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Brookfield Business Partners L.P.(BBU) - 2025 Q2 - Quarterly Report

Brookfield Business Partners (BBU) Q2 2025 Financial Results Financial Highlights Brookfield Business Partners reported a $26 million net income in Q2 2025, a turnaround from a $20 million loss last year, with Adjusted EBITDA growing to $591 million Q2 & H1 2025 Key Financial Metrics (vs. 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) to Unitholders (US$ millions) | $26 | $(20) | $106 | $28 | | Net Income (Loss) per Unit (US$) | $0.12 | $(0.10) | $0.49 | $0.13 | | Adjusted EBITDA (US$ millions) | $591 | $524 | $1,182 | $1,068 | - Adjusted EBITDA growth was attributed to increased performance on a same-store basis and contributions from recent acquisitions3 - Prior period results included a $71 million contribution from disposed operations, notably the offshore oil services' shuttle tanker operation sold in January 20253 Operational Performance by Segment Industrials segment drove growth with 44% Adjusted EBITDA increase to $307 million, while Infrastructure Services declined due to asset sales Adjusted EBITDA by Segment (US$ millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 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) | - The Industrials segment's strong performance was boosted by its advanced energy storage operation, $71 million in tax recoveries, and contributions from a newly acquired electric heat tracing systems manufacturer4 - The decline in the Infrastructure Services segment was primarily due to the sale of the offshore oil services' shuttle tanker operation in January 20256 Adjusted EFO by Segment (US$ millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 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) | Strategic Initiatives The company executed a $690 million capital recycling plan, made new investments, and repurchased 2.2 million units for $56 million - Capital Recycling: Completed the sale of partial interests in three businesses, receiving units in a new evergreen fund with an initial value of approximately $690 million7 - New Investments: Entered a partnership to privatize First National Financial Corporation with a planned $145 million investment and completed the acquisition of Antylia Scientific with a $168 million investment89 - Unit Repurchase Program: Repurchased 2.2 million units for $56 million during the quarter, bringing the year-to-date total to 6.5 million units for $157 million10 Liquidity and Distribution Corporate liquidity reached $2.3 billion, projected to $2.9 billion pro forma, with a $0.0625 per unit quarterly distribution - Ended the quarter with corporate liquidity of approximately $2.3 billion, including $2.2 billion available on credit facilities11 - Pro forma liquidity, after announced and recently closed transactions, is expected to be approximately $2.9 billion11 - The Board of Directors declared a quarterly distribution of $0.0625 per unit, payable on September 29, 202513 Consolidated Financial Statements (BBU) Total assets stable at $75.3 billion, revenues decreased to $6.7 billion due to dispositions, net income rose to $135 million Consolidated Statements of Financial Position Total assets were $75.3 billion, with Property, Plant and Equipment decreasing and corporate borrowings reduced to $1.1 billion Selected Balance Sheet Items (US$ millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets (US$ millions) | $75,335 | $75,474 | | Cash and cash equivalents | $3,329 | $3,239 | | Property, plant and equipment | $10,591 | $13,232 | | Goodwill | $13,287 | $12,239 | | Total Liabilities and Equity (US$ millions) | $75,335 | $75,474 | | Corporate borrowings | $1,116 | $2,142 | | Non-recourse borrowings | $42,493 | $36,720 | | Total Equity | $15,321 | $17,308 | Consolidated Statements of Operating Results Q2 2025 revenues were $6.7 billion, down from $11.9 billion due to dispositions, with net income increasing to $135 million Selected Income Statement Items (US$ millions) | Account | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues (US$ millions) | $6,695 | $11,946 | $13,444 | $23,961 | | Direct operating costs (US$ millions) | $(5,465) | $(10,928) | $(10,867) | $(21,806) | | Gain (loss) on dispositions, net (US$ millions) | $6 | $84 | $220 | $99 | | Net income (loss) (US$ millions) | $135 | $65 | $391 | $268 | | Attributable to Limited partners (US$ millions) | $11 | $(7) | $41 | $10 | Reconciliation of Non-IFRS Measure Q2 2025 reconciliation details Net Income of $135 million adjusted for depreciation and interest to arrive at $591 million Adjusted EBITDA Q2 2025 Reconciliation of Net Income to Adjusted EBITDA (US$ millions) | Description | Amount | | :--- | :--- | | Net income (loss) (US$ millions) | $135 | | Depreciation and amortization (US$ millions) | $767 | | Interest income (expense), net (US$ millions) | $801 | | Income tax (expense) recovery (US$ millions) | $(65) | | Other adjustments (US$ millions) | $94 | | Equity accounted Adjusted EBITDA (US$ millions) | $88 | | Amounts attributable to non-controlling interests (US$ millions) | $(1,223) | | Adjusted EBITDA (US$ millions) | $591 | Brookfield Business Corporation (BBUC) Q2 2025 Results Financial Highlights and Dividend (BBUC) BBUC reported a $120 million net loss attributable to BBP in Q2 2025, driven by a $176 million remeasurement loss, and declared a $0.0625 dividend Net Income (Loss) Attributable to BBP (US$ millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $(120) | $124 | | Six Months Ended June 30 | $(178) | $(26) | - The current period loss included a $176 million remeasurement loss on exchangeable and class B shares, which are classified as liabilities under IFRS35 - A quarterly dividend of $0.0625 per share was declared, payable on September 29, 202536 Consolidated Financial Statements (BBUC) BBUC total assets decreased to $16.3 billion, with stable revenues at $1.86 billion, but a $23 million net loss due to remeasurement loss on shares Consolidated Statements of Financial Position (BBUC) Total assets decreased to $16.3 billion from $19.1 billion, driven by lower Property, Plant and Equipment and Accounts Payable, with exchangeable shares increasing to $1.8 billion Selected Balance Sheet Items (US$ millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets (US$ millions) | $16,282 | $19,098 | | Property, plant and equipment | $181 | $2,480 | | Total Liabilities and Equity (US$ millions) | $16,282 | $19,098 | | Accounts payable and other | $2,981 | $5,276 | | Exchangeable and class B shares | $1,815 | $1,709 | Consolidated Statements of Operating Results (BBUC) Q2 2025 revenues were $1.86 billion, with a $176 million remeasurement loss on exchangeable shares driving a $23 million net loss Selected Income Statement Items (US$ millions) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues (US$ millions) | $1,860 | $1,929 | | Remeasurement of exchangeable shares (US$ millions) | $(176) | $237 | | Net income (loss) (US$ millions) | $(23) | $40 | | Attributable to Brookfield Business Partners (US$ millions) | $(120) | $124 | Disclosures and Additional Information Forward-Looking Statements and Non-IFRS Measures The report cautions on forward-looking statements due to inherent risks and clarifies Adjusted EBITDA as a non-IFRS supplemental measure, not a substitute for IFRS analysis - The company cautions that forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially454748 - Adjusted EBITDA is presented as a non-IFRS supplemental measure and is not a substitute for financial analysis prepared in accordance with IFRS51