Financial Data and Key Metrics Changes - The company generated full-year Adjusted EBITDA of $2.4 billion, down from $2.6 billion in 2024, reflecting lower ownership in three businesses following partial sales [17] - Adjusted EFO for the year was $1.2 billion, including $161 million of net gains during the year [17] - Excluding tax credits and the impact of acquisitions and dispositions, Adjusted EBITDA was $2.1 billion, compared to $2 billion in the prior year [17] Business Line Data and Key Metrics Changes - The industrial segment generated full-year Adjusted EBITDA of $1.3 billion, up from $1.2 billion last year, with a 10% increase excluding acquisitions and dispositions [18] - The business services segment generated full-year Adjusted EBITDA of $823 million, down from $832 million last year, but increased approximately 5% on a same-store basis [19] - The infrastructure services segment generated full-year Adjusted EBITDA of $436 million, down from $606 million last year, impacted by the sale of operations and lower terminal deliveries [20] Market Data and Key Metrics Changes - North America is benefiting from easing rates, steady consumer spending, and resilient labor markets, although growth remains challenging in certain end markets [10] - In Europe, conditions are more challenging with slower activity in cyclical and industrial end markets, but early signs of improvement are noted due to fiscal spending and stabilizing energy prices [11] Company Strategy and Development Direction - The company is close to completing a corporate reorganization to become a single, newly listed corporation, which is expected to improve trading liquidity and attract global investors [5] - The strategy focuses on operational excellence and capitalizing on de-globalization and AI trends to reshape supply chains and enhance business performance [7][8] - The company aims to continue compounding value for shareholders through capital recycling, growth acquisitions, and stock repurchases [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market backdrop, noting that the trading price is 50% higher than a year ago but still at a discount to NAV [8] - The company is well-positioned with capital and capabilities to build value in 2026, with a strong pipeline of new commercial opportunities [9][15] Other Important Information - The company ended the year with approximately $2.6 billion of pro forma liquidity at the corporate level, providing significant flexibility for growth and capital allocation [21] - The company has repurchased approximately $235 million of its units and shares, remaining committed to completing its $250 million buyback program [21] Q&A Session Summary Question: Regarding Clarios' performance and tax credits - Management indicated that Clarios is generating significant free cash flow, and the 45X tax credits will enhance cash for reinvestment, with various options for shareholder returns being considered [23][24] Question: On Scientific Games' earnings trajectory - Management expressed cautious optimism about Scientific Games, noting a strong market position and a robust pipeline, but emphasized that earnings growth may take time to materialize [26][27] Question: On the balance between reducing leverage and pursuing growth - Management stated that growing EBITDA will naturally reduce leverage, and the focus remains on growth while managing debt levels effectively [28][29] Question: Update on CDK operations - Management reported strong renewal activity and a focus on stabilizing churn through technology adoption, with a positive long-term outlook for the business [42][44] Question: On monetization environment and deployment pacing - Management noted a strong environment for monetizations and indicated that 2026 is expected to be an active year for acquisitions, continuing the momentum from 2025 [45][46]

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 [16] - Adjusted EFO for the quarter was $284 million, benefiting from lower current tax expense and reduced interest expense due to decreased corporate borrowings [16][20] - The company's market cap increased by nearly $1 billion following the announcement of a corporate structure simplification [5] Business Line Data and Key Metrics Changes - The industrial segment generated adjusted EBITDA of $316 million compared to $500 million in the prior period, with a 17% increase in underlying performance driven by higher volumes and demand for advanced batteries [16][17] - 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 [18] - The infrastructure services segment's adjusted EBITDA was $104 million compared to $146 million in the same quarter last year, reflecting the sale of offshore oil services and a partial interest in work access services [19] 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 [8] - The company noted that the capital markets environment in Brazil is challenging but showing signs of improvement, with interest rates having peaked [24] Company Strategy and Development Direction - The company is focused on capital recycling, having generated over $2 billion in proceeds and repaying $1 billion of borrowings [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 across its businesses [7][50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism heading into the fourth quarter, noting strong performance in public markets and transaction activity [8] - The company is confident in its growth prospects, particularly in sectors like water treatment and sewage, where significant opportunities exist [26] Other Important Information - The company has repurchased just over $160 million of its units and shares as part of its buyback program [4][20] - The company is actively pursuing strategic growth acquisitions, having invested $525 million in three acquisitions [4] Q&A Session Summary Question: Regarding BRK and potential IPO - Management indicated that an IPO is one option for monetizing BRK, but the capital markets environment in Brazil remains challenging [24] Question: On Latrobe and regulatory actions - Management clarified that the issues with Latrobe are primarily disclosure-related and have not impacted the underlying fundamentals of the business [27] Question: On Dexco's performance - Management expressed confidence in Dexco's performance, noting an improving market and signs of recovery [46] Question: On AI benefits across investments - Management highlighted the operational improvements and data opportunities being realized through AI across various businesses [48][50] Question: On capital allocation and liquidity - Management confirmed that while they are comfortable with current leverage, they remain opportunistic regarding new investments and buybacks [51]