Power Corporation: New CEO Delivers Continuity, But Simplification and Revaluation Are the Real Story

A Changing of the Guard, Not a Change in Course

James O'Sullivan, who became CEO on July 1, used his first earnings call to deliver a message of strategic continuity. He called out active ownership as the source of value, arguing that Power 'adds value vertically through the group ... and horizontally across the group.' His tone was unmistakable:

Power will maintain continuity and strategy and no major changes are anticipated.

That reassurance was backed by a strong quarter. CFO Jake Lawrence reported adjusted net earnings of $974 million, up 10% year-over-year, and record adjusted EPS of $1.55, a 12% jump. The quarter was powered by double-digit base earnings growth at Great-West and IGM, but the more striking move came from the private side of the portfolio, where Wealthsimple's fair value rose 15% and Sagard's rose 11%.

Revaluation and Simplification

The revaluation of Wealthsimple has become a recurring narrative, and this quarter the company added flow disclosure. On the Q&A, O'Sullivan confirmed that 'the value is revisited every quarter' and that the jump 'resulted in the 15% increase' “(2560901044970633430)” — James O’Sullivan, CEO · 2026-07-31. He also noted that he has served on Wealthsimple's board for two years and that 'momentum has never been stronger.' This transparency is an extension of a prior theme: on the May call, Jake Lawrence flagged that 'we're starting to enhance a bit of the disclosure around the business, given its size to Jeff's point' “(2679827922305110039)” — Jake Lawrence, CFO or Senior Financial Executive · 2026-05-13.

The bigger structural shift may be Simplification. Power agreed to sell its interest in LMPG, a small noncore stake, and O'Sullivan alluded to a longer runway: 'I think this is a multiyear journey. I think we're well into it. There is more to do' “(2411653930175358607)” — James O’Sullivan, CEO · 2026-07-31. That priority, combined with a new CEO's energy, suggests more portfolio cleanup ahead.

Another fresh signal is the AI Fund. Sagard launched a USD 150 million fund focused on AI infrastructure, cybersecurity, governance, and agentic workflows—a small but tangible step into frontier themes while the group continues returning cash.

The Discount, Buybacks, and the Value Creation Machine

Power's 20% discount to NAV remains the fulcrum of the thesis. O'Sullivan argued that as the company 'continues to demonstrate and communicate the value addition from its active ownership, the trading discount can and will meaningfully narrow.' He repeated a favorite framing: 'the one power share essentially gets an investor, 0.98 of a Great-West Life share and everything else for free.' That pitch is now backed by a materially stronger NAV trajectory—74% year-over-year NAV per share growth.

Buybacks remain a key tool. The company returned $1.5 billion to shareholders in H1. Notably, the new CEO hinted at a subtle shift in stance: 'I'm very happy to own more of IGM' “(256329462591681815)” — James O’Sullivan, CEO · 2026-07-31, suggesting Power is comfortable letting its ownership stakes drift upward—a meaningful change from prior quarters when it deliberately skipped IGM's buyback.

The fundamental story is unambiguous: the group is executing on its value creation strategy, and continued revaluation of private assets is creating real NAV per share uplift. One accounting quirk persists: Power consolidates Wealthsimple and doesn't mark up its own stake, so 'the more the thing goes up, the more we report losses' “(766634628367697452)” — Robert Orr, Executive (likely CEO or senior executive) · 2025-11-13. But with flow disclosure now out, investors have a clearer line of sight.

the forecast and the earnings of the business is as strong as it's been in the past several years and continues to grow well.

That's O'Sullivan describing Sagard's outlook—and it fits the entire Power platform: steady, compounding growth with a few genuinely new levers now being pulled. What changed isn't the strategy—it's the emphasis on simplification and the acceleration of private-asset revaluation. Power is becoming a more transparent, more NAV-levered story, and the market is beginning to take notice.