Summary of Brookfield Corporation Q1 2026 Earnings Call

1Key Financial Results and Metrics

Distributable Earnings (DE):

Q1 2026: $1.6 billion ($0.66 per share), up from $1.5 billion in Q1 2025.

Last 12 months: $6 billion ($2.54 per share).

DE before realizations: $1.4 billion ($0.59 per share), a 7% increase year-over-year.

Asset Management: Generated $765 million in DE for the quarter, with $67 billion raised in capital year-to-date, including $21 billion in Q1.

Wealth Solutions: DE of $430 million ($0.18 per share) for the quarter, driven by $4 billion in annuity inflows.

Operating Businesses: DE of $360 million ($0.15 per share) for the quarter, with a 19% increase in operating funds from infrastructure, private equity, and energy sectors.

2Strategic Updates and Business Highlights

Acquisition of Just Group: Closed in April 2026, adding $40 billion in insurance assets and enhancing Brookfield's position in the U.K. pension risk transfer market.

Real Estate Performance: Strong demand for high-quality assets, with occupancy rates over 95% in Super Core and Core Plus portfolios. Notable leasing activity includes significant rent increases in Manhattan and London.

Corporate Simplification: Plans to combine Brookfield Corporation with its Wealth Solutions business to enhance capital efficiency and support growth.

Investment Focus: Continued emphasis on digitalization, decarbonization, and deglobalization, with a strong pipeline of infrastructure projects.

3Forward Guidance and Outlook

2026 Expectations: Anticipation of a record fundraising year, with strong momentum expected to continue in financial performance.

Wealth Solutions Growth: Targeting $25 billion in new policies across retail and institutional channels, with a focus on high-quality, durable earnings.

Capital Allocation: Ongoing share buybacks, with over $1 billion repurchased year-to-date, reflecting confidence in intrinsic value.

4Bad News, Challenges, or Points of Concern

Market Volatility: Concerns regarding geopolitical issues, inflation, and interest rates, although management believes these are temporary and manageable.

Regulatory Environment: Evolving regulations in the U.K. and potential impacts on the insurance business, though management feels well-positioned.

Outflows in Annuity Business: Increased outflows noted, attributed to market conditions; however, management expects to maintain market share and growth.

5Notable Q&A Insights

Impact of Private Credit and Software Issues: Management believes the fundamental damage is limited, with Brookfield well-positioned due to its focus on real assets.

Middle East Investments: Commitment to the region remains strong despite ongoing geopolitical tensions.

Tax Implications of BN and BNT Combination: Management is considering tax efficiency in the proposed merger, aiming to minimize shareholder impact.

P&C Business Strategy: Completed exiting less profitable lines, with a focus on growing the casualty franchise and leveraging strong capital for future growth. Overall, Brookfield Corporation reported strong financial results and strategic advancements while navigating potential market challenges and maintaining a positive outlook for the remainder of 2026.