Brookfield Business Partners (NYSE:BBU) Q4 2025 Earnings call January 30, 2026 10:00 AM ET Speaker4Welcome to the Brookfield Business Partners fourth quarter 2025 results conference call and webcast. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, simply press star one one on your touchtone phone. Now, I'd like to turn the conference over to Alan Fleming, Head o ...

Financial Data and Key Metrics Changes - Third quarter Adjusted EBITDA was $575 million compared to $844 million in the prior period, reflecting lower ownership in three businesses following the partial sale of Anktrus and including $77 million of tax benefits [15] - Adjusted EFO for the quarter was $284 million, benefiting from lower current tax expense and reduced interest expense due to decreased corporate borrowings [15] Business Line Data and Key Metrics Changes - The industrial segment generated third quarter Adjusted EBITDA of $316 million compared to $500 million in the prior period, with a 17% increase in performance when including tax benefits [16] - The business services segment's Adjusted EBITDA was $188 million compared to $228 million last year, impacted by the sale of a partial interest in dealer software and technology services [17] - The infrastructure services segment generated Adjusted EBITDA of $104 million compared to $146 million during the same quarter last year, reflecting the sale of offshore oil services and a partial interest in work access services [18] Market Data and Key Metrics Changes - The broader global economy has remained resilient, with public markets at record highs and transaction activity increasing due to declining global interest rates [7][8] - The company has seen a significant increase in its consolidated market cap by nearly $1 billion following the announcement of a corporate structure simplification [5] Company Strategy and Development Direction - The company is focused on capital recycling, having generated over $2 billion in proceeds and repaid $1 billion of borrowings, while also investing $525 million in strategic growth acquisitions [4] - Plans to simplify corporate structure aim to improve trading liquidity and increase demand for shares from index investors [5] - The company is leveraging AI to enhance operational capabilities and drive value creation [6][50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism heading into the fourth quarter, noting strong operational performance and a robust investment environment [7][45] - The company remains focused on organic growth and operational improvements rather than pursuing new concessions in the BRK business [24] Other Important Information - The company has a pro forma liquidity of approximately $2.9 billion at the corporate level, providing flexibility for growth and capital allocation [19] - A buyback program has been launched, allowing for the repurchase of an additional 8 million units and shares [19] Q&A Session Summary Question: Regarding BRK and potential IPO - Management confirmed that an IPO is one option for monetizing BRK, but the capital markets environment in Brazil remains challenging [22] Question: On La Trobe's regulatory issues - Management clarified that the issues are primarily disclosure-related and have not impacted the underlying fundamentals of the business [26] Question: On DexKo's performance outlook - Management indicated that DexKo is performing well, with signs of recovery in market demand, and expressed optimism for the coming year [46]