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Core Viewpoint - Brookfield Business Partners intends to renew its normal course issuer bid for its limited partnership units and class A exchangeable subordinate voting shares, believing that their current trading prices do not fully reflect their value, making repurchase an attractive use of funds [1][2]. Summary by Sections Issuer Bid Details - The Toronto Stock Exchange has accepted Brookfield Business Partners' notice to renew its normal course issuer bid for its Units and Exchangeable Shares [1]. - As of August 8, 2025, there are 88,828,512 Units and 69,996,738 Exchangeable Shares outstanding [2]. - Brookfield Business Partners is authorized to purchase up to 4,441,425 Units and 3,499,836 Exchangeable Shares, which is 5% of the outstanding shares [2]. Purchase Limits and History - Under the current issuer bid, Brookfield may purchase up to 10,076 Units and 11,100 Exchangeable Shares daily, representing 25% of the average daily trading volume over the past six months [2]. - The previous issuer bid, which expires on August 18, 2025, allowed for the purchase of up to 3,714,088 Units, with 3,611,689 Units purchased at a weighted average price of US$22.54 as of August 8, 2025 [4]. - For the Exchangeable Shares, 2,957,523 were purchased under the previous bid at a weighted average price of US$25.93 [5]. Purchase Execution and Compliance - Purchases will be conducted through the TSX, NYSE, and alternative trading systems, with all acquired Units and Exchangeable Shares being cancelled [6]. - The company has established automatic repurchase plans to facilitate purchases during internal trading black-out periods, with the actual number and timing of purchases dependent on market conditions [7]. Company Overview - 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 [8]. - It is the flagship listed vehicle of Brookfield Asset Management's Private Equity Group, which manages over $1 trillion in assets [9].

Financial Performance Highlights - Net income attributable to Unitholders was $26 million, or $0.12 per limited partnership unit, compared to a net loss of $20 million, or a loss of $0.10 per unit, in the prior period[19] - Adjusted EBITDA increased to $591 million from $524 million in the prior period, which included $71 million of tax benefits from advanced energy storage operation[19] - Adjusted EFO was $234 million, or $1.11 per unit, compared to $289 million, or $1.33 per unit, in the prior period[19] - Corporate liquidity stood at $2,333 million, including $2,230 million of availability on credit facilities, and pro forma liquidity is approximately $2,900 million[19] Strategic Initiatives and Transactions - The company invested $56 million to repurchase 2.2 million units and shares at an average price of approximately $25 per unit and share[22] - Brookfield Business Partners completed the acquisition of Antylia Scientific for approximately $1.3 billion, with BBU investing $168 million for a 26% interest[22] - The company completed the sale of a partial interest in three businesses for units of a new evergreen fund with an initial redemption value of approximately $690 million, representing an 8.6% discount to NAV[22] - The company entered into a partnership to privatize First National Financial Corporation for $2.7 billion, with BBU's share expected to be approximately $145 million for an 11% interest[22] Balance Sheet and Liquidity - Total assets were $75,335 million as of June 30, 2025[23] - Non-recourse borrowings in subsidiaries of the partnership were $42,493 million[23] - Corporate borrowings were $1,116 million[23] - Total equity was $15,321 million[23]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section presents the CEO's commentary on an active quarter and highlights key financial metrics, including a significant turnaround in net income and increased Adjusted EBITDA [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Anuj Ranjan reported an active quarter with strategic divestitures, significant acquisitions, and unit repurchases, underscoring operational resilience and progress on value creation - Active quarter with agreements for partial interest sales in three businesses, **$300 million invested** to acquire two market-leading businesses, and repurchase of **2.2 million common equity units**[2](index=2&type=chunk) - Financial results demonstrate operational resilience in an uneven macroeconomic environment[2](index=2&type=chunk) - Progress on value creation plans and capital recycling initiatives supports compounding growth for investors[2](index=2&type=chunk) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) The company achieved a significant turnaround in net income attributable to Unitholders and a healthy increase in Adjusted EBITDA for the three months ended June 30, 2025 Key Financial Metrics (US$ millions, except per unit amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :--------------------------------: | :--------------------------------: | :-------------------------------: | :-------------------------------: | | Net income (loss) attributable to Unitholders | $26 | ($20) | $106 | $28 | | Net income (loss) per limited partnership unit | $0.12 | ($0.10) | $0.49 | $0.13 | | Adjusted EBITDA | $591 | $524 | $1,182 | $1,068 | - Adjusted EBITDA for the three months ended June 30, 2025, increased to **$591 million** from **$524 million** in the prior period, reflecting increased performance on a same-store basis and contribution from recently completed acquisitions[3](index=3&type=chunk) - Prior period results for Adjusted EBITDA included **$71 million** of contribution from disposed operations, such as the offshore oil services' shuttle tanker operation sold in January 2025[3](index=3&type=chunk) [Operational Update](index=1&type=section&id=Operational%20Update) This section provides a detailed breakdown of Adjusted EBITDA and Adjusted EFO performance across all operating segments, highlighting key drivers and impacts [Adjusted EBITDA by Segment](index=1&type=section&id=Adjusted%20EBITDA%20by%20Segment) Adjusted EBITDA by segment shows strong growth in Industrials and Business Services, while Infrastructure Services declined due to a strategic divestiture Adjusted EBITDA by Segment (US$ millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :--------------------------------: | :--------------------------------: | :-------------------------------: | :-------------------------------: | | Industrials | $307 | $213 | $611 | $441 | | Business Services | $205 | $182 | $418 | $387 | | Infrastructure Services | $109 | $157 | $213 | $300 | | Corporate and Other | ($30) | ($28) | ($60) | ($60) | | **Total Adjusted EBITDA** | **$591** | **$524** | **$1,182** | **$1,068** | - Industrials segment Adjusted EBITDA increased to **$307 million** (Q2 2025) from **$213 million** (Q2 2024), driven by strong operating performance in advanced energy storage, **$71 million in tax recoveries**, and contributions from recent acquisitions[4](index=4&type=chunk) - Infrastructure Services segment Adjusted EBITDA decreased to **$109 million** (Q2 2025) from **$157 million** (Q2 2024), primarily due to the sale of the offshore oil services' shuttle tanker operation in January 2025[6](index=6&type=chunk) [Adjusted EFO by Segment](index=2&type=section&id=Adjusted%20EFO%20by%20Segment) Adjusted EFO performance varied across segments, benefiting from lower corporate interest expense but impacted by higher interest in Industrials and prior period disposition gains Adjusted EFO by Segment (US$ millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :--------------------------------: | :--------------------------------: | :-------------------------------: | :-------------------------------: | | Industrials | $154 | $206 | $284 | $386 | | Business Services | $105 | $86 | $222 | $254 | | Infrastructure Services | $38 | $76 | $204 | $148 | | Corporate and Other | ($63) | ($79) | ($131) | ($168) | - Adjusted EFO benefited from **lower interest expense** due to a reduction in corporate borrowings compared to the prior period[6](index=6&type=chunk) - Industrials Adjusted EFO reflected the impact of **higher interest expense** related to the funding of a distribution received from the advanced energy storage operation[6](index=6&type=chunk) - Adjusted EFO in the prior period included **$103 million of net gains** related to the disposition of the Canadian aggregates production operation and the sale of public securities[6](index=6&type=chunk) [Strategic Initiatives](index=2&type=section&id=Strategic%20Initiatives) This section details the company's strategic activities, including capital recycling, significant acquisitions, and the ongoing unit repurchase program [Capital Recycling](index=2&type=section&id=Capital%20Recycling) The company completed the sale of partial interests in three businesses to a new evergreen fund, expecting approximately $690 million in cash redemption value within 18 months - Completed the sale of a partial interest in three businesses to a new evergreen private equity fund managed by Brookfield Asset Management[7](index=7&type=chunk) - BBU will receive units of the new evergreen fund with an initial redemption value of approximately **$690 million**, representing an **8.6% discount to net asset value (NAV)**[7](index=7&type=chunk) - The units are expected to be redeemed for cash within the **18-month period** following the initial close of the new evergreen fund[7](index=7&type=chunk) [Canadian Mortgage Lender Acquisition](index=2&type=section&id=Canadian%20Mortgage%20Lender%20Acquisition) A partnership was formed to privatize First National Financial Corporation for $2.7 billion, with BBU investing approximately $145 million for an 11% interest - Entered into a partnership to privatize First National Financial Corporation, a leading publicly-listed Canadian residential and multi-family mortgage lender, for **$2.7 billion**[8](index=8&type=chunk) - BBU's share of the equity funding is expected to be approximately **$145 million** for an **11% interest** in the business[8](index=8&type=chunk) - The transaction is expected to close later this year, subject to required approvals[8](index=8&type=chunk) [Specialty Consumables and Equipment Manufacturer Acquisition](index=2&type=section&id=Specialty%20Consumables%20and%20Equipment%20Manufacturer%20Acquisition) The acquisition of Antylia Scientific, a specialty consumables and equipment manufacturer, was completed for approximately $1.3 billion, with BBU investing $168 million for a 26% interest - Completed the acquisition of Antylia Scientific, a leading manufacturer and distributor of critical consumables and testing equipment serving life sciences and environmental labs, for approximately **$1.3 billion**[9](index=9&type=chunk) - BBU invested **$168 million** for a **26% interest** in Antylia Scientific[9](index=9&type=chunk) [Unit Repurchase Program](index=2&type=section&id=Unit%20Repurchase%20Program) The company repurchased 2.2 million units and shares for $56 million during the quarter, contributing to $157 million in year-to-date buybacks, with plans to renew the NCIB - Invested **$56 million** to repurchase **2.2 million units and shares** at an average price of approximately **$25 per unit/share** during the quarter[10](index=10&type=chunk) - Year-to-date, the buyback program has returned **$157 million** to owners through the repurchase of **6.5 million units and shares**[10](index=10&type=chunk) - The normal course issuer bid (NCIB) is planned for renewal upon its expiration later this month[10](index=10&type=chunk) [Capital & Liquidity](index=2&type=section&id=Capital%20%26%20Liquidity) This section details the company's robust corporate liquidity position, including available credit facilities and pro forma liquidity after recent transactions [Liquidity Position](index=2&type=section&id=Liquidity%20Position) The company ended the quarter with $2.3 billion in corporate liquidity, including $2.2 billion from credit facilities, with pro forma liquidity reaching $2.9 billion - Ended the quarter with approximately **$2.3 billion of liquidity** at the corporate level[11](index=11&type=chunk) - Corporate liquidity includes **$2.2 billion of availability** on credit facilities[11](index=11&type=chunk) - Pro forma for announced and recently closed transactions, corporate liquidity is approximately **$2.9 billion**[11](index=11&type=chunk) [Distributions & Dividends](index=2&type=section&id=Distributions%20%26%20Dividends) This section outlines the declared quarterly distributions for Brookfield Business Partners L.P. and corresponding dividends for Brookfield Business Corporation, including payment details [Brookfield Business Partners L.P. Distribution](index=2&type=section&id=Brookfield%20Business%20Partners%20L.P.%20Distribution) The Board declared a quarterly distribution of $0.0625 per unit for Brookfield Business Partners L.P., payable on September 29, 2025 - Quarterly distribution declared in the amount of **$0.0625 per unit**[13](index=13&type=chunk) - Payable on September 29, 2025, to unitholders of record as at the close of business on August 29, 2025[13](index=13&type=chunk) [Brookfield Business Corporation Dividend](index=7&type=section&id=Brookfield%20Business%20Corporation%20Dividend) Brookfield Business Corporation declared a quarterly dividend of $0.0625 per share, mirroring the L.P. distribution, payable on September 29, 2025 - Quarterly dividend declared in the amount of **$0.0625 per share**[36](index=36&type=chunk) - Payable on September 29, 2025, to shareholders of record as at the close of business on August 29, 2025[36](index=36&type=chunk) - Each exchangeable share of Brookfield Business Corporation is structured to provide an economic return equivalent to **one unit of Brookfield Business Partners L.P.**, with dividends targeted to match distributions[37](index=37&type=chunk) [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) This section provides investor resources, a company overview, conference call details, and crucial cautionary statements regarding forward-looking information and non-IFRS measures [Additional Information & Investor Resources](index=3&type=section&id=Additional%20Information%20%26%20Investor%20Resources) The Board approved the news release and financial statements, with additional investor resources like the Letter to Unitholders available online - The Board of Directors has reviewed and approved this news release, including the summarized unaudited interim condensed consolidated financial statements[14](index=14&type=chunk) - Brookfield Business Partners' Letter to Unitholders and Supplemental Information are available on the company's website under Reports & Filings[14](index=14&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) Brookfield Business Partners is a global business services and industrials company, the flagship listed vehicle for Brookfield Asset Management's Private Equity Group - 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 and benefit from a strong competitive position[15](index=15&type=chunk) - Investors can invest through Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN) or Brookfield Business Corporation (NYSE, TSX: BBUC)[15](index=15&type=chunk) - Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management's Private Equity Group, which manages over **$1 trillion of assets**[16](index=16&type=chunk) [Conference Call and Webcast Details](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Details) Second quarter 2025 results and related materials are available on the company's website, with a webcast and conference call held on August 1, 2025 - Second quarter 2025 results, Letter to Unitholders, and Supplemental Information are available on the company's website[18](index=18&type=chunk) - A results call was accessible via webcast on August 1, 2025, at 10:00 a.m. Eastern Time, with preregistration available for participants[19](index=19&type=chunk) - A replay of the webcast will be available on the company's website[19](index=19&type=chunk) [Cautionary Statements](index=8&type=section&id=Cautionary%20Statements) This section includes cautionary statements on forward-looking information, highlighting inherent risks, and clarifies Adjusted EBITDA as a non-IFRS supplemental measure - The news release contains forward-looking statements and information, which are predictive in nature and depend upon or refer to future events or conditions[45](index=45&type=chunk)[46](index=46&type=chunk) - Investors should not place undue reliance on forward-looking statements due to inherent assumptions, known and unknown risks, uncertainties, and other factors beyond the company's control[47](index=47&type=chunk) - Adjusted EBITDA is a Non-IFRS measure, useful for assessing financial performance but should not be considered in isolation or as a substitute for IFRS financial statements[51](index=51&type=chunk) [Forward-looking Statements and Information](index=8&type=section&id=Forward-looking%20Statements%20and%20Information) This subsection defines forward-looking statements, outlines associated risks and uncertainties, and clarifies the company's policy on updating such information - Forward-looking statements are predictive and relate to future events, conditions, operations, financial results, and strategic outlook, identified by words like 'expects,' 'anticipates,' 'plans,' and 'believes'[46](index=46&type=chunk) - Actual results may differ materially from forward-looking statements due to various factors, including economic conditions, interest rates, foreign exchange rates, inflation, competition, acquisitions, dispositions, and regulatory changes[47](index=47&type=chunk)[48](index=48&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[50](index=50&type=chunk) [Non-IFRS Measure](index=9&type=section&id=Non-IFRS%20Measure) This subsection clarifies Adjusted EBITDA as a non-IFRS supplemental measure for financial performance, not a substitute for IFRS statements, and defines 'Brookfield Business Partners' - Adjusted EBITDA is a non-IFRS measure, which may differ from definitions used by other entities[51](index=51&type=chunk) - It is presented as a useful supplemental measure to assist investors in assessing financial performance but should not be considered in isolation from or as a substitute for IFRS financial statements[51](index=51&type=chunk) - References to Brookfield Business Partners include Brookfield Business Partners L.P. and its subsidiaries, controlled affiliates, and operating entities[52](index=52&type=chunk) [Consolidated Financial Statements - Brookfield Business Partners L.P.](index=3&type=section&id=Consolidated%20Financial%20Statements%20-%20Brookfield%20Business%20Partners%20L.P.) This section presents Brookfield Business Partners L.P.'s unaudited interim condensed consolidated financial statements, including financial position, operating results, and non-IFRS measure reconciliation [Consolidated Statements of Financial Position](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) The consolidated financial position shows a slight decrease in total assets and a significant reduction in corporate borrowings for Brookfield Business Partners L.P. as of June 30, 2025 Consolidated Statements of Financial Position (US$ millions) | Item | As at June 30, 2025 | As at December 31, 2024 | | :------------------------------------ | :-------------------: | :---------------------: | | **Assets** | | | | Cash and cash equivalents | $3,329 | $3,239 | | Financial assets | $11,658 | $12,371 | | Accounts and other receivable, net | $7,148 | $6,279 | | Inventory and other assets | $5,808 | $5,728 | | Property, plant and equipment | $10,591 | $13,232 | | Deferred income tax assets | $1,959 | $1,744 | | Intangible assets | $19,158 | $18,317 | | Equity accounted investments | $2,397 | $2,325 | | Goodwill | $13,287 | $12,239 | | **Total Assets** | **$75,335** | **$75,474** | | **Liabilities** | | | | Corporate borrowings | $1,116 | $2,142 | | Accounts payable and other | $13,766 | $16,691 | | Non-recourse borrowings in subsidiaries | $42,493 | $36,720 | | Deferred income tax liabilities | $2,639 | $2,613 | | **Equity** | | | | Limited partners | $2,291 | $1,752 | | Non-controlling interests | $15,321 | $17,308 | | **Total Liabilities and Equity** | **$75,335** | **$75,474** | - Total Assets decreased slightly from **$75,474 million** at December 31, 2024, to **$75,335 million** at June 30, 2025[22](index=22&type=chunk) - Corporate borrowings significantly decreased from **$2,142 million** at December 31, 2024, to **$1,116 million** at June 30, 2025[22](index=22&type=chunk) [Consolidated Statements of Operating Results](index=4&type=section&id=Consolidated%20Statements%20of%20Operating%20Results) Operating results show a substantial revenue decrease but a significant improvement in net income attributable to limited partners for the three months ended June 30, 2025 Consolidated Statements of Operating Results (US$ millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------------: | :--------------------------------: | :-------------------------------: | :-------------------------------: | | Revenues | $6,695 | $11,946 | $13,444 | $23,961 | | Direct operating costs | ($5,465) | ($10,928) | ($10,867) | ($21,806) | | General and administrative expenses | ($271) | ($307) | ($582) | ($624) | | Interest income (expense), net | ($801) | ($778) | ($1,571) | ($1,574) | | Income (loss) before income tax | $70 | ($52) | $459 | $136 | | Net income (loss) | $135 | $65 | $391 | $268 | | Attributable to: Limited partners | $11 | ($7) | $41 | $10 | - Revenues for the three months ended June 30, 2025, decreased to **$6,695 million** from **$11,946 million** in the prior year[24](index=24&type=chunk) - Net income attributable to Limited partners for the three months ended June 30, 2025, improved to **$11 million** from a net loss of **$7 million** in the prior period[24](index=24&type=chunk) [Reconciliation of Non-IFRS Measure (Adjusted EBITDA)](index=5&type=section&id=Reconciliation%20of%20Non-IFRS%20Measure%20(Adjusted%20EBITDA)) This reconciliation details adjustments from Net Income (Loss) to Adjusted EBITDA across segments, highlighting the impact of non-cash items and non-controlling interests Reconciliation of Net Income (Loss) to Adjusted EBITDA (Three Months Ended June 30, 2025, US$ millions) | Item | Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | | :------------------------------------ | :----------------: | :---------------------: | :-----------: | :------------------: | :-----: | | Net income (loss) | $253 | ($173) | $95 | ($40) | $135 | | Depreciation and amortization expense | $208 | $175 | $384 | — | $767 | | Interest income (expense), net | $238 | $142 | $401 | $20 | $801 | | Amounts attributable to non-controlling interests | ($320) | ($157) | ($746) | — | ($1,223) | | **Adjusted EBITDA** | **$205** | **$109** | **$307** | **($30)** | **$591** | Reconciliation of Net Income (Loss) to Adjusted EBITDA (Six Months Ended June 30, 2025, US$ millions) | Item | Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | | :------------------------------------ | :----------------: | :---------------------: | :-----------: | :------------------: | :-----: | | Net income (loss) | $253 | ($17) | $240 | ($85) | $391 | | Depreciation and amortization expense | $430 | $340 | $727 | — | $1,497 | | Interest income (expense), net | $468 | $291 | $767 | $45 | $1,571 | | Amounts attributable to non-controlling interests | ($666) | ($314) | ($1,490) | — | ($2,470) | | **Adjusted EBITDA** | **$418** | **$213** | **$611** | **($60)** | **$1,182** | - The reconciliation tables provide a detailed breakdown of adjustments from net income (loss) to Adjusted EBITDA for each operating segment and corporate activities, highlighting the significant impact of depreciation, amortization, interest, and non-controlling interests[25](index=25&type=chunk)[28](index=28&type=chunk)[30](index=30&type=chunk) [Consolidated Financial Statements - Brookfield Business Corporation](index=7&type=section&id=Consolidated%20Financial%20Statements%20-%20Brookfield%20Business%20Corporation) This section presents Brookfield Business Corporation's unaudited interim condensed consolidated financial statements, including financial position and operating results [Consolidated Statements of Financial Position (BBUC)](index=7&type=section&id=Consolidated%20Statements%20of%20Financial%20Position%20(BBUC)) The consolidated financial position for Brookfield Business Corporation as of June 30, 2025, shows a decrease in total assets, notably in property, plant and equipment Consolidated Statements of Financial Position (US$ millions) | Item | As at June 30, 2025 | As at December 31, 2024 | | :------------------------------------ | :-------------------: | :---------------------: | | **Assets** | | | | Cash and cash equivalents | $613 | $1,008 | | Financial assets | $290 | $353 | | Accounts and other receivable, net | $3,234 | $3,229 | | Inventory, net | $26 | $52 | | Other assets | $517 | $627 | | Property, plant and equipment | $181 | $2,480 | | Deferred income tax assets | $236 | $197 | | Intangible assets | $5,980 | $5,966 | | Equity accounted investments | $187 | $198 | | Goodwill | $5,018 | $4,988 | | **Total Assets** | **$16,282** | **$19,098** | | **Liabilities** | | | | Accounts payable and other | $2,981 | $5,276 | | Non-recourse borrowings in subsidiaries | $7,940 | $8,490 | | Exchangeable and class B shares | $1,815 | $1,709 | | Deferred income tax liabilities | $967 | $988 | | **Equity** | | | | Brookfield Business Partners | ($159) | ($59) | | Non-controlling interests | $2,738 | $2,694 | | **Total Liabilities and Equity** | **$16,282** | **$19,098** | - Total Assets decreased from **$19,098 million** at December 31, 2024, to **$16,282 million** at June 30, 2025[42](index=42&type=chunk) - Property, plant and equipment saw a significant reduction from **$2,480 million** to **$181 million**[42](index=42&type=chunk) [Consolidated Statements of Operating Results (BBUC)](index=8&type=section&id=Consolidated%20Statements%20of%20Operating%20Results%20(BBUC)) Operating results for Brookfield Business Corporation show a net loss attributable to Brookfield Business Partners, primarily due to a remeasurement loss on exchangeable shares Consolidated Statements of Operating Results (US$ millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------------: | :--------------------------------: | :-------------------------------: | :-------------------------------: | | Revenues | $1,860 | $1,929 | $3,826 | $3,794 | | Direct operating costs | ($1,695) | ($1,860) | ($3,484) | ($3,512) | | Interest income (expense), net | ($212) | ($203) | ($431) | ($413) | | Remeasurement of exchangeable and class B shares | ($176) | $237 | ($183) | $126 | | Net income (loss) | ($23) | $40 | ($158) | ($134) | | Attributable to: Brookfield Business Partners | ($120) | $124 | ($178) | ($26) | - Net loss attributable to Brookfield Business Partners for the three months ended June 30, 2025, was **$120 million**, compared to net income of **$124 million** in the prior period[35](index=35&type=chunk) - Current period results included a **$176 million remeasurement loss** on exchangeable and class B shares, which are classified as liabilities under IFRS[35](index=35&type=chunk) - Revenues for the three months ended June 30, 2025, were **$1,860 million**, a slight decrease from **$1,929 million** in the prior year[44](index=44&type=chunk)

Core Insights - Brookfield Business Partners reported strong financial results for Q2 2025, with net income of $26 million compared to a net loss of $20 million in Q2 2024, indicating resilience in an uneven macroeconomic environment [2][3][34] - The company achieved an Adjusted EBITDA of $591 million for Q2 2025, up from $524 million in the same period last year, driven by improved performance and contributions from recent acquisitions [3][4][5] - Strategic initiatives included the sale of a partial interest in three businesses for approximately $690 million and a partnership to privatize First National Financial Corporation for $2.7 billion [8][9] Financial Performance - For the three months ended June 30, 2025, net income attributable to unitholders was $26 million ($0.12 per unit), compared to a net loss of $20 million ($0.10 per unit) in the prior year [2][3] - Adjusted EBITDA by segment for Q2 2025: Industrials $307 million, Business Services $205 million, Infrastructure Services $109 million, and Corporate and Other $(30) million [4][5][6] - Total revenues for Q2 2025 were $6.695 billion, with direct operating costs of $5.465 billion, resulting in an income before income tax of $70 million [24] Strategic Initiatives - The company completed the sale of a partial interest in three businesses to a new private equity fund, with an initial redemption value of approximately $690 million [8] - Brookfield Business Partners entered a partnership to privatize First National Financial Corporation for $2.7 billion, with an expected equity contribution of approximately $145 million [9] - The acquisition of Antylia Scientific for approximately $1.3 billion was completed, with Brookfield investing $168 million for a 26% interest [10] Liquidity and Capital Management - As of June 30, 2025, the company had approximately $2.3 billion in liquidity, including $2.2 billion available on credit facilities [12] - During the quarter, Brookfield invested $56 million to repurchase 2.2 million units at an average price of approximately $25 per unit, totaling $157 million in buybacks year-to-date [11] Distribution - The Board of Directors declared a quarterly distribution of $0.0625 per unit, payable on September 29, 2025, to unitholders of record as of August 29, 2025 [13][37]

[Unaudited Interim Condensed Consolidated Financial Statements](index=3&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Unaudited Interim Condensed Consolidated Statements of Financial Position](index=3&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION) Total assets increased to **$19,299 million**, liabilities to **$16,715 million**, and equity decreased by **$51 million** - Total Assets increased by **$201 million** (1.05%) from **$19,098 million** (Dec 31, 2024) to **$19,299 million** (Mar 31, 2025)[5](index=5&type=chunk) - Total Liabilities increased by **$252 million** (1.53%) from **$16,463 million** (Dec 31, 2024) to **$16,715 million** (Mar 31, 2025)[5](index=5&type=chunk) - Total Equity decreased by **$51 million** (1.93%) from **$2,635 million** (Dec 31, 2024) to **$2,584 million** (Mar 31, 2025)[5](index=5&type=chunk) Key Asset Changes (Mar 31, 2025 vs Dec 31, 2024) | Asset Category | March 31, 2025 (US$M) | December 31, 2024 (US$M) | Change (US$M) | % Change | | :----------------------------- | :--------------------- | :---------------------- | :------------ | :------- | | Cash and cash equivalents | 968 | 1,008 | (40) | (3.97%) | | Accounts and other receivable, net | 1,460 | 1,337 | 123 | 9.20% | | Inventory, net | 59 | 52 | 7 | 13.46% | | Intangible assets | 6,031 | 5,966 | 65 | 1.09% | | Goodwill | 4,993 | 4,988 | 5 | 0.10% | [Unaudited Interim Condensed Consolidated Statements of Operating Results](index=4&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATING%20RESULTS) Net loss improved to **$135 million** from **$174 million**, primarily due to a significantly lower remeasurement loss on shares - Net Income (Loss) improved from a loss of **$174 million** (Q1 2024) to a loss of **$135 million** (Q1 2025), a decrease in loss of **$39 million**[7](index=7&type=chunk) - Revenues increased by **$101 million** (5.42%) from **$1,865 million** (Q1 2024) to **$1,966 million** (Q1 2025)[7](index=7&type=chunk) - Remeasurement loss on exchangeable and class B shares decreased significantly from **$111 million** (Q1 2024) to **$7 million** (Q1 2025)[7](index=7&type=chunk) Operating Results (Three Months Ended March 31) | Metric | 2025 (US$M) | 2024 (US$M) | Change (US$M) | % Change | | :---------------------------------- | :---------- | :---------- | :------------ | :------- | | Revenues | 1,966 | 1,865 | 101 | 5.42% | | Direct operating costs | (1,789) | (1,652) | (137) | 8.30% | | General and administrative expenses | (75) | (64) | (11) | 17.19% | | Interest income (expense), net | (219) | (210) | (9) | 4.29% | | Remeasurement of exchangeable and class B shares | (7) | (111) | 104 | (93.69%) | | Other income (expense), net | (34) | (11) | (23) | 209.09% | | Net income (loss) | (135) | (174) | 39 | (22.41%) | [Unaudited Interim Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20%28LOSS%29) Comprehensive loss decreased to **$109 million** from **$221 million**, driven by lower net loss and positive foreign currency translation - Comprehensive Income (Loss) improved from a loss of **$221 million** (Q1 2024) to a loss of **$109 million** (Q1 2025), a decrease in loss of **$112 million**[11](index=11&type=chunk) - Foreign currency translation shifted from a loss of **$81 million** (Q1 2024) to a gain of **$61 million** (Q1 2025)[11](index=11&type=chunk) Comprehensive Income (Loss) (Three Months Ended March 31) | Metric | 2025 (US$M) | 2024 (US$M) | Change (US$M) | | :---------------------------------- | :---------- | :---------- | :------------ | | Net income (loss) | (135) | (174) | 39 | | Foreign currency translation | 61 | (81) | 142 | | Net investment and cash flow hedges | (42) | 59 | (101) | | Total other comprehensive income (loss) | 26 | (47) | 73 | | Comprehensive income (loss) | (109) | (221) | 112 | [Unaudited Interim Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20EQUITY) Total equity decreased to **$2,584 million** due to a net loss of **$135 million**, partially offset by contributions - Total Equity as at March 31, 2025, was **$2,584 million**, down from **$2,635 million** at January 1, 2025[14](index=14&type=chunk) - Net income (loss) for Q1 2025 was **$(135) million**[14](index=14&type=chunk) - Contributions to equity for Q1 2025 totaled **$58 million**[14](index=14&type=chunk) [Unaudited Interim Condensed Consolidated Statements of Cash Flow](index=7&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOW) Cash and cash equivalents decreased by **$69 million** to **$968 million**, with operating activities using **$50 million** - Cash and cash equivalents at the end of Q1 2025 were **$968 million**, compared to **$743 million** at the end of Q1 2024[18](index=18&type=chunk) - Cash used in operating activities for Q1 2025 was **$50 million**, a slight improvement from **$53 million** used in Q1 2024[18](index=18&type=chunk) - Cash provided by financing activities decreased to **$71 million** in Q1 2025 from **$124 million** in Q1 2024[18](index=18&type=chunk) Cash Flow Summary (Three Months Ended March 31) | Activity | 2025 (US$M) | 2024 (US$M) | Change (US$M) | | :---------------------------------- | :---------- | :---------- | :------------ | | Operating Activities | (50) | (53) | 3 | | Financing Activities | 71 | 124 | (53) | | Investing Activities | (90) | (77) | (13) | | Effect of foreign exchange rates on cash | 29 | (23) | 52 | | Change during the period | (69) | (6) | (63) | | Balance, beginning of year | 1,008 | 772 | 236 | | Balance, end of period | 968 | 743 | 225 | [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=8&type=section&id=NOTES%20TO%20UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [NOTE 1. Organization and Description of the Company](index=8&type=section&id=NOTE%201.%20Organization%20and%20Description%20of%20the%20Company) Brookfield Business Corporation, a subsidiary of Brookfield Business Partners, operates global services and industrials with NYSE and TSX listed shares - Brookfield Business Corporation (the 'company') is an owner and operator of services and industrials operations on a global basis, formed under the Business Corporations Act (British Columbia) on June 21, 2021[20](index=20&type=chunk) - The company is a subsidiary of Brookfield Business Partners L.P., with Brookfield Corporation as the ultimate parent[20](index=20&type=chunk) - Class A exchangeable subordinate voting shares are listed on NYSE and TSX (symbol 'BBUC') and are structured to be economically equivalent to the non-voting limited partnership units ('LP Units') of the partnership[20](index=20&type=chunk) [NOTE 2. Material Accounting Policy Information](index=8&type=section&id=NOTE%202.%20Material%20Accounting%20Policy%20Information) Financial statements are prepared under IAS 34, applying consistent policies, with no EPS presentation and future IFRS changes assessed - Unaudited interim condensed consolidated financial statements are prepared in accordance with IAS 34, Interim Financial Reporting, using accounting policies from the annual consolidated financial statements as at and for the year ended December 31, 2024[21](index=21&type=chunk) - The company applies temporary mandatory relief from recognizing deferred taxes related to the global minimum top-up tax (effective Jan 1, 2024), with no material current tax impact for Q1 2025[25](index=25&type=chunk) - Earnings per share are not presented because exchangeable shares and class B/C shares are classified as financial liabilities and do not constitute 'ordinary shares' under IAS 33[27](index=27&type=chunk) - Amendments to IFRS 9 and IFRS 7 (May 2024) clarify requirements for financial liabilities and assets with contingent features, effective Jan 1, 2026[28](index=28&type=chunk) - IFRS 18 (April 2024) replaces IAS 1, requiring additional subtotals in profit/loss and disclosures about management-defined performance measures, effective Jan 1, 2027[29](index=29&type=chunk) [NOTE 3. Fair Value of Financial Instruments](index=10&type=section&id=NOTE%203.%20Fair%20Value%20of%20Financial%20Instruments) Total financial assets were **$4,689 million** and liabilities **$14,214 million**, primarily at amortized cost, with derivative hedging losses in OCI Financial Instruments (Mar 31, 2025) | Category | FVTPL (US$M) | FVOCI (US$M) | Amortized Cost (US$M) | Total (US$M) | | :--------------- | :----------- | :----------- | :-------------------- | :----------- | | Financial assets | 11 | 132 | 4,546 | 4,689 | | Financial liabilities | — | 41 | 14,173 | 14,214 | - For Q1 2025, net investment hedges resulted in a pre-tax net loss of **$22 million** recorded in OCI, while cash flow hedges resulted in a pre-tax net loss of **$20 million** in OCI[37](index=37&type=chunk)[38](index=38&type=chunk) - All financial assets and liabilities carried at fair value are categorized as Level 1 or Level 2 inputs, with no significant Level 3 inputs or transfers between levels during Q1 2025[39](index=39&type=chunk)[40](index=40&type=chunk) [NOTE 4. Financial Assets](index=12&type=section&id=NOTE%204.%20Financial%20Assets) Total financial assets decreased by **$29 million** to **$324 million**, primarily due to a reduction in derivative assets - Total Financial Assets decreased by **$29 million** to **$324 million** (Mar 31, 2025) from **$353 million** (Dec 31, 2024)[41](index=41&type=chunk) Financial Assets (US$M) | Category | March 31, 2025 | December 31, 2024 | | :--------------- | :------------- | :---------------- | | Current | 151 | 167 | | Non-current | 173 | 186 | | **Total** | **324** | **353** | [NOTE 5. Exchangeable Shares, Class B Shares and Class C Shares](index=12&type=section&id=NOTE%205.%20Exchangeable%20Shares%2C%20Class%20B%20Shares%20and%20Class%20C%20Shares) Exchangeable and Class B shares are classified as liabilities and remeasured based on LP Unit price, with a **$7 million** remeasurement loss for the quarter - Exchangeable shares and Class B shares are classified as financial liabilities due to their exchangeable and cash redemption features[42](index=42&type=chunk) - Remeasurement loss on exchangeable and class B shares was **$7 million** for Q1 2025, significantly lower than **$111 million** in Q1 2024[44](index=44&type=chunk) - As of March 31, 2025, the closing price of one LP Unit was **$23.46**, which is used for remeasurement[44](index=44&type=chunk) Outstanding Exchangeable and Class B Shares (Mar 31, 2025) | Item | Shares Outstanding | Carrying Value (US$M) | | :---------------------- | :----------------- | :-------------------- | | Exchangeable shares | 71,694,067 | 1,682 | | Class B shares | 1 | | [NOTE 6. Accounts and Other Receivable, Net](index=13&type=section&id=NOTE%206.%20Accounts%20and%20Other%20Receivable%2C%20Net) Total accounts and other receivables, net, increased by **$168 million** to **$3,397 million**, with a significant loan receivable from Brookfield Business Partners - Total Accounts and Other Receivable, Net increased by **$168 million** to **$3,397 million** (Mar 31, 2025) from **$3,229 million** (Dec 31, 2024)[46](index=46&type=chunk) - Current receivables, net, were **$1,460 million** (Mar 31, 2025) compared to **$1,337 million** (Dec 31, 2024)[46](index=46&type=chunk) - Non-current receivables, net, included a **$1,140 million** loan receivable from Brookfield Business Partners as of both periods[46](index=46&type=chunk) [NOTE 7. Inventory, Net](index=13&type=section&id=NOTE%207.%20Inventory%2C%20Net) Net inventory increased slightly by **$7 million** to **$59 million**, driven by higher finished goods and other inventory - Carrying amount of inventories increased by **$7 million** to **$59 million** (Mar 31, 2025) from **$52 million** (Dec 31, 2024)[48](index=48&type=chunk) Inventory Composition (US$M) | Category | March 31, 2025 | December 31, 2024 | | :---------------------- | :------------- | :---------------- | | Raw materials and consumables | 42 | 41 | | Finished goods and other | 17 | 11 | | **Total** | **59** | **52** | [NOTE 8. Other Assets](index=13&type=section&id=NOTE%208.%20Other%20Assets) Total other assets increased by **$14 million** to **$641 million**, remaining stable with minor changes in components - Total Other Assets increased by **$14 million** to **$641 million** (Mar 31, 2025) from **$627 million** (Dec 31, 2024)[49](index=49&type=chunk) Other Assets (US$M) | Category | March 31, 2025 | December 31, 2024 | | :--------------- | :------------- | :---------------- | | Current | 369 | 371 | | Non-current | 272 | 256 | | **Total** | **641** | **627** | [NOTE 9. Property, Plant and Equipment](index=14&type=section&id=NOTE%209.%20Property%2C%20Plant%20and%20Equipment) Net book value of PP&E remained stable at **$2,479 million**, with additions largely offset by depreciation expense - Net book value of Property, Plant and Equipment was **$2,479 million** (Mar 31, 2025), a slight decrease of **$1 million** from **$2,480 million** (Dec 31, 2024)[51](index=51&type=chunk) - Additions to PP&E for Q1 2025 were **$53 million**, while depreciation and impairment expense was **$53 million**[51](index=51&type=chunk) - Right-of-use assets included in PP&E were **$234 million** as of March 31, 2025[51](index=51&type=chunk) [NOTE 10. Intangible Assets](index=15&type=section&id=NOTE%2010.%20Intangible%20Assets) Net book value of intangible assets increased by **$65 million** to **$6,031 million**, driven by foreign currency gains and additions - Net book value of Intangible Assets increased by **$65 million** to **$6,031 million** (Mar 31, 2025) from **$5,966 million** (Dec 31, 2024)[54](index=54&type=chunk) - Foreign currency translation had a positive impact of **$210 million** on the gross carrying amount of intangible assets in Q1 2025[54](index=54&type=chunk) - Amortization expense for Q1 2025 was **$143 million**[54](index=54&type=chunk) - Customer relationship intangible assets, primarily from the dealer software and technology services operation, had a carrying value of **$2.7 billion** as of March 31, 2025, with a remaining useful life of 13 years[54](index=54&type=chunk) [NOTE 11. Goodwill](index=15&type=section&id=NOTE%2011.%20Goodwill) Goodwill increased slightly by **$5 million** to **$4,993 million**, primarily due to foreign currency translation - Goodwill increased by **$5 million** to **$4,993 million** (Mar 31, 2025) from **$4,988 million** (Dec 31, 2024)[55](index=55&type=chunk) - Foreign currency translation contributed **$5 million** to the increase in goodwill during Q1 2025[55](index=55&type=chunk) [NOTE 12. Equity Accounted Investments](index=15&type=section&id=NOTE%2012.%20Equity%20Accounted%20Investments) Equity accounted investments increased by **$3 million** to **$201 million**, driven by additions and share of net income - Equity accounted investments increased by **$3 million** to **$201 million** (Mar 31, 2025) from **$198 million** (Dec 31, 2024)[56](index=56&type=chunk) - Additions to equity accounted investments for Q1 2025 were **$10 million**, and share of net income was **$3 million**[56](index=56&type=chunk) [NOTE 13. Accounts Payable and Other](index=16&type=section&id=NOTE%2013.%20Accounts%20Payable%20and%20Other) Total accounts payable and other liabilities increased by **$95 million** to **$5,371 million**, mainly due to higher accrued and other liabilities - Total Accounts Payable and Other increased by **$95 million** to **$5,371 million** (Mar 31, 2025) from **$5,276 million** (Dec 31, 2024)[57](index=57&type=chunk) Accounts Payable and Other (US$M) | Category | March 31, 2025 | December 31, 2024 | | :--------------- | :------------- | :---------------- | | Current | 3,070 | 2,990 | | Non-current | 2,301 | 2,286 | | **Total** | **5,371** | **5,276** | - Financial liabilities related to the failed sale and leaseback of hospitals amounted to **$1,242 million** as of March 31, 2025[57](index=57&type=chunk) [NOTE 14. Contracts in Progress](index=16&type=section&id=NOTE%2014.%20Contracts%20in%20Progress) Net contract work in progress liability decreased slightly to **$274 million**, despite a significant increase in contract costs incurred to date - Net contract work in progress (liability) decreased by **$6 million** to **$(274) million** (Mar 31, 2025) from **$(280) million** (Dec 31, 2024)[58](index=58&type=chunk) - Contract costs incurred to date increased by **$873 million** to **$11,888 million** (Mar 31, 2025) from **$11,015 million** (Dec 31, 2024)[58](index=58&type=chunk) - Profit recognized to date (less recognized losses) increased by **$34 million** to **$189 million** (Mar 31, 2025) from **$155 million** (Dec 31, 2024)[58](index=58&type=chunk) [NOTE 15. Borrowings](index=17&type=section&id=NOTE%2015.%20Borrowings) Non-recourse borrowings in subsidiaries increased to **$8,711 million**, while the healthcare services operation faces an unsustainable capital structure - Non-recourse borrowings in subsidiaries increased by **$221 million** to **$8,711 million** (Mar 31, 2025) from **$8,490 million** (Dec 31, 2024)[61](index=61&type=chunk) - The company's operations were in compliance with or had obtained waivers related to all material covenant requirements as of March 31, 2025[63](index=63&type=chunk) - The healthcare services operation obtained forbearance from lenders but its operating performance remains under pressure with an unsustainable capital structure, and it is assessing options[63](index=63&type=chunk) [NOTE 16. Accumulated Other Comprehensive Income (Loss)](index=17&type=section&id=NOTE%2016.%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) Accumulated other comprehensive income (loss) improved to a loss of **$416 million**, primarily due to positive foreign currency translation - Accumulated other comprehensive income (loss) attributable to Brookfield Business Partners improved to **$(416) million** (Mar 31, 2025) from **$(422) million** (Jan 1, 2025)[64](index=64&type=chunk) - Foreign currency translation contributed **$25 million** in other comprehensive income (loss) for Q1 2025[64](index=64&type=chunk) [NOTE 17. Direct Operating Costs](index=18&type=section&id=NOTE%2017.%20Direct%20Operating%20Costs) Direct operating costs increased by **$137 million** to **$1,789 million**, driven by higher subcontractor and compensation expenses - Total Direct Operating Costs increased by **$137 million** (8.30%) to **$1,789 million** (Q1 2025) from **$1,652 million** (Q1 2024)[68](index=68&type=chunk) Direct Operating Costs by Nature (Three Months Ended March 31) | Cost Category | 2025 (US$M) | 2024 (US$M) | Change (US$M) | % Change | | :-------------------------------- | :---------- | :---------- | :------------ | :------- | | Inventory costs | 107 | 122 | (15) | (12.30%) | | Subcontractor and consultant costs | 680 | 597 | 83 | 13.90% | | Compensation | 470 | 439 | 31 | 7.06% | | Other direct costs | 300 | 258 | 42 | 16.28% | [NOTE 18. Revenues](index=18&type=section&id=NOTE%2018.%20Revenues) Total revenues increased by **$101 million** to **$1,966 million**, with services transferred over time showing significant growth - Total Revenues increased by **$101 million** (5.42%) to **$1,966 million** (Q1 2025) from **$1,865 million** (Q1 2024)[70](index=70&type=chunk) Revenue by Timing of Recognition (Three Months Ended March 31) | Timing | 2025 (US$M) | 2024 (US$M) | Change (US$M) | % Change | | :-------------------------------- | :---------- | :---------- | :------------ | :------- | | Goods and services provided at a point in time | 672 | 714 | (42) | (5.88%) | | Services transferred over a period of time | 1,294 | 1,151 | 143 | 12.42% | Revenues by Geography (Three Months Ended March 31) | Geography | 2025 (US$M) | 2024 (US$M) | Change (US$M) | % Change | | :-------------------- | :---------- | :---------- | :------------ | :------- | | Australia | 983 | 919 | 64 | 6.96% | | United States of America | 411 | 454 | (43) | (9.47%) | | United Kingdom | 312 | 213 | 99 | 46.48% | | Brazil | 180 | 206 | (26) | (12.62%) | [NOTE 19. Equity](index=19&type=section&id=NOTE%2019.%20Equity) Share capital increased to **$770 million** due to contributions, with Class C shares presented as equity despite being financial liabilities - Share capital increased by **$33 million** to **$770 million** (Mar 31, 2025) from **$737 million** (Jan 1, 2025) due to contributions[73](index=73&type=chunk) - Class C shares, while classified as financial liabilities due to their cash redemption feature, are presented as equity instruments due to narrow scope presentation exceptions in IAS 32[73](index=73&type=chunk) [NOTE 20. Related Party Transactions](index=19&type=section&id=NOTE%2020.%20Related%20Party%20Transactions) The company engages in various transactions with Brookfield, including a **$7 million** management fee, credit facilities, and a **$1.1 billion** loan receivable - Base Management Fee attributable to the company for Q1 2025 was **$7 million**, paid to Service Providers under the Master Services Agreement[76](index=76&type=chunk) - The company has a **$1.1 billion** non-interest bearing loan receivable from Brookfield Business Partners, due on demand, related to the disposition of its nuclear technology services operation in 2023[85](index=85&type=chunk) - Brookfield Business Partners provided a **$2 billion** equity commitment to the company, available on an as-needed basis[82](index=82&type=chunk) Balances with Related Parties (Mar 31, 2025) | Balance Category | Amount (US$M) | | :----------------------------- | :------------ | | Accounts and other receivable, net | 1,430 | | Accounts payable and other | 531 | | Non-recourse borrowings | 44 | [NOTE 21. Derivative Financial Instruments](index=21&type=section&id=NOTE%2021.%20Derivative%20Financial%20Instruments) The company uses derivatives to manage market and liquidity risks, with total financial assets of **$132 million** and liabilities of **$41 million** - The company uses derivative financial instruments to manage financial risks, including market risk (currency risk and interest rate risk) and liquidity risk[88](index=88&type=chunk) Aggregate Fair Values of Derivative Financial Instruments (Mar 31, 2025) | Instrument | Financial Assets (US$M) | Financial Liabilities (US$M) | | :---------------------- | :---------------------- | :--------------------------- | | Foreign exchange contracts | 81 | (24) | | Cross currency swaps | 24 | (12) | | Interest rate derivatives | 27 | (5) | | **Total** | **132** | **(41)** | [NOTE 22. Supplemental Cash Flow Information](index=21&type=section&id=NOTE%2022.%20Supplemental%20Cash%20Flow%20Information) Net interest paid was **$138 million** and net income taxes paid were **$3 million** for Q1 2025, with non-cash working capital changes using **$112 million** - Net interest paid for Q1 2025 was **$138 million**, down from **$144 million** in Q1 2024[89](index=89&type=chunk) - Net income taxes paid for Q1 2025 were **$3 million**, significantly lower than **$41 million** in Q1 2024[89](index=89&type=chunk) - Changes in non-cash working capital, net, resulted in a use of **$112 million** in Q1 2025, primarily driven by accounts receivable[90](index=90&type=chunk) [NOTE 23. Subsequent Events](index=21&type=section&id=NOTE%23.%20Subsequent%20Events) A quarterly dividend of **$0.0625** per exchangeable share was declared on April 30, 2025, payable on June 30, 2025 - A quarterly dividend of **$0.0625** per exchangeable share was declared on April 30, 2025[91](index=91&type=chunk) - The dividend is payable on June 30, 2025, to shareholders of record as at May 30, 2025[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Introduction](index=22&type=section&id=Introduction) This MD&A, dated May 6, 2025, clarifies Brookfield Business Corporation's identity and the economic equivalence of its shares to Brookfield Business Partners' LP Units - The MD&A is dated May 6, 2025, and has been approved by the Board of Directors[93](index=93&type=chunk) - The company's class A exchangeable subordinate voting shares are structured to be economically equivalent to the non-voting limited partnership units ('LP Units') of Brookfield Business Partners L.P[94](index=94&type=chunk) - Brookfield Corporation is the ultimate parent of the company and the group[94](index=94&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements and Information](index=22&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements%20and%20Information) This section warns that forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially from expectations - The MD&A contains 'forward-looking information' and 'forward-looking statements' that are predictive in nature and depend upon future events or conditions[96](index=96&type=chunk) - Actual results may differ materially from anticipated future results due to assumptions, known and unknown risks, uncertainties, and other factors, many of which are beyond the company's control[97](index=97&type=chunk) - Factors that could cause actual results to differ include cyclical nature of businesses, general economic conditions, ability to integrate acquisitions, business competition, and restrictions due to indebtedness[98](index=98&type=chunk) - Other factors include global equity and capital markets, changes to credit ratings, U.S. laws or policies, technological change, labor disruptions, litigation, and investments in less developed legal systems[98](index=98&type=chunk) [Basis of Presentation](index=25&type=section&id=Basis%20of%20Presentation) Financial information is derived from unaudited interim condensed consolidated financial statements prepared under IAS 34, consistent with 2024 annual policies, and presented in U.S. dollars - Financial information is derived from unaudited interim condensed consolidated financial statements prepared in accordance with IAS 34, Interim Financial Reporting[102](index=102&type=chunk) - The accounting policies applied are consistent with those used in the annual consolidated financial statements as at and for the year ended December 31, 2024[102](index=102&type=chunk) - The financial statements are presented in U.S. dollars, rounded to the nearest million, and prepared on a going concern basis[102](index=102&type=chunk) [Overview of Our Company](index=27&type=section&id=Overview%20of%20Our%20Company) Brookfield Business Corporation, an alternative investment vehicle, owns and operates global services and industrial operations, focusing on enhancing cash flows and recycling capital - The company is a Canadian corporation established by Brookfield Business Partners as an alternative vehicle for investors preferring a corporate structure[105](index=105&type=chunk) - It owns and operates high-quality services and industrial operations globally, benefiting from a strong competitive position and providing essential products and services[105](index=105&type=chunk) - The strategy is to build value by pursuing an operations-oriented approach to enhancing cash flows and opportunistically recycling capital for growth and new acquisitions[105](index=105&type=chunk) [Review of Consolidated Results of Operations](index=27&type=section&id=Review%20of%20Consolidated%20Results%20of%20Operations) Net loss decreased by **$39 million** to **$135 million**, primarily due to a significantly lower remeasurement loss on shares, while revenues increased - Net loss decreased by **$39 million** to **$135 million** for the three months ended March 31, 2025, compared to **$174 million** for the same period in 2024[107](index=107&type=chunk) - Revenues increased by **$101 million** to **$1,966 million** in Q1 2025, benefiting from higher revenues in the construction operation[108](index=108&type=chunk) - Direct operating costs increased by **$137 million** to **$1,789 million** in Q1 2025, primarily due to higher costs within the construction operation[109](index=109&type=chunk) - The remeasurement loss on exchangeable and class B shares was **$7 million** in Q1 2025, a significant reduction from **$111 million** in Q1 2024[112](index=112&type=chunk) Consolidated Results of Operations (Three Months Ended March 31) | Metric | 2025 (US$M) | 2024 (US$M) | Change (US$M) | % Change | | :---------------------------------- | :---------- | :---------- | :------------ | :------- | | Revenues | 1,966 | 1,865 | 101 | 5.42% | | Direct operating costs | (1,789) | (1,652) | (137) | 8.30% | | General and administrative expenses | (75) | (64) | (11) | 17.19% | | Interest income (expense), net | (219) | (210) | (9) | 4.29% | | Remeasurement of exchangeable and class B shares | (7) | (111) | 104 | (93.69%) | | Other income (expense), net | (34) | (11) | (23) | 209.09% | | Net income (loss) | (135) | (174) | 39 | (22.41%) | [Review of Consolidated Financial Position](index=30&type=section&id=Review%20of%20Consolidated%20Financial%20Position) Total assets increased to **$19,299 million** and liabilities to **$16,715 million**, while equity decreased by **$51 million** - Total Assets increased by **$201 million** to **$19,299 million** (Mar 31, 2025) from **$19,098 million** (Dec 31, 2024)[118](index=118&type=chunk) - Total Liabilities increased by **$252 million** to **$16,715 million** (Mar 31, 2025) from **$16,463 million** (Dec 31, 2024)[118](index=118&type=chunk) - Accounts receivable and other, net, increased by **$168 million** to **$3,397 million**, primarily due to timing of billed receivables in the construction operation and foreign currency movements[120](index=120&type=chunk) - Intangible assets increased by **$65 million** to **$6,031 million**, mainly due to foreign exchange movements and net additions, partially offset by amortization expense[122](index=122&type=chunk) - The company repurchased **1,260,225** exchangeable shares during Q1 2025 under its normal course issuer bid (NCIB)[127](index=127&type=chunk) [Summary Financial Information Related to the Partnership](index=31&type=section&id=Summary%20Financial%20Information%20Related%20to%20the%20Partnership) Brookfield Business Partners reported Q1 2025 revenues of **$6,749 million** and net income of **$256 million**, with total assets of **$75,887 million** - The market price of the company's exchangeable shares is significantly impacted by the market price of Brookfield Business Partners' LP Units[128](index=128&type=chunk) Brookfield Business Partners IFRS Measures (Q1 2025 vs Q1 2024) | Metric | 2025 (US$M) | 2024 (US$M) | | :---------- | :---------- | :---------- | | Revenues | 6,749 | 12,015 | | Net income | 256 | 203 | Brookfield Business Partners IFRS Measures (Mar 31, 2025 vs Dec 31, 2024) | Metric | March 31, 2025 (US$M) | December 31, 2024 (US$M) | | :---------- | :-------------------- | :----------------------- | | Total assets | 75,887 | 75,474 | | Total liabilities | 61,032 | 58,166 | | Total equity | 14,855 | 17,308 | - Adjusted EBITDA for Brookfield Business Partners was **$591 million** in Q1 2025, up from **$544 million** in Q1 2024[130](index=130&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company manages liquidity through various sources, including a **$2 billion** equity commitment and two **$1 billion** revolving credit facilities from Brookfield Business Partners - Principal sources of liquidity include financial assets, undrawn credit facilities, cash flow from operations, monetizations of mature businesses, and access to public and private capital markets[131](index=131&type=chunk) - Non-recourse borrowings in subsidiaries increased by **$221 million** to **$8,711 million** as of March 31, 2025, primarily due to increased borrowings at the water and wastewater operation and foreign exchange movements[131](index=131&type=chunk) - Brookfield Business Partners provided a **$2 billion** equity commitment to the company to provide access to equity capital on an as-needed basis[133](index=133&type=chunk) - The company has two ten-year revolving **$1 billion** credit facilities with Brookfield Business Partners to facilitate cash movement within the group[135](index=135&type=chunk) [Dividend Policy](index=33&type=section&id=Dividend%20Policy) The company targets dividends on exchangeable shares to be identical to Brookfield Business Partners' LP Unit distributions, ensuring economic equivalence - The company targets to declare and pay dividends on exchangeable shares at the same time and in the same amount as distributions on the LP Units of Brookfield Business Partners, to provide economic equivalence[137](index=137&type=chunk) - A quarterly dividend of **$0.0625** per exchangeable share was declared on April 30, 2025, payable on June 30, 2025[138](index=138&type=chunk) [Cash Flow](index=33&type=section&id=Cash%20Flow) Cash and cash equivalents decreased by **$40 million** to **$968 million**, with operating activities using **$50 million** and financing activities providing **$71 million** - Cash and cash equivalents were **$968 million** as of March 31, 2025, down from **$1,008 million** as of December 31, 2024[140](index=140&type=chunk) - Cash flow used in operating activities for Q1 2025 was **$50 million**, primarily due to timing of working capital changes within the construction operation[141](index=141&type=chunk) - Cash flow provided by financing activities was **$71 million** for Q1 2025, including proceeds from Brookfield Business Partners under a credit agreement and net non-recourse borrowings[142](index=142&type=chunk) - Cash flow used in investing activities was **$90 million** for Q1 2025, primarily related to capital expenditures of property, plant and equipment and intangible assets[143](index=143&type=chunk) [Off-Balance Sheet Arrangements](index=34&type=section&id=Off-Balance%20Sheet%20Arrangements) The company has approximately **$1.5 billion** in outstanding guarantees and is contingently liable for litigation, including class action lawsuits from a 2024 cybersecurity incident - Total outstanding bank guarantees, insurance bonds, and letters of credit to third parties were approximately **$1.5 billion** as of March 31, 2025[144](index=144&type=chunk) - BBUC Holdings Inc., a wholly-owned subsidiary, fully and unconditionally guaranteed Brookfield Business Partners' **$2.35 billion** bilateral credit facilities and its **$1 billion** revolving acquisition credit facility[145](index=145&type=chunk) - The company is contingently liable with respect to litigation and claims, including several class action lawsuits related to a cybersecurity incident in 2024 at its dealer software and technology services operation[148](index=148&type=chunk) [Contractual Obligations](index=34&type=section&id=Contractual%20Obligations) Total undiscounted contractual obligations amounted to **$17,732 million**, with borrowings and interest expense as the largest components - Total undiscounted contractual obligations as of March 31, 2025, were **$17,732 million**[150](index=150&type=chunk) Undiscounted Contractual Obligations (Mar 31, 2025) | Category | Total (US$M) | < 1 Year (US$M) | 1-2 Years (US$M) | 3-5 Years (US$M) | 5+ Years (US$M) | | :---------------------- | :----------- | :-------------- | :--------------- | :--------------- | :-------------- | | Borrowings | 8,972 | 148 | 210 | 7,574 | 1,040 | | Lease liabilities | 493 | 56 | 42 | 82 | 313 | | Interest expense | 6,575 | 789 | 759 | 1,823 | 3,204 | | Exchangeable and class B shares | 1,682 | 1,682 | — | — | — | - The company may make future commitments to Brookfield-sponsored private equity funds for target acquisitions[149](index=149&type=chunk) [Related Party Transactions](index=35&type=section&id=Related%20Party%20Transactions_MD%26A) The company engages in various related party transactions with Brookfield, as detailed in Note 20 of the financial statements - The company entered into a number of related party transactions with Brookfield, as described in Note 20 of the unaudited interim condensed consolidated financial statements[151](index=151&type=chunk) [Critical Accounting Policies, Estimates and Judgments](index=35&type=section&id=Critical%20Accounting%20Policies%2C%20Estimates%20and%20Judgments) Management's financial statement preparation requires critical judgments and estimates, with no significant changes in methodology and no material impact expected from global minimum top-up tax - The preparation of financial statements requires management to make critical judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities[152](index=152&type=chunk) - These estimates and associated assumptions are based on historical experience and other factors considered relevant, and are reviewed on an ongoing basis[153](index=153&type=chunk) - The global minimum top-up tax, effective January 1, 2024, is not anticipated to have a material impact on the financial position of the company for Q1 2025[155](index=155&type=chunk) [Controls and procedures](index=35&type=section&id=Controls%20and%20procedures) No material changes occurred in the company's internal control over financial reporting during the three months ended March 31, 2025 - No change in internal control over financial reporting occurred during the three months ended March 31, 2025, that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting[156](index=156&type=chunk) [Future changes in accounting policies](index=36&type=section&id=Future%20changes%20in%20accounting%20policies) The company is assessing the impact of future IFRS 9, IFRS 7, and IFRS 18 amendments, with no other material impacts expected from other IFRS Accounting Standards - Amendments to IFRS 9 and IFRS 7 were issued in May 2024, effective for annual reporting periods beginning on or after January 1, 2026[157](index=157&type=chunk) - IFRS 18 was issued in April 2024 to replace IAS 1, effective for periods beginning on or after January 1, 2027[158](index=158&type=chunk) - The company is currently assessing the impact of these amendments and IFRS 18[157](index=157&type=chunk)[158](index=158&type=chunk) - No other future changes to IFRS Accounting Standards are expected to have material impacts on the company[159](index=159&type=chunk)

Core Insights - Brookfield Business Partners reported a net income of $80 million for Q1 2025, up from $48 million in Q1 2024, reflecting a significant increase in profitability [2][3][31] - The company generated over $1.5 billion from capital recycling initiatives and invested approximately $140 million in unit and share repurchases [2][9] - Adjusted EBITDA for Q1 2025 was $591 million, compared to $544 million in the prior year, driven by strong performance in the Industrials segment [3][4] Financial Performance - Net income attributable to unitholders for Q1 2025 was $80 million ($0.38 per unit), compared to $48 million ($0.23 per unit) in Q1 2024 [2][3] - Adjusted EBITDA increased to $591 million in Q1 2025 from $544 million in Q1 2024, with contributions from recent acquisitions [3][4] - The Industrials segment generated $304 million in Adjusted EBITDA, up from $228 million in the same period last year, aided by tax benefits and new acquisitions [4][5] Segment Performance - Business Services segment reported Adjusted EBITDA of $213 million, slightly up from $205 million in Q1 2024, despite higher technology upgrade costs [5] - Infrastructure Services segment saw a decline in Adjusted EBITDA to $104 million from $143 million, impacted by the sale of the offshore oil services operation [6] - Adjusted EFO for the Industrials segment decreased to $130 million from $180 million, reflecting the impact of withholding taxes [7] Strategic Initiatives - The company announced the acquisition of Antylia Scientific for approximately $1.3 billion, with Brookfield expected to invest about $160 million for a 25% interest [8] - A unit repurchase program was executed, with approximately $140 million spent to repurchase 5.9 million units at an average price of $24 per unit [9] Liquidity and Distribution - As of March 31, 2025, Brookfield had approximately $2.4 billion in liquidity, including $59 million in cash and liquid securities [10] - The Board declared a quarterly distribution of $0.0625 per unit, payable on June 30, 2025 [11][33]

Financial Performance - For the year ended December 31, 2024, Brookfield Business Partners reported a net loss attributable to unitholders of $109 million, equating to a loss of $0.50 per limited partnership unit, compared to a net income of $1,405 million ($6.49 per unit) in 2023[2][3]. - Adjusted EBITDA for 2024 was $2,565 million, an increase of 2.97% from $2,491 million in 2023, driven by improved operational performance and tax benefits[3][4]. - The company reported an adjusted EBITDA of $653 million for the three months ended December 31, 2024, a decrease from $608 million in the same period of 2023[25]. - Revenues for the three months ended December 31, 2024, were $2,209 million, an increase of 13.5% compared to $1,946 million for the same period in 2023[43]. - Net income from continuing operations for the year ended December 31, 2024, was a loss of $1,927 million, compared to a loss of $983 million in 2023[43]. - Total net income (loss) for the three months ended December 31, 2024, was $(1,108) million, compared to $3,484 million in the same period of 2023[25]. - The company reported a net loss of $1,282 million for the three months ended December 31, 2024, compared to a net income of $2,849 million in the same period of 2023[43]. - The company recognized $208 million of remeasurement loss on exchangeable and class B shares classified as liabilities under IFRS as of December 31, 2024[34]. - Interest income (expense), net for the year ended December 31, 2024, was $3,104 million, an increase from $3,596 million in 2023[27]. Segment Performance - The Industrials segment generated Adjusted EBITDA of $1,247 million in 2024, up 46% from $855 million in 2023, benefiting from $371 million in tax benefits[4][5]. - The Business Services segment's Adjusted EBITDA decreased to $832 million in 2024 from $900 million in 2023, impacted by a cyber incident and reduced performance in construction and healthcare services[5][6]. - The Infrastructure Services segment reported Adjusted EBITDA of $606 million in 2024, down from $853 million in 2023, primarily due to the sale of the nuclear technology services operation[6][7]. Liquidity and Capital Management - Brookfield Business Partners ended 2024 with approximately $1.3 billion in liquidity, including $91 million in cash and liquid securities, and $1.2 billion available on corporate credit facilities[11]. - The company completed the acquisition of Chemelex for a total enterprise value of $1.7 billion, with Brookfield investing $212 million for a 25% economic interest[10]. - Brookfield Business Partners generated over $2 billion from capital recycling initiatives and acquired two market-leading operations in 2024[2]. - Cash and cash equivalents increased to $1,008 million as of December 31, 2024, from $772 million in 2023[40]. - Total assets decreased from $16,000 million in 2023 to $14,000 million in 2024[40]. - Total assets decreased from $21,182 million in 2023 to $19,098 million in 2024, a decline of 9.8%[41]. Expenses and Dividends - The company reported depreciation and amortization expense of $3,204 million for the year ended December 31, 2024[27]. - Direct operating costs increased to $2,041 million, up from $1,749 million, reflecting a rise of 16.7% year-over-year[43]. - General and administrative expenses rose to $107 million for the three months ended December 31, 2024, compared to $78 million in 2023, marking a 37.2% increase[43]. - The company experienced an impairment expense of $689 million for the three months ended December 31, 2024, compared to $599 million in the same period of 2023[43]. - The Board of Directors declared a quarterly dividend of $0.0625 per share, payable on March 31, 2025[35]. - A quarterly distribution of $0.0625 per unit has been declared, payable on March 31, 2025[12]. Future Outlook and Risks - The company anticipates future results may be affected by various risks including economic conditions and changes in interest rates[46]. - Adjusted EBITDA is referenced as a non-IFRS measure, which may assist investors in assessing financial performance[50].

Financial Performance - For the three months ended September 30, 2024, the company reported revenues of $2,205 million, an increase from $1,964 million in the same period of 2023, representing a growth of 12.2%[116] - The net loss from continuing operations for the three months ended September 30, 2024, was $511 million, a decrease of $551 million compared to a net income of $40 million for the same period in 2023[117] - For the nine months ended September 30, 2024, the company recognized a net loss from continuing operations of $645 million, compared to a net income of $53 million for the same period in 2023[118] - For the nine months ended September 30, 2024, revenues increased by $262 million (approximately 4.6%) to $5,999 million, compared to $5,737 million for the same period in 2023[122] - Total revenues for the nine months ended September 30, 2024, were $41,663 million, compared to $33,193 million for the same period in 2023, reflecting a significant increase[150] - Net income for the nine months ended September 30, 2024, was $2,003 million, compared to $293 million for the same period in 2023, indicating a substantial improvement[150] Operating Costs - The company incurred direct operating costs of $2,015 million for the three months ended September 30, 2024, compared to $1,760 million in the same period of 2023, reflecting an increase of 14.5%[116] - For the nine months ended September 30, 2024, direct operating costs increased by $482 million (approximately 9.6%) to $5,527 million, compared to $5,045 million for the same period in 2023[125] - General and administrative expenses for the three months ended September 30, 2024, were $78 million, up from $66 million in the same period of 2023, indicating a rise of 18.2%[116] Financial Losses and Gains - The remeasurement loss on exchangeable and class B shares for the three months ended September 30, 2024, was $325 million, compared to a gain of $148 million in the same period of 2023[116] - For the nine months ended September 30, 2024, net other expense decreased by $279 million to $197 million, compared to net other income of $82 million for the same period in 2023[133] Cash Flow and Expenses - Cash flow used in operating activities for the nine months ended September 30, 2024, was $216 million, compared to $43 million used in the same period of 2023[162] - Interest expense for the three months ended September 30, 2024, was $207 million, a decrease from $227 million in the same period of 2023, showing a reduction of 8.8%[116] - For the nine months ended September 30, 2024, interest expense, net decreased by $52 million (approximately 7.7%) to $620 million, compared to $672 million for the same period in 2023[129] Assets and Liabilities - As of September 30, 2024, total assets decreased by $557 million to $20,625 million compared to $21,182 million as of December 31, 2023[138] - Financial assets increased by $43 million to $267 million as of September 30, 2024, compared to $224 million as of December 31, 2023[139] - Accounts receivable decreased by $83 million to $3,486 million as of September 30, 2024, from $3,569 million as of December 31, 2023, primarily due to repayment of a receivable and foreign exchange impacts[140] - Total non-recourse borrowings in subsidiaries decreased by $301 million to $8,522 million as of September 30, 2024, from $8,823 million as of December 31, 2023[153] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2024, were $70 million for maintenance and $144 million for growth, down from $132 million and $356 million, respectively, in the same period of 2023[143] Legal and Regulatory Matters - The company is subject to several class action lawsuits related to a cybersecurity incident, with ongoing assessments of potential impacts[169] - The global minimum top-up tax, effective January 1, 2024, is not expected to materially impact the company's financial position[176] - The company adopted amendments to IAS 1 on January 1, 2024, clarifying the classification of debt and liabilities, with no material impact on financial statements[179] Strategic Initiatives - The company aims to enhance cash flows and pursue new acquisitions as part of its operations-oriented approach to building value[115] - The company may make future commitments to Brookfield-sponsored private equity funds for target acquisitions as part of its strategy[170] - The Board of Directors declared a quarterly dividend of $0.0625 per exchangeable share, payable on December 31, 2024[159]

Financial Overview - Brookfield Business Corporation's financial information is derived from unaudited interim condensed consolidated financial statements prepared in accordance with IAS 34, presented in U.S. dollars rounded to the nearest million[131]. - The financial statements are for the interim period ending June 30, 2024, and include results for the three and six months ended June 30, 2024 and 2023[190]. - The financial position and operating results are presented in the unaudited interim condensed consolidated financial statements[190]. - Comprehensive income and cash flow statements are included in the financial disclosures[190]. - Management's discussion and analysis of financial condition and results of operations is provided[190]. Performance Metrics - For the three months ended June 30, 2024, net income from continuing operations decreased by $155 million to $40 million, compared to $195 million for the same period in 2023[134]. - Revenues for the three months ended June 30, 2024, were $1,929 million, an increase of $21 million from $1,908 million in the same period of 2023[136]. - Direct operating costs for the three months ended June 30, 2024, increased by $191 million to $1,860 million, compared to $1,669 million for the same period in 2023[138]. - General and administrative expenses for the three months ended June 30, 2024, rose by $14 million to $77 million, compared to $63 million for the same period in 2023[139]. - Interest expense, net for the three months ended June 30, 2024, decreased by $30 million to $203 million, compared to $233 million for the same period in 2023[140]. - Remeasurement gain on exchangeable shares and class B shares for the three months ended June 30, 2024, was $237 million, compared to a gain of $101 million for the same period in 2023[141]. - Net other expense for the three months ended June 30, 2024, was $59 million, a decrease of $230 million from net other income of $171 million for the same period in 2023[141]. - For the six months ended June 30, 2024, net loss from continuing operations was $134 million, compared to net income of $13 million for the same period in 2023[135]. - Revenues for the six months ended June 30, 2024, were $3,794 million, an increase of $21 million from $3,773 million in the same period of 2023[138]. - Revenues for Q2 2024 were $1,929 million, a 3.4% increase from Q1 2024's $1,865 million[146]. - Net income from continuing operations was $40 million in Q2 2024, compared to a loss of $174 million in Q1 2024[146]. Cash Flow and Liquidity - Cash flow used in operating activities for the six months ended June 30, 2024 was $19 million, compared to $69 million used in the same period in 2023[171]. - Cash flow provided by financing activities was $234 million for the six months ended June 30, 2024, compared to cash used of $239 million in the same period in 2023[172]. - Cash flow used in investing activities was $171 million for the six months ended June 30, 2024, compared to cash flow provided of $375 million in the same period in 2023[173]. - The company aims to maintain strong liquidity through cash flows, credit facilities, and monetization of mature operations[161]. - Cash and cash equivalents as of June 30, 2024 were $754 million, a decrease from $772 million as of December 31, 2023[169]. Assets and Liabilities - Financial assets increased by $100 million to $324 million as of June 30, 2024, compared to $224 million at December 31, 2023[151]. - Accounts receivable decreased by $234 million to $3,335 million as of June 30, 2024, from $3,569 million at December 31, 2023[152]. - Property, plant, and equipment (PP&E) decreased by $72 million to $2,671 million as of June 30, 2024, primarily due to foreign exchange impacts[153]. - Intangible assets decreased by $520 million to $6,411 million as of June 30, 2024, mainly due to amortization and foreign exchange movements[154]. - Accounts payable increased by $212 million to $5,030 million as of June 30, 2024, compared to $4,818 million at December 31, 2023[156]. - Non-recourse borrowings in subsidiaries decreased to $8,332 million as of June 30, 2024, from $8,823 million at December 31, 2023[162]. - Total non-recourse borrowings in subsidiaries decreased by $491 million from $8,823 million as of December 31, 2023 to $8,332 million as of June 30, 2024[163]. - The company has a total of $16,236 million in undiscounted contractual obligations as of June 30, 2024[185]. Strategic Initiatives - The company aims to enhance cash flows and pursue new acquisitions through an operations-oriented approach, focusing on profitability and sustainability[132]. - The company emphasizes the importance of reviewing the partnership's periodic reporting for shareholders[120]. - The company has an equity commitment of $2 billion from its partnership to maximize access to equity capital[164]. - The Board of Directors declared a quarterly dividend of $0.0625 per exchangeable share, payable on September 27, 2024[168]. - The company has not repurchased any of its exchangeable shares during the six months ended June 30, 2024[178]. Risks and Uncertainties - Forward-looking statements in the MD&A are subject to risks and uncertainties that could cause actual results to differ materially[122]. - The MD&A includes cautionary statements regarding forward-looking information, highlighting the potential for changes in economic conditions and other factors[123]. - The company does not have control over all businesses in which it owns investments, which may impact its financial performance[127]. - No future changes to IFRS are expected to have material impacts on the company[188].