Distributable Earnings Before Realizations Increased by 18% to
Deployable Capital Increases to a Record
BROOKFIELD, NEWS,
He added, “We continue to successfully execute on our key initiatives, positioning Brookfield for our next phase of growth. Our agreement to acquire the remaining interest in Oaktree, as well as the continued global expansion of our wealth solutions business, mark important milestones in compounding long-term value for our shareholders.”
Operating Results
Distributable earnings (“DE”) before realizations increased by 6% and 18% over the prior periods.
| UNAUDITED | ||||||||
| F or the periods ended |
Three Months Ended | Last Twelve Months Ended | ||||||
| (US$ millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||
| Net income of consolidated business1 | $ | 284 | $ | 1,518 | $ | 1,655 | $ | 4,886 |
| Net income attributable to Brookfield shareholders2 | 219 | 64 | 996 | 908 | ||||
| Distributable earnings before realizations3 | 1,333 | 1,259 | 5,385 | 4,582 | ||||
| – Per Brookfield share3,4 | 0.56 | 0.53 | 2.27 | 1.93 | ||||
| Distributable earnings3 | 1,487 | 1,325 | 6,027 | 5,980 | ||||
| – Per Brookfield share3,4 | 0.63 | 0.56 | 2.54 | 2.52 | ||||
See endnotes on page 9.
Total consolidated net income was
Our asset management business delivered strong performance, with record fee-related earnings of
Our wealth solutions business achieved another quarter of robust growth, with distributable earnings increasing 15% year-over-year, supported by sustained organic growth and strong investment performance.
Our operating businesses continued to generate resilient and growing cash flows, reflecting the strength and quality of our underlying assets.
During the quarter and LTM, earnings from realizations were
Operating Highlights
Distributable earnings before realizations were
Asset Management
- DE was
$687 million ($0.29 /share) in the quarter and$2.7 billion ($1.14 /share) over the LTM. - Fee-related earnings increased by 17% from the prior year quarter to a record
$754 million , supported by fee-bearing capital of$581 billion . - Total inflows during the quarter were
$30 billion , the highest fundraising period in three years, including over$6 billion from our retail and wealth clients. - We held the final close of our second vintage global transition strategy, bringing total commitments to $20 billion, marking the largest private fund globally dedicated to energy transition, and we also launched the seventh vintage of our flagship private equity fund.
- We recently announced an agreement to acquire the remaining 26% interest in Oaktree. The transaction expands our ownership in Oaktree’s carried interest, fee-related earnings, and balance sheet investments, and further enhances the scale of our global credit platform.
Wealth Solutions
- DE was
$420 million ($0.18 /share) in the quarter and$1.7 billion ($0.70 /share) over the LTM. - We originated
$5 billion of retail and institutional annuity sales during the quarter, increasing insurance assets to$139 billion , with approximately 80% of new annuities written at five years or longer in duration. - We deployed
$4 billion into Brookfield-managed strategies at an average net yield of 9%. Our investment portfolio generated an average yield of 5.7%, maintaining strong spread earnings, and contributing to a 15% return on equity. - We received shareholder approval for the acquisition of
U.K. -based Just Group, expected to close in the first half of 2026, subject to regulatory approvals. Upon closing, the acquisition will increase the group’s total insurance assets to approximately$180 billion . - We signed our first
Japan -based reinsurance agreement with Dai-ichi Frontier Life, a leading Japanese insurance company, further expanding our global presence in a key growth market.
Operating Businesses
- DE was
$366 million ($0.15 /share) in the quarter and$1.7 billion ($0.72 /share) over the LTM. - Our publicly listed private equity business announced plans to simplify its corporate structure through the conversion into a single-listed corporate entity ("
BBU Inc. "), aimed to broaden its investor base and enhance trading liquidity. - Subsequent to quarter end, we announced partnerships to advance next-generation power and AI initiatives, including with the
U.S. Government , to expand nuclear capacity through Westinghouse to deliver$80 billion of new nuclear plants in the U.S.—and with Bloom Energy to install up to 1 GW of behind-the-meter power generation to support AI infrastructure globally. - Operating fundamentals across our real estate portfolio remain strong, with our super core assets maintaining 96% occupancy and our core plus portfolio ending the quarter at 95% occupancy, reflecting continued tenant demand for high-quality assets.
Earnings from the monetization of mature assets were
- Year to date, we have advanced
$75 billion of asset sales across the business, including over$35 billion since the second quarter. Substantially all sales were completed at or above our carrying values, monetizing significant value for our clients at attractive returns. - Monetization activity since the second quarter included
$13 billion of real estate assets,$9 billion of infrastructure assets, including the successful IPO of Rockpoint Gas Storage, nearly$8 billion of renewable assets, and$6 billion of other diversified assets across our operating businesses. - Total accumulated unrealized carried interest was
$11.5 billion at quarter end, net of$154 million realized into income in the quarter and$580 million over the LTM. As transaction activity continues to improve, we anticipate realizing significant carried interest into income over the next three years.
We ended the quarter with a record
- We have record deployable capital of
$178 billion , which includes$74 billion of cash, financial assets and undrawn credit lines at the Corporation, our affiliates and our wealth solutions business, as well as$104 billion of uncalled private fund commitments. - Our balance sheet remains conservatively capitalized, with corporate debt at the Corporation carrying a weighted-average term of 14 years, and today, we have no maturities through the end of 2025.
- Capital markets remain highly supportive of real assets, facilitating a continued pickup in transaction activity. We executed
$140 billion of financings so far this year across the franchise, including over$50 billion since the second quarter. A few recent highlights include:- At the Corporation, we issued
$650 million of 10-year senior notes, which was met with strong investor demand underscoring the strength of our credit profile. - In real estate, we successfully refinanced a
$1.9 billion five-year loan for a luxury resort in theBahamas and completed twoNew York office financings, each over$1.25 billion , highlighting the continued flow of capital to high-quality assets.
- At the Corporation, we issued
- During the quarter, we returned
$180 million of capital to our shareholders via regular dividends and share repurchases. Year-to-date, we repurchased over$950 million of Class A shares in the open market at an average price of$36 , which represents a 50% discount to our view of intrinsic value at quarter end of$69 . - During the quarter, we announced a strategic partnership with Figure, further advancing Brookfield’s position at the forefront of integrating artificial intelligence to drive productivity across our real assets and operating businesses.
Regular Dividend Declaration
The Board declared a quarterly dividend for
CONSOLIDATED BALANCE SHEETS
| Unaudited | December 31 | |||||||
| (US$ millions) | 2025 | 2024 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 16,682 | $ | 15,051 | ||||
| Other financial assets | 29,282 | 25,887 | ||||||
| Accounts receivable and other | 46,230 | 40,509 | ||||||
| Inventory | 9,161 | 8,458 | ||||||
| Equity accounted investments | 75,355 | 68,310 | ||||||
| Investment properties | 87,985 | 103,665 | ||||||
| Property, plant and equipment | 161,630 | 153,019 | ||||||
| Intangible assets | 41,151 | 36,072 | ||||||
| 42,830 | 35,730 | |||||||
| Deferred income tax assets | 4,280 | 3,723 | ||||||
| Total Assets | $ | 514,586 | $ | 490,424 | ||||
| Liabilities and Equity | ||||||||
| Corporate borrowings | $ | 15,157 | $ | 14,232 | ||||
| Accounts payable and other | 62,248 | 60,223 | ||||||
| Non-recourse borrowings of managed entities | 244,052 | 220,560 | ||||||
| Subsidiary equity obligations | 3,763 | 4,759 | ||||||
| Deferred income tax liabilities | 26,286 | 25,267 | ||||||
| Equity | ||||||||
| Non-controlling interests | $ | 116,423 | $ | 119,406 | ||||
| Preferred equity | $ | 4,103 | 4,103 | |||||
| Common equity | 42,554 | 163,080 | 41,874 | 165,383 | ||||
| Total Equity | 163,080 | 165,383 | ||||||
| Total Liabilities and Equity | $ | 514,586 | $ | 490,424 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS
| Unaudited |
||||||||||||
| For the periods ended |
Three Months Ended |
Nine Months Ended |
||||||||||
| (US$ millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenues | $ | 18,917 | $ | 20,623 | $ | 54,944 | $ | 66,580 | ||||
| Direct costs1 | (11,941 | ) | (12,934 | ) | (34,317 | ) | (46,222 | ) | ||||
| Other income and gains | 1,028 | 711 | 1,646 | 1,195 | ||||||||
| Equity accounted income | 543 | 184 | 1,529 | 1,695 | ||||||||
| Interest expense | ||||||||||||
| – Corporate borrowings | (188 | ) | (190 | ) | (555 | ) | (544 | ) | ||||
| – Non-recourse borrowings | ||||||||||||
| Same-store | (4,320 | ) | (4,142 | ) | (12,330 | ) | (12,092 | ) | ||||
| Dispositions, net of acquisitions2 | 421 | — | 905 | — | ||||||||
| Upfinancings2 | (227 | ) | — | (748 | ) | — | ||||||
| Corporate costs | (18 | ) | (20 | ) | (56 | ) | (56 | ) | ||||
| Fair value changes | (736 | ) | (166 | ) | (763 | ) | (761 | ) | ||||
| Depreciation and amortization | (2,691 | ) | (2,410 | ) | (7,680 | ) | (7,320 | ) | ||||
| Income tax | (504 | ) | (138 | ) | (1,021 | ) | (723 | ) | ||||
| Net income | 284 | 1,518 | 1,554 | 1,752 | ||||||||
| Net (income) loss attributable to non-controlling interests | (65 | ) | (1,454 | ) | (990 | ) | (1,543 | ) | ||||
| Net income attributable to Brookfield shareholders | $ | 219 | $ | 64 | $ | 564 | $ | 209 | ||||
| Net income per share3 | ||||||||||||
| Diluted | $ | 0.08 | $ | 0.01 | $ | 0.19 | $ | 0.04 | ||||
| Basic | 0.08 | 0.01 | 0.20 | 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
September 30, 2025 . - Adjusted to reflect the three-for-two stock split completed on
October 9, 2025 .
SUMMARIZED FINANCIAL RESULTS
| DISTRIBUTABLE EARNINGS | ||||||||||||
| Unaudited | ||||||||||||
| For the periods ended |
Three Months Ended | Last Twelve Months Ended | ||||||||||
| (US$ millions) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Asset management | $ | 687 | $ | 694 | $ | 2,715 | $ | 2,600 | ||||
| Wealth solutions | 420 | 364 | 1,662 | 1,182 | ||||||||
| BEP | 113 | 107 | 446 | 423 | ||||||||
| BIP | 89 | 84 | 351 | 331 | ||||||||
| BBU | 6 | 9 | 26 | 36 | ||||||||
| BPG | 147 | 166 | 853 | 722 | ||||||||
| Other | 11 | (10 | ) | 28 | (48 | ) | ||||||
| Operating businesses | 366 | 356 | 1,704 | 1,464 | ||||||||
| Corporate costs and other | (140 | ) | (155 | ) | (696 | ) | (664 | ) | ||||
| Distributable earnings before realizations1 | 1,333 | 1,259 | 5,385 | 4,582 | ||||||||
| Realized carried interest, net | 154 | 61 | 580 | 395 | ||||||||
| Disposition gains from principal investments | — | 5 | 62 | 1,003 | ||||||||
| Distributable earnings1 | $ | 1,487 | $ | 1,325 | $ | 6,027 | $ | 5,980 | ||||
- Non-IFRS measure – see Non-IFRS and Performance Measures section on page 9.
| RECONCILIATION OF NET INCOME TO DISTRIBUTABLE EARNINGS | ||||||||||||
| Unaudited | ||||||||||||
| For the periods ended |
Three Months Ended | Last Twelve Months Ended | ||||||||||
| (US$ millions) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net income | $ | 284 | $ | 1,518 | $ | 1,655 | $ | 4,886 | ||||
| Financial statement components not included in DE: | ||||||||||||
| Equity accounted fair value changes and other | 812 | 1,158 | 3,533 | 3,328 | ||||||||
| Fair value changes and other | 917 | 179 | 2,819 | 2,516 | ||||||||
| Depreciation and amortization | 2,691 | 2,410 | 10,097 | 9,747 | ||||||||
| Disposition gains in net income | (1,241 | ) | (430 | ) | (2,505 | ) | (4,999 | ) | ||||
| Deferred income taxes | (57 | ) | (324 | ) | (396 | ) | (839 | ) | ||||
| Non-controlling interests in the above items1 | (2,129 | ) | (3,252 | ) | (9,905 | ) | (10,074 | ) | ||||
| Less: realized carried interest, net | (154 | ) | (61 | ) | (580 | ) | (395 | ) | ||||
| Working capital, net | 210 | 61 | 667 | 412 | ||||||||
| Distributable earnings before realizations2 | 1,333 | 1,259 | 5,385 | 4,582 | ||||||||
| Realized carried interest, net | 154 | 61 | 580 | 395 | ||||||||
| Disposition gains from principal investments | — | 5 | 62 | 1,003 | ||||||||
| Distributable earnings2 | $ | 1,487 | $ | 1,325 | $ | 6,027 | $ | 5,980 | ||||
- DE is a non-IFRS measure proportionate to the interests of shareholders and therefore excludes items in income attributable to non-controlling interests in non-wholly owned subsidiaries.
- Non-IFRS measure – see Non-IFRS and Performance Measures section on page 9.
EARNINGS PER SHARE
| Unaudited | ||||||||||||
| For the periods ended |
Three Months Ended | Last Twelve Months Ended | ||||||||||
| (millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net income | $ | 284 | $ | 1,518 | $ | 1,655 | $ | 4,886 | ||||
| Non-controlling interests | (65 | ) | (1,454 | ) | (659 | ) | (3,978 | ) | ||||
| Net income attributable to shareholders | 219 | 64 | 996 | 908 | ||||||||
| Preferred share dividends1 | (42 | ) | (43 | ) | (165 | ) | (170 | ) | ||||
| Net income available to common shareholders | 177 | 21 | 831 | 738 | ||||||||
| Dilutive impact of exchangeable shares of affiliate | 3 | — | 12 | 11 | ||||||||
| Net income available to common shareholders including dilutive | ||||||||||||
| impact of exchangeable shares | $ | 180 | $ | 21 | $ | 843 | $ | 749 | ||||
| Weighted average shares4 | 2,244.0 |
2,262.7 |
2,251.8 |
2,280.3 |
||||||||
| Dilutive effect of conversion of options, escrowed shares2 and | ||||||||||||
| exchangeable shares of affiliate3,4 | 123.8 | 48.6 | 120.3 | 92.3 | ||||||||
| Shares and share equivalents4 | 2,367.8 | 2,311.3 | 2,372.1 | 2,372.6 | ||||||||
| Diluted earnings per share4 | $ | 0.08 | $ | 0.01 | $ | 0.36 | $ | 0.32 | ||||
- Excludes dividends paid on perpetual subordinated notes of
$3 million (2024 –$3 million ) and$10 million (2024 –$10 million ) for the three and twelve months endedSeptember 30, 2025 , which are recognized within net income attributable to non-controlling interests. - Dilution of management share option plan and escrowed stock plan measured using treasury stock method.
- Due to its anti-dilutive effect on EPS for the three months ended
September 30, 2024 , the exchange of BWS Class A shares has been excluded from the diluted EPS calculation. - Adjusted to reflect the three-for-two stock split completed on
October 9, 2025 .
Additional Information
The Letter to Shareholders and the company’s Supplemental Information for the three and twelve months ended
The statements contained herein are based primarily on information that has been extracted from our financial statements for the periods ended
Brookfield Corporation’s Board of Directors has reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.
Information on our dividends can be found on our website under Distributions.
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Corporation’s 2025 Third Quarter Results as well as the Shareholders’ Letter and Supplemental Information on Brookfield Corporation’s website under the Reports & Filings section at www.bn.brookfield.com.
To participate in the Conference Call today at
About Brookfield Corporation
We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization.
Please note that Brookfield Corporation’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+ and can also be found in the investor section of its website at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
For more information, please visit our website at www.bn.brookfield.com or contact:
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Media:
Tel: (212) 618-3469 Email: [email protected] |
Investor Relations:
Tel: (416) 359-8544 Email: [email protected] |
Non-IFRS and Performance Measures
This news release and accompanying financial information are based on IFRS Accounting Standards, as issued by the IASB, unless otherwise noted.
We make reference to Distributable Earnings (“DE”). We define DE as the sum of distributable earnings from our asset management business, distributable operating earnings from our wealth solutions business, distributions received from our ownership of investments, realized carried interest and disposition gains from principal investments, net of earnings from our Corporate Activities, preferred share dividends and equity-based compensation costs. We also make reference to DE before realizations, which refers to DE before realized carried interest and realized disposition gains from principal investments. We believe these measures provide insight into earnings received by the company that are available for distribution to common shareholders or to be reinvested into the business.
Realized carried interest and realized disposition gains are further described below:
- Realized
Carried Interest represents our contractual share of profits generated within a private fund after achieving our clients’ minimum return requirements. Realized carried interest is determined on third-party capital that is no longer subject to future investment performance. - Realized Disposition Gains from Principal Investments are included in DE because we consider the purchase and sale of assets from our directly held investments to be a normal part of the company’s business. Realized disposition gains include gains and losses recorded in net income and equity in the current period, and are adjusted to include fair value changes and revaluation surplus balances recorded in prior periods which were not included in prior period DE.
We use DE to assess our operating results and the value of Brookfield Corporation’s business and believe that many shareholders and analysts also find this measure of value to them.
We may make reference to Operating Funds from Operations (“Operating FFO”). We define Operating FFO as the company’s share of revenues less direct costs and interest expenses; excludes realized carried interest and disposition gains, fair value changes, depreciation and amortization and deferred income taxes; and includes our proportionate share of FFO from operating activities recorded by equity accounted investments on a fully diluted basis.
We may make reference to Net Operating Income (“NOI”), which refers to our share of the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business. We present this measure as we believe it is a key indicator of our ability to impact the operating performance of our properties. As NOI excludes non-recurring items and depreciation and amortization of real estate assets, it provides a performance measure that, when compared to prior periods, reflects the impact of operations from trends in occupancy rates and rental rates.
We disclose a number of financial measures in this news release that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include DE, should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures or other financial metrics are not standardized under IFRS and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.
We provide additional information on key terms and non-IFRS measures in our filings available at www.bn.brookfield.com.
End Notes
- Consolidated basis – includes amounts attributable to non-controlling interests.
- Excludes amounts attributable to non-controlling interests.
- See Reconciliation of Net Income to Distributable Earnings on page 6 and Non-IFRS and Performance Measures on page 9.
- Per share amounts have been adjusted to reflect BN’s three-for-two stock split completed on
October 9, 2025 .
Notice to Readers
This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the
Although
We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release or such other date specified herein. Except as required by law,
Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).
Target returns and growth objectives set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by
No statements contained herein with respect to tax consequences are intended to be, or should be construed to be, legal or tax advice, and no representation is made with respect to tax consequences. Shareholders are urged to consult their legal and tax advisors with respect to their circumstances.
When we speak about our wealth solutions business or Brookfield Wealth Solutions, we are referring to Brookfield’s investments in this business that supported the acquisitions of its underlying operating subsidiaries.
Source:
| Title | Document |
|---|---|
English |