Performance Metrics - The company evaluates its performance using net income attributable to unitholders and Adjusted EFO, with Adjusted EFO being a key measure for assessing performance and resource allocation decisions [26]. - Adjusted EBITDA is defined as net income and equity accounted income at the company's economic ownership interest, excluding various expenses, and is critical for assessing overall operating performance [27]. - The company emphasizes the importance of understanding and evaluating core underlying financial performance through non-IFRS measures [28]. Financial Reporting - The financial information is presented in United States dollars and prepared in accordance with IFRS, with all figures being unaudited unless otherwise indicated [24]. Forward-Looking Statements - Forward-looking statements include expectations regarding operations, financial condition, and performance, with potential risks that could cause actual results to differ materially [32]. - The company cautions that forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ significantly [38]. - The company undertakes no obligation to publicly update or revise forward-looking statements except as required by law [38]. Risks and Uncertainties - Factors that could impact future results include economic conditions, competition, integration of acquisitions, and changes in laws or policies [34]. - The company is subject to various risks including labor disruptions, litigation, and cybersecurity incidents that could affect its operations [34]. - The company is subject to significant operational and business risks, including reliance on third-party service providers and potential catastrophic events such as earthquakes and pandemics [36]. - The company may face significant liabilities and penalties due to compliance with federal, state, and foreign anti-corruption and trade sanctions laws [36]. - Future sales or issuances of securities could result in dilution of existing holders, potentially depressing the trading price of LP Units or BBUC exchangeable shares [36]. - There is a risk of conflicts of interest between the company and its unitholders, particularly in relation to Brookfield's influence [36]. - The company may become regulated as an investment company under the Investment Company Act, which could impose additional operational constraints [36]. - Changes in tax law and practice could impact the company's financial performance and obligations [36]. - The lack of unitholder voting rights on management decisions may limit their influence over the company's operations [36]. Strategic Actions - The company has a diversified portfolio, including interests in business services, infrastructure services, and industrial operations [22]. - The company utilizes a Master Services Agreement with affiliates to provide various services, enhancing operational efficiency [25]. - The company has previously engaged in strategic actions such as spin-offs and special distributions to optimize its capital structure [25].

Group 1 - Brookfield Business Corporation has filed its 2024 annual report on Form 20-F, including audited financial statements for the year ended December 31, 2024, with the SEC and Canadian securities authorities [1] - The annual report and financial statements are available on the company's website and hard copies can be requested by shareholders free of charge [1][4] - Brookfield Business Partners operates as a global business services and industrials company, focusing on high-quality businesses that provide essential products and services [2] Group 2 - Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management's Private Equity Group, which manages over $1 trillion in assets [3] - Investors can choose to invest in Brookfield through either Brookfield Business Partners L.P. or Brookfield Business Corporation [2]

Core Insights - Brookfield Business Partners will host its Fourth Quarter 2024 Conference Call & Webcast on January 31, 2025, at 10:00 a.m. (ET) to discuss results and current business initiatives [2] - Results will be released on the same day prior to 8:00 a.m. (ET) and will be accessible on the company's website [2] - Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services [2][3] Company Overview - Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management's Private Equity Group [3] - Brookfield Asset Management is a leading global alternative asset manager with over $1 trillion of assets under management [3] - Investors can invest in Brookfield Business Partners through either a limited partnership (NYSE: BBU, TSX: BBU) or a corporation (NYSE, TSX: BBUC) [2]

Company Overview - Brookfield Business Partners L.P. (BBU) is a notable stock in the Business Services sector, which consists of 305 individual stocks and ranks 4 in the Zacks Sector Rank [2][4] - BBU currently holds a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperforming the market [3] Performance Metrics - Over the past 90 days, the Zacks Consensus Estimate for BBU's full-year earnings has increased by 20.3%, reflecting improved analyst sentiment [4] - Year-to-date, BBU has returned approximately 26.6%, outperforming the average gain of 25.3% for Business Services stocks [4] - In comparison, Klaviyo, Inc. (KVYO) has achieved a return of 34.2% since the beginning of the year, with a consensus EPS estimate increase of 343.8% over the past three months [5] Industry Context - BBU is part of the Business - Services industry, which includes 24 companies and currently ranks 75 in the Zacks Industry Rank; this industry has seen an average loss of 2.9% year-to-date [6] - In contrast, Klaviyo, Inc. belongs to the Technology Services industry, which has performed significantly better with a year-to-date increase of 55.1% and ranks 56 [6] Investment Outlook - Investors interested in Business Services stocks should monitor both Brookfield Business Partners L.P. and Klaviyo, Inc. for their continued strong performance [7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Brookfield Business Partners L.P. (BBU) - BBU has shown a price increase of 17.9% over the past four weeks, indicating growing investor interest [3] - The stock gained 37.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - BBU has a beta of 1.48, suggesting it moves 48% higher than the market in either direction [4] - The stock has a Momentum Score of B, indicating a favorable time to invest [5] - BBU has a Zacks Rank 1 (Strong Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - The stock is trading at a Price-to-Sales ratio of 0.04, meaning investors pay only 4 cents for each dollar of sales, indicating a reasonable valuation [6] Group 3: Additional Investment Opportunities - Besides BBU, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens to help identify potential winning stock picks based on various investing styles [8]

Core Viewpoint - Brookfield Business Partners L.P. (BBU) shows potential for upside based on analysts' price targets and earnings estimate revisions, with a mean price target of $29.46 indicating a 25% upside from the current price of $23.56 [1][12] Price Targets - The average price target for BBU is $29.46, with a range from $22.40 to $35, and a standard deviation of $5.39, indicating variability in analysts' estimates [2] - The lowest estimate suggests a decline of 4.9%, while the highest indicates a potential upside of 48.6% [2] Analyst Sentiment - Analysts show strong agreement on BBU's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][9] - The Zacks Consensus Estimate for the current year has increased by 20.3% over the past month, with two estimates rising and no negative revisions [10] Zacks Rank - BBU holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [11] Caution on Price Targets - While price targets are a common tool for investors, they should be approached with skepticism as they may not accurately predict stock price movements [5][8]

Core Viewpoint - Brookfield Business Partners L.P. (BBU) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Current-Quarter Estimate Revisions - For the current quarter, Brookfield Business Partners is expected to earn $1.26 per share, reflecting a decrease of 80.82% from the previous year [4]. - Over the last 30 days, the Zacks Consensus Estimate has increased by 21.26% due to two upward revisions and no negative changes [4]. Current-Year Estimate Revisions - For the full year, the expected earnings per share is $5.43, indicating a year-over-year decline of 16.33% [5]. - The consensus estimate for the current year has risen by 20.27% as two estimates have been revised upward with no negative revisions [5]. Favorable Zacks Rank - The positive estimate revisions have led to Brookfield Business Partners achieving a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance [6]. - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [6]. Bottom Line - Brookfield Business Partners shares have increased by 5.2% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [7].

Group 1 - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks is challenging, as they may lose momentum if their valuations exceed future growth potential [1] - A safer investment strategy involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [2] Group 2 - Brookfield Business Partners L.P. (BBU) is highlighted as a strong candidate for momentum investing, with a recent price increase of 1% over the past four weeks [3] - BBU has demonstrated significant momentum, gaining 21% over the past 12 weeks, and has a beta of 1.45, indicating it moves 45% more than the market [4] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest in BBU to leverage its momentum [5] Group 3 - BBU has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors and drive prices higher [6] - The stock is currently trading at a low Price-to-Sales ratio of 0.04, meaning investors pay only 4 cents for each dollar of sales, indicating a favorable valuation [6] - BBU is positioned for continued growth, with potential for fast-paced returns [7] Group 4 - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of winning stock picks [8]

Financial Performance - Total assets as of September 30, 2024, amounted to $80.3 billion, with revenues of $33.2 billion for the nine months ended September 30, 2024[185]. - For the three months ended September 30, 2024, net income was $1,735 million, compared to $49 million for the same period in 2023, representing a significant increase[248]. - Revenues for the three months ended September 30, 2024, decreased by $5,167 million to $9,232 million, primarily due to the sale of the road fuels operation[250]. - Net income for the three months ended September 30, 2024, was $1,735 million, compared to a loss of $69 million in the Corporate and Other segment[320]. - Net income for the nine months ended September 30, 2024, was $2,003 million, compared to $293 million in the same period of 2023[321]. - Adjusted EBITDA for the three months ended September 30, 2024, was $844 million, an increase of $189 million from $655 million in the same period of 2023[297]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $1,912 million, with Business Services contributing $615 million and Infrastructure Services contributing $446 million[321]. Revenue Segmentation - The business services segment generated revenues of $19.7 billion, while the infrastructure services segment contributed $2.8 billion, and the industrials segment accounted for $10.8 billion[186]. - The partnership operates through four segments: business services, infrastructure services, industrials, and corporate and other[181]. - The partnership's revenues are primarily derived from insurance revenues and net investment income from its residential mortgage insurer[190]. - The advanced energy storage operation contributed $443 million to Adjusted EBITDA for Q3 2024, compared to $150 million in Q3 2023[313]. Geographic Revenue Distribution - The United States represented $6.2 billion in revenues, followed by Europe at $5.0 billion and Australia at $4.2 billion for the nine months ended September 30, 2024[186]. Operational Highlights - The dealer software and technology services operation provides cloud-based software solutions, generating revenues through subscription-based services tailored for automotive retailers[192]. - The healthcare services operation in Australia operates 38 hospitals, primarily generating revenue from private health insurance funds and government-related bodies[194][195]. - The construction operation recognizes revenues based on the stage of completion, with significant exposure to economic conditions in Australia and the UK[196][197]. - The fleet management and car rental services maintain a fleet of over 116,000 vehicles, sustaining high contract renewal rates with corporate clients in Brazil[198]. - The Indian non-bank financial services operation serves over 163,000 customers with a distribution network of more than 567 branches[199]. Acquisitions and Dispositions - The partnership completed the sale of its road fuels operation for total consideration of $250 million, resulting in a pre-tax net gain of $483 million[233]. - On September 17, 2024, the partnership acquired Network, a leading payment processor in the Middle East and Africa, for $2.7 billion, with an equity share of approximately $156 million[234]. - The offshore oil services operation agreed to sell its shuttle tanker segment for approximately $1.9 billion, with expected proceeds of about $265 million after debt repayment[236]. Financial Condition and Risks - The partnership's financial condition and results of operations are subject to various risks, including economic conditions, competition, and regulatory changes[174]. - The cybersecurity incident in June 2024 caused disruptions but is not expected to materially impact the financial condition of the partnership[193]. Tax and Regulatory Matters - Current income tax expense for Q3 2024 increased by $65 million to $276 million, primarily due to a tax settlement in the advanced energy storage operation[262]. - Deferred income tax recovery for Q3 2024 increased by $286 million to $580 million, attributed to the recognition of IRA Credits[262]. - The global minimum top-up tax, effective January 1, 2024, is not anticipated to have a material impact on the financial position of the partnership[365]. Assets and Liabilities - Total liabilities decreased by $2,958 million to $60,895 million as of September 30, 2024, compared to $63,853 million as of December 31, 2023[266]. - Financial assets increased by $208 million to $13,384 million as of September 30, 2024, driven by higher mortgage and loans receivable[267]. - Accounts receivable decreased by $83 million to $6,480 million as of September 30, 2024, mainly due to the disposition of the road fuels operation[269]. - Inventory and other assets decreased by $606 million to $4,715 million as of September 30, 2024, primarily due to the disposition of the road fuels operation[270]. Cash Flow and Capital Expenditures - Cash flows provided by operating activities for the nine months ended September 30, 2024, were $2,333 million, an increase from $1,704 million for the same period in 2023[350]. - Total cash flow used in investing activities was $1,975 million for the nine months ended September 30, 2024, compared to $883 million for the same period in 2023, driven by capital expenditures[352]. - Capital expenditures for the nine months ended September 30, 2024, included $633 million in maintenance and $1,418 million in growth capital expenditures, compared to $498 million and $1,894 million in the same period of 2023[273]. Equity and Debt - The weighted average interest rate on outstanding debt was 7.6% as of September 30, 2024, with approximately 75% of non-recourse borrowings being fixed or hedged[339]. - The partnership has a revolving acquisition credit facility with Brookfield allowing borrowings of up to $1 billion, which remains undrawn as of September 30, 2024[342]. - The partnership's total capacity on bilateral credit facilities is $2.35 billion, with $365 million available as of September 30, 2024[341]. Segment Performance - Adjusted EFO in the business services segment for Q3 2024 was $245 million, an increase of 99% from $123 million in Q3 2023[300]. - Adjusted EFO in the infrastructure services segment for Q3 2024 was $61 million, a decrease of 42% from $106 million in Q3 2023[305]. - Adjusted EFO in the industrials segment for Q3 2024 was $356 million, an increase of 134% from $152 million in Q3 2023[311]. - Adjusted EFO in the corporate and other segment for Q3 2024 was $(80) million, an improvement from $(93) million in Q3 2023[315].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2024 increased to $844 million from $655 million in the prior year, benefiting from $296 million in production credits under the U.S. Inflation Reduction Act [7][26] - Adjusted EFO for the quarter was $582 million, including $131 million of net gains primarily related to the disposition of the road fuel operation [29] Business Line Data and Key Metrics Changes - The Industrial segment generated $500 million of adjusted EBITDA, supported by Brazilian water and wastewater services and advanced energy operations [30] - The Business Services segment generated $228 million of adjusted EBITDA, with strong performance from the residential mortgage insurer [31] - The Infrastructure Services segment generated $146 million of adjusted EBITDA, down from $228 million the previous year, impacted by the sale of Nuclear Technology Services [33] Market Data and Key Metrics Changes - The acquisition of Network International, a leading digital payment services provider in the Middle East, is expected to create a market-leading digital payments business [8][16] - The health care services operation in Australia is facing challenges due to an unsustainable cost structure from wage inflation [28] Company Strategy and Development Direction - The company is focused on capital recycling, generating over $350 million from distributions and monetizations, including the sale of a significant portion of Altera [9][10] - The integration of Network International with Magnati aims to create a champion in the high-growth payment solution space [19][20] - The company plans to continue investing in strategic acquisitions and reinvesting in existing operations to generate incremental returns [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sustainability of benefits from the Inflation Reduction Act, expecting similar annual benefits for Clarios [37] - The company is encouraged by the improving monetization environment, with increased interest in M&A activity and strategic buyers [45][48] - Management noted that while there is softness in select markets, overall business performance remains stable [27] Other Important Information - The company has invested about $9 billion alongside Brookfield's private equity business to acquire high-quality, mission-critical businesses [10] - The company has realized over $6 billion from the sale of 20 businesses, achieving a 3 times multiple of capital and an IRR of approximately 30% [11] Q&A Session Summary Question: Sustainability of Inflation Reduction Act benefits - Management expects annual benefits for Clarios to remain similar based on finalized regulations [37] Question: Current IPO environment and dual listing considerations for Clarios - Management is keeping all options open for Clarios and is encouraged by ongoing conversations [38] Question: Details on the Altera sale and remaining debt - The shuttle tanker business represents about half of Altera's EBITDA, with net debt at Altera around $550 million to $575 million [41] Question: Broader environment for monetization - The M&A environment is becoming more robust, with increased activity and interest in various sectors [45][46] Question: Headwinds faced by Scientific Games - There was softness in U.S. retail sales, but new contracts are expected to generate revenue in the coming years [50][54] Question: Transaction environment for BBU's strategy - The market is enabling for transaction activity, particularly for stable businesses generating sustainable cash flow [58][59]