Brookfield BRP Holdings Canada 4.625% Perpetual Subordinated Notes Q2 FY2025 earnings call

• Successful quarter with strong financial results and execution of business plans. - Over 12 months, 7.7 gigawatts of new renewable energy capacity commissioned globally. - Westinghouse's Nuclear Services business had strong results, benefiting from growth in nuclear power. - U.S. policy changes with the One Big Beautiful Bill, and deployment of safe harboring strategy to secure credit eligibility for nearly all U.S. projects through end-2029. - Over 230 gigawatt pipeline of projects including significant battery storage, hydro facilities, and Westinghouse nuclear services. - Ended quarter with $4.7 billion of available liquidity, strong balance sheet, and successfully completed $19 billion of financings year-to-date.

Hydroelectric segment: FFO up over 50% from prior year, driven by strong performance in U.S. and Colombian fleets with hydrology above long-term average, contributing significantly. Wind and solar segments: FFO essentially flat, with newly commissioned capacity and investment offset by lower FFO from asset dispositions and gains on sale of development assets. Distributed energy, storage and sustainable solutions segment: FFO up almost 40% year-over-year, driven by strong results from Westinghouse.

• Expect to deliver 10%-plus FFO per unit growth for the year. - Anticipate total asset sales proceeds in 2025 to exceed last year with returns at or above targets. - Aim for 12%-15% long-term total returns for investors.

• Forward-looking statements subject to known and unknown risks, future results may differ materially. - Potential changes in tax credit eligibility for U.S. renewables projects. - Challenges with interconnection and land procurement in some markets affecting project development.

Q: Congrats on strong quarter, any acceleration of development in PJM area due to recent auction?

A: Pulling forward development as much as possible, using M&A and framework agreements with large buyers to leverage supply-demand imbalance.

Q: Development pipeline timing in North America, purely timing?

A: Yes, based on individual projects' interconnection and COD dates.

Q: How big tech companies balance base load vs intermittent renewable energy?

A: Increasing demand for 24/7 power and capacity components, leveraging Brookfield's diverse technologies.

Q: Thoughts on Trump's executive order and tax credit eligibility?

A: Monitor review, confident in position to secure eligibility for U.S. pipeline.

Q: Hydro M&A environment in U.S. for Google framework?

A: Hydro market becoming more liquid, disciplined approach with optionality.

Q: Adapting to U.S. market challenges like interconnection, shifting to other regions?

A: Already consider interconnection in development, bought Urban Grid for preferential queue positions.

Q: Battery deployment markets and IRR?

A: U.S. top, but other markets like Australia, Europe, Middle East also have opportunities, batteries have attractive IRR now.

Q: Safe harbor business, how much safe harbored in 2024 and prior?

A: Vast majority already completed, modest CapEx for safe harboring.

Q: Key milestones for Westinghouse nuclear development?

A: Growth in U.S. with government goal of 10 new reactors by end of decade, progress in Europe.

Q: Changes in tech CapEx discussions and M&A in US renewables?

A: Increased appetite for new technologies, M&A activity expected to increase due to power demand and capital needs.