Brookfield Corporation Reports Strong Second Quarter Results and Announces Three-for-Two Stock Split
Distributable Earnings Before Realizations Increased 13% to $1.3 billion or $0.80 Per Share Over $55 billion of Asset Monetizations Since the Beginning of The Year
Deployable Capital Increases to a Record $177 billion
BROOKFIELD, NEWS, August 7, 2025 - Brookfield Corporation (NYSE: BN, TSX: BN) announced strong financial results for the quarter ended June 30, 2025.
Nick Goodman, President of Brookfield Corporation, said, "We had strong financial performance in the second quarter supported by the continued positive momentum across our core businesses and a significant increase in monetization activity. To date this year, we had over $55 billion of asset monetizations diversified across asset class and geography, returning substantial capital to our investors at excellent returns."
He continued, "With a record $177 billion of deployable capital and an increasingly constructive market backdrop, we are well-positioned to capitalize on investment opportunities, drive strong organic earnings growth, and deliver 15%+ returns on a per share basis to our shareholders over the long term."
Operating Results
Distributable earnings ("DE") before realizations increased by 13% over the prior year quarter.
UNAUDITED
|
(US$ millions, except per share amounts) |
2025 |
2024 |
2025 |
2024 |
|
Net income (loss) of consolidated business1 |
$ 1,055 |
$ (285) |
$ 2,889 |
$ 3,403 |
|
Net income attributable to Brookfield shareholders2 |
272 |
43 |
841 |
1,074 |
|
Distributable earnings before realizations3 |
1,253 |
1,113 |
5,311 |
4,379 |
|
- Per Brookfield share3 |
0.80 |
0.71 |
3.36 |
2.77 |
|
Distributable earnings3 |
1,385 |
2,127 |
5,865 |
5,805 |
|
- Per Brookfield share3 |
0.88 |
1.35 |
3.71 |
3.67 |
For the periods ended June 30
Three Months Ended Last Twelve Months Ended
See endnotes on page 9.
Total consolidated net income was $1.1 billion for the quarter and $2.9 billion for the last twelve months ("LTM"). Distributable earnings before realizations were $1.3 billion ($0.80/share) for the quarter and $5.3 billion ($3.36/ share) for the last twelve months.
Our asset management business generated a 16% increase in fee-related earnings compared to the prior year quarter, supported by continued fundraising momentum across our diversified fund offerings.
Wealth solutions delivered strong financial results, benefiting from strong investment performance and disciplined capital deployment.
Our operating businesses continue to generate resilient and stable cash flows, supported by strong underlying operating fundamentals.
During the quarter and LTM, earnings from realizations were $132 million and $554 million, with total DE for the quarter and the LTM of $1.4 billion ($0.88/share) and $5.9 billion ($3.71/share), respectively.
Operating Highlights
Distributable earnings before realizations were $1.3 billion ($0.80/share) for the quarter and $5.3 billion ($3.36/ share) over the last twelve months, representing an increase of 13% on a per share basis over the prior year quarter. Total distributable earnings were $1.4 billion ($0.88/share) for the quarter and $5.9 billion ($3.71/share) over the last twelve months.
Asset Management:
-
DE was $650 million ($0.41/share) in the quarter and $2.7 billion ($1.72/share) over the LTM.
-
Total inflows were $22 billion during the quarter, including over $5 billion from our retail and wealth solutions clients. With final closes anticipated for our fifth vintage flagship opportunistic real estate strategy and second vintage global transition strategy, we expect strong fundraising momentum to continue into the second half of 2025.
-
Fee-bearing capital grew to $563 billion and resulted in fee-related earnings of $676 million, an increase of 10% and 16%, respectively, over the prior year quarter.
Wealth Solutions:
-
DE was $391 million ($0.25/share) in the quarter and $1.6 billion ($1.02/share) over the LTM.
-
We originated over $4 billion of retail and institutional annuity sales during the quarter, increasing insurance assets to $135 billion.
-
This quarter, we deployed $3.5 billion into Brookfield managed strategies across our portfolio at an average net yield of 8%. Our investment portfolio generated an average yield of 5.8%, allowing us to maintain strong spread earnings which were 1.8% higher than the average cost of funds.
-
We ended the quarter with a strong liquidity and capital position, with total group capital of approximately
$16 billion4.
-
Last week, we announced the acquisition of Just Group, a U.K. leader in pension risk transfer solutions, building on the foundation established with the successful licensing and launch of our U.K. business earlier this year, enabling us to scale faster in a high-growth market and expand our geographical footprint. With this acquisition, our insurance assets are expected to grow by approximately $40 billion, significantly accelerating the growth of the business.
Operating Businesses:
-
DE was $350 million ($0.22/share) in the quarter and $1.7 billion ($1.07/share) over the LTM.
-
Cash distributions from our operating businesses were supported by strong underlying fundamentals and resilient operating earnings.
-
We signed a landmark agreement with Google to deliver up to 3,000 megawatts of hydroelectric capacity across the U.S., a first of its kind partnership that demonstrates our relationships with the world's largest buyers of power.
-
In our real estate business, despite short-term softness in North American residential, fundamentals continue to strengthen. We signed nearly 4 million square feet of office and retail leases during the quarter, reflecting both strong tenant demand and limited availability for our premium space. Our core office and retail portfolio are 94% and 97% leased, respectively. For the limited remaining space we have, we are actively engaged in leasing discussions at rents significantly above expiring levels.
Earnings from the monetization of mature assets were $132 million ($0.08/share) for the quarter and
$554 million ($0.35/share) over the LTM.
-
To date this year, we sold over $55 billion of asset sales across the business, including over $35 billion since last quarter. Substantially all sales were completed at or above our carrying values, monetizing significant value for our clients at attractive returns.
-
Monetization activity since last quarter included $12 billion of real estate assets, including the single largest real estate transaction in Australia ever, approximately $9 billion of infrastructure assets, including one of the U.K.'s largest port businesses, nearly $6 billion of renewable assets reflecting sustained global demand for renewables, and approximately $9 billion in other diversified assets across our operating businesses.
-
We realized $129 million of carried interest into income as a result of this activity, and importantly moved a number of our funds closer to carried interest realization.
-
Total accumulated unrealized carried interest was $11.3 billion at quarter end, net of $487 million realized into income over the LTM. As we continue to see momentum in transaction activity, we expect to realize significant carried interest into income over the next few years.
We ended the quarter with a record $177 billion of capital available to deploy into new investments.
-
We have record deployable capital of $177 billion, which includes $71 billion of cash, financial assets and undrawn credit lines at the Corporation, our affiliates and our wealth solutions business.
-
Our balance sheet remains conservatively capitalized. Our corporate debt at the Corporation has a weighted-average term of 14 years, and today, we have no maturities through the end of 2025.
-
We maintained strong access to the capital markets and executed $94 billion of financings so far this year, including $53 billion of financings this quarter, further bolstering our capital structure and liquidity. A few recent highlights include:
-
Brookfield Renewable Partners issued C$250 million of 30-year notes, Brookfield Infrastructure Partners issued $250 million of 30-year subordinated notes and Brookfield Asset Management completed its inaugural offering and issued $750 million of 10-year senior notes. All three offerings were met with strong investor demand reflecting market confidence in each business.
-
In our renewable power and transition business, we secured €6.3 billion in project financing for our offshore wind development in Poland, our largest project financing done to date within this business.
-
In our private equity business, we raised approximately $2.1 billion of debt for our modular leasing services platform, completed a refinancing for $1.2 billion at our advanced energy storage business, and completed a $900 million repricing for our electric heat tracing manufacturer business.
-
In real estate, we successfully refinanced a $2.4 billion five-year loan for the world's largest open-air shopping center in the U.S., and refinanced a hotel in downtown Toronto for C$425 million, fully repatriating all our equity and more, while retaining 100% ownership of the asset. We also issued
€300 million of high-yield bonds through our German office REIT, reflecting increasing lender appetite for office financings.
-
-
During the quarter, we returned $432 million of capital to our shareholders via regular dividends and share repurchases. Since last quarter, we repurchased over $300 million of Class A shares in the open market at an average price of $49.03, which represents a 52% discount to our our view of intrinsic value at quarter end of $101.52.
Three-for-Two Stock Split
The Board of Directors approved a three-for-two stock split of the outstanding Brookfield Corporation Class A Limited Voting Shares ("Class A Shares"). Brookfield Corporation is undertaking the stock split to ensure its shares remain accessible to individual shareholders and to improve the liquidity of the shares. Importantly, the stock split is not dilutive to shareholders.
The stock split will be implemented by way of a stock dividend which will be payable on October 9, 2025, to shareholders of record at the close of business on October 3, 2025. Each shareholder will receive one-half of a Class A Share for each Brookfield Corporation Class A and Class B Limited Voting Share held by them (i.e. one additional share for every two shares held). Fractional shares will be paid in cash based on the closing price of the Class A Shares on the Toronto Stock Exchange on October 3, 2025.
From market open on Friday, October 3, 2025 and until market close on Thursday, October 9, 2025, both trading days inclusive, the Class A Shares will trade on a due bill basis on the Toronto Stock Exchange and the New York Stock Exchange. During this due bill trading period, the Class A Shares will carry the right to receive the additional shares to be issued in connection with the stock dividend. From market open on Friday, October 10, 2025, the post-split (ex-dividend) Class A Shares will commence trading on the Toronto Stock Exchange and the New York Stock Exchange.
Based on the manner in which the stock split will be implemented, no Canadian or U.S. federal income tax is expected to be payable by shareholders, except in the case of cash received in lieu of fractional shares.
Brookfield Wealth Solutions announced a concurrent three-for-two split of its class A exchangeable shares in order to maintain their economic equivalence to Brookfield Corporation's Class A Shares.
Regular Dividend Declaration
The Board declared a quarterly dividend for Brookfield Corporation of $0.09 per share, payable on September 29, 2025 to shareholders of record as at the close of business on September 12, 2025. The first dividend payable post-split will occur on December 31, 2025, subject to Board approval. The Board also declared the regular monthly and quarterly dividends on our preferred shares.
CONSOLIDATED BALANCE SHEETS
|
(US$ millions) |
2025 |
2024 |
||
|
Assets |
||||
|
Cash and cash equivalents |
$ 13,703 |
$ 15,051 |
||
|
Other financial assets |
29,968 |
25,887 |
||
|
Accounts receivable and other |
51,645 |
40,509 |
||
|
Inventory |
9,259 |
8,458 |
||
|
Equity accounted investments |
72,179 |
68,310 |
||
|
Investment properties |
90,910 |
103,665 |
||
|
Property, plant and equipment |
155,640 |
153,019 |
||
|
Intangible assets |
39,946 |
36,072 |
||
|
Goodwill |
38,664 |
35,730 |
||
|
Deferred income tax assets |
4,154 |
3,723 |
||
|
Total Assets |
$ 506,068 |
$ 490,424 |
||
|
Liabilities and Equity |
||||
|
Corporate borrowings |
$ 14,973 |
$ 14,232 |
||
|
Accounts payable and other |
65,932 |
60,223 |
||
|
Non-recourse borrowings of managed entities |
235,661 |
220,560 |
||
|
Subsidiary equity obligations |
3,395 |
4,759 |
||
|
Deferred income tax liabilities |
24,462 |
25,267 |
||
|
Equity |
||||
|
Non-controlling interests |
$ 115,049 |
$ 119,406 |
||
|
Preferred equity |
4,103 |
4,103 |
||
|
Common equity |
42,493 |
161,645 |
41,874 |
165,383 |
|
Total Equity |
161,645 |
165,383 |
||
|
Total Liabilities and Equity |
$ 506,068 |
$ 490,424 |
Unaudited
June 30 December 31
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Ended Six Months Ended
|
For the periods ended June 30 (US$ millions, except per share amounts) |
2025 |
2024 |
2025 |
2024 |
|
Revenues |
$ 18,083 |
$ 23,050 |
$ 36,027 |
$ 45,957 |
|
Direct costs1 |
(11,381) |
(16,717) |
(22,376) |
(33,288) |
|
Other income and gains |
30 |
244 |
618 |
484 |
|
Equity accounted income |
467 |
825 |
986 |
1,511 |
|
Interest expense |
||||
|
- Corporate borrowings |
(188) |
(181) |
(367) |
(354) |
|
- Non-recourse borrowings |
||||
|
Same-store |
(4,092) |
(3,995) |
(8,005) |
(7,950) |
|
Dispositions, net of acquisitions2 |
296 |
- |
483 |
- |
|
Upfinancings2 |
(269) |
- |
(525) |
- |
|
Corporate costs |
(20) |
(19) |
(38) |
(36) |
|
Fair value changes |
797 |
(753) |
(27) |
(595) |
|
Depreciation and amortization |
(2,534) |
(2,435) |
(4,989) |
(4,910) |
|
Income tax |
(134) |
(304) |
(517) |
(585) |
|
Net income (loss) |
1,055 |
(285) |
1,270 |
234 |
|
Net (income) loss attributable to non-controlling interests |
(783) |
328 |
(925) |
(89) |
|
Net income attributable to Brookfield shareholders |
$ 272 |
$ 43 |
$ 345 |
$ 145 |
|
Net income per share |
||||
|
Diluted |
$ 0.15 |
$ - |
$ 0.17 |
$ 0.04 |
|
Basic |
0.15 |
- |
0.18 |
0.04 |
-
Direct costs disclosed above exclude depreciation and amortization expense.
-
Interest expense from dispositions, net of acquisitions, and upfinancings completed over the twelve months ended June 30, 2025.
Attachments
Disclaimer
Brookfield Corporation published this content on August 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 08, 2025 at 18:09 UTC.
