Q2 2026 Brookfield Corp Earnings Call Transcript
Key Points
- Distributable earnings before realizations increased 15% year-over-year to $1.4 billion in Q2 2026, with $5.7 billion over the last 12 months.
- Record fundraising of $77 billion in the quarter, with $100 billion raised in the first half, driving fee-bearing capital up 19% to $672 billion.
- Completed strategic acquisitions of Just Group and Oaktree, expanding insurance assets to $190 billion and enhancing credit capabilities.
- Strong real estate leasing momentum with net rents 19% above expiring levels in office and 12% higher in retail, indicating robust demand for high-quality assets.
- Wealth Solutions business delivered 23% growth in distributable earnings, with a clear pathway to $300 billion in insurance assets by the end of the decade.
- Executed $40 billion of asset sales year-to-date, including successful IPOs and sales, demonstrating strong monetization capabilities.
- Record deployable capital of $210 billion provides substantial flexibility to invest in attractive opportunities, particularly in AI infrastructure.
- Geopolitical conflicts, higher energy prices, and interest rate uncertainty create market noise that could impact near-term performance.
- The AI infrastructure opportunity, while significant, carries risks of circularity in deals, requiring careful counterparty and contract management.
- Just Group's initial return on equity is only 12%, with a cost structure 2-3x higher than competitors, requiring significant operational improvements.
- Pension risk transfer market in the U.K. is seeing bids at rates that drive lower returns than Brookfield is comfortable with, limiting near-term growth.
- Carried interest realizations remain conservative and slow, with an inflection point not expected until the next 12-24 months.
- The P&C market is softening, which could lead to challenges for some platforms, though it also presents opportunities for Brookfield.
- The simplification transaction and index inclusion efforts are still in progress, with no immediate benefits realized yet.
Good day, and welcome to the Brookfield Corporation's second quarter 2026 conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference call over to our first speaker, Ms. Katie Battaglia, Vice President, Investor Relations. Please go ahead.
Thank you, operator, and good morning. Welcome to Brookfield Corporation's second quarter 2026 conference call. On the call today are Bruce Flatt, our Chief Executive Officer; Nick Goodman, President of Brookfield Corporation; and Sachin Shah, Chief Executive Officer of our Wealth Solutions business.
Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter. And finally, Sachin will provide an update on our Wealth Solutions business. After our formal comments, we will turn the call over to the operator and take analyst questions. In order to accommodate all those who want to ask
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