Brookfield Business Partners Reports Second Quarter 2025 Results
BROOKFIELD, NEWS, Aug. 01, 2025 (GLOBE NEWSWIRE) -- Brookfield Business Partners (NYSE:BBU, BBUC, TSX:BBU, BBUC)) announced today financial results for the quarter ended June 30, 2025.
"We had an active quarter, reaching an agreement on the sale of a partial interest in three businesses, investing $300 million to acquire two market-leading businesses, and repurchasing an additional 2.2 million of common equity at highly accretive levels," said Anuj Ranjan, CEO of Brookfield Business Partners. "The strength of our financial results in an uneven macroeconomic environment underscores the resilience of our operations, while progress on our value creation plans and capital recycling initiatives enable us to continue compounding growth for investors."
Three Months EndedJune 30,
Six Months EndedJune 30,
US$ millions (except per unit amounts), unaudited
2025
2024
2025
2024
Net income (loss) attributable to Unitholders1
$
26
$
(20
)
$
106
$
28
Net income (loss) per limited partnership unit2
$
0.12
$
(0.10
)
$
0.49
$
0.13
Adjusted EBITDA3
$
591
$
524
$
1,182
$
1,068
Net income attributable to Unitholders for the three months ended June 30, 2025 was $26 million ($0.12 per limited partnership unit), compared to net loss of $20 million (loss of $0.10 per limited partnership unit) in the prior period.
Adjusted EBITDA for the three months ended June 30, 2025 was $591 million, compared to $524 million in the prior period reflecting increased performance on a same store basis and contribution from recently completed acquisitions. Prior period results included $71 million of contribution from disposed operations including our offshore oil services' shuttle tanker operation which was sold in January 2025.
Operational Update
The following table presents Adjusted EBITDA by segment:
Three Months EndedJune 30,
Six Months EndedJune 30,
US$ millions, unaudited
2025
2024
2025
2024
Industrials
$
307
$
213
$
611
$
441
Business Services
205
182
418
387
Infrastructure Services
109
157
213
300
Corporate and Other
(30
)
(28
)
(60
)
(60
)
Adjusted EBITDA
$
591
$
524
$
1,182
$
1,068
Our Industrials segment generated Adjusted EBITDA of $307 million for the three months ended June 30, 2025, compared to $213 million during the same period in 2024, benefiting from strong operating performance at our advanced energy storage operation. Current period results included $71 million of tax recoveries as well as contribution from recent acquisitions including our electric heat tracing systems manufacturer which was acquired in January 2025. Prior period results included contribution from our Canadian aggregates production operation which was sold in June 2024.
Our Business Services segment generated Adjusted EBITDA of $205 million for the three months ended June 30, 2025, compared to $182 million during the same period in 2024 which reflected the impact of reduced contribution from our dealer software and technology services operation in the prior period. Prior period results included contribution from our road fuels operation which was sold in July 2024.
Our Infrastructure Services segment generated Adjusted EBITDA of $109 million for the three months ended June 30, 2025, compared to $157 million during the same period in 2024 primarily reflecting the sale of our offshore oil services' shuttle tanker operation in January 2025.
The following table presents Adjusted EFO4 by segment:
Three Months EndedJune 30,
Six Months EndedJune 30,
US$ millions, unaudited
2025
2024
2025
2024
Adjusted EFO
Industrials
$
154
$
206
$
284
$
386
Business Services
105
86
222
254
Infrastructure Services
38
76
204
148
Corporate and Other
(63
)
(79
)
(131
)
(168
)
Adjusted EFO included the benefit of lower interest expense due to a reduction in corporate borrowings compared to the prior period. Industrials Adjusted EFO reflected the impact of higher interest expense related to the funding of a distribution received from our advanced energy storage operation during the current year. Adjusted EFO in the prior period included $103 million of net gains related to the disposition of our Canadian aggregates production operation and the sale of public securities.
Strategic Initiatives
Capital RecyclingIn July, we completed the previously announced sale of a partial interest in three businesses to a new evergreen private equity fund managed by Brookfield Asset Management. In exchange, BBU will receive units of the new evergreen fund with an initial redemption value of approximately $690 million, representing an aggregate 8.6% discount to net asset value (NAV) of the interests sold. In the 18-month period following the initial close of the new evergreen fund, the units are expected to be redeemed for cash.
Canadian Mortgage LenderIn July, we entered into a partnership to privatize First National Financial Corporation, a leading publicly-listed Canadian residential and multi-family mortgage lender, for $2.7 billion. The transaction is expected to be funded with approximately $1.3 billion of equity, of which BBU's share is expected to be approximately $145 million for an 11% interest in the business. The transaction is expected to close later this year, subject to obtaining the required shareholder, court and regulatory approvals and the satisfaction of other customary closing conditions.
Specialty Consumables and Equipment ManufacturerIn May, we completed the previously announced acquisition of Antylia Scientific, a leading manufacturer and distributor of critical consumables and testing equipment serving life sciences and environmental labs for approximately $1.3 billion. BBU invested $168 million for a 26% interest.
Unit Repurchase ProgramDuring the quarter, we invested $56 million to repurchase 2.2 million units and shares of Brookfield Business Partners at an average price of approximately $25 per unit and share. Since the start of the year, our buyback program has returned $157 million to owners through the repurchase of 6.5 million units and shares under our normal course issuer bid (NCIB), which we plan to renew once it expires later this month.
Liquidity
We ended the quarter with approximately $2.3 billion of liquidity at the corporate level, including $2.2 billion of availability on our credit facilities. Pro forma for announced and recently closed transactions, corporate liquidity is approximately $2.9 billion.
Distribution
The Board of Directors has declared a quarterly distribution in the amount of $0.0625 per unit, payable on September 29, 2025 to unitholders of record as at the close of business on August 29, 2025.
Additional Information
The Board has reviewed and approved this news release, including the summarized unaudited interim condensed consolidated financial statements contained herein.
Brookfield Business Partners' Letter to Unitholders and the Supplemental Information are available on our website https://bbu.brookfield.com under Reports & Filings.
Notes:1 Attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders, special limited partnership unitholders and BBUC exchangeable shareholders.2 Net income (loss) per limited partnership unit calculated as net income (loss) attributable to limited partners divided by the average number of limited partnership units outstanding for the three and six months ended June 30, 2025 which were 88.9 million and 84.5 million, respectively (June 30, 2024: 74.3 million and 74.3 million, respectively).3 Adjusted EBITDA is a non-IFRS measure of operating performance presented as net income and equity accounted income at the partnership's economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of interest income (expense), net, income taxes, depreciation and amortization expense, gains (losses) on dispositions, net, transaction costs, restructuring charges, revaluation gains or losses, impairment expenses or reversals, other income or expenses, and preferred equity distributions. The partnership's economic ownership interest in consolidated subsidiaries and equity accounted investments excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its unaudited interim condensed consolidated statements of operating results. The partnership believes that Adjusted EBITDA provides a comprehensive understanding of the ability of its businesses to generate recurring earnings which allows users to better understand and evaluate the underlying financial performance of the partnership's operations and excludes items that the partnership believes do not directly relate to revenue earning activities and are not normal, recurring items necessary for business operations. Please refer to the reconciliation of net income (loss) to Adjusted EBITDA included in this news release.4 Adjusted EFO is the partnership's segment measure of profit or loss and is presented as net income and equity accounted income at the partnership's economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of depreciation and amortization expense, deferred income taxes, transaction costs, restructuring charges, unrealized revaluation gains or losses, impairment expenses or reversals and other income or expense items that are not directly related to revenue generating activities. The partnership's economic ownership interest in consolidated subsidiaries excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its unaudited interim condensed consolidated statements of operating results. In order to provide additional insight regarding the partnership's operating performance over the lifecycle of an investment, Adjusted EFO includes the impact of preferred equity distributions and realized disposition gains or losses recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. Adjusted EFO does not include legal and other provisions that may occur from time to time in the partnership's operations and that are one-time or non-recurring and not directly tied to the partnership's operations, such as those for litigation or contingencies. Adjusted EFO includes expected credit losses and bad debt allowances recorded in the normal course of the partnership's operations. Adjusted EFO allows the partnership to evaluate its segments on the basis of return on invested capital generated by its operations and allows the partnership to evaluate the performance of its segments on a levered basis.
Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in our company either through Brookfield Business Partners L.P. (NYSE:BBU, TSX:BBU), a limited partnership or Brookfield Business Corporation ((NYSE, TSX:BBUC), a corporation. For more information, please visit https://bbu.brookfield.com.
Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management's Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over $1 trillion of assets under management.
Please note that Brookfield Business Partners' previous audited annual and unaudited quarterly reports have been filed on SEDAR+ and EDGAR, and are available at https://bbu.brookfield.com under Reports & Filings. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
For more information, please contact:
Media:Marie FullerTel: +44 207 408 8375Email:
Investors:Alan FlemingTel: +1 (416) 645-2736Email:
Conference Call and Quarterly Earnings Webcast Details
Investors, analysts and other interested parties can access Brookfield Business Partners' second quarter 2025 results as well as the Letter to Unitholders and Supplemental Information on our website https://bbu.brookfield.com under Reports & Filings.
The results call can be accessed via webcast on August 1, 2025 at 10:00 a.m. Eastern Time at BBU2025Q2Webcast or participants can preregister at BBU2025Q2ConferenceCall. Upon registering, participants will be emailed a dial-in number and unique PIN. A replay of the webcast will be available at https://bbu.brookfield.com.
Brookfield Business Partners L.P.
Consolidated Statements of Financial Position
As at
US$ millions, unaudited
June 30, 2025
December 31, 2024
Assets
Cash and cash equivalents
$
3,329
$
3,239
Financial assets
11,658
12,371
Accounts and other receivable, net
7,148
6,279
Inventory and other assets
5,808
5,728
Property, plant and equipment
10,591
13,232
Deferred income tax assets
1,959
1,744
Intangible assets
19,158
18,317
Equity accounted investments
2,397
2,325
Goodwill
13,287
12,239
Total Assets
$
75,335
$
75,474
Liabilities and Equity
Liabilities
Corporate borrowings
$
1,116
$
2,142
Accounts payable and other
13,766
16,691
Non-recourse borrowings in subsidiaries of the partnership
42,493
36,720
Deferred income tax liabilities
2,639
2,613
Equity
Limited partners
$
2,291
$
1,752
Non-controlling interests attributable to:
Redemption-exchange units
1,330
1,644
Special limited partner
—
—
BBUC exchangeable shares
1,805
1,721
Preferred securities
740
740
Interest of others in operating subsidiaries
9,155
11,451
15,321
17,308
Total Liabilities and Equity
$
75,335
$
75,474
Brookfield Business Partners L.P.
Consolidated Statements of Operating Results
US$ millions, unaudited
Three Months EndedJune 30,
Six Months EndedJune 30,
2025
2024
2025
2024
Revenues
$
6,695
$
11,946
$
13,444
$
23,961
Direct operating costs
(5,465
)
(10,928
)
(10,867
)
(21,806
)
General and administrative expenses
(271
)
(307
)
(582
)
(624
)
Interest income (expense), net
(801
)
(778
)
(1,571
)
(1,574
)
Equity accounted income (loss)
23
31
15
54
Impairment reversal (expense), net
(14
)
—
(14
)
10
Gain (loss) on dispositions, net
6
84
220
99
Other income (expense), net
(103
)
(100
)
(186
)
16
Income (loss) before income tax
70
(52
)
459
136
Income tax (expense) recovery
Current
(119
)
(122
)
(316
)
(212
)
Deferred
184
