Canada's Power Corporation Q4 net income drops, adjusted EPS rises

Overview

• Canada financial services holding company's Q4 net income from continuing operations fell sharply yr/yr

• Q4 adjusted net income and adjusted EPS increased yr/yr

• Company announced a 9% dividend increase for participating shares, payable May 1, 2026

Outlook

• Company did not provide specific financial guidance or outlook for the upcoming period

Result Drivers

• IMPAIRMENTS AND REVALUATIONS - Q4 net income was reduced by impairment charges at GBL, business transformation and market impacts at Lifeco, and revaluation of liabilities at Power Sustainable

• LIFECO RETIREMENT AND WEALTH GROWTH - Lifeco's adjusted earnings rose on continued momentum in its Retirement and Wealth businesses, mainly at Empower, and higher new business volumes in Capital & Risk Solutions

Company press release: ID:nCNW2G3jpa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the life & health insurance peer group is "buy."

• Wall Street's median 12-month price target for Power Corporation of Canada is C$74.50, about 11.6% above its March 17 closing price of C$66.76

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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