared to the prior year quarter. Strong fundraising across our flagship and complementary strategies, together with continued growth in credit, drove record inflows of $77 billion and increased fee-bearing capital to $672 billion at quarter end. Wealth Solutions grew earnings by 23% compared to the prior year quarter, supported by strong organic inflows, growth in net investment income, and the first full-quarter contribution from Just Group. Our operating businesses continued to perform well, generating resilient and stable cash flows supported by contracted, inflation-linked revenues and the long-term secular trends that continue to increase demand for their essential products and services. During the quarter and for the last twelve months, earnings from realizations were $121 million and $520 million, with total distributable earnings for the quarter and for the last twelve months of $1.5 billion ($0.66/share) and $6.2 billion ($2.61/share), respectively. Operating Highlights Distributable earnings before realizations were $1.4 billion ($0.61/share) for the quarter and $5.7 billion ($2.39/share) for the last twelve months, representing an increase of 15% and 7% on a per share basis over the prior periods. Total distributable earnings were $1.5 billion ($0.66/share) for the quarter and $6.2 billion ($2.61/share) for the last twelve months. Asset Management DE was $740 million ($0.31/share) in the quarter and $2.9 billion ($1.24/share) for the last twelve months. Fundraising was a record $77 billion for the quarter. This reflected broad-based demand across our strategies from our global client base, including $5 billion from retail and wealth clients. We continue to see strong demand for our flagship funds in the market. The seventh vintage of our private equity flagship raised $7 billion, and the sixth vintage of our infrastructure flagship raised $9 billion. Both are on track to be the largest vintages in their respective series. Fee-related earnings grew by 20% compared to the prior year quarter, driven by a 19% increase in fee-bearing capital to $672 billion at quarter end. In July, we completed the acquisition of Oaktree, enabling us to fully integrate one of the world’s premier credit franchises into our organization and further strengthen the scale of our global credit platform. Wealth Solutions DE was $480 million ($0.20/share) in the quarter and $1.8 billion ($0.75/share) for the last twelve months. Insurance assets increased to $191 billion, including $5 billion of annuity sales during the quarter, and the closing of the Just Group acquisition, which added $45 billion of insurance assets. Investment performance in our North American business remained strong. We invested over $5 billion into real asset strategies during the quarter, and $16 billion over the last twelve months, contributing to an average net investment income yield of 5.7% for the quarter. Disciplined underwriting in our P&C business contributed to a 99% combined ratio, lowering our effective cost of funds and supporting a gross spread of 2.2% for the quarter in our North American business, consistent with our objective of generating total returns of 15%+ on our invested equity. Operating Businesses DE was $361 million ($0.15/share) in the quarter and $1.5 billion ($0.65/share) for the last twelve months. Cash distributions from our operating businesses were supported by the strong underlying fundamentals and resilient operating earnings of our infrastructure, energy, and private equity businesses. We continued to advance major partnerships, including expanding our partnership with Bloom Energy to $25 billion for behind-the-meter fuel cells for data centers, and a financing commitment from the U.S. Department of Energy for $17.5 billion to acquire long-lead equipment for large-scale Westinghouse reactors. Our real estate business continued to perform well, supported by strong operating fundamentals. During the quarter, we completed 6 million square feet of office and retail leasing, with office net rents 19% above expiring levels. Our super-core and core-plus portfolios ended the quarter with over 95% occupancy, reflecting sustained tenant demand for our high-quality, well-located assets. Earnings from the monetization of mature assets were $121 million ($0.05/share) for the quarter and $520 million ($0.22/share) for the last twelve months. Transaction activity continued to build momentum through the first half of the year. We executed $40 billion of sales year to date, returning capital and crystallizing strong returns for our clients. Monetization activity included $10 billion in infrastructure and $10 billion in real estate, including the sale of One Churchill Place, a premier office tower on our estate at Canary Wharf in London, for £750 million — further demonstrating the recovery of high-quality real estate. We sold $7 billion of energy assets, monetized $9 billion of credit investments, and sold $4 billion of private equity businesses, including $650 million for the sale of Multiplex, our construction business. With an active pipeline of monetizations, we continue to advance a number of our funds closer to carried interest realization. Total accumulated unrealized carried interest was $12.5 billion at quarter end, after realizing $121 million of net carried interest into income in the quarter, and $520 million over the last twelve months. We ended the quarter with a record $210 billion of capital available to deploy into new investments. Deployable capital includes $96 billion of cash, financial assets, and undrawn credit lines at the Corporation, our affiliates and our wealth solutions business, and $114 billion of uncalled private fund commitments. Our balance sheet is conservatively capitalized, with corporate debt at the Corporation carrying a weighted-average term of 15 years and no maturities in 2026. We maintained strong access to capital markets and completed $130 billion of financings across the franchise year-to-date. We enhanced our liquidity position through the issuance of C$750 million of 10-year and 30-year notes at the Corporation, underscoring strong market demand and the strength of our credit profile. During the quarter, we acquired $111 million of shares in the open market. Year-to-date, we repurchased approximately $580 million of BN Class A shares in the open market at an average price per share of $42. Corporate Simplification Shareholders approved our simplification transaction at our annual meeting on July 16. The details are included on our website, but in summary, the following is how shares will be treated based on jurisdiction of ownership: U.S. shareholders: no action is required and on closing you will receive New BN shares. U.K. shareholders: no action is required if your shares are in a non-taxable account. If you hold shares in a taxable account, you can elect to defer tax by filing an election. Canadian non-taxable shareholders (pension funds, RRSPs, TFSAs): no action is required and on closing you will receive New BN shares. Canadian taxable shareholders: if you wish to defer tax, you can elect to defer tax by filing an election. Shareholders in other countries: no action is required and on closing you will receive New BN shares. Regular Dividend Declaration The Board declared a quarterly dividend for Brookfield Corporation of $0.07 per share, payable on September 29, 2026 to shareholders of record as at the close of business on September 14, 2026. The Board also declared the regular monthly and quarterly dividends on our preferred shares. CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF OPERATIONS Direct costs disclosed above exclude depreciation and amortization expense. Interest expense from acquisitions, net of dispositions, and upfinancings completed over the twelve months ended June 30, 2026. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. Net of preferred share dividends reflected in equity. See “Earnings Per Share” on page 7. SUMMARIZED FINANCIAL RESULTS DISTRIBUTABLE EARNINGS Non-IFRS measure – see Non-IFRS and Performance Measures section on page 9. RECONCILIATION OF NET INCOME TO DISTRIBUTABLE EARNINGS Comparative period amounts have been revised to reflect returns on capital as the measurement basis for FFO from Direct Investments included within disposition gains in net income. DE is a non-IFRS measure proportionate to the interests of shareholders and therefore excludes items in income attributable to non-controlling interests in non-wholly owned subsidiaries. Non-IFRS measure – see Non-IFRS and Performance Measures section on page 9. EARNINGS PER SHARE Excludes dividends paid on perpetual subordinated notes of $2 million (2025 – $2 million) and $10 million (2025 – $10 million) for the three and twelve months ended June 30, 2026, which are recognized within net income attributable to non-controlling interests. Dilution of management share option plan and escrowed stock plan measured using the treasury stock method. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. Additional Information The Letter to Shareholders and the company’s Supplemental Information for the three months and twelve months ended June 30, 2026, contain further information on the company’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company’s website. The statements contained herein are based primarily on information that has been extracted from our financial statements for the periods ended June 30, 2026, which have been prepared using IFRS Accounting Standards, as issued by the International Accounting Standards Board (“IASB”). The amounts have not been audited by Brookfield Corporation’s external auditor. Brookfield Corporation’s Board of Directors has reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release. Information on our dividends can be found on our website under Distributions. Quarterly Earnings Call Details Investors, analysts and other interested parties can access Brookfield Corporation’s 2026 Second Quarter Results as well as the Shareholders’ Letter and Supplemental Information on Brookfield Corporation’s website under the Reports & Filings section at www.bn.brookfield.com. To participate in the Conference Call today at 10:00 a.m. ET, please pre-register at https://register-conf.media-server.com/register/BI33fe6ec1392e4d5b96be7ae5bf3808cf. Upon registering, you will be emailed a dial-in number and a unique PIN. The Conference Call will also be webcast live at https://edge.media-server.com/mmc/p/54f6ymvp. For those unable to participate in the Conference Call, the telephone replay will be archived and available until August 13, 2027. To access this rebroadcast, please visit: https://edge.media-server.com/mmc/p/54f6ymvp. About Brookfield Corporation Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Asset Management, Wealth Solutions, and our Operating Businesses which are in infrastructure, energy, private equity, and real estate. We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN). Please note that Brookfield Corporation’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+ and can also be found in the investor section of its website at www.bn.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request. For more information, please visit our website at www.bn.brookfield.com or contact: Non-IFRS and Performance Measures This news release and accompanying financial information are based on IFRS Accounting Standards, as issued by the IASB, unless otherwise noted. We make reference to Distributable Earnings (“DE”). We define DE as the sum of distributable earnings before realizations from our asset management business and our wealth solutions business, distributions received from our ownership of investments, realized carried interest and disposition gains from principal investments, net of earnings from our Corporate Activities, preferred share dividends and equity-based compensation costs. We also make reference to DE before realizations, which refers to DE before realized carried interest and realized disposition gains from principal investments. Distributable earnings before realizations from our Asset Management business is comprised of fee-related earnings and other income (expenses), net of cash taxes and equity-based compensation costs from BAM, as well as FFO on direct investments. Distributable earnings from our Wealth Solutions business is calculated as net income from our Wealth Solutions business, excluding the impact of depreciation and amortization, deferred income taxes, net income from our equity accounted investments, mark-to-market on investments and derivatives, breakage and transaction costs, and is inclusive of our proportionate share of DE from investments in associates. We believe these measures provide insight into earnings received by the company that are available for distribution to common shareholders or to be reinvested into the business. Realized carried interest and realized disposition gains are further described below: Realized Carried Interest represents our contractual share of profits generated within a private fund after achieving our clients’ minimum return requirements. Realized carried interest is determined on third-party capital that is no longer subject to future investment performance. Realized Disposition Gains from Principal Investments are included in DE because we consider the purchase and sale of assets from our directly held investments to be a normal part of the company’s business. Realized disposition gains include gains and losses recorded in net income and equity in the current period, and are adjusted to include fair value changes and revaluation surplus balances recorded in prior periods which were not included in prior period DE. We use DE to assess our operating results and the value of Brookfield Corporation’s business and believe that many shareholders and analysts also find this measure of value to them. We disclose a number of financial measures in this news release that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include DE, should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures or other financial metrics are not standardized under IFRS and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities. We provide additional information on key terms and non-IFRS measures in our filings available at www.bn.brookfield.com. Consolidated basis – includes amounts attributable to non-controlling interests. Excludes amounts attributable to non-controlling interests. See Reconciliation of Net Income to Distributable Earnings on page 6 and Non-IFRS and Performance Measures on page 9. Per share amounts have been adjusted to reflect BN’s three-for-two stock split completed on October 9, 2025. Notice to Readers Brookfield Corporation is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement. This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward- looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect,” “anticipate,” “believe,” “foresee,” “could,” “estimate,” “goal,” “intend,” “plan,” “seek,” “strive,” “will,” “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the anticipated allocation and deployment of our capital, our fundraising targets, our target growth objectives, all statements relating to the proposed combination of Brookfield Corporation and Brookfield Wealth Solutions Ltd. and the acquisition of Just Group and its expected impact on our business. Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments including asset management, wealth solutions, energy and transition, infrastructure, private equity, real estate and corporate activities; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States. We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release or such other date specified herein. Except as required by law, Brookfield Corporation undertakes no obligation to publicly update or revise any forward- looking statements, whether written or oral, that may be as a result of new information, future events or otherwise. Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise). Target returns and growth objectives set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by Brookfield Corporation in relation to the investment strategies being pursued, any of which may prove to be incorrect. There can be no assurance that targeted returns or growth objectives will be achieved. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond Brookfield Corporation’s control, the actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns and growth objectives. No assurance, representation or warranty is made by any person that the target returns or growth objectives will be achieved, and undue reliance should not be put on them. Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While Brookfield Corporation believes that such information is accurate as of the date it was produced and that the sources from which such information has been obtained are reliable, Brookfield Corporation makes no representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of any of the information or the assumptions on which such information is based, contained herein, including but not limited to, information obtained from third parties. No statements contained herein with respect to tax consequences are intended to be, or should be construed to be, legal or tax advice, and no representation is made with respect to tax consequences. Shareholders are urged to consult their legal and tax advisors with respect to their circumstances. When we speak about our wealth solutions business or Brookfield Wealth Solutions, we are referring to Brookfield’s investments in this business that supported the acquisitions of its underlying operating subsidiaries.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a 15% increase in distributable earnings before realizations, supported by record fundraising of $98 billion and $100 billion in capital deployment. Management attributes their competitive advantage to an integrated scale that combines real estate, energy, infrastructure, and credit to deliver multifaceted solutions for AI infrastructure. The AI opportunity is characterized as a widening gap between 'insatiable' power and compute demand versus constrained grid supply, favoring Brookfield's ability to provide land, power, and transmission. Strategic positioning in the nuclear sector via Westinghouse is accelerating, with management highlighting a $6 trillion industry build-out and a repeatable model for large-scale construction. The acquisition of Just Group in the U.K. and the completion of the Oaktree merger have created a more comprehensive global credit and insurance platform. Real estate performance remains resilient with 95% occupancy in core portfolios and significant positive leasing spreads, including rents 19% above expiring levels globally. Management emphasizes a 'first call' status for large-scale, bilateral deals due to their certainty of execution and ability to match diverse capital sources to specific investment durations. Management anticipates a record fundraising year, supported by the seventh private equity and sixth infrastructure flagship funds which are on track to be the largest in their series. The Wealth Solutions business is targeting over $300 billion of insurance assets by the end of the decade, driven by organic growth in U.S. bank channels and U.K. pension risk transfers. Future earnings growth in the Just Group is predicated on a simpler operating model and the rotation of assets into higher-yielding Brookfield-originated investments. Carried interest is approaching an 'inflection point' as earlier vintage infrastructure and Oaktree funds return capital and work through preferred returns. The simplification of the capital structure provides new optionality for future U.S. index inclusion, though management notes this will evolve over time as rules and the business footprint change. The acquisition of Just Group added $45 billion in assets but initially yielded a 12% ROE, which management plans to improve by exiting non-core direct-to-consumer initiatives. Management addressed 'circularity' concerns in AI investments by emphasizing their focus on high-quality hyperscaler counterparties and diversified infrastructure platforms. Interest rate risk is currently managed through a 'matched' asset and liability duration strategy to mitigate volatility amidst current market noise. A $100 billion partnership with the U.S. Department of Energy to build an AI campus in Kentucky utilizes federal land to bypass traditional approval delays. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management views the current AI cycle as being in the 'very early stages' with significant long-term earnings power yet to be realized. The strategy involves developing assets and then recycling them into stabilized, lower-cost capital pools once they become attractive to long-term institutional owners. Management identified a 50-basis-point opportunity to enhance spreads simply by reducing operational costs, noting Just's cost structure was 2x to 3x higher than competitors. The long-term goal is to achieve 200-basis-point spreads by rotating the portfolio into Brookfield's proprietary real asset originations. The MoU with NVIDIA aims to mobilize $500 billion to finance GPUs, which can represent half of the capital required for AI factories. The financing platform targets contractual cash flows and high-quality counterparties, offering a risk profile suitable for both institutional and retail clients. Brookfield expects to scale annuity sales by an additional $10 billion to $12 billion annually by expanding into the bank and broker-dealer market. This expansion would shift the sales mix to roughly 50% from bank networks, complementing their existing strength in independent marketing organizations.

Brookfield Corporation (NYSE:BN) shares edged 0.13% lower in premarket trading after the investment group reported second-quarter adjusted earnings per share below Wall Street expectations. Despite the headline earnings miss, Brookfield delivered higher revenue and double-digit growth in distributable earnings before realizations, supported by strong fundraising and performance across its asset management and wealth solutions businesses. Brookfield reported adjusted earnings of $0.14 per share for the second quarter, missing the analyst consensus of $0.65 by $0.51. Quarterly revenue reached $19.4 billion, representing a 7% increase from $18.1 billion in the second quarter of 2025. Distributable earnings before realizations were $1.4 billion, equivalent to $0.61 per share and 15% higher than in the same period a year earlier. “Our business performed well in the second quarter, with continued momentum driving 15% growth in earnings per share,” said Nick Goodman, President of Brookfield Corporation. “We were active through the first six months of the year—raising $98 billion of capital, deploying $100 billion into large-scale opportunities, and monetizing $40 billion of assets at attractive returns.” Brookfield’s asset management operations continued to deliver strong growth during the quarter, with fee-related earnings rising 20% compared with the prior-year period. Fundraising reached a record $77 billion during the quarter, helping lift fee-bearing capital to $672 billion by the end of the period. The increase provides Brookfield with a larger base from which to generate recurring management fees while strengthening the capital available across its investment strategies. The company said it raised $98 billion of capital during the first six months of the year while deploying $100 billion into large-scale investment opportunities. Brookfield’s wealth solutions business also contributed to the quarter’s growth, with earnings increasing 23% year over year. Performance was supported by strong organic inflows as well as the first full-quarter contribution from Just Group. The combination of expanding asset management earnings and growth within wealth solutions helped support Brookfield’s underlying performance despite the reported adjusted earnings-per-share figure falling below analyst expectations. Including realizations, total distributable earnings amounted to $1.5 billion for the second quarter, equivalent to $0.66 per share. Realizations contributed $121 million to the quarterly total as Brookfield continued to monetise investments alongside deploying capital into new opportunities. The company ended the quarter with $210 billion of deployable capital, leaving it with substantial financial capacity to pursue additional investments as opportunities emerge. During the first half of the year, Brookfield also monetised $40 billion of assets, with management highlighting the attractive returns achieved through those transactions. Brookfield maintained its shareholder distributions by declaring a quarterly dividend of $0.07 per share. The dividend will be paid on September 29, 2026, to shareholders of record as of September 14, 2026. While the headline earnings miss contributed to modest premarket weakness in Brookfield shares, the quarter also showed continued growth in distributable earnings, record fundraising and substantial available investment capital. Investors are likely to remain focused on whether the company’s strong capital deployment and fundraising activity can translate into further earnings growth over the coming quarters. Brookfield Corporation stock price