Core Insights - Brookfield Business Corporation has filed its 2025 annual report on Form 20-F, including audited financial statements for the year ended December 31, 2025, with the SEC and Canadian securities authorities [1] - The company completed a corporate simplification, exchanging all outstanding limited partnership units and shares for newly issued class A subordinate voting shares of a new Canadian corporation named Brookfield Business Corporation [2] - The newly issued class A shares will begin trading on the NYSE and TSX under the symbol "BBUC" on March 31, 2026 [3] - Brookfield Business Corporation aims to acquire market-leading businesses, execute operational improvement plans to increase cash flows, and recycle capital for long-term growth [4] - Brookfield Business Corporation is the flagship vehicle of Brookfield Asset Management's Private Equity Group, which manages over $1 trillion in assets [5]

Economic Exposure and Market Conditions - The company has significant exposure to economic cycles, with operations highly dependent on general economic conditions and market volatility[37]. - Rising costs of labor, energy, and supply chain disruptions have contributed to inflationary pressures, which may impact the company's operating businesses and investment opportunities[39]. - The company's leverage may increase its sensitivity to economic downturns, impacting its income and asset values more significantly than less leveraged companies[50]. - Interest rate increases could raise borrowing costs and make it more challenging to finance acquisitions, potentially affecting profitability[51]. - The construction operation's profitability is closely tied to the general state of the economy in regions such as North America, Europe, Australia, and the Middle East, which have been affected by inflationary pressures[120]. Acquisition and Investment Risks - The company may pursue acquisitions of distressed companies, which could involve substantial financial risks and potential legal expenses[40]. - The company faces competition for acquisition opportunities from larger investment funds and companies, which may limit its ability to secure favorable terms[43]. - Future acquisitions may involve risks such as integration difficulties and potential disruptions to current operations[126]. - The company relies on continued access to capital for new acquisitions and capital projects, with potential risks of overcommitting or misjudging capital requirements[56]. Financial Condition and Performance - The company's total assets as of December 31, 2025, amounted to $16,428 million, with revenues of $7,168 million for the same period[136]. - For the year ended December 31, 2025, revenues decreased by $1,040 million to $7,168 million, primarily due to the deconsolidation of the healthcare services operation, which reduced revenues by $1,118 million[184]. - Net loss for the year ended December 31, 2025, was $1,001 million, with $875 million attributable to Brookfield Business Partners, compared to a net loss of $1,927 million in 2024[183]. - Total liabilities decreased by $2,133 million to $14,330 million as of December 31, 2025, from $16,463 million as of December 31, 2024[208]. Regulatory and Compliance Risks - The company faces risks from changes in U.S. laws and policies, including tariffs that may impact business operations and financial results[58]. - The company is subject to various laws and regulations governing trade and economic sanctions, which may impose significant costs and operational burdens[102]. - The company is subject to anti-money laundering laws, and failure to comply could result in significant fines and increased regulatory scrutiny[104]. - Governmental investigations and audits could result in significant liabilities and penalties, affecting the company's business operations[98]. Operational Challenges - Labor disruptions and unfavorable collective bargaining agreements could lead to significant operational disruptions and increased labor costs[70]. - The construction operation's revenues and earnings are largely dependent on the award of new contracts, which are unpredictable and outside the company's control[112]. - The company may face challenges in accessing credit and capital markets, which could impact its ability to fund operations and acquisitions[53]. Environmental and Sustainability Concerns - The company is exposed to risks associated with environmental damage and compliance costs, particularly in its water and wastewater operations in Brazil[81]. - Increasingly stringent environmental legislation may lead to higher operational costs and liabilities that could adversely affect the company's financial performance[82]. - The company has a significant focus on sustainability, integrating sustainability principles into its investment process and ongoing operations[145]. - The company has a history of incorporating sustainability principles into its business practices, which is essential for long-term value creation[143]. Technology and Cybersecurity Risks - Emerging technologies, including artificial intelligence, could disrupt business models and competitive advantages, impacting financial condition and results[64]. - Cybersecurity threats pose a risk to the company's information systems, with potential operational disruptions and financial impacts from cyber incidents[92]. - The company relies on third-party vendors for technology and information systems, which may not accommodate growth or could increase in cost[91]. Market and Competitive Landscape - The company faces intense competition in its dealer software and technology services operation, which could adversely affect its business and financial condition if it fails to respond to technological developments[108]. - The company holds significant interests in public companies, and market volatility could negatively impact its financial condition and results of operations[80]. Joint Ventures and Partnerships - The company’s joint ventures and partnerships may reduce its control over operations and expose it to additional obligations and risks[88]. - The water and wastewater operation in Brazil is subject to significant governmental influence, which may adversely affect financial conditions and results[123].

Core Viewpoint - Brookfield Business Partners L.P. and Brookfield Business Corporation have received all necessary approvals to complete a corporate simplification, converting into a single publicly traded Canadian corporation [1][2]. Group 1: Corporate Structure Changes - The corporate simplification is expected to enhance index inclusion and improve trading liquidity, thereby broadening the global investor base and supporting long-term value creation for shareholders [2]. - The court-approved plan of arrangement will take effect before markets open on March 27, 2026, with all existing units and shares being exchanged for newly issued Class A shares on a one-for-one basis [2]. - The new corporation will be named Brookfield Business Corporation, and its Class A shares are anticipated to start trading on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "BBUC" on March 31, 2026 [3]. Group 2: 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 [4]. - The company is the flagship listed vehicle of Brookfield Asset Management's Private Equity Group, which manages over $1 trillion in assets [5].

THREE MONTHS AND YEAR ENDED DECEMBER 31, 2025 Important Cautionary Notes All amounts in this Supplemental Information are in U.S. dollars unless otherwise specified. Unless otherwise indicated, the statistical and financial data in this document is presented as at December 31, 2025. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION Note: This Supplemental Information contains "forward-looking information" within the meaning of Canadian provincial securities laws and "forward-looking ...

Financial Performance - Net income attributable to Unitholders for the year ended December 31, 2025 was $43 million, a significant improvement from a net loss of $109 million in 2024[2] - Adjusted EBITDA for the year ended December 31, 2025 was $2,409 million, down from $2,565 million in 2024, reflecting lower ownership in three businesses due to partial sales[3] - Total revenues for the year ended December 31, 2025, were $27,457 million, a decrease from $40,620 million in 2024, representing a decline of 32%[28] - Net income for the three months ended December 31, 2025, was $118 million, compared to a net loss of $1,108 million in the same period of 2024[28] - Adjusted EBITDA for the year ended December 31, 2025, was $2,409 million, down from $3,030 million in 2024, indicating a decrease of 20.5%[33] - For the year ended December 31, 2025, Brookfield Business Partners reported a net loss of $875 million, an improvement from a net loss of $888 million in 2024[48] - The total revenue for the year ended December 31, 2025, was $7.168 billion, down from $8.208 billion in 2024, representing a decrease of approximately 12.7%[58] Segment Performance - The Industrials segment Adjusted EBITDA increased by 10% to $1,281 million for the year ended December 31, 2025, excluding the impact of acquisitions and tax recoveries[4] - Business Services segment Adjusted EBITDA was $823 million for the year ended December 31, 2025, a slight decrease from $832 million in 2024, but a 5% increase when excluding acquisitions and dispositions[7] - Infrastructure Services segment Adjusted EBITDA decreased to $436 million for the year ended December 31, 2025, down from $606 million in 2024, impacted by the sale of operations[9] Corporate Actions and Investments - The company generated over $2 billion from capital recycling initiatives and invested $700 million in four growth acquisitions during the year[2] - A corporate reorganization is nearing completion, expected to enhance global demand for shares and support long-term growth[2] - The company plans to acquire Fosber for approximately $480 million, with BBU's share expected to be around $170 million for a 35% interest[11] Liquidity and Capital Structure - Liquidity at the corporate level was approximately $2,135 million at year-end, with pro forma liquidity estimated at $2,600 million after recent transactions[15] - Corporate borrowings decreased to $1,325 million from $2,142 million, reflecting a reduction of 38%[26] - Non-recourse borrowings in subsidiaries increased to $42,424 million from $36,720 million, an increase of 15.5%[26] Dividends and Shareholder Returns - A quarterly dividend of $0.0625 per share is expected to be declared following the corporate reorganization, with an annual dividend of $0.25 per share anticipated going forward[16] - The company expects to declare a quarterly dividend of $0.0625 per share, with an annual dividend target of $0.25 per share following its corporate reorganization[49] Asset Management - Total assets increased slightly to $75,761 million from $75,474 million, showing a growth of 0.38%[26] - As of December 31, 2025, total assets decreased to $16.428 billion from $19.098 billion in 2024, reflecting a decline of approximately 14%[53] - Cash and cash equivalents decreased to $710 million from $1.008 billion in 2024, a reduction of about 29.5%[53] Impairments and Expenses - Impairment expenses for the year ended December 31, 2025, totaled $88 million, a significant reduction from $981 million in 2024[28] - Direct operating costs for the year ended December 31, 2025, were $22,151 million, down from $34,883 million in 2024, a decrease of 36.5%[28] - Other income (expense), net included a $407 million provision for a litigation settlement and $116 million in net gains on the sale of assets[40] - The company recorded a remeasurement loss of $831 million on exchangeable and class B shares classified as liabilities under IFRS[48] Future Outlook and Risks - Brookfield Business Partners anticipates future financial results and performance, including expected distributions and dividends, as well as ongoing corporate reorganization efforts[60] - The company acknowledges that actual results may differ materially from forward-looking statements due to various risks and uncertainties, including economic conditions and market volatility[61] - Factors affecting future results include interest rate changes, foreign exchange rates, inflation, and the ability to complete acquisitions and dispositions effectively[62] - The company emphasizes that references to "reserves" are forward-looking statements based on estimates and assumptions regarding future profitability[63] Financial Metrics and Reporting - Brookfield Business Partners uses Adjusted EBITDA as a non-IFRS measure to assist investors in assessing financial performance, though it should not be considered in isolation from IFRS financial statements[65] - The company will provide more detailed information in its Management's Discussion and Analysis of Financial Condition and Results of Operations in the upcoming annual report[66]

Financial Performance - Brookfield Business Corporation recorded a pre-tax net gain of $236 million from the deconsolidation of its healthcare services operation due to receivership [122]. - For the three months ended September 30, 2025, revenues decreased by $527 million to $1,678 million, compared to $2,205 million for the same period in 2024, primarily due to the deconsolidation of the healthcare services operation [128]. - For the nine months ended September 30, 2025, revenues decreased by $495 million to $5,504 million, compared to $5,999 million for the same period in 2024, with higher revenues from dealer software and construction operations partially offsetting the decline [129]. - Net loss for the three months ended September 30, 2025, increased by $67 million to $578 million, compared to a net loss of $511 million for the same period in 2024 [126]. - Net loss for the nine months ended September 30, 2025, increased by $91 million to $736 million, compared to a net loss of $645 million for the same period in 2024, primarily due to a remeasurement loss on exchangeable shares [127]. - Adjusted EBITDA for the three months ended September 30, 2025, was $575 million, down from $844 million in the same period of 2024 [156]. Operating Costs - Direct operating costs for the three months ended September 30, 2025, decreased by $480 million to $1,535 million, compared to $2,015 million for the same period in 2024, mainly due to the deconsolidation of the healthcare services operation [130]. - Direct operating costs for the nine months ended September 30, 2025, decreased by $508 million to $5,019 million, compared to $5,527 million for the same period in 2024 [131]. Assets and Liabilities - As of September 30, 2025, total assets decreased by $2,373 million to $16,725 million compared to $19,098 million as of December 31, 2024 [142]. - Total liabilities decreased by $2,044 million to $14,419 million as of September 30, 2025, compared to $16,463 million as of December 31, 2024 [142]. - Non-recourse borrowings in subsidiaries decreased by $487 million to $8,003 million, primarily due to the deconsolidation of the healthcare services operation [158]. - Total undiscounted contractual obligations as of September 30, 2025 were $16.972 billion, with $8.228 billion in borrowings and $6.314 billion in interest expenses [178]. Cash Flow - Cash flow used in operating activities for the nine months ended September 30, 2025 was $214 million, slightly improved from $216 million in the same period of 2024, primarily due to a $450 million litigation settlement payment [169]. - Cash flow provided by financing activities was $30 million for the nine months ended September 30, 2025, a significant decrease from $411 million in the same period of 2024 [170]. - Cash flow used in investing activities increased to $259 million for the nine months ended September 30, 2025, compared to $249 million in the same period of 2024, mainly due to capital expenditures [171]. Corporate Actions - A corporate reorganization is planned, where all exchangeable shares will be exchanged for newly issued class A shares of a publicly traded Canadian corporation on a one-for-one basis, expected to improve trading liquidity and broaden investor access [124]. - The corporate reorganization is expected to be completed in the first quarter of 2026, subject to regulatory and shareholder approvals [124]. - The company repurchased 2,957,523 exchangeable shares during the nine months ended September 30, 2025 [153]. - The Board of Directors declared a quarterly dividend of $0.0625 per exchangeable share, payable on December 31, 2025 [166]. Financial Reporting and Compliance - The unaudited interim condensed consolidated financial statements are prepared in accordance with IAS 34 and presented in U.S. dollars rounded to the nearest million [118]. - The financial information is derived from the company's interim financial statements, reflecting its consolidated subsidiaries [118]. - The company is assessing the impact of amendments to IFRS 9 and IFRS 7, effective January 1, 2026, which may affect financial reporting [185]. - The global minimum top-up tax, effective January 1, 2024, is not anticipated to have a material impact on the company's financial position [183]. - No changes in internal control over financial reporting occurred that materially affected the company's financial reporting during the nine months ended September 30, 2025 [184]. Risk Factors - The company is subject to various risks that could impact future performance, including economic conditions and competition [114]. - The company emphasizes the importance of competitive advantages and profitability in its operations strategy [121].

Financial Performance Highlights - Net loss attributable to Unitholders for the three months ended September 30, 2025, was $59 million, a decrease compared to a net income of $301 million in the prior period[18] - Adjusted EBITDA for Q3 2025 was $575 million, down from $844 million in the prior year; excluding tax benefits and contributions from acquired/disposed operations, Adjusted EBITDA was $512 million compared to $501 million[18] - Adjusted EBITDA margin decreased to 21% from 28%; excluding tax benefits, the margin was 19% compared to 18%[18] - Adjusted EFO for Q3 2025 was $284 million ($1.36 per unit), compared to $582 million ($2.68 per unit) in the prior period; excluding the impact of gain (loss) on dispositions, Adjusted EFO was $268 million ($1.27 per unit) compared to $451 million ($2.08 per unit)[18] Liquidity and Capital Structure - Corporate liquidity as of September 30, 2025, was $2,299 million, including $2,190 million of availability on credit facilities; pro forma for announced transactions, liquidity is approximately $2,900 million[18] - Total assets were $75,403 million as of September 30, 2025[22] - Total equity was $15,540 million as of September 30, 2025[22] Strategic Initiatives - Completed the privatization of First National Financial Corporation for $2.6 billion, with BBU investing $146 million for an 11% economic interest[21] - Entered into an agreement to simplify the corporate structure, exchanging LP units, exchangeable shares, and redemption-exchange units for class A shares of a Canadian corporation on a one-for-one basis, expected to be completed in Q1 2026[21] Segment Performance (Adjusted EBITDA) - Business Services: $188 million in Q3 2025, compared to $228 million in Q3 2024[13] - Infrastructure Services: $104 million in Q3 2025, compared to $146 million in Q3 2024[13] - Industrials: $316 million in Q3 2025, compared to $500 million in Q3 2024[13]

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of approximately 4% and has performed well over the last five years by engaging in international markets [1][2] - Brookfield Business Partners L.P. will undergo a conversion of its units into shares of a new entity, which includes shares in Brookfield Business Corporation and other redemption exchange units [2] - The Valkyrie Trading Society consists of analysts who share high conviction investment ideas that are expected to yield non-correlated and outsized returns in the current economic environment, emphasizing a long-only investment strategy [3]

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]