BROOKFIELD Corp (BN)

Price$40.30Cached quoteAs of 2026-09-08 13:50 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong recurring earnings growth is already reflected in the valuation.

At the observed quote, Brookfield trades at about 17.5 times last-twelve-month distributable earnings before realizations of $2.39 per share. This measure estimates cash earnings available for distribution before irregular asset-sale gains. A 15-to-18-times range would place fair value from roughly 14% below to 3% above the observed quote. Continued high-single-digit or better per-share growth can justify today's multiple, but the price offers limited protection if growth slows or investors demand a lower multiple.

Big pictureCash generation improved, but heavy investment keeps simple free cash flow negative.

The supplied SEC-derived history shows operating cash flow rising to $11.0 billion in 2025 from $7.6 billion in 2024. However, capital spending reached $14.8 billion, leaving roughly $3.8 billion less cash after operating and investment spending; the same simple measure was negative by $3.6 billion in 2024 and $1.6 billion in 2023. Net income recovered to $1.31 billion from $641 million, while Brookfield's recurring distributable earnings are much higher. That gap makes conventional cash-flow valuation unusually uncertain.

Business strengthBrookfield has deep liquidity, diverse earnings engines, and growing fee-paying capital.

The supplied year-end figures show $16.2 billion of cash against $13.8 billion of reported debt, producing about $2.4 billion of net cash on that measure. Q2 2026 fee-bearing capital reached $672 billion, up 19%, while Wealth Solutions generated $480 million of quarterly distributable earnings, up 23%. Operating businesses added $361 million. This diversification supports earnings durability, although Brookfield's $519 billion asset base and $353 billion of liabilities reflect a complex consolidated structure where subsidiary financing and investment obligations require careful interpretation.

What could change the storyFaster fee growth or disciplined buybacks help, while costly expansion or dilution would hurt.

The bull case is continued double-digit growth from asset management and insurance, paired with repurchases when shares are cheap. Brookfield bought about $470 million of BN shares in early 2026, and outstanding shares fell from 2.245 billion at year-end to 2.234 billion by March. The bear case is capital intensity: investment spending already exceeds operating cash flow, while acquisitions and insurance expansion consume capital. Oaktree's roughly $3 billion purchase used cash and shares, although Brookfield designed related purchases to limit dilution. Slower fundraising or realizations would weaken today's valuation support.

AI: News

Second-quarter earnings riseRecurring earnings grew strongly as fundraising and insurance operations expanded, supporting the long-term growth case.

On August 13, Brookfield reported quarterly distributable earnings before realizations of $1.43 billion, or $0.61 per share, about 15% higher per share than a year earlier. Fee-bearing capital increased 19% to $672 billion after record quarterly fundraising of $77 billion, while deployable capital reached $210 billion. The shares rose about 1% that session but fell nearly 3% the following day, so the short-term market response was mixed and cannot reliably be attributed to earnings alone.

Oaktree acquisition completedFull ownership of Oaktree expands Brookfield's credit business but adds acquisition cost and integration risk.

Brookfield completed the Oaktree transaction on July 31 and announced it August 3, acquiring the remaining 26% it did not already own. Total consideration was approximately $3.0 billion, paid through cash and Brookfield Corporation and Brookfield Asset Management shares. The combined credit platform represents about $365 billion. BN rose roughly 2.4% on the announcement day, but that timing does not prove the transaction caused the move. Greater credit scale can lift future fee earnings, while purchase financing and integration determine the ultimate value created.

Corporate simplification approvedShareholders approved combining Brookfield and its insurance affiliate under one parent, reducing structural complexity.

On July 16, shareholders approved Brookfield's planned combination with Brookfield Wealth Solutions. Existing Brookfield shares and the insurance affiliate's exchangeable shares are intended to convert one-for-one into shares of a new parent trading as BN, subject to remaining approvals and closing conditions. Management says the simpler structure should give the growing insurance operation broader balance-sheet access and improve eligibility for major equity indexes. That could widen the shareholder base, but greater integration also makes insurance capital requirements more directly relevant to BN investors.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Revenue	$75.10B	$86.01B	$95.92B	$92.77B	$75.73B	$62.75B	$67.83B	$56.77B	$40.79B	$24.41B
Gross profit	$46.75B	$45.88B	$43.70B	$38.73B	$31.58B	$27.60B	$26.36B	$19.27B	$14.32B	$11.92B
Gross margin	62.25%	53.35%	45.56%	41.74%	41.70%	43.99%	38.87%	33.93%	35.12%	48.85%
Operating expenses	$56.97B	$67.94B	$81.41B	$78.51B	$64.00B	$53.18B	$52.73B	$45.52B	$32.39B	—
Operating income	$18.05B	$17.99B	$14.45B	$14.14B	—	—	—	—	—	—
Operating margin	24.03%	20.92%	15.06%	15.24%	—	—	—	—	—	—
EBITDA	$31.85B	$29.19B	$30.69B	$25.05B	—	—	—	—	—	—
EBITDA margin	42.41%	33.94%	32.00%	27.00%	—	—	—	—	—	—
Net income	$3.23B	$1.85B	$5.11B	$5.20B	$12.39B	$707.0M	$5.35B	$7.49B	$4.55B	$3.34B
Net profit margin	4.31%	2.15%	5.32%	5.60%	16.36%	1.13%	7.89%	13.19%	11.16%	13.67%
Basic EPSper basic share	$0.51	$0.21	$0.62	$1.22	$2.47	-$0.12	$1.78	$3.47	$1.37	$1.58
Diluted EPSper diluted share	$0.49	$0.20	$0.61	$1.19	$2.39	-$0.12	$1.73	$3.40	$1.34	$1.55