Brookfield Business Partners (BBU) Q4 2025 earnings summary

Executive summary

• Generated over $2 billion from capital recycling, repaid $1 billion in borrowings, invested $700 million in four acquisitions, and repurchased $235 million of stock at a discount to intrinsic value in 2025.

• Net income attributable to unitholders for 2025 was $43 million, reversing a net loss of $109 million in 2024, aided by the absence of prior year one-time charges.

• Nearing completion of a corporate reorganization to become a single, newly listed corporation, expected to improve trading liquidity and index demand.

• Strategy focuses on acquiring quality businesses and driving operational improvements, with more than half of value realized from business enhancements.

• Market price up 50% year-over-year but remains at a discount to NAV; strong cash flow durability from market-leading businesses.

Financial highlights

• Adjusted EBITDA for 2025 was $2,409 million, down from $2,565 million in 2024, reflecting lower ownership in three businesses and $297 million in tax credits.

• Adjusted EBITDA margin for 2025 was 23%, up from 22% in 2024.

• Adjusted EFO for 2025 was $1,179 million, including $161 million of net gains.

• Ended the year with $2,133 million in corporate liquidity, pro forma $2,600 million after recent transactions.

• Completed over $20 billion in financings, reducing cost of refinanced borrowings by 50 basis points.

Outlook and guidance

• Well positioned for continued value creation in 2026, with strong capital and capabilities.

• Expecting an active year for acquisitions and capital deployment, building on 2025 momentum.

• Expect to declare a quarterly dividend of $0.0625 per share post-reorganization, with an annualized rate of $0.25 per share.

• Corporate reorganization expected to close by the end of Q1 2026, subject to regulatory approvals.

• Cautiously optimistic on Scientific Games' earnings growth trajectory, with a strong pipeline and recent successful UK launch.