POW: Strong capital return continues; increasing target

研报英文原文证据摘录

POW: Strong capital return continues; increasing target

Power Corporation of Canada

Q1/26 Publicly Listed Investment results: GWO, IGM, and GBL

GWO and IGM’s contribution to earnings were both +21% YoY while GBL’s contribution was $20MM

GWO + IGM + GBL = 90% of Gross

Results of core publicly-traded investments

Asset Value (GAV)

Alternative Platforms Cash & Other Assets

6% 4% GWO's contribution to earnings was flat Q/Q and +21% Y/Y on a normalized basis. Q1/26 key takeaways (per

GBL RBC Dominion Securities Analyst, Darko Mihelic): GWO's Q1/26 base EPS was stronger than our estimate, even

4%

if insurance experience gains were excluded. Higher than expected U.S. base earnings were driven by a higher

margin and the business had double-digit AUM growth YoY. Empower continues to impress and we believe it

IGM can improve upon (it’s still not fully disclosed) rollover capture rate. GWO currently has the highest core ROE GWO 17%

estimate in 2026 among peers with a business mix that is very capital light prompting us to raise our tgt

multiple. We increased our PT to $77 (was $64). SP rated.

GWO For a more detailed review of GWO’s Q1/26 results, please see Analyst Darko Mihelic’s report, “Empower

69%

growth continues to impress”.

Alternative Platforms Cash & Other Assets…

6% IGM’s contribution to earnings was down 5% Q/Q and +21% Y/Y on a normalized basis. Q1/26 key takeaways:

GBL Q1/26 results were strong with adjusted EPS above our estimates and consensus driven by IG WM and

Mackenzie. We increased our price target to $77 (was $67) driven by rolling forward our valuation, higher EPS

IGM IGM17% estimates and net positive adjustments to our NAV-based valuation framework and maintaining Sector Perform

rating given limited implied upside.