Brookfield posts 15% EPS growth as fundraising hits record $98 billion

Brookfield Corporation reported second-quarter distributable earnings before realizations of $1.43 billion, up 15% per share, as record fundraising lifted deployable capital to $210 billion.

"Our business performed well in the second quarter, with continued momentum driving 15% growth in earnings per share," Nick Goodman, president of Brookfield Corporation, said.

Distributable earnings before realizations reached $1.43 billion, or $0.61 per share, for the three months ended June 30, versus $1.25 billion, or $0.53 per share, a year earlier. Total distributable earnings, including $121 million of realized carried interest, came to $1.55 billion, or $0.66 per share, beating the 65-cent consensus. Net income attributable to shareholders was $364 million, while total consolidated revenue reached $19.4 billion.

The results give investors their first look at Brookfield's growth trajectory after a dealmaking spree that added Just Group and Oaktree. The company raised a record $98 billion in the first half, deployed $100 billion and monetized $40 billion of assets, leaving $210 billion of deployable capital to invest.

Asset Management led the quarter, with fee-related earnings up 20 percent from a year earlier on record inflows of $77 billion, lifting fee-bearing capital to $672 billion. Wealth Solutions earnings rose 23 percent, supported by organic inflows, growth in net investment income and the first full-quarter contribution from Just Group, the U.K. pension risk transfer firm acquired in April for $3.2 billion. Brookfield completed its acquisition of Oaktree in early August, expanding its credit platform.

The operating businesses generated resilient cash flows from contracted, inflation-linked revenues, with high occupancy across the real estate portfolio. Earnings from realizations were $121 million for the quarter and $520 million over the last twelve months.

The board declared a quarterly dividend of $0.07 per share, payable Sept. 29 to shareholders of record Sept. 14. Brookfield shares traded near $44.80, within a 52-week range of $37.93 to $49.57. BMO Capital Markets rates the stock a Buy with a $50 price target, while Morgan Stanley also rates it a Buy with a $59 target.

The record deployable capital positions Brookfield to invest at scale as it integrates Oaktree and Just Group, with shareholders having approved a simplification transaction in July. Investors will watch the next earnings call for evidence that the expanded credit and insurance platforms are translating into fee-related earnings growth.

This article is for informational purposes only and does not constitute investment advice.