Brookfield Business Partners Reports Second Quarter 2025 Results

Executive Summary

• Brookfield Business Partners reported second quarter 2025 financial results, posting a net income of $26 million ($0.12 per unit) for the three months ended June 30, 2025, compared to a net loss of $20 million in the prior year period.
• Adjusted EBITDA increased to $591 million for the quarter, up from $524 million in the prior year, driven by strong performance in the Industrials segment and contributions from recent acquisitions.
• The company executed significant strategic initiatives, including the privatization of First National Financial Corporation for $2.7 billion, the acquisition of Antylia Scientific for $1.3 billion, and the sale of partial interests in three businesses for approximately $690 million in evergreen fund units.

Key Details

• Financial Performance (Three Months Ended June 30, 2025):
  • Net income attributable to Unitholders: $26 million ($0.12 per unit).
  • Net income attributable to Unitholders (Six Months): $106 million ($0.49 per unit).
  • Adjusted EBITDA: $591 million (up from $524 million in Q2 2024).
  • Adjusted EBITDA (Six Months): $1,182 million (up from $1,068 million in H1 2024).
• Segment Adjusted EBITDA (Q2 2025 vs Q2 2024):
  • Industrials: $307 million (vs $213 million), benefiting from advanced energy storage operations and tax recoveries.
  • Business Services: $205 million (vs $182 million).
  • Infrastructure Services: $109 million (vs $157 million), impacted by the sale of the offshore oil services shuttle tanker operation.
  • Corporate and Other: $(30) million.
• Strategic Initiatives & Transactions:
  • Capital Recycling: Completed sale of partial interest in three businesses to a Brookfield Asset Management evergreen fund; received units with an initial redemption value of ~$690 million (8.6% discount to NAV).
  • First National Financial Corporation: Entered partnership to privatize for $2.7 billion; BBU to invest ~$145 million for an 11% interest. Expected to close later in 2025.
  • Antylia Scientific: Completed acquisition of this specialty consumables and equipment manufacturer for ~$1.3 billion; BBU invested $168 million for a 26% interest.
  • Unit Repurchases: Repurchased 2.2 million units/shares for $56 million at an average price of ~$25 per unit. Year-to-date repurchases total $157 million.
• Liquidity:
  • Corporate liquidity ended at ~$2.3 billion, including $2.2 billion in credit facility availability.
  • Pro forma liquidity, including announced transactions, is approximately $2.9 billion.
• Dividends/Distributions:
  • Board declared a quarterly distribution of $0.0625 per unit for Brookfield Business Partners.
  • Board declared a quarterly dividend of $0.0625 per share for Brookfield Business Corporation.
  • Payable on September 29, 2025, to holders of record as of August 29, 2025.
• Brookfield Business Corporation (BBUC) Results:
  • Reported a net loss attributable to Brookfield Business Partners of $120 million for Q2 2025 (vs net income of $124 million in Q2 2024).
  • Results included a $176 million remeasurement loss on exchangeable and class B shares classified as liabilities.

Notable Quotes

• “We had an active quarter, reaching an agreement on the sale of a partial interest in three businesses, investing $300 million to acquire two market-leading businesses, and repurchasing an additional 2.2 million of common equity at highly accretive levels,” said Anuj Ranjan, CEO of Brookfield Business Partners. “The strength of our financial results in an uneven macroeconomic environment underscores the resilience of our operations, while progress on our value creation plans and capital recycling initiatives enable us to continue compounding growth for investors.”