Brookfield Business Partners Reports 2025 Year End Results

Executive Summary

• Brookfield Business Partners reported net income of $43 million for FY 2025 (loss of $0.30 per unit), a turnaround from a $109 million loss in 2024.
• Adjusted EBITDA fell to $2,409 million versus $2,565 million the prior year, reflecting tax recoveries and lower ownership in three businesses after partial disposals.
• The company announced a $480 million capital deployment plan (including a $480 million acquisition of Fosber) and a repurchase program that returned $235 million to owners; it also expects to declare a quarterly dividend of $0.0625 per share after its corporate reorganization is completed.

Key Details

• Net Income: $43 M for FY 2025 (loss of $0.30 per limited partnership unit) vs. $(109) M in 2024.
• Adjusted EBITDA: $2,409 M in 2025 vs. $2,565 M in 2024; includes $297 M tax recoveries at advanced energy storage operation and impact of reduced ownership after partial sales.
• Segment Adjusted EBITDA (FY 2025):
• Industrials – $1,281 M (+10% YoY, excl. acquisitions/dispositions/tax)
• Business Services – $823 M (‑1% YoY)
• Infrastructure Services – $436 M (‑28% YoY)
• Adjusted EFO (FY 2025): $1,402 M total; includes $161 M net gains from shuttle tanker disposition.
• Capital Deployment: Agreement to acquire Fosber for ~$480 M equity ($170 M BBU share for 35% interest), closing H1 2026 pending regulatory approvals.
• Corporate Reorganization: Security‑holder approval obtained Jan 13, 2026; court approval Jan 16, 2026; expected completion Q1 2026.
• Share Repurchase Program: $72 M invested to buy back 2.1 M units/shares at ~$34 each; total repurchases to date $235 M (8.8 M units/shares).
• Liquidity: $2,135 M cash & equivalents at year‑end; $2,020 M available under credit facilities; pro‑forma liquidity ~ $2,600 M after announced transactions.
• Dividend Outlook: Quarterly dividend of $0.0625 per share payable March 31, 2026; annualized to $0.25 per share thereafter.
• Guidance / Forward‑Looking Statements: Management expects the reorganization to enhance demand for shares and continue capital recycling initiatives; forward‑looking statements subject to customary risk factors.

Notable Quotes

“We had a great year, generating over $2 billion from our capital recycling initiatives, investing $700 million in four growth acquisitions and repurchasing $235 million of our units and shares at a significant discount to intrinsic value,” – Anuj Ranjan, CEO, Brookfield Business Partners.

Materiality Assessment: Material – Positive (earnings turnaround, sizable cash flow generation, strategic acquisition, and dividend declaration).