Brookfield Business Partners (NYSE:BBU) outlined what it called an “excellent year” in 2025, highlighting capital recycling, debt reduction, acquisitions, and share repurchases alongside updates on operating performance across key portfolio companies. Management also said the partnership is close to completing a corporate reorganization that will convert the business into a single, newly listed corporation, a move it expects will improve liquidity and broaden investor access.
2025 capital activity and planned corporate reorganization
Chief Executive Officer Anuj Ranjan said Brookfield Business Partners generated more than $2 billion of proceeds from capital recycling during the year and used that flexibility to repay roughly $1 billion of corporate borrowings. The company also invested $700 million in four growth acquisitions and repurchased about $235 million of stock, which Ranjan said was done “at a significant discount to intrinsic value.”
Management’s view of the operating environment
Adrian Letts, head of global business operations, described conditions as “relatively stable” overall, while noting differences by region. In North America, he said easing rates, steady consumer spending, and resilient labor markets have supported demand, though he added that near-term growth remains difficult in some end markets amid measured capital spending. Letts pointed to longer-term trends including reshoring, automation, and supply chain repositioning as companies respond to evolving trade policy and geopolitical uncertainty.
In Europe, Letts said conditions remain more challenging, with slower activity in cyclical and industrial end markets such as construction and some capital-expenditure-sensitive manufacturing segments. However, he said the company is seeing early signs of improvement supported by fiscal spending increases in countries like Germany, stabilizing energy prices, and more accommodative monetary policy in much of the region.
Operational progress at key businesses
Letts highlighted what he described as continued progress executing Brookfield’s operating playbook across portfolio companies. He cited Clarios as an example, saying it is coming off another record calendar year. Since Brookfield’s acquisition, he said underlying annual EBITDA has increased 40%, or almost $700 million, and management sees a path to a similar level of growth over the next five years as initiatives continue.
Letts said current work at Clarios includes strengthening operational efficiency, enhancing pricing and commercial strategy, and advancing new product technologies. He added that the business is investing to expand advanced battery manufacturing capacity, enhance recycling and critical mineral recovery capabilities, and accelerate manufacturing capabilities, supported by strong cash generation and U.S. manufacturing tax credits.
At Nielsen, Letts said the audience measurement business has executed about $800 million of cost savings since acquisition, including more than $250 million in the past year. He said EBITDA margins have increased by more than 350 basis points, driven primarily by organizational simplification, automation, and reduced third-party spend. Letts added that Nielsen recently completed two refinancings which, combined with debt paydown, are expected to result in about $90 million of annual interest savings.
Letts also discussed DexKo, saying the team managed through weak end-market conditions. While volumes were down for the year, he said full-year EBITDA rose low single digits and margins held in line with acquisition levels due to cost optimization, commercial execution, and productivity improvements. He said the company is “cautiously optimistic” that volumes are stabilizing with new business wins.
Outside North America, Letts said Network, a Middle East payment processor, is tracking in line with expectations. He said the team upgraded the core technology platform, optimized the cost base, improved the e-commerce offering, and expanded value-added services such as data analytics, fraud, and loyalty solutions. He also said Brookfield strengthened the leadership team, made progress combining Network with a legacy regional processing operation, and closed an add-on acquisition.
Financial results and segment performance
Chief Financial Officer Jaspreet Dehl reported full-year adjusted EBITDA of $2.4 billion, down from $2.6 billion in 2024. He attributed the decline to lower ownership in three businesses following partial sales, and noted the results included $297 million of tax credits compared with $271 million the prior year. Excluding tax credits and the impact of acquisitions and dispositions, Dehl said adjusted EBITDA was $2.1 billion versus $2.0 billion in the prior year.
Dehl said adjusted EFO was $1.2 billion for the year and included $161 million of net gains.
- Industrial segment: Adjusted EBITDA was $1.3 billion, up from $1.2 billion. Excluding acquisitions, dispositions, and tax benefits, Dehl said performance increased 10%, helped by strong results at the advanced energy operation due to mix and commercial execution. He also cited margin improvement initiatives and commercial actions at an engineered components manufacturer despite weak end markets.
- Business services segment: Adjusted EBITDA was $823 million versus $832 million. On a same-store basis, Dehl said adjusted EBITDA increased about 5%. He said the residential mortgage insurer’s results reflected timing impacts from slower revenue recognition under IFRS 17 due to an uncertain Canadian economic forecast, while new insurance premium volumes increased with new products aimed at expanding the market and improving affordability in a soft Canadian housing market. At the dealer software and technology services operation, he said stable renewal activity and commercial initiatives were largely offsetting churn, while modernization costs affected results and are expected to continue through 2026.
- Infrastructure services segment: Adjusted EBITDA was $436 million, down from $606 million. Dehl said the results reflected the sale of an offshore oil services shuttle tanker operation and a $14 million impact from selling a partial interest in a work access services operation. He said improved margins and the ramp-up of recent commercial wins at a lottery services operation were offset by lower terminal deliveries and hardware sales; he noted a strong pipeline, including a recent full rollout of a UK Digital Service Offering. He added that modular building leasing services were impacted by lower activity and utilization, partially offset by growth in value-added products and services.
Balance sheet, buybacks, and Q&A highlights
Dehl said Brookfield Business Partners ended the year with approximately $2.6 billion of pro forma corporate-level liquidity, including the fair value of units received in exchange for a partial sale of interests in three businesses to a Brookfield Evergreen Fund. He said 87 million of those units were redeemed during the quarter. Dehl also said the company completed more than $20 billion of financings across operations over the past year, extending maturities and improving terms, and reduced the cost of refinanced borrowings by over 50 basis points.
On capital returns, Dehl said the company has repurchased about $235 million of units and shares at an average price of about $26 and remains committed to completing its $250 million buyback program, adding that it will be opportunistic beyond that level.
In the question-and-answer session, management addressed the timing and structure of Clarios production tax credits. Dehl said the company filed its return and believes the credits qualify, supported by third-party independent advisors, but noted the timing of receipt is difficult to predict. He added that for 2024 credits the company chose to receive cash back rather than transferable credits, and it is not looking to sell the credits at this point. Dehl also said a substantial amount of the credit was insured as a backup channel if payment is not received through the IRS, though management currently expects to be paid through normal channels.
Management also discussed monetization considerations for mature assets. Letts said the environment is generally strong globally for realizations and said Brookfield prioritizes businesses where value creation plans have been completed and risk reduced. He said BRK in Brazil has been performing “exceptionally well,” with double-digit growth and a recently won new concession, and said the company is strongly evaluating a potential listing as Brazil’s IPO market appears to be reopening. On La Trobe, Letts said the business was repositioned toward a fixed-income asset manager model, a regulatory notice was resolved, inflows have returned, and Brookfield is reengaging with parties with “all options” on the table for future return of capital.
On Scientific Games, Letts said management was pleased with the recent UK market launch and said earnings are beginning to reflect a pipeline of opportunities, while emphasizing that it can take six to 12 months for earnings to come through. Dehl addressed questions about leverage following a credit rating downgrade, saying EBITDA growth should help reduce leverage over time and that the business has contracted revenues and stable free cash flow to service its debt.
Looking ahead, Ranjan said the company expects to continue momentum in 2026, citing multiple opportunities that it views as aligned with its strategy and suggesting it could be “a very active year.”
About Brookfield Business Partners (NYSE:BBU)
Brookfield Business Partners L.P. (NYSE: BBU) is a publicly traded partnership sponsored by Brookfield Asset Management. The company focuses on acquiring and operating high-quality businesses across a range of industrial and service-oriented sectors. Through a partnership structure, Brookfield Business Partners seeks to provide investors with returns generated from stable, cash-flowing enterprises that benefit from Brookfield Asset Management’s global scale and operational expertise.
The company’s investment strategy centers on businesses within the industrial services, manufacturing, transportation, and business services segments.
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