Brookfield Business Partners (BBU)·Q4 2025 Earnings Summary
Brookfield Business Partners Holds Steady as Clarios Hits Record Battery Mix
January 30, 2026 · by Fintool AI Agent
Brookfield Business Partners (BBU) reported Q4 2025 results with Adjusted EBITDA flat at $652 million versus $653 million in the prior year period, while net loss narrowed dramatically to $4 million from a $438 million loss a year ago . The partnership's EBITDA margin expanded 200 basis points to 24%, driven by strong execution at Clarios and favorable mix shifts across the portfolio .
The quarter's standout performer was the advanced energy storage operation (Clarios), which achieved a record 36% advanced battery mix while generating $275 million of Adjusted EBITDA . Corporate liquidity stands at approximately $2.6 billion pro forma following announced transactions .
Did Brookfield Business Partners Beat Earnings?
BBU modestly beat EBITDA consensus expectations. The partnership reported EBITDA of ~$575 million on an IFRS consolidated basis versus consensus of $572.5 million, a 0.4% beat.*
*Values retrieved from S&P Global.
Excluding contributions from acquired and disposed operations, Adjusted EBITDA was $651 million compared to $619 million in the prior period, representing 5% organic growth .
Ask Fintool AI AgentHow Did Each Segment Perform?
Industrials — The Star Performer
The Industrials segment delivered $354 million of Adjusted EBITDA, up 16% from $306 million in Q4 2024 .
Clarios continues to benefit from the transition to higher-margin advanced batteries. The 36% advanced battery mix during Q4 marked a record high, reflecting growing demand for AGM and lithium batteries used in start-stop systems and electric vehicles . Results included $77 million of tax benefits, largely in line with the prior period .
Business Services — Holding Steady
Business Services generated $217 million of Adjusted EBITDA, flat year-over-year .
CDK Global saw a $16 million decline due to two factors: a $10 million impact from the sale of a 7% interest in July 2025, plus higher technology modernization costs . However, the business signed a multi-year extension with a large publicly-traded auto dealership, helping offset churn .
Nielsen Update: Since acquisition, the audience measurement business has executed about $800 million of cost savings, including over $250 million achieved in the past year, increasing EBITDA margins by more than 350 basis points . Recent refinancings combined with debt paydown will result in approximately $90 million of annual interest savings .
Network (Middle East Payments): Performance is tracking in line with expectations. The team upgraded the core technology platform, optimized the cost base, improved e-commerce offerings, and expanded value-added services around data analytics, fraud, and loyalty solutions. The business also closed an add-on acquisition .
Infrastructure Services — Disposition Impact
Infrastructure Services reported $119 million of Adjusted EBITDA, down 26% from $160 million .
The decline is primarily attributable to the sale of the shuttle tanker operation in January 2025 and a 5% interest sale in the work access services operation .
What Changed From Last Quarter?
Several strategic developments occurred in Q4:
1. Corporate Reorganization Approved
Unitholders and shareholders approved the corporate simplification on January 13, 2026, with court approval on January 16, 2026 . The reorganization is expected to close by end of Q1 2026 and will result in a quarterly dividend of $0.0625 per share ($0.25 annually) .
2. Fosber Acquisition Announced
BBU entered into an agreement to acquire Fosber, a leading provider of machinery for the corrugated packaging industry. BBU's equity contribution will be approximately $170 million for a 35% interest . Closing is expected in H1 2026.
3. Continued Buybacks
Since launching the buyback program in early 2025, BBU has returned $235 million to unitholders through the repurchase of 8.8 million units and shares at an average price of approximately $27 per unit . During and after Q4, an additional $72 million was deployed to repurchase 2.1 million units at ~$34 per unit .
4. Evergreen Fund Redemptions
$87 million of units received from the July 2025 partial sale of three businesses to a Brookfield managed evergreen fund were redeemed during Q4 . The remaining fair value of units held is approximately $585 million .
Ask Fintool AI AgentHow Did the Stock React?
BBU shares rose 0.8% to $35.00 following the earnings release.*
*Values retrieved from S&P Global.
The stock has nearly doubled from its 52-week low of $18.63, driven by:
- Successful monetization of portfolio assets
- Improving profitability at Clarios
- Progress on corporate simplification
- Aggressive buyback program
What Did Management Say?
CEO Anuj Ranjan opened the call by highlighting the transformative year and differentiated positioning:
"In a world where returns can no longer depend on falling rates, cheap financing, or multiple expansion, our approach to operational excellence matters more than ever. This is the environment that our business was built for."
He emphasized two structural forces accelerating demand for BBU's strategy:
"De-globalization is reshaping supply chains... CapEx in U.S. manufacturing has grown from $50 billion in 2020 to nearly $250 billion in 2025. At the same time, AI is reshaping industrial and essential services businesses... The opportunity is massive, but the constraint isn't technology. It's experienced operators who can implement real change."
On the operating environment, Adrian Letts noted regional divergence:
"In North America, conditions are benefiting from easing rates, steady consumer spending, and resilient labor markets... In Europe, conditions are more challenging. Activity has been slower in some cyclical and industrial end markets."
Q&A Highlights
Clarios Tax Credits & Monetization Timing
When asked about the $297M in 45X manufacturing tax credits and monetization timing, CFO Jaspreet Dehl confirmed:
"We filed our return. It's being processed. We had third-party independent advisors verify everything, and we feel very good about qualifying and getting these credits."
The company has insured a substantial portion of the credits as a contingency . On monetization, Dehl highlighted the optionality:
"Clarios is an incredible business... The business is generating a lot of free cash flow today, and the 45X credits just add to that. We've got a lot of optionality around the business—distributions, some kind of monetization event."
Since acquisition, underlying annual EBITDA has increased 40% or ~$700 million, with management seeing a path to similar growth over the next 5 years .
Scientific Games Rating Downgrade
Following a credit rating downgrade, management was asked about leverage vs. growth priorities:
"If you can grow EBITDA, that naturally reduces your overall leverage levels... Growth is a really important lever. This is a fairly stable business with contracted revenues. It generates stable free cash flow and is more than equipped to service the debt."
Adrian Letts added that the UK digital service offering launched successfully last week .
CDK Technology Modernization
On CDK Global's tech investment and churn management:
"Renewal activity has been strong, including we won a large multi-site dealership extension. Over half of the contracts now have a duration of three years plus."
Monetization Pipeline (BRK, La Trobe)
On BRK Ambiental (Brazilian water utility), Anuj Ranjan noted:
"The IPO markets in Brazil open up every so often. They seem to be opening up again right now. Interest rates feel like they have peaked. BRK has been performing exceptionally well—double-digit growth and winning a new concession recently. It feels like the right time for a listing."
On La Trobe Financial (Australian mortgage finance):
"We pivoted the business from more of a non-bank model to a fixed income asset manager, which gets more of a premium. There was a regulatory notice that was resolved. Inflows came back strongly. We're re-engaging with parties—all options are on the table."
Buyback Commitment
"We're committed to completing our $250 million buyback program... We renewed the NCIB in August with quite a bit of capacity. Beyond the $250 million, we'll continue to be opportunistic where we see material discounts to intrinsic value."
2026 Deployment Outlook
When asked about M&A pipeline:
"Going into 2026, it feels like we'll continue with that momentum. The team is working on many opportunities—things right down the fairway. There are some exciting opportunities ahead. I think it'll be a very active year."
Ask Fintool AI AgentFull Year 2025 Summary
Excluding tax benefits at Clarios ($297M vs $371M prior year) and contributions from acquired/disposed operations, Adjusted EBITDA was $2,056 million versus $1,990 million in the prior year, representing 3% organic growth .
Balance Sheet & Liquidity
Corporate borrowings decreased $817 million due to repayments on credit facilities . Corporate liquidity as at December 31, 2025 was $2,133 million, and approximately $2.6 billion pro forma for announced transactions .
What to Watch Going Forward
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Corporate Reorganization Closing — Expected by end of Q1 2026, which will simplify the structure and establish a regular quarterly dividend
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Fosber Acquisition — Closing expected H1 2026, adding exposure to corrugated packaging machinery with two-thirds recurring aftermarket revenue
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Clarios Trajectory — Advanced battery mix growth and potential future monetization event
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CDK Technology Modernization — Near-term cost headwind but positioning for improved competitiveness
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Scientific Games U.K. Digital Performance — Full digital service offering launched last week; management "cautiously optimistic" on earnings contribution ramp
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