Brookfield Business Partners (BBU) Q1 2025 earnings summary

Executive summary

• Generated over $1.5 billion from capital recycling, completed major asset sales, and committed $370 million to acquire two industrial businesses, including Chemelex and Antylia Scientific, with the latter expected to close in Q2 2025.

• Net income attributable to unitholders rose to $80 million ($0.38/unit) in Q1 2025, up from $48 million ($0.23/unit) year-over-year, with total net income at $256 million.

• Adjusted EBITDA increased to $591 million from $544 million, with margin improving to 23% from 21% last year, supported by new acquisitions and tax benefits.

• Repurchased nearly 6 million units/shares for $140 million under a $250 million buyback program, with plans to renew in August 2025.

• Strategy remains focused on market-leading businesses, operational improvements, and enhancing performance and cash flows amid market volatility.

Financial highlights

• Revenues for Q1 2025 were $6.75 billion, down from $12.02 billion year-over-year, mainly due to the sale of the road fuels and shuttle tanker operations.

• Adjusted EFO was $345 million, including a $114 million net gain from the shuttle tanker sale and a $34 million withholding tax expense.

• Direct operating costs decreased significantly, reflecting business disposals and tax benefits at the advanced energy storage operation.

• Corporate liquidity at quarter-end was $2.4 billion, including $59 million in cash and $2.3 billion in undrawn credit facilities.

• Net interest expense and borrowings decreased due to asset sales and upfinancing at the advanced energy storage operation.

Outlook and guidance

• Preparing for a more uncertain 12–18 months due to potential tariff impacts and global economic headwinds.

• Confident in resilience and cash flow stability of core businesses, with ongoing operational improvements and cost optimization.

• Anticipates closing the $1.3 billion Antylia Scientific acquisition in Q2 2025, investing $160 million for a 25% stake.

• Plans to renew the unit repurchase program upon expiry in August 2025.

• Expects continued value creation from digitalization, relocalization, and investments in financial infrastructure.