Overview
Our business performed well as investors continue to add to their investments in long-duration, essential-service, inflation-protected assets. This, combined with strong investment performance, resulted in robust growth across the franchise. Our asset management business remains on track for a record year of fundraising. We raised $25 billion of capital during the quarter, bringing total capital raised to $123 billion so far this year. Our wealth solutions business continued to scale, with earnings growing 22% and insurance assets approaching $200 billion. Our operating businesses performed well, supported by the growing demand for the goods and services they provide.
We advanced several important strategic initiatives. Westinghouse continues to build on its dominant position in the buildout of energy globally and in particular in the U.S., with the scale of the opportunity enhanced by the recently announced framework agreement between the U.S. and Korea to accelerate nuclear development in the U.S. In asset management, we were selected by a major institutional investor to manage a multi-decade investment portfolio — the most significant multi-asset mandate yet for our newly established Investment Solutions Group, which manages bespoke investment portfolios for our clients. Both are examples of the differentiated opportunities that our scale, operating expertise, and relationships allow us to pursue.
Transaction activity remained strong. We deployed $54 billion across the business and monetized $20 billion of assets during the quarter, further advancing us along the path to increased carried interest realization. At the same time, during the quarter, our share price traded off like most non-big technology securities. As a result, we were active with share repurchases, buying back $300 million of BN shares since we last reported, taking the total for the year to almost $900 million.
With $207 billion of deployable capital and opportunities abound, the outlook for business remains strong.
Normal Interest Rates Play to Our Strengths
The global economy remains resilient despite persistent geopolitical tensions. Higher energy prices have contributed to inflation and upward pressure on interest rates, while strong corporate earnings, sustained consumer spending, and significant investment in ai infrastructure continue to support economic growth. Despite the market's focus on short-term uncertainty, underlying economic fundamentals remain strong.
A world of more normalized interest rates, moderate inflation, and a resilient economy is an attractive backdrop for owning and operating real assets. Our high-quality real assets benefit from inflation-linked revenues, pricing power, and durable cash flows, which position them to perform well under these conditions.
Greater financing costs make leverage less attractive, reinforcing the advantage of our scale, operating capabilities, and access to long-duration capital. As a result, we can deploy capital when others are constrained, transact with greater certainty, and acquire assets on attractive terms, often with less competition.
At the same time, our Wealth Solutions business provides a natural economic hedge, benefiting from opportunities to deploy and reinvest capital at higher yields that more than offset higher financing costs elsewhere in our business. This backdrop is also supportive for fundraising, as institutional investors seek exposure to asset classes that have a proven ability to deliver inflation-protected returns over the long term.
Most importantly, our ability to generate attractive returns is not dependent on any particular interest rate environment. Our investment approach centers on acquiring high-quality businesses, improving operations, growing cash flows, and reinvesting capital at attractive returns. By creating value through operational improvements rather than relying on declining interest rates or expanding valuation multiples, we are positioned to compound value across all market cycles. For strong businesses, the current environment provides an attractive foundation for continued earnings growth, strong investment returns, and long-term shareholder value creation.
Investor Day Was Focused on the Future
We repositioned Brookfield for its next chapter of growth over the last several years. This included the separate listing of Brookfield Asset Management, the scaling of our institutional and private wealth capital channels, and the creation of a leading global wealth solutions business. With these moves, we have significantly enhanced our access to capital, while also strengthening our operating capabilities and deepening our relationships with leading institutions around the world.
The creation of New BN is the next step in Brookfield's evolution, bringing together our permanent capital and insurance float into a more efficient and flexible capital structure. This will provide us with the optionality to deploy capital into the generational opportunities ahead while maintaining the same disciplined approach to investing and risk management.
Taken together, our business is positioned to continue to grow earnings in excess of 15% annually, with additional earnings generated from carried interest as transaction activity increases, and from disciplined capital allocation and reinvestment. The scale and strength of our businesses, combined with our expanded access to capital and financial flexibility, provide a powerful foundation for continued growth. We are well positioned to deliver attractive returns and compound shareholder wealth for decades to come.
Asset Management has built an increasingly diversified global platform with a broad range of investment strategies, deep client relationships, and expanding product offerings that have supported record fundraising and a consistency of performance across market cycles. Our global scale, operating capabilities, and differentiated origination platform allow us to identify attractive investment opportunities, develop new strategies, and deliver solutions tailored to our clients' evolving needs. Looking ahead, we see significant opportunities to grow our flagship funds, scale complementary strategies, deepen strategic partnerships, and access new pools of capital, particularly from private wealth and retirement savings. Together, these opportunities leave us well positioned for the future and on track to double fee-bearing capital and fee-related earnings over the next five years.
Wealth Solutions has grown into a leading global retirement business, with nearly $200 billion of insurance assets and a strong foundation for further growth. We have established scalable platforms across North America and the U.K., and have begun expanding into Asia. The next step is to accelerate organic growth by broadening distribution and reaching more retirement savers. Aging populations and the growing need for retirement income provide a significant long-term tailwind. Our differentiated investment approach, combining a highly liquid portfolio with attractive real asset investments, enables us to generate strong risk-adjusted returns while operating with conservative capitalization and financial flexibility. With the platform now in place, our goal is to double the size of the business over the next five years, while continuing to compound capital at attractive returns.
Operating Businesses are positioned for accelerated growth, supported by powerful long-term tailwinds. Rising electricity demand is creating significant opportunities across energy, while ai and digitalization are driving unprecedented investment in data centers, compute, and related infrastructure. In real estate, strong tenant demand for high-quality assets combined with limited new supply has given us significant pricing power, supporting higher rents and cash flow growth. Our private equity business continues to benefit from demand for essential products and services, alongside opportunities to improve productivity and margins through technology and operational improvements. These trends position each of our operating businesses to deliver strong earnings growth over the long term.
Evolution is Essential
One of the most fundamental requirements for long-term success is the ability to evolve in response to a changing environment. In nature, survival and progress depend on adaptation. Through the process of evolution, organisms become better suited to their environment, with their strengths becoming more prevalent over successive generations. As environmental conditions change, so too must the characteristics that enable organisms to survive and thrive. Evolution, therefore, is not simply a process of improvement, but a continuous process of adaptation to remain relevant and viable.
The same principle applies to business. Markets evolve, customer expectations shift, technologies advance, and competitive landscapes are constantly reshaped. What drives success today may not be what sustains it tomorrow. Businesses that remain anchored to the conditions, strategies, and capabilities that once made them successful risk losing their relevance as the world around them changes. Long-term success, therefore, depends not only on the ability to perform well in the present, but on the willingness and capacity to continually adapt, transform, and evolve for the future.
The ability to evolve is one of the defining characteristics of businesses that endure and thrive over generations. It is the difference between becoming Berkshire Hathaway, or becoming Kodak Cameras. Recall that Amazon started as a bookseller, Alphabet was once only Google, Meta began as Facebook, and NVIDIA used its chips largely for gaming applications.
As for Brookfield, over the past 40+ years, we have adhered to the same very basic principles of investing — which are to invest to earn cash flows, with good people and partners, in good countries, and in world-class assets.
Despite a consistent approach to our business over this period, we have continually evolved our strategy as the world has changed. This is exemplified by the fact that approximately 50% of our total $1.3 trillion of assets under management are in asset classes that did not exist at investable scale 15 years ago.
Our business has evolved across the board — in our corporate form, capital structure, and investment sectors. Our funding model has evolved through the building of our alternative asset management business in the 2000s, the launch of our public affiliates in the 2010s, our insurance business in 2020, and our current focus on expanding access to private markets for individual investors. Our corporate structure has also changed as we created new businesses and adapted to changing capital markets.
Our investment focus has also evolved as infrastructure investment has expanded into new areas, including ai and the buildout of its supporting infrastructure, but the same is true of energy, alternative real estate, batteries, and telecom towers. Over 20 years, we have also moved ever so slowly into the infrastructure supporting technology but given that the physical world is now colliding head-on with technology, we are now at the heart of building the physical backbone that enables it, providing energy and compute infrastructure to the best companies globally and using that knowledge to invest around these themes. This also has the added benefit of allowing us to be at the forefront of using technology to make our businesses better.
It is the ability to continually adapt and evolve (not wholesale transformation) that makes the difference between good and great (or not so great) companies. Wholesale transformations work once in a while, but more often large mistakes are made during the process due to incorrect assumptions or flawed execution. On the other hand, a series of smaller, deliberate changes allow a company to adapt and learn over time. As a result, if successfully executed, this approach has a far greater chance of success.
Organizations cannot stop the world from changing. The best one can do is continually evolve. Great companies change before they need to. Lucky companies manage to adjust when the world turns against them and survive. The rest are left behind and eventually become just a name in history.
The Best is Yet to Come for Westinghouse
The electricity markets of most countries today are strained due to electrification of industry, lack of new-build generation capacity, reliance on foreign inputs, and years of neglect of grids. Solar, wind, gas, and other power sources are each important but cannot provide the same benefits as nuclear power. There is no other source of power that can be built which is baseload (runs all hours), can be built at scale (a two-unit nuclear plant produces ~2,300 MW), is carbon-free, can store fuel for up to five years on-site (enabling energy security and reliability unlike anything else) and can last up to 80 years (as close to perpetual as energy gets).
Nuclear plants currently form the critical backbone of energy infrastructure in many countries and are very critical to their reliability and resilience. But to meet the demands of electrification, energy security, and the buildout of ai infrastructure, more global nuclear capacity is needed. Westinghouse technology is used by roughly half of the world's operating nuclear reactors. The company also services over half of the global reactor fleet, with the majority of its cash flows today generated from recurring fuel supply and maintenance services.
Our new Westinghouse AP1000 technology builds on decades of safety records and, with the scaling up of manufacturing, can now be built at a scale, which should bring down both costs and construction timelines. Westinghouse is the design and engineering behind many of the most advanced and proven large-scale newly constructed reactors globally and it does not appear that anyone else will ever surpass them. Westinghouse has built six new reactors in the last few years, and the technology is operating at historically high levels of efficiency and safety.
Rarely have we owned a business that governments want to ensure are successful because it is critical to their country’s success. In particular, the U.S. government has been extremely helpful to Westinghouse in order to bring nuclear power online faster and at lower cost.
Building on our strategic partnership with the U.S. Department of Commerce announced last year, the U.S. Department of Energy announced a $17.5 billion commitment to finance the procurement of long-lead-time equipment for a further ten new large-scale reactors. By supporting early equipment procurement, this should materially lower execution risk, shorten development timelines, and establish a repeatable model for large-scale nuclear construction in the U.S. and around the world. It is already making a difference.
More recently, Westinghouse agreed to a multi-faceted deal with the Korean and U.S. governments. Korea will invest up to $120 billion into reactors constructed on U.S. federal lands. This is substantial progress on our deal announced last year and further brings the needed historic levels of new-build nuclear construction closer to reality. Second, Korea has agreed to bring its supply chain to the U.S. to scale up production of plants. We need more talented construction groups, and Korea has some excellent ones. Third, we will allow Korea to build one set of its own reactors, on a one-time exemption basis, in the U.S., and Westinghouse will earn enhanced licensing fees for this build as their technology uses Westinghouse's intellectual property, which Korean companies are currently not permitted to use in the U.S.
In total, Westinghouse has 14 reactors in various phases of construction, another 40 coming, and 80+ behind that. This is one of the largest buildouts of energy ever. This also does not include various other countries that are also restarting discussions with Westinghouse to build nuclear in their countries, given the benefits it provides to their energy systems.
Ai Has Immense Opportunity But Also Risks
Ai is the next wave of technology that is changing the world. This follows earlier waves including railways, automobiles, electricity, telephones, computers, internet, and mobile devices. What is clear is that we are in the midst of a transformation of how we live and do business. What is never clear is exactly how and when this will affect people and businesses.
There are many things that will not be recognizable in the future, and surely people will look back and find many of today’s activities quaint. This has been the case with all the above transformations, but the difference this time is that the speed and scale at which this is occurring are on another level.
What is less clear today is who will make money, how they will make it, and whether we are building too fast. These questions pose the greatest investment opportunity and threat of our lifetimes. It is the sheer scale and speed at which this is happening that creates the challenge and opportunity. The large language model (LLM) companies have decided that they need to move fast or they will be left behind. Whether this is true is the $5-10 trillion question. One thing is very clear this time: access to capital will be the ultimate decider in this story, and those who have it will win.
The good news is that this revolution is being led by companies that are as large as countries. This is very comforting, as these companies each have very profitable core businesses and are reinvesting profits from those businesses into this LLM race — and they can afford to do it. They may not like the outcome if it does not work out for them, but they will be fine financially. To remind you, many of the greatest businesses today went for years/decades without being profitable, but today they generate hundreds of billions in revenue. As an example, most television, radio, magazine, and other forms of advertising have transferred onto online platforms. This industry, which was worth zero at launch, has captured up to $5 trillion of value.
At Brookfield, on a selective basis, this backdrop offers some outstanding opportunities to earn excellent returns without taking undue risk. Importantly, we approach these opportunities no differently than we have approached investments for decades. We focus on assets backed by long-term contracts with high-quality counterparties, where we take limited or no technology risk and can earn attractive risk-adjusted returns.
We have decades of proven skills in building critical digital infrastructure, generating and connecting energy, raising large sums of money, and building relationships with the strongest in the world. As a result, our counterparty risk is very low when providing power, data centers, or compute to these technology titans, and the returns we are able to generate are good.
This is possible because not many have our scale, not many can put together the capital required, and not many have the ability to get the assets built. We have all three. While many can commit capital to large projects, actually developing and building them is very difficult. It requires experience, operating expertise, and execution capability.
We have spent decades building these capabilities across our businesses, and the combination of our investment expertise and operating capabilities allows us not only to identify and secure the best opportunities, but also to deliver them at scale. This has led, and continues to lead, to us being able to invest tens of billions into opportunities with very strong risk-adjusted returns.
In our own businesses, we are also in the midst of deploying these LLM technologies to enhance revenues, reduce costs, scale businesses and transform manufacturing. It is this deployment that is required to justify the expenditure on the LLM models and the intelligence they offer users. Our early use is powerful, and we are clearly only getting started. This is very impactful for our business as margins could improve not by 10%, but by quantums of that. The most impactful area for the world will be the use of ai in business to change the way business is done.
Our Private Equity Business is Operations Focused First
The private equity environment favors those with the operational capabilities that have long defined our approach. Higher interest rates, geopolitical uncertainty and shifting trade flows are driving investment across energy, infrastructure, manufacturing, and supply chains, while ai is reshaping competitive dynamics across industries. Against this backdrop, we see a significant investment opportunity in the physical economy, particularly for mission-critical businesses with durable demand, strong cash flows and opportunities for operational improvement.
Our investment strategy has remained consistent over several decades: acquire essential businesses with strong market positions and resilient cash flows, at attractive values, and improve them through operational execution. Our owner-operator approach provides us with deep sector knowledge and unique insights into the industries and markets in which we invest, allowing us to identify opportunities that others may overlook.
This is particularly valuable in corporate carve-outs and investments in industrial and heavy-asset services businesses, where our operating expertise allows us to better assess complexity, identify opportunities for improvement and underwrite investments with conviction. This combination of differentiated sourcing and operating capabilities allows us to acquire high-quality businesses at attractive prices and create significant value through active ownership.
This advantage is especially important today. Value creation increasingly depends on operational execution and earnings growth. As operators, we work alongside management teams to grow revenues, improve efficiencies, and strengthen the competitive positions of the businesses we own. This includes streamlining operations, optimizing procurement and pricing, and investing in new products and technologies. Increasingly, we are also deploying ai and digital capabilities across our businesses to enhance productivity, improve margins and create a stronger foundation for long-term growth.
We believe the next era of private equity returns will be shaped by those who can also deploy ai to deliver measurable improvements. The key will be combining technology with operating expertise to implement it effectively, which is why we joined a technology deployment partnership to assist our companies in moving from isolated ai pilots to enterprise-wide implementation across customer service, predictive maintenance, inventory management and internal workflows. This will allow us to combine leading technology and engineering capabilities with our extensive operating expertise and portfolio of businesses, enabling a unique opportunity to deploy ai at scale and drive meaningful improvements in productivity and profitability. Ai is not a replacement for our operating model, but a multiplier of the capabilities we have built over decades.
We believe that some of the most attractive private equity opportunities are in high-quality businesses across the physical economy. Our strategy has not changed. We acquire essential businesses for value and improve their operations, but increasingly our early access to new technologies makes us even more effective. By combining our sourcing capabilities and operating expertise with these technologies, we believe we can continue to generate attractive returns on capital for many years to come.
In Closing
We remain committed to investing capital for you in high-quality assets that earn solid cash returns on equity, while emphasizing downside protection for the capital employed. The primary objective of the company continues to be to generate increased cashflows on a per-share basis and, as a result, higher intrinsic value per share over the longer term.
Thank you for your interest in Brookfield, and please do not hesitate to contact any of us should you have suggestions, questions, comments, or ideas you wish to share.
Sincerely,
Bruce Flatt
Chief Executive Officer
November 12, 2026
Cautionary Statement Regarding Forward-Looking Statements and Information
All references to “$” or “Dollars” are to U.S. Dollars. This letter to shareholders contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect,” “anticipate,” “believe,” “foresee,” “could,” “estimate,” “goal,” “intend,” “plan,” “seek,” “strive,” “will,” “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this letter include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the anticipated allocation and deployment of our capital, our liquidity and ability to access and raise capital, our fundraising targets, our target growth objectives and our target carried interest.
Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, certain factors, risks and uncertainties, which are described from time to time in our documents filed with the securities regulators in Canada and the United States, not presently known to Brookfield, or that Brookfield currently believes are not material, could cause actual results to differ materially from those contemplated or implied by forward-looking statements.
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 letter. Except as required by law, Brookfield undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.
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 letter are for illustrative and informational purposes only and have been presented based on various assumptions made by Brookfield Corporation in relation to the investment strategies being pursued, any of which may prove to be incorrect. There can be no assurance that targeted returns or growth objectives will be achieved. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond Brookfield Corporation’s control, the actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns and growth objectives. No assurance, representation or warranty is made by any person that the target returns or growth objectives will be achieved, and undue reliance should not be put on them. All references to asset monetizations include completed transactions and transactions in the process of being completed.
Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While Brookfield Corporation believes that such information is accurate as of the date it was produced and that the sources from which such information has been obtained are reliable, Brookfield Corporation makes no representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of any of the information or the assumptions on which such information is based, contained herein, including but not limited to, information obtained from third parties.
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.
Cautionary Statement Regarding the Use of Non-IFRS Measures
This letter to shareholders contains references to financial measures that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include Distributable Earnings (as defined below), its components and its per share equivalent, 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 make reference to Distributable Earnings ("Cashflows"), which refers to 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 preferred share dividends and equity-based compensation costs. We also make reference to Distributable Earnings before realizations, which refers to Distributable Earnings before realized carried interest and disposition gains from principal investments, and net operating income, which refers to the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business. Our outlook for growth in Distributable Earnings assumes growth in fee-related earnings and realized carried interest in line with our business plans, which assume growth in our fee bearing capital consistent with our fundraising plans, capital deployment expectations, maintaining the fee rates we earn on fee bearing capital and earning margins consistent with our current margin. Actual results may vary materially and are subject to market conditions and other factors and risks set out above. For more information on non-IFRS measures and other financial metrics, see Brookfield Corporation’s Q3 2026 Press Release, which includes reconciliations of these non-IFRS financial measures to their most directly comparable financial measures calculated and presented in accordance with IFRS.