Brookfield Business (US:BBUC)2025-11-10 22:08Financial 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].