BIPC(BIPC) - 2025 Q1 - Quarterly Report

Q1 2025 Financial and Operational Highlights Brookfield Infrastructure reported solid Q1 2025 results with a 5% FFO increase to $646 million, despite a net income decrease Financial Performance Summary Brookfield Infrastructure reported solid Q1 results with FFO up 5% to $646 million, but net income decreased Q1 2025 Key Financial Metrics | US$ millions (except per unit) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $125 | $170 | -26.5% | | – per unit | $0.04 | $0.10 | -60.0% | | FFO | $646 | $615 | +5.0% | | – per unit | $0.82 | $0.78 | +5.1% | - FFO growth was driven by inflation indexation, higher revenues, commissioning of $1.3 billion in new capital, and contributions from recent acquisitions[3] - Net income was negatively impacted by higher borrowing costs and mark-to-market losses on corporate hedging, which contrasted with gains in the prior year[2] Segment Performance Segment performance was led by a 50% FFO increase from Data, with Utilities and Midstream showing resilient growth FFO by Segment (US$ millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Utilities | $192 | $190 | | Transport | $288 | $302 | | Midstream | $169 | $170 | | Data | $102 | $68 | | Corporate | ($105) | ($115) | | Total FFO | $646 | $615 | Utilities The Utilities segment generated FFO of $192 million, with a 13% normalized increase from inflationary benefits - The Utilities segment generated FFO of $192 million. When normalized for currency impacts and capital recycling, FFO would have increased 13% year-over-year[4] - Growth was supported by inflationary benefits and the contribution from $450 million of capital commissioned into the rate base[4] Transport Transport FFO was $288 million, stable year-over-year, with volume contractions offset by strong intermodal and toll road results - The Transport segment's FFO was $288 million. After normalizing for foreign exchange, results were in line with the prior year[5] - Volume contraction in rail and ports was offset by record utilization in the global intermodal logistics operation and higher volumes (+6%) and rates (+4%) at toll roads[5] Midstream Midstream FFO increased 8% to $169 million on a comparable basis, driven by strong volumes and higher pricing - The Midstream segment generated FFO of $169 million, representing an 8% increase over the prior year on a comparable basis (adjusting for capital recycling and FX)[6] - Growth was driven by strong volumes and higher pricing, particularly for marketed products at the Canadian diversified midstream operation[6] Data Data segment FFO increased 50% to $102 million, fueled by strong organic growth and a strategic acquisition - The Data segment's FFO increased by 50% to $102 million, driven by strong organic growth and the acquisition of a tower portfolio in India[7] Strategic Initiatives Strategic initiatives included $1.6 billion in capital recycling proceeds and the acquisition of Colonial pipeline for $9 billion Capital Recycling Program The company secured $1.6 billion in capital recycling proceeds year-to-date, realizing strong returns from asset sales - Secured $1.4 billion of sale proceeds in the quarter, with total proceeds reaching approximately $1.6 billion year-to-date following an additional data center stake sale[8][11] - Agreed to sell the Australian container terminal for $1.2 billion ($0.5 billion net to BIP), achieving an 18x EBITDA multiple, 17% IRR, and nearly 4x multiple of capital[9] - Completed the sale of a minority stake in a container portfolio for $440 million (over $120 million net to BIP)[10] - Progressing on three other asset sales expected to close later in the year, including interests in a U.S. gas pipeline and European and U.S. data center assets[13] New Investments BIP secured the $9 billion acquisition of Colonial, the largest U.S. refined products pipeline system - Secured the $9 billion acquisition of Colonial, the largest refined products pipeline system in the U.S[12] - BIP's equity investment is expected to be $500 million, with the transaction expected to close in the second half of the year[15] - The acquisition was made at a multiple of approximately 9x EBITDA and is expected to have a mid-teen going-in cash yield with a seven-year payback period[22] Distributions The Board of Directors declared a quarterly distribution of $0.43 per unit, marking a 6% increase from the prior year Distribution and Dividend Declaration The Board declared a quarterly distribution of $0.43 per unit, a 6% increase, with an equivalent BIPC dividend - Declared a quarterly distribution of $0.43 per unit, payable on June 30, 2025[16] - This distribution represents a 6% increase compared to the prior year[16] - BIPC declared an equivalent quarterly dividend of $0.43 per share[16] Brookfield Infrastructure Partners L.P. (BIP) Financial Statements BIP's Q1 2025 financials show $103.7 billion in assets, $5.39 billion revenue, and $646 million FFO Consolidated Statements of Financial Position As of March 31, 2025, total assets were $103.7 billion, a slight decrease from year-end 2024 Consolidated Balance Sheet Highlights (US$ millions) | | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $103,655 | $104,590 | | Cash and cash equivalents | $1,463 | $2,071 | | Property, plant and equipment | $56,550 | $55,910 | | Total Liabilities | $73,880 | $74,737 | | Corporate borrowings | $4,727 | $4,542 | | Non-recourse borrowings | $46,027 | $46,552 | | Total Partnership Capital | $29,775 | $29,853 | Consolidated Statements of Operating Results Q1 2025 revenues increased to $5.39 billion, but net income attributable to the partnership decreased Consolidated Income Statement Highlights (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $5,392 | $5,187 | | Direct operating costs | ($3,964) | ($3,913) | | Interest expense | ($899) | ($794) | | Net income | $526 | $814 | | Net income attributable to partnership | $125 | $170 | Consolidated Statements of Cash Flows Cash from operating activities was $868 million, with a net cash decrease from investing and financing activities Consolidated Cash Flow Highlights (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Cash from operating activities | $868 | $841 | | Cash used by investing activities | ($104) | ($2,159) | | Cash (used by) from financing activities | ($1,402) | $1,057 | | Change in cash during the period | ($638) | ($261) | Reconciliation to Funds from Operations (FFO) Net income of $526 million was adjusted to arrive at $646 million FFO for Q1 2025 FFO Reconciliation (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $526 | $814 | | Depreciation and amortization | $960 | $936 | | FFO contribution from investments | $234 | $225 | | FFO attributable to non-controlling interests | ($907) | ($856) | | Other adjustments | ($167) | ($464) | | FFO | $646 | $615 | FFO per Unit Reconciliation | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Earnings per limited partnership unit | $0.04 | $0.10 | | Depreciation and amortization | $0.54 | $0.54 | | Deferred taxes and other items | $0.24 | $0.14 | | FFO per unit | $0.82 | $0.78 | Brookfield Infrastructure Corporation (BIPC) Results BIPC reported significantly increased net income of $762 million in Q1 2025, driven by a revaluation gain BIPC Financial Highlights BIPC reported net income of $762 million for Q1 2025, primarily due to a revaluation gain on its shares - BIPC reported net income of $762 million for Q1 2025, compared to $197 million in Q1 2024[46] - The large increase in net income was primarily due to the impact of revaluation on BIPC's own shares, which are classified as liabilities under IFRS[46] - Underlying earnings were over 150% higher than the prior year, benefiting from inflation-indexation and capital commissioned at the U.K. regulated distribution business[46] BIPC Consolidated Statements of Financial Position BIPC's total assets were $22.6 billion, with total equity increasing to $2.8 billion as of March 31, 2025 BIPC Consolidated Balance Sheet Highlights (US$ millions) | | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $22,570 | $23,587 | | Shares classified as financial liability | $4,337 | $4,644 | | Non-recourse borrowings | $12,056 | $12,178 | | Total Liabilities | $19,748 | $21,365 | | Total Equity | $2,822 | $2,222 | BIPC Consolidated Statements of Operating Results Q1 2025 revenues were $929 million, with net income of $762 million impacted by a revaluation gain BIPC Consolidated Income Statement Highlights (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $929 | $902 | | Remeasurement of shares classified as financial liability | $307 | $37 | | Net income | $762 | $197 | BIPC Consolidated Statements of Cash Flows BIPC generated $243 million in cash from operating activities, resulting in a net cash decrease BIPC Consolidated Cash Flow Highlights (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Cash from operating activities | $243 | $278 | | Cash used by investing activities | ($32) | ($66) | | Cash used by financing activities | ($657) | ($388) | | Change in cash during the period | ($446) | ($176) | Additional Information This section provides conference call details, contact information, and cautionary forward-looking statements Conference Call and Contact Information The report provides Q1 2025 conference call and webcast details, along with contact information - A conference call was scheduled for 9:00am EST on the day of the release to discuss the results[18] - Contact information for media and investor relations is provided[23] Forward-Looking Statements This section contains a cautionary statement regarding forward-looking statements and associated risks - The news release contains forward-looking statements regarding business expansion, transaction completions, and future performance[23] - Actual results may differ materially due to risks such as general economic conditions, ability to complete transactions, market demand, and other factors detailed in SEC and Canadian securities filings[23]