Brookfield Wealth Solutions (BNT) Margin Compression Challenges Bullish Earnings Growth Narrative

Brookfield Wealth Solutions (BNT) has wrapped up FY 2025 with Q4 revenue of about US$3.1b and basic EPS of roughly US$0.03, capping a year in which trailing 12 month revenue came in at US$11.6b and EPS at US$2.49. The company has seen quarterly revenue move between US$2.6b and US$3.1b across FY 2025, while basic EPS swung from a loss of US$0.90 in Q1 2025 to US$1.89 in Q3 2025 and US$0.03 in Q4 2025. This puts the focus on how consistently those earnings can convert into lasting profitability. With net profit margin easing over the last year and the most recent annual earnings slipping, the spotlight now is firmly on how sustainable the current margin profile really is.

See our full analysis for Brookfield Wealth Solutions.

With the headline numbers on the table, the next step is to see how this earnings print lines up against the widely followed Brookfield Wealth Solutions story, highlighting where the market narrative matches the data and where it gets pushed back.

Curious how numbers become stories that shape markets? Explore Community Narratives

Margins Slip From 8.6% To 6.6%

• Net profit margin over the last 12 months sat at 6.6%, compared with 8.6% a year earlier, on trailing revenue of about US$11.6b and net income of roughly US$766 million.
• Bears highlight the margin compression as a warning sign, and the numbers give them some support:
  • Trailing 12 month EPS was US$2.49, yet Q4 2025 net income was only US$8 million on US$3.1b of revenue, which is a much thinner quarter than the trailing average.
  • The most recent year also saw reported earnings contract relative to the prior year, which sits in contrast to the higher historical margin level of 8.6%.

Five Year EPS CAGR At 48.1%

• Over the last five years, earnings grew at about 48.1% per year on a trailing basis, even though trailing 12 month net profit margin eased to 6.6% and annual earnings declined in the most recent year.
• Bulls point to that 48.1% earnings growth history as their key anchor, and the current figures partly support that view:
  • Trailing 12 month EPS of US$2.49 and net income of US$766 million still sit on top of a relatively consistent revenue base that now totals about US$11.6b over the year.
  • At the same time, the step down from prior trailing net income of US$1.3b to US$766 million shows why some investors question how durable that five year growth rate really is.

Curious how this mix of strong five year growth and softer recent margins fits into the broader story that other investors are watching for Brookfield Wealth Solutions, and what they think it might mean for the next phase of the business? 📊 Read the full Brookfield Wealth Solutions Consensus Narrative.

P/E Of 19.1x Versus 12.3x Industry

• The shares trade on a trailing P/E of 19.1x, compared with 12.3x for the US Insurance industry and 13.3x for peers, while the current share price of US$47.60 also sits above a DCF fair value estimate of about US$46.36.
• Critics argue this premium looks demanding, and the current data gives them several points to work with:
  • The stock commands a roughly 6x P/E gap over the industry average even though net margin slipped from 8.6% to 6.6% over the last year.
  • The share price standing slightly above DCF fair value, alongside recent shareholder dilution, reinforces concerns that investors are paying up for past growth while near term profitability has cooled.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Brookfield Wealth Solutions's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Brookfield Wealth Solutions is carrying softer recent margins, a thinner Q4, and a premium 19.1x P/E compared with peers, which raises questions about valuation support.

If you are uneasy about paying up for cooling profitability, it could be worth checking out 55 high quality undervalued stocks that pair stronger value signals with more grounded expectations right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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