Brookfield Business Partners (BBU) Q4 2024 earnings summary

Executive summary

• Achieved record full-year Adjusted EBITDA of $2.565 billion, with margins rising to 22% and strong performance in Industrials and energy storage.

• Reported net loss of $109 million for 2024, mainly due to one-time non-cash expenses and impairments, compared to net income of $1,405 million in 2023.

• Generated over $2 billion from capital recycling, including proceeds from asset sales and distributions.

• Completed significant refinancing at Clarios, funding a $4.5 billion distribution and maintaining full ownership.

• Announced up to $250 million for accelerated share/unit repurchases to enhance per-unit value.

Financial highlights

• Adjusted EBITDA for 2024 was $2,565 million, up from $2,491 million in 2023, with margins at 22% (19% excluding tax benefits).

• Net loss per unit was $0.50 for 2024, compared to earnings of $6.49 per unit in 2023.

• Adjusted EFO reached $1.532 billion, including $306 million in net gains.

• Corporate liquidity at year-end was $1.3 billion, increasing to $2.7 billion pro forma for recent transactions.

• Revenue for 2024 was $40,620 million, down from $55,068 million in 2023.

Outlook and guidance

• Expect continued growth in earnings and cash flow, supported by investments in advanced battery technologies and U.S. manufacturing.

• Management anticipates stable performance in residential mortgage insurance and ongoing cost savings from global operations.

• Plan to remain active in acquisitions and capital recycling to optimize returns.

• Substantial liquidity of $2.7 billion pro forma provides flexibility for future capital deployment.

• Recent commercial wins and new contracts in lottery and offshore oil services expected to support future earnings.