Brookfield Corporation (BN 3.85%) is coming off another strong year. The global investment firm grew its distributable earnings by 11% in 2025 to a record $5.4 billion. That helped support its ability to continue generating market-crushing total returns. Brookfield delivered a 21% return in 2025 (exceeding the S&P 500's 18% return) and has delivered a 19% annual return over the past three decades (outperforming the S&P 500's 11% average annual return). At that rate, Brookfield would have grown a $10,000 investment into more than $1.8 million over the last 30 years.
Here's a look at the company's strong performance in 2025, which should continue in 2026 and beyond.
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Another exceptional year
Brookfield Corporation's three platforms -- asset management, wealth solutions, and operating businesses -- had strong years. The company's asset management business grew its fee-bearing capital to $603 billion, driving a 22% increase in fee-related earnings to $3 billion. Meanwhile, its wealth solutions business grew its earnings by 24%, driven by strong investment performance and the continued expansion of its insurance asset base. Finally, Brookfield's operating businesses (infrastructure, renewable power, industrial services, and real estate) continue to generate growing cash flows.
The company sold a record $91 billion in assets last year, capitalizing on strong market conditions to cash in on the value created by its operations-oriented investment strategy. Meanwhile, it deployed $126 billion into new investments last year. Brookfield also repurchased over $1 billion of its shares at an average price of $36 (a 50% discount to its estimated intrinsic value of $68 per share). The company also continues to grow its dividend (it recently hiked the payout by 17%).
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Key Data Points
Building toward more value creation
Brookfield's strategy is to identify themes that enable it to invest capital into growing sectors. The most prominent theme it currently sees is the need for large-scale infrastructure to support AI growth. The company estimates that the world will need to invest $7 trillion over the next decade on data centers, power generation, compute infrastructure, grid modernization, fiber networks, and other related infrastructure. It's a massive opportunity that Brookfield is working to capitalize on by partnering with the best companies.
For example, Brookfield is partnering with Nvidia to build AI factories (purpose-built AI data centers). The semiconductor giant is a cornerstone investor in Brookfield's first AI Infrastructure Fund, which aims to invest up to $100 billion in AI infrastructure, including the construction of AI factories. Brookfield is also supporting the power needs of AI and cloud computing giants Microsoft and Google. It signed the largest-ever hydropower deal with Google and the biggest-ever power framework agreement with Microsoft.
Brookfield's thematic investment strategy positions it to grow its earnings per share by more than 20% annually over the next five years. That sets it up to achieve its long-term objective of delivering total returns of more than 15% annually.
This wealth-creating machine isn't slowing down
Brookfield Corporation has created tremendous value for its shareholders over the decades. It's in a strong position to continue enriching investors going forward. Its thematic investment approach has enabled it to home in on the AI infrastructure megatrend, which should drive robust growth over the next several years. With its share price currently trading well below its intrinsic value, Brookfield looks like a terrific investment today.
