Brookfield BRP Holdings Canada 4.625% Perpetual Subordinated Notes Q1 FY2025 earnings call

• Energy fundamentals: Strong demand for energy globally with renewables being a critical part of the solution to meet demand. - Operating results: FFO per unit up 15% adjusted for prior year hydro, successful commissioning of ~800 MW, acquisitions of Naoen and National Grid Renewables, divestments of First Hydro and India portfolio stakes. - Supply chain: Diversified global portfolio and procurement network mitigate tariff impacts, focus on domestic US suppliers. - Financial position: Strong balance sheet with $4.5B liquidity, bond issuance in March, and unit repurchases year to date.

Hydroelectric segment benefits from favorable pricing, solid results, and healthy snowpack/reservoir levels. Wind and solar segments performed well with newly commissioned capacity and investments. Distributed energy, storage, and sustainable solutions segments saw FFO more than double due to solid performance and accretive capital recycling. Westinghouse continues to perform well with growing demand for nuclear power. Revenue contribution details: Hydroelectric, wind/solar, distributed energy/storage/sustainable solutions, and Westinghouse each contribute to the overall financials with specific performance metrics as discussed in the call.

• Expect to bring approximately 8 gigawatts online in 2025. - Continue to capitalize on market bifurcation for value acquisitions and monetization of derisked renewables platforms. - Aim for 12 to 15% long-term total returns for investors.

• Tariffs and supply chain volatility could impact costs and project timelines. - Public market valuation volatility may affect acquisition opportunities. - Permitting delays in the US for some projects could slow growth plans.

Q: Nelson Ng asks about permitting in the US and Microsoft framework agreements.

A: Connor Teskey responds that permitting in the US for some projects is slower but has minimal impact on the business, and Microsoft is the largest framework agreement with high interest in additional framework agreements.

Q: Sean Steuart inquires about solar pipeline in the US and Microsoft framework impact.

A: Connor Teskey states most US solar advanced stage capacity has secured equipment, and Microsoft's demand changes are minor with no impact on the framework agreement.

Q: Robert Hope asks about hydro recontracting strategy and public market acquisition opportunities.

A: Connor Teskey explains hydro recontracting pulls forward up financing opportunities, and public market opportunities are primarily North American with opportunities in carve-outs and acquisitions.

Q: Mark Jarvi asks about tariff risk management and supply chain impact.

A: Connor Teskey and Hannah Laboucheine discuss managing tariff risk through domestic strategies, equipment procurement, and contract adjusters, with minimal impact on the business.

Q: Christine Cho asks about contract clauses for tariffs and PPA adjusters.

A: Connor Teskey and Hannah Laboucheine explain how contracts are structured to derisk projects, with clauses for tariff and cost adjustments, and minimal delay impact.

Q: Benjamin Pham asks about Neon acquisition integration and Microsoft geographic evolution.

A: Connor Teskey discusses Neon acquisition integration priorities and Microsoft's data center needs evolving without major geographic shifts.