Brookfield Business Partners Reports Third Quarter 2025 Results

Executive Summary

• Brookfield Business Partners reported a net loss of $59 million for Q3 2025 (loss of $0.28 per unit), a swing from a $301 million profit in the prior year period.
• Adjusted EBITDA fell to $575 million for the quarter, down 32% YoY, reflecting lower tax recoveries and reduced ownership stakes after partial asset sales.
• The company announced completion of the $2.6 billion acquisition of First National Financial Corp., generated $180 million from capital‑recycling initiatives, and outlined a corporate reorganization to convert all units into a single listed corporation (the “Arrangement”).

Key Details

• Net Income (Loss):
• Q3 2025: $(59) M (−$0.28 per unit) vs. Q3 2024: $301 M (+$1.39 per unit).
• Adjusted EBITDA: $575 M for Q3 2025 vs. $844 M in Q3 2024. Segment breakdown – Industrials $316 M, Business Services $188 M, Infrastructure Services $104 M, Corporate (−$33 M).
• Capital Recycling: Sale of offshore FPSO operation expected to close H1 2026; proceeds plus prior asset sales aim to recover the majority of invested capital.
• Acquisition Completed: First National Financial Corp. (Canadian residential & multi‑family mortgage lender) for $2.6 B; Brookfield invested $146 M for an 11% stake.
• Corporate Reorganization (Arrangement): All BBU limited partnership units, BBUC Class A exchangeable shares and redemption‑exchange units to be exchanged one‑for‑one for newly issued Class A shares of a publicly traded Canadian corporation; special meetings scheduled for Jan 13 2026; subject to court and regulator approvals.
• Liquidity: Approx. $2.3 B cash & credit facilities at quarter end; pro‑forma liquidity (including announced transactions) ≈ $2.9 B.
• Distribution Declared: Quarterly distribution of $0.0625 per unit, payable Dec 31 2025 to unitholders of record Nov 28 2025.
• Other Financial Metrics (selected):
• Revenues Q3 2025: $6,919 M vs. $9,232 M YoY.
• Net loss attributable to Brookfield Business Partners (Corporation) $500 M for the quarter; includes $468 M remeasurement loss on exchangeable and Class B shares.
• Forward‑Looking Statements: Management highlighted expectations around continued growth from acquisitions, capital recycling, and execution of the Arrangement.

Notable Quotes

“We made excellent progress in our business over the past few months, completing the acquisition of a Canadian residential and multi‑family mortgage lender, generating $180 million from our capital recycling initiatives and announcing the simplification of our corporate structure,” – Anuj Ranjan, CEO, Brookfield Business Partners.