Power Co. of Canada (TSE:POW) executives highlighted what they described as a “very, very strong” fourth quarter and a strong full year for 2025, pointing to earnings growth in its earnings-based businesses, net asset value (NAV) gains across much of the portfolio, significant capital generation, and continued capital returns to shareholders.
On the company’s Q4 and year-end 2025 earnings call, President and CEO Jeffrey Orr said results reflected “strong value generation” with “all parts of the strategy coming together.” EVP and CFO Jake Lawrence added that while the quarter included some “noise” from consolidation impacts and portfolio-related items, the group entered 2026 with momentum and a sizable cash position.
Quarterly results and business contributions
Key contributors discussed on the call included:
- Great-West Lifeco: Contribution to Power’s adjusted net earnings rose 13% year-over-year. Lawrence said results were supported by Great-West’s seventh consecutive quarter of base earnings above $1 billion, including double-digit growth in the U.S. and a “notably strong” quarter in Capital and Risk Solutions. Great-West also announced a 10% increase to its quarterly dividend to CAD 0.67 per share.
- IGM Financial: Contribution to adjusted earnings increased 22% year-over-year as management cited strong net flows at IG Wealth Management and Mackenzie Investments. Assets under management and administration were up 15% year-over-year and up 3% quarter-over-quarter. IGM announced a 10% dividend increase to CAD 0.62 per share. Lawrence also noted that during the quarter Rockefeller Capital Management completed a previously announced transaction, and IGM received CAD 394 million in proceeds, primarily via return of capital and an equity sale.
- GBL: Lawrence reported a CAD 15 million adjusted net loss contribution from GBL in Q4, driven by fair value losses in the GBL Capital portfolio. He also said Power’s reported net earnings from GBL reflected a CAD 109.95 million loss, primarily tied to impairments and charges related to GBL’s investment in Imerys and additional losses from a partial divestment of the GBL Capital portfolio. GBL announced it has completed 95% of its EUR 5 billion portfolio simplification target and a 2.5% dividend increase to EUR 5.125 payable during 2026.
- Sagard: Sagard’s contribution to adjusted earnings was CAD 26 million, up from a CAD 11 million loss in the prior quarter. Lawrence attributed the quarter’s improvement largely to fair value increases in private equity and venture capital.
- Power Sustainable: Power Sustainable reported an adjusted loss of CAD 21 million versus a CAD 16 million loss in the previous quarter, driven by operating losses related to energy infrastructure.
NAV growth, cash position, and capital returns
Power reported an adjusted net asset value per share of CAD 85.77 as of Dec. 31, 2025. Lawrence said 84% of gross asset value was driven by earnings-based businesses (Great-West and IGM), up from 76% at the time of the 2019–2020 reorganization.
For the year, management cited adjusted NAV per share growth of 42% and 19% quarter-over-quarter. Lawrence said publicly reported operating companies posted NAV growth year-over-year, including Great-West up 39%, IGM up 35%, and GBL up 24%. He also said Sagard’s NAV increased 35%, driven primarily by the fair value increase in Wealthsimple. Power Sustainable’s NAV declined over the year, which Lawrence tied to asset sales in the first half that increased cash at Power.
Power ended Q4 with a cash balance of CAD 2.2 billion, with approximately CAD 1.9 billion available after factoring in dividends receivable and payable. The company remained active in its normal course issuer bid (NCIB), repurchasing 5 million shares for CAD 329 million in Q4 and 12.4 million shares during full-year 2025. Lawrence said Power returned over CAD 2.2 billion through share buybacks and dividends in 2025.
Leadership transitions highlighted
Orr also focused part of his prepared remarks on leadership changes announced in recent months. He said he was confident in the planned CEO transition at Power and pointed to recent CEO transitions across major operating companies.
He praised James (referencing the incoming leader discussed in the company’s recent announcement) for his experience and judgment, and said Damon Murchison would succeed James as CEO of IGM. Orr also noted the earlier transition at Great-West Lifeco, where David Harney became CEO, and referenced Johannes Huth taking over as CEO of GBL.
Strategy updates: AI, alternative assets, and fundraising
During Q&A, management discussed artificial intelligence as a major area of focus. Orr said AI is being addressed at both board and management levels, with CEOs leading efforts within operating companies. He described a multi-part approach that includes executive training, coordinated learning across the group, mapping opportunities, and running pilots using multiple external suppliers. Orr said he expects it will take time before AI benefits show up in the P&L, and he characterized AI as necessary to remain competitive rather than a “massive profit opportunity.”
Executives also addressed the alternative asset platforms. Orr said Sagard is pursuing growth through acquisitions, partnerships, and fundraising, noting fundraising remains challenging across the industry. Management said Sagard raised about US$1.4 billion in the quarter and US$3.5 billion for the year. Orr said Sagard ended the year at $27 billion AUM and expects to reach $47 billion pro forma upon closing the Unigestion acquisition, which he said was nearing completion. He described combining Unigestion with Performance Equity Management and BEX Capital into a private equity solutions business that would be a large “secondaries solutions provider” after the transactions close.
On credit, Lawrence said Sagard’s private credit strategies were conservatively positioned and he was not seeing signs of rising defaults. He said Sagard’s approach emphasizes first-lien, senior secured loans in the mid-market with moderate leverage and predictable cash flow, and that the portfolio had “nearly zero software exposure.”
Buybacks, discount to NAV, and expenses
Management repeatedly returned to capital allocation and buybacks. Orr said the company ended 2025 with more cash than he could remember and acknowledged internal discussions about deploying it. In response to analyst questions, Orr said Power’s top capital priority would be to buy back shares and that the company intended to be “aggressive” given the opportunity. He also clarified that Power is not proportionally tendering into IGM’s buyback, while it has participated in Great-West Lifeco’s NCIB.
Orr also discussed the holding company’s discount to NAV, saying a narrower discount was a goal but that it does not move in a straight line. He explained his own view that a discount of roughly 3% could be justified by holding company expenses and other liabilities, and said buybacks are not solely an “NAV arb,” but also a means of returning excess capital.
On expenses, Lawrence said corporate costs were elevated due mainly to performance-related and long-term incentive compensation, and that management did not expect those items to recur at the same magnitude in 2026. Orr added that the increase was not driven by a material expansion in head-office infrastructure and that some compensation expense was “not perfectly hedged.”
About Power Co. of Canada (TSE:POW)
Power Corp. of Canada is a diversified holding company with interests in financial services, communications, and other business sectors through its controlling interests in Power Financial. Power Financial in turn holds controlling interests in Great-West Life (an insurance conglomerate), IGM Financial (Canada’s largest nonbank asset manager), and Pargesa (a holding company with interests in European companies). Power Corp. bought out the remaining shares of Power Financial in February 2020.
