Brookfield Finance Inc. (BNH) is a financial entity that primarily engages in the provision of debt securities. Incorporated on March 31, 2015, under the Business Corporations Act (Ontario), it is an indirect wholly-owned subsidiary of Brookfield Corporation, a leading global alternative asset manager with over $1 trillion in assets under ...Brookfield Finance Inc. (BNH) is a financial entity that primarily engages in the provision of debt securities. Incorporated on March 31, 2015, under the Business Corporations Act (Ontario), it is an indirect wholly-owned subsidiary of Brookfield Corporation, a leading global alternative asset manager with over $1 trillion in assets under management. Brookfield Finance operates within the financial services sector, specifically in credit services, and is headquartered at Brookfield Place in Toronto, Canada. As a financing vehicle, it likely issues debt securities to raise capital for the broader Brookfield group, leveraging the parent company's strong credit ratings and reputation. The CEO of the parent company is James Bruce Flatt, who also serves as CEO of Brookfield Corporation. The company has a small employee base, likely with a focus on financial structuring and capital markets activities. While specific financial details are limited, the parent company's scale and expertise in real estate, infrastructure, renewable power, and private equity provide a robust backdrop. Brookfield Finance's operations are integral to the group's capital-raising efforts, contributing to the overall financial stability and growth of Brookfield Corporation. The company is listed on the New York Stock Exchange under the ticker BNH, with its IPO in October 2020. It maintains a strong presence in the financial markets, supported by the parent company's global investment strategies and extensive network across over 50 countries.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$76.1B
-11.5%
+4.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.3B
+103.9%
+252.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+38.8%
+84.6%
-55.8%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+28.6%
+36.7%
+1.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.7%
+130.4%
+236.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$0
+100.0%
+68.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
0.0%
+100.0%
+69.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
654.0%
+28.1%
-0.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.14x
+75.5%
-33.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and welcome to the Brookfield Corporation's Second Quarter 26 Conference Call and Webcast. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference call over to our first speaker, Ms. Katie Battaglia, Vice President, Investor Relations. Please go ahead.
Katie Battaglia: Thank you, operator, and good morning. Welcome to Brookfield Corporation's Second Quarter 26 Conference Call. On the call today are Bruce Flatt, our Chief Executive Officer Nick Goodman, President of Brookfield Corporation and Sachin Shah, Chief Executive Officer of our wealth solutions business. Bruce will start off by giving a business update followed by Nick, who will discuss our financial and operating results for the quarter. And finally, Sachin will provide an update on our Wealth Solutions business. After our formal comments, we will turn the call over to the operator and take analyst questions. In order to accommodate all those who want to ask questions, we request that you refrain from asking more than 2 questions. I would like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward looking statements. Including forward looking statements within the meaning of applicable Canadian and U.S. securities laws. These statements reflect predictions of future events and trends and do not relate to historic events. They are subject to known and unknown risks and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. In addition, when we speak about our wealth solutions business or Brookfield Wealth Solutions, we are referring to Brookfield Investments in this business that supported the acquisition of its underlying operating subsidiaries. With that, I will turn the call over to Bruce.
James Bruce Flatt: Thank you, Katie, and welcome to the call. Our business performed well in the second quarter and through the first half. Distributable earnings before realizations increased 15% year over year to $1.4 billion in the quarter, and $5.7 billion for the last 12 months. In the first half of the year, we were active. We raised $98 billion of capital, deployed 100 billion into opportunities, and monetized $40 billion of assets while a further $130 billion of assets were financed. We advanced several important strategic initiatives. We expanded our insurance …
