Brookfield Renews Buyback, Signaling Confidence in its $1T Empire

NEW YORK, NY – January 09, 2026 – Brookfield Asset Management (NYSE: BAM, TSX: BAM) has renewed its significant share repurchase program, a move signaling deep-seated confidence from the management of the trillion-dollar global asset manager. The firm announced it has received approval to renew its normal course issuer bid (NCIB), providing it the option to buy back up to 36,946,177 of its Class A Shares.

This figure represents approximately 10% of the company’s public float, a substantial commitment to returning capital to shareholders. The buyback program is scheduled to run for one year, from January 13, 2026, to January 12, 2027, with purchases to be executed on the open market via the New York and Toronto Stock Exchanges.

This decision arrives as investors and analysts closely watch how financial giants navigate a complex global economy. For Brookfield, the renewal is not just a financial maneuver; it is a clear statement on the perceived value of its own stock and its long-term strategic direction.

A Vote of Confidence in its Own Stock

The renewal of a share buyback program is often interpreted by the market as management believing its company's shares are undervalued. By repurchasing shares, a company reduces the total number of shares outstanding, which can mechanically boost key metrics like earnings per share (EPS), assuming profits remain steady or grow. For Brookfield, this move appears to be a direct attempt to address what some analysts see as a persistent gap between its stock price and its intrinsic net asset value (NAV).

Historically, Brookfield’s execution of these buyback programs has been disciplined and opportunistic rather than automatic. In the preceding bid, which expires January 12, 2026, the company purchased just over 6.5 million shares at an average price of US$54.14, utilizing only about 17.6% of its total authorization. Even more telling, in the period from January 2024 to January 2025, the firm did not repurchase any shares at all, despite having a similar program in place. This history suggests that Brookfield’s board and management use the NCIB as a flexible tool, deploying capital only when market prices present a compelling value proposition.

Analysts have noted that repurchasing shares at a significant discount to NAV can deliver powerful, low-risk returns for the remaining shareholders. With analyst price targets for BAM averaging above $63, the current trading levels below that mark may represent the opportune moment management has been waiting for. The buyback reinforces the company’s target of delivering 18% annual distributable EPS growth through 2029, a goal that becomes more achievable with a shrinking share count.

Balancing Buybacks, Dividends, and Growth

This share repurchase plan does not exist in a vacuum. It is a critical component of a sophisticated and multi-faceted capital allocation strategy. Brookfield is simultaneously rewarding shareholders through other means while aggressively funding future growth. The company recently announced a 15% increase in its quarterly dividend, underscoring its commitment to direct shareholder returns. While some metrics point to a high dividend payout ratio, the company’s stated policy is to distribute approximately 90% of its distributable earnings.

Crucially, this capital return strategy runs parallel to a period of massive investment. Brookfield has a staggering $125 billion in uncalled fund commitments and corporate liquidity of $2.6 billion as of its latest reporting. This war chest is being aimed at high-growth sectors, evidenced by the recent launch of a $100 billion AI infrastructure program and a $20 billion AI joint venture. These forward-looking investments are designed to secure long-term revenue streams and solidify Brookfield's position as a manager of assets that form the backbone of the global economy.

By leveraging its A-rated balance sheet to raise capital, such as the $750 million in 30-year notes issued in late 2025, the company maintains the financial firepower to pursue growth, pay dividends, and buy back its own stock. The NCIB, therefore, acts as a dynamic lever that management can pull when it represents the highest-return opportunity for its free cash flow, balancing immediate shareholder accretion with long-term strategic expansion.

The Mechanics of a Modern Buyback

To ensure the effective and compliant execution of its buyback, Brookfield has also implemented an automatic purchase plan. This is a crucial detail that speaks to the sophistication of its strategy. An automatic plan, typically structured under SEC Rule 10b5-1, allows the company to continue repurchasing shares even during internal trading black-out periods, such as the time leading up to an earnings release when insiders possess material non-public information.

This mechanism provides several advantages. It allows for consistent, systematic execution, which can mitigate the price volatility that large, ad-hoc purchases might cause. It also demonstrates a commitment to regulatory compliance and transparency, aligning with recent SEC amendments that require greater disclosure and good-faith operation of such plans. By presetting trading parameters or delegating authority to a third party, Brookfield can methodically reduce its share count and capitalize on favorable pricing without running afoul of insider trading regulations.

This structured approach is designed to improve the execution rate compared to past NCIBs, providing a more reliable source of support for the stock and enhancing the overall effectiveness of the capital return program. For investors, it provides a degree of assurance that the company has a disciplined plan to act on its conviction.

Navigating a Mixed Market View

While Brookfield’s management is clearly bullish on its own shares, the broader market sentiment remains mixed. The stock’s P/E ratio of over 33 is considered a premium compared to the capital markets industry average, and some valuation models suggest the stock is fairly or even over-valued. Warning flags from certain analytical models, such as a high Beneish M-Score, also call for investor caution.

However, the company’s peers in the alternative asset management space, including Blackstone and KKR, also actively use share repurchases as a key part of their capital allocation toolkit, indicating it is a standard and accepted industry practice for creating shareholder value. Brookfield’s financial health remains robust, with a strong Altman Z-Score indicating a low risk of bankruptcy and a relatively low debt-to-equity ratio.

The renewed NCIB, therefore, serves as a powerful counter-narrative to any market skepticism. It is a tangible deployment of capital that backs up management’s strategic vision and its belief that the long-term growth trajectory of its fee-generating assets is not fully reflected in its current public market valuation. The program gives Brookfield a flexible but potent tool to enhance shareholder returns as it continues to build out its global portfolio of essential real assets.