Brookfield Business Partners (BBU) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a net loss attributable to unitholders of $59 million ($0.28 per unit), compared to net income of $301 million in Q3 2024, mainly due to lower tax benefits and asset sales.

• Adjusted EBITDA for Q3 2025 was $575 million, down from $844 million in Q3 2024, reflecting lower tax benefits and reduced ownership in certain businesses.

• Revenues for Q3 2025 were $6.9 billion, down from $9.2 billion in Q3 2024, primarily due to business dispositions and deconsolidations.

• Major corporate reorganization announced to simplify structure, with all units and shares to be exchanged for new class A shares in a Canadian corporation, expected to complete in Q1 2026.

• Significant transactions included the acquisition of First National Financial Corporation and agreement to sell the FPSO operation, with closing expected in H1 2026.

Financial highlights

• Q3 2025 revenues were $6.9 billion (Q3 2024: $9.2 billion); net loss was $122 million; Adjusted EBITDA was $575 million (Q3 2024: $844 million).

• Direct operating costs for Q3 2025 were $5.7 billion, down from $7.1 billion in Q3 2024.

• Adjusted EBITDA margin was 21% (19% excluding tax benefits), compared to 28% (18% excluding tax benefits) in Q3 2024.

• Net loss per limited partnership unit was $0.28, versus net income of $1.39 per unit in the prior year.

• Net debt-to-capitalization ratio increased to 72% from 67% at year-end 2024.

Outlook and guidance

• The corporate reorganization is expected to improve trading liquidity, broaden investor access, and support long-term value creation, with completion targeted for Q1 2026.

• The FPSO sale is expected to close in H1 2026, with proceeds anticipated to recover most invested capital.

• Management remains focused on operational improvements, capital allocation, and growth in high-margin, resilient segments.

• Anticipates further benefits from AI integration and operational improvements across portfolio companies.

• Strong pipeline of investment opportunities; capital deployment will be opportunistic and selective.