Brookfield Business Partners Reports Third Quarter 2025 Results
Executive Summary
- Brookfield Business Partners reported a net loss of $59 million for Q3 2025 (‑$0.28 per unit), a swing from a $301 million profit in the prior year period.
- Adjusted EBITDA fell to $575 million, down 32% YoY, reflecting lower tax recoveries and reduced ownership stakes after partial asset sales.
- The company completed the acquisition of First National Financial Corporation for $2.6 billion (investing $146 million for an 11% stake) and announced a corporate simplification arrangement to convert all units into publicly‑traded Class A shares, with special meetings scheduled for 13 Jan 2026.
Key Details
- Net Income / Loss:
- Q3 2025: $(59) M (‑$0.28 per unit) vs. Q3 2024: $301 M (+$1.39 per unit).
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Prior‑year profit included $296 M tax recoveries and $131 M net gains on dispositions; current period includes $77 M tax recoveries and $16 M disposition gains.
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Adjusted EBITDA:
- Q3 2025: $575 M (down from $844 M YoY).
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Segment breakdown – Industrials $316 M, Business Services $188 M, Infrastructure Services $104 M, Corporate $(33) M.
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Adjusted EFO (Earnings Before Fixed‑Cost Operating Expenses):
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Q3 2025: $184 M (Industrials), $126 M (Business Services), $41 M (Infrastructure Services), $(67) M (Corporate).
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Capital Recycling / Dispositions:
- Sale of offshore oil services FPSO operation announced; expected proceeds to be used to recycle capital, closing H1 2026.
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Partial disposals: work‑access services interest (July 2025), offshore oil services shuttle tanker (Jan 2025).
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Capital Deployment:
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Completed privatization of First National Financial Corp. – $2.6 B total purchase price; Brookfield invested $146 M for an 11% stake.
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Corporate Reorganization (Arrangement):
- All BBU limited partnership units, BBUC Class A exchangeable shares and redemption‑exchange units to be exchanged for newly issued Class A shares of a Canadian corporation on a one‑for‑one basis.
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Subject to court approval, security‑holder votes, and regulatory clearances; special meetings set for 13 Jan 2026 (record date 25 Nov 2025).
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Liquidity:
- End‑quarter cash & equivalents: $2.3 B (including $2.2 B available under credit facilities).
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Pro forma liquidity after announced transactions: approximately $2.9 B.
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Distribution:
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Quarterly distribution declared at $0.0625 per unit, payable 31 Dec 2025 to unitholders of record 28 Nov 2025.
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Guidance / Outlook (implicit):
- Arrangement expected to close in Q1 2026, providing a single listed corporate structure and potentially unlocking additional capital for growth initiatives.
Notable Quotes
“We made excellent progress… 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.