Brookfield Business Partners Reports Second Quarter 2024 Results
Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) reported Q2 2024 results. Net loss attributable to unitholders was $20 million ($0.10 loss per unit), improving from a $48 million loss in Q2 2023. Adjusted EBITDA fell to $524 million from $606 million in the previous year. Segment-wise, Industrials saw improved Adjusted EBITDA at $213 million, while Business Services and Infrastructure Services declined to $182 million and $157 million, respectively. Strategic actions include debt refinancings and selling the Canadian aggregates production operation for $140 million. Additionally, liquidity stood at $1.6 billion, and a quarterly distribution of $0.0625 per unit was announced.
Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) ha riportato i risultati del secondo trimestre 2024. La perdita netta attribuibile agli unitholders è stata di 20 milioni di dollari (0,10 dollari di perdita per unità), migliorando rispetto alla perdita di 48 milioni di dollari nel secondo trimestre 2023. L'EBITDA corretto è sceso a 524 milioni di dollari rispetto ai 606 milioni dell'anno precedente. Per quanto riguarda i settori, gli Industriali hanno registrato un miglioramento dell'EBITDA corretto a 213 milioni di dollari, mentre i Servizi alle imprese e i Servizi infrastrutturali sono diminuiti a 182 milioni e 157 milioni, rispettivamente. Tra le azioni strategiche vi sono il rifinanziamento del debito e la vendita dell'operazione di produzione di aggregati canadensi per 140 milioni di dollari. Inoltre, la liquidità si attestava a 1,6 miliardi di dollari e è stata annunciata una distribuzione trimestrale di 0,0625 dollari per unità.
Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) informó los resultados del segundo trimestre de 2024. La pérdida neta atribuible a los unitholders fue de 20 millones de dólares (0,10 dólares de pérdida por unidad), mejorando con respecto a una pérdida de 48 millones de dólares en el segundo trimestre de 2023. El EBITDA ajustado cayó a 524 millones de dólares desde 606 millones el año anterior. Por segmentos, Industriales vio un aumento en el EBITDA ajustado a 213 millones de dólares, mientras que Servicios Empresariales y Servicios de Infraestructura disminuyeron a 182 millones y 157 millones, respectivamente. Las acciones estratégicas incluyen la refinanciación de deudas y la venta de la operación de producción de agregados en Canadá por 140 millones de dólares. Además, la liquidez se situó en 1,6 mil millones de dólares y se anunció una distribución trimestral de 0,0625 dólares por unidad.
브룩필드 비즈니스 파트너스 (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC)가 2024년 2분기 실적을 발표했습니다. 유닛 보유자에게 귀속된 순손실은 2천만 달러(유닛당 0.10달러 손실)로, 2023년 2분기에는 4천8백만 달러 손실에서 개선되었습니다. 조정된 EBITDA는 작년의 6억6백만 달러에서 5억2천4백만 달러로 감소했습니다. 부문별로 산업 부문은 2억1천3백만 달러로 조정된 EBITDA가 개선되었고, 비즈니스 서비스 및 인프라 서비스는 각각 1억8천2백만 달러와 1억5천7백만 달러로 하락했습니다. 전략적 조치로는 부채 재융자와 캐나다 광물 생산 운영의 1억4천만 달러 판매가 포함됩니다. 또한, 유동성은 16억 달러에 이르렀으며, 유닛당 분기 배당금으로 0.0625달러가 발표되었습니다.
Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) a annoncé les résultats du deuxième trimestre 2024. La perte nette attribuable aux détenteurs d'unités s'est élevée à 20 millions de dollars (0,10 dollar de perte par unité), en amélioration par rapport à une perte de 48 millions de dollars au deuxième trimestre 2023. L'EBITDA ajusté a baissé à 524 millions de dollars contre 606 millions de dollars l'année précédente. Par segment, les Industries ont enregistré un EBITDA ajusté amélioré à 213 millions de dollars, tandis que les Services aux entreprises et les Services d'infrastructure ont diminué respectivement à 182 millions et 157 millions de dollars. Les mesures stratégiques comprennent le refinancement de la dette et la vente de l'opération de production d'agrégats canadienne pour 140 millions de dollars. De plus, la liquidité s'élevait à 1,6 milliard de dollars et une distribution trimestrielle de 0,0625 dollar par unité a été annoncée.
Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) berichtete über die Ergebnisse des zweiten Quartals 2024. Der den Unitholders zurechenbare Nettoverlust betrug 20 Millionen Dollar (0,10 Dollar Verlust pro Einheit) und verbesserte sich gegenüber einem Verlust von 48 Millionen Dollar im zweiten Quartal 2023. Das bereinigte EBITDA fiel von 606 Millionen Dollar im Vorjahr auf 524 Millionen Dollar. Segmentweise verzeichnete der Industriesektor ein verbessertes bereinigtes EBITDA von 213 Millionen Dollar, während Unternehmensdienstleistungen und Infrastrukturdienstleistungen auf 182 Millionen Dollar bzw. 157 Millionen Dollar zurückgingen. Zu den strategischen Maßnahmen gehören die Umfinanzierung von Schulden und der Verkauf des kanadischen Aggregatproduktionsbetriebs für 140 Millionen Dollar. Zudem belief sich die Liquidität auf 1,6 Milliarden Dollar, und es wurde eine vierteljährliche Ausschüttung von 0,0625 Dollar pro Einheit angekündigt.
- Net loss improved to $20 million from $48 million year-over-year.
- Industrials segment Adjusted EBITDA increased to $213 million, reflecting strong performance.
- Completed sale of Canadian aggregates production operation for $140 million.
- Reduced debt interest rates via significant refinancings.
- Liquidity position stood at $1.6 billion.
- Adjusted EBITDA decreased to $524 million from $606 million year-over-year.
- Business Services segment Adjusted EBITDA fell to $182 million, impacted by a cybersecurity incident.
- Infrastructure Services segment Adjusted EBITDA declined to $157 million due to the sale of the nuclear technology services operation.
Insights
As a financial analyst, I find several key points worth highlighting in Brookfield Business Partners' Q2 2024 results:
- Net loss attributable to unitholders was
$20 million ($0.10 loss per unit), an improvement from$48 million loss in Q2 2023. - Adjusted EBITDA decreased to
$524 million from$606 million year-over-year, partly due to the sale of the nuclear technology services operation. - The Industrials segment saw improved performance, with Adjusted EBITDA rising to
$213 million from$196 million . - Business Services and Infrastructure Services segments faced challenges, with Adjusted EBITDA declining year-over-year.
- The company completed several significant debt refinancings, potentially improving its interest expense profile.
- Liquidity remains strong at
$1.6 billion at the corporate level.
While the overall results show some pressure, particularly in certain segments, the company's ability to refinance debt and maintain strong liquidity are positive factors. The improved performance in the Industrials segment is encouraging, but investors should monitor the challenges in other segments closely.
The quarterly distribution of
From a strategic perspective, Brookfield Business Partners' Q2 results reveal both challenges and opportunities:
- The company's diverse portfolio demonstrates resilience, with strong performance in some areas offsetting weaknesses in others.
- The sale of the Canadian aggregates production operation for
$140 million (Brookfield's share:$131 million ) at a 2.6x multiple and14% IRR showcases the company's ability to create and realize value through strategic divestitures. - The cybersecurity incident at the dealer software and technology services operation highlights the importance of robust digital security measures in today's business environment.
- Brookfield's strong access to capital, evidenced by multiple debt refinancings, provides a competitive advantage in the current economic climate.
- The company's focus on capital recycling initiatives suggests an active approach to portfolio management and value creation.
Moving forward, Brookfield should prioritize addressing the challenges in its Business Services and Infrastructure Services segments while capitalizing on the strength of its Industrials segment. The company's ability to navigate complex market conditions and maintain financial flexibility positions it well for potential opportunities arising from market dislocations.
Analyzing Brookfield Business Partners' Q2 2024 results from a risk management perspective reveals several key considerations:
- The cybersecurity incident at the dealer software and technology services operation underscores the critical importance of robust cybersecurity measures. This event likely incurred both direct costs and reputational damage.
- The company's exposure to project-related risks is evident in the additional costs incurred in the construction operation for a project nearing completion. This highlights the need for stringent project management and cost control measures.
- The successful refinancing of significant debt amounts (
$3.6 billion ,$2.1 billion ,€1.9 billion ,$2.7 billion and€1.2 billion ) at lower spreads demonstrates effective interest rate risk management and improves the company's financial risk profile. - The company's strong liquidity position (
$1.6 billion at the corporate level) provides a buffer against potential market volatility or unexpected operational challenges. - The diverse portfolio across different sectors and geographies offers some natural risk mitigation through diversification.
While Brookfield has shown adeptness in managing financial risks, the operational risks highlighted this quarter suggest areas for potential improvement in risk management practices, particularly in cybersecurity and project management.
BROOKFIELD, NEWS, Aug. 02, 2024 (GLOBE NEWSWIRE) -- Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) announced today financial results for the quarter ended June 30, 2024.
“Our business fundamentals remain sound and we are pleased with the performance of many of our larger operations,” said Anuj Ranjan, CEO of Brookfield Business Partners. “Financial results were strong but impacted by a couple of one-time events this quarter. We continue to build value across our operations which will drive earnings as these one-time items pass. Our strong access to capital differentiates our franchise and enabled us to refinance a significant amount of debt at attractive rates during the quarter. We also continue to progress our capital recycling initiatives.”
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| US$ millions (except per unit amounts), unaudited | 2024 | 2023 | 2024 | 2023 | |||||||
| Net income (loss) attributable to Unitholders1 | $ | (20 | ) | $ | (48 | ) | $ | 28 | $ | 26 | |
| Net income (loss) per limited partnership unit2 | $ | (0.10 | ) | $ | (0.22 | ) | $ | 0.13 | $ | 0.12 | |
| Adjusted EBITDA3 | $ | 524 | $ | 606 | $ | 1,068 | $ | 1,228 | |||
Net loss attributable to Unitholders for the three months ended June 30, 2024 was
Adjusted EBITDA for the three months ended June 30, 2024 was
Operational Update
The following table presents Adjusted EBITDA by segment:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||
| Industrials | $ | 213 | $ | 196 | $ | 441 | $ | 415 | |||||
| Business Services | 182 | 223 | 387 | 435 | |||||||||
| Infrastructure Services | 157 | 216 | 300 | 441 | |||||||||
| Corporate and Other | (28 | ) | (29 | ) | (60 | ) | (63 | ) | |||||
| Adjusted EBITDA | $ | 524 | $ | 606 | $ | 1,068 | $ | 1,228 | |||||
Our Industrials segment generated Adjusted EBITDA of
Our Business Services segment generated Adjusted EBITDA of
Our Infrastructure Services segment generated Adjusted EBITDA of
The following table presents Adjusted EFO4 by segment:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||
| Adjusted EFO | |||||||||||||
| Industrials | $ | 206 | $ | 63 | $ | 386 | $ | 225 | |||||
| Business Services | 86 | 119 | 254 | 332 | |||||||||
| Infrastructure Services | 76 | 88 | 148 | 174 | |||||||||
| Corporate and Other | (79 | ) | (85 | ) | (168 | ) | (165 | ) | |||||
Adjusted EFO for the three months ended June 30, 2024 reflected increased contribution from our Industrials segment partially offset by reduced contribution from our Business Services segment primarily due to our dealer software and technology services operation and construction operation. Infrastructure Services Adjusted EFO reflected the disposition of our nuclear technology services operation which was sold last year. Adjusted EFO in the current period included a
Strategic Initiatives
- Aggregates Production Operation
In June, we completed the sale of our Canadian aggregates production operation for total consideration of approximately$140 million of which BBU’s share was$131 million , representing an approximate 2.6x multiple on our investment and an IRR of approximately14% .
- Refinancings
We recently completed five significant debt refinancings during and subsequent to quarter end:
- In May, CDK Global, our dealer software and technology services operation, repriced a
$3.6 billion USD term loan at SOFR+3.25% , reducing the spread on the debt from SOFR+4.00% . - In June, Scientific Games, our lottery services operation, repriced a
$2.1 billion USD term loan at SOFR+3.00% , reducing the spread on the debt from SOFR+3.25% .
- Also in June, Modulaire, our modular building leasing services operation, repriced a
$1.9 billion EUR term loan at EURIBOR+4.18% , reducing the spread on the debt from EURIBOR+4.43% .
- In July, Clarios, our advanced energy storage operation, repriced a
$2.7 billion USD term loan at SOFR+2.50% from SOFR+3.00% . - Also in July, Clarios, our advanced energy storage operation, refinanced a
$1.2 billion EUR term loan at EURIBOR+3.00% from EURIBOR+3.25% and extended the maturity by five years.
- In May, CDK Global, our dealer software and technology services operation, repriced a
- Unit Repurchase Program
During and subsequent to the quarter end, Brookfield Corporation, the parent company of Brookfield Business Partners, purchased 252,6355 units of Brookfield Business Partners L.P. As an affiliate, Brookfield Corporation’s unit purchases were completed under our normal course issuer bid (NCIB).
Liquidity
We ended the quarter with approximately
Distribution
The Board of Directors has declared a quarterly distribution in the amount of
Additional Information
The Board has reviewed and approved this news release, including the summarized unaudited interim consolidated financial statements contained herein.
Brookfield Business Partners’ Letter to Unitholders and the Supplemental Information are available on our website https://bbu.brookfield.com under Reports & Filings.
Notes:
- Attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders, special limited partnership unitholders and BBUC exchangeable shareholders.
- Net income (loss) per limited partnership unit calculated as net income (loss) attributable to limited partners divided by the average number of limited partnership units outstanding for the three and six months ended June 30, 2024 which were 74.3 million and 74.3 million, respectively (June 30, 2023: 74.6 million and 74.6 million, respectively).
- Adjusted EBITDA is a non-IFRS measure of operating performance presented as net income and equity accounted income at the partnership’s economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of interest income (expense), net, income taxes, depreciation and amortization expense, gains (losses) on acquisitions/dispositions, net, transaction costs, restructuring charges, revaluation gains or losses, impairment expenses or reversals, other income or expenses, and preferred equity distributions. The partnership’s economic ownership interest in consolidated subsidiaries and equity accounted investments excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its unaudited interim condensed consolidated statements of operating results. The partnership believes that Adjusted EBITDA provides a comprehensive understanding of the ability of its businesses to generate recurring earnings which allows users to better understand and evaluate the underlying financial performance of the partnership’s operations and excludes items that the partnership believes do not directly relate to revenue earning activities and are not normal, recurring items necessary for business operations. Please refer to the reconciliation of net income (loss) to Adjusted EBITDA included in this release.
- Adjusted EFO is the partnership’s segment measure of profit or loss and is presented as net income and equity accounted income at the partnership’s economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of depreciation and amortization expense, deferred income taxes, transaction costs, restructuring charges, unrealized revaluation gains or losses, impairment expenses or reversals and other income or expense items that are not directly related to revenue generating activities. The partnership’s economic ownership interest in consolidated subsidiaries excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its unaudited interim condensed consolidated statements of operating results. In order to provide additional insight regarding the partnership’s operating performance over the lifecycle of an investment, Adjusted EFO includes the impact of preferred equity distributions and realized disposition gains or losses recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. Adjusted EFO does not include legal and other provisions that may occur from time to time in the partnership’s operations and that are one-time or non-recurring and not directly tied to the partnership’s operations, such as those for litigation or contingencies. Adjusted EFO includes expected credit losses and bad debt allowances recorded in the normal course of the partnership’s operations. Adjusted EFO allows the partnership to evaluate its segments on the basis of return on invested capital generated by its operations and allows the partnership to evaluate the performance of its segments on a levered basis.
- Inclusive of all limited partnership units purchased under our NCIB during the three months ended June 30, 2024 and up to market close on July 31, 2024.
Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in our company either through Brookfield Business Corporation (NYSE, TSX: BBUC), a corporation, or Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN), a limited partnership. For more information, please visit https://bbu.brookfield.com.
Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over
Please note that Brookfield Business Partners’ previous audited annual and unaudited quarterly reports have been filed on SEDAR+ and EDGAR, and are available at https://bbu.brookfield.com under Reports & Filings. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
For more information, please contact:
Media: Marie Fuller Tel: +44 207 408 8375 Email: marie.fuller@brookfield.com | Investors: Alan Fleming Tel: +1 (416) 645-2736 Email: alan.fleming@brookfield.com |
Conference Call and Quarterly Earnings Webcast Details
Investors, analysts and other interested parties can access Brookfield Business Partners’ second quarter 2024 results as well as the Letter to Unitholders and Supplemental Information on our website https://bbu.brookfield.com under Reports & Filings.
The results call can be accessed via webcast on August 2, 2024 at 10:00 a.m. Eastern Time at BBU2024Q2Webcast or participants can preregister at BBU2024Q2ConferenceCall. Upon registering, participants will be emailed a dial-in number, direct passcode, and unique PIN. A replay of the webcast will be available at https://bbu.brookfield.com.
| Brookfield Business Partners L.P. | |||||||||
| Consolidated Statements of Financial Position | |||||||||
| As at | |||||||||
| US$ millions, unaudited | June 30, 2024 | December 31, 2023 | |||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 2,959 | $ | 3,252 | |||||
| Financial assets | 13,822 | 13,176 | |||||||
| Accounts and other receivable, net | 6,607 | 6,563 | |||||||
| Inventory and other assets | 5,627 | 5,321 | |||||||
| Property, plant and equipment | 15,430 | 15,724 | |||||||
| Deferred income tax assets | 1,388 | 1,220 | |||||||
| Intangible assets | 19,674 | 20,846 | |||||||
| Equity accounted investments | 2,104 | 2,154 | |||||||
| Goodwill | 13,910 | 14,129 | |||||||
| Total Assets | $ | 81,521 | $ | 82,385 | |||||
| Liabilities and Equity | |||||||||
| Liabilities | |||||||||
| Corporate borrowings | $ | 1,882 | $ | 1,440 | |||||
| Accounts payable and other | 18,216 | 18,378 | |||||||
| Non-recourse borrowings in subsidiaries of Brookfield Business Partners | 40,240 | 40,809 | |||||||
| Deferred income tax liabilities | 2,979 | 3,226 | |||||||
| Equity | |||||||||
| Limited partners | $ | 1,868 | $ | 1,909 | |||||
| Non-controlling interests attributable to: | |||||||||
| Redemption-exchange units | 1,752 | 1,792 | |||||||
| Special limited partner | — | — | |||||||
| BBUC exchangeable shares | 1,834 | 1,875 | |||||||
| Preferred securities | 740 | 740 | |||||||
| Interest of others in operating subsidiaries | 12,010 | 12,216 | |||||||
| 18,204 | 18,532 | ||||||||
| Total Liabilities and Equity | $ | 81,521 | $ | 82,385 | |||||
| Brookfield Business Partners L.P. | |||||||||||||
| Consolidated Statements of Operating Results | |||||||||||||
| US$ millions, unaudited | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Revenues | $ | 11,946 | $ | 13,506 | $ | 23,961 | $ | 27,264 | |||||
| Direct operating costs | (10,928 | ) | (12,330 | ) | (21,806 | ) | (24,796 | ) | |||||
| General and administrative expenses | (307 | ) | (398 | ) | (624 | ) | (799 | ) | |||||
| Interest income (expense), net | (778 | ) | (932 | ) | (1,574 | ) | (1,797 | ) | |||||
| Equity accounted income (loss) | 31 | 28 | 54 | 53 | |||||||||
| Impairment reversal (expense), net | — | (7 | ) | 10 | (7 | ) | |||||||
| Gain (loss) on acquisitions/dispositions, net | 84 | 87 | 99 | 168 | |||||||||
| Other income (expense), net | (100 | ) | 138 | 16 | 267 | ||||||||
| Income (loss) before income tax | (52 | ) | 92 | 136 | 353 | ||||||||
| Income tax (expense) recovery | |||||||||||||
| Current | (122 | ) | (267 | ) | (212 | ) | (393 | ) | |||||
| Deferred | 239 | 216 | 344 | 284 | |||||||||
| Net income (loss) | $ | 65 | $ | 41 | $ | 268 | $ | 244 | |||||
| Attributable to: | |||||||||||||
| Limited partners | $ | (7 | ) | $ | (16 | ) | $ | 10 | $ | 9 | |||
| Non-controlling interests attributable to: | |||||||||||||
| Redemption-exchange units | (6 | ) | (16 | ) | 9 | 8 | |||||||
| Special limited partner | — | — | — | — | |||||||||
| BBUC exchangeable shares | (7 | ) | (16 | ) | 9 | 9 | |||||||
| Preferred securities | 13 | 22 | 26 | 44 | |||||||||
| Interest of others in operating subsidiaries | 72 | 67 | 214 | 174 | |||||||||
| Brookfield Business Partners L.P. | ||||||||||||||||||||
| Reconciliation of Non-IFRS Measure | ||||||||||||||||||||
| US$ millions, unaudited | Three Months Ended June 30, 2024 | |||||||||||||||||||
| Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | ||||||||||||||||
| Net income (loss) | $ | (5 | ) | $ | (92 | ) | $ | 216 | $ | (54 | ) | $ | 65 | |||||||
| Add or subtract the following: | ||||||||||||||||||||
| Depreciation and amortization expense | 248 | 222 | 339 | — | 809 | |||||||||||||||
| Gain (loss) on acquisitions/dispositions, net | — | — | (84 | ) | — | (84 | ) | |||||||||||||
| Other income (expense), net1 | 51 | 22 | 26 | 1 | 100 | |||||||||||||||
| Income tax (expense) recovery | (17 | ) | 4 | (91 | ) | (13 | ) | (117 | ) | |||||||||||
| Equity accounted income (loss) | (5 | ) | (11 | ) | (15 | ) | — | (31 | ) | |||||||||||
| Interest income (expense), net | 253 | 178 | 309 | 38 | 778 | |||||||||||||||
| Equity accounted Adjusted EBITDA2 | 18 | 44 | 15 | — | 77 | |||||||||||||||
| Amounts attributable to non-controlling interests3 | (361 | ) | (210 | ) | (502 | ) | — | (1,073 | ) | |||||||||||
| Adjusted EBITDA | $ | 182 | $ | 157 | $ | 213 | $ | (28 | ) | $ | 524 | |||||||||
Notes:
- Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net includes
$82 million related to provisions recorded at our construction operation,$49 million of net gains on debt modification and extinguishment,$41 million of business separation expenses, stand-up costs and restructuring charges,$21 million of net revaluation gains,$8 million of transaction costs and$39 million of other expenses. - Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by its investments in associates and joint ventures accounted for using the equity method.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
| Brookfield Business Partners L.P. | ||||||||||||||||||||
| Reconciliation of Non-IFRS Measure | ||||||||||||||||||||
| US$ millions, unaudited | Six Months Ended June 30, 2024 | |||||||||||||||||||
| Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | ||||||||||||||||
| Net income (loss) | $ | 235 | $ | (157 | ) | $ | 314 | $ | (124 | ) | $ | 268 | ||||||||
| Add or subtract the following: | ||||||||||||||||||||
| Depreciation and amortization expense | 502 | 434 | 681 | — | 1,617 | |||||||||||||||
| Impairment reversal (expense), net | (4 | ) | (12 | ) | 6 | — | (10 | ) | ||||||||||||
| Gain (loss) on acquisitions/dispositions, net | (15 | ) | — | (84 | ) | — | (99 | ) | ||||||||||||
| Other income (expense), net1 | (89 | ) | 4 | 58 | 11 | (16 | ) | |||||||||||||
| Income tax (expense) recovery | 7 | 1 | (118 | ) | (22 | ) | (132 | ) | ||||||||||||
| Equity accounted income (loss) | (6 | ) | (15 | ) | (33 | ) | — | (54 | ) | |||||||||||
| Interest income (expense), net | 505 | 358 | 636 | 75 | 1,574 | |||||||||||||||
| Equity accounted Adjusted EBITDA2 | 35 | 83 | 31 | — | 149 | |||||||||||||||
| Amounts attributable to non-controlling interests3 | (783 | ) | (396 | ) | (1,050 | ) | — | (2,229 | ) | |||||||||||
| Adjusted EBITDA | $ | 387 | $ | 300 | $ | 441 | $ | (60 | ) | $ | 1,068 | |||||||||
Notes:
- Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net includes
$179 million of net revaluation gains,$82 million related to provisions recorded at our construction operation,$61 million of business separation expenses, stand-up costs and restructuring charges,$50 million of other income related to a distribution at our entertainment operation,$38 million of net gains on debt modification and extinguishment,$29 million of transaction costs and$79 million of other expenses. - Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by our investments in associates and joint ventures accounted for using the equity method.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
| Brookfield Business Partners L.P. | ||||||||||||||||||||
| Reconciliation of Non-IFRS Measure | ||||||||||||||||||||
| US$ millions, unaudited | Three Months Ended June 30, 2023 | |||||||||||||||||||
| Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | ||||||||||||||||
| Net income (loss) | $ | 254 | $ | (136 | ) | $ | (26 | ) | $ | (51 | ) | $ | 41 | |||||||
| Add back or deduct the following: | ||||||||||||||||||||
| Depreciation and amortization expense | 252 | 301 | 354 | — | 907 | |||||||||||||||
| Impairment reversal (expense), net | 6 | 1 | — | — | 7 | |||||||||||||||
| Gain (loss) on acquisitions/dispositions, net | (87 | ) | — | — | — | (87 | ) | |||||||||||||
| Other income (expense), net1 | (214 | ) | 11 | 62 | 3 | (138 | ) | |||||||||||||
| Income tax expense (recovery) | 162 | 7 | (103 | ) | (15 | ) | 51 | |||||||||||||
| Equity accounted income (loss) | (10 | ) | (11 | ) | (7 | ) | — | (28 | ) | |||||||||||
| Interest income (expense), net | 265 | 281 | 352 | 34 | 932 | |||||||||||||||
| Equity accounted Adjusted EBITDA2 | 15 | 44 | 16 | — | 75 | |||||||||||||||
| Amounts attributable to non-controlling interests3 | (420 | ) | (282 | ) | (452 | ) | — | (1,154 | ) | |||||||||||
| Adjusted EBITDA | $ | 223 | $ | 216 | $ | 196 | $ | (29 | ) | $ | 606 | |||||||||
Notes:
- Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net includes
$159 million of net gains on debt modification and extinguishment,$89 million of net revaluation gains,$66 million of business separation expenses, stand-up costs and restructuring charges,$27 million of transaction costs,$13 million of net gains on the sale of property, plant and equipment and$30 million of other expenses. - Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by our investments in associates and joint ventures accounted for using the equity method.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
| Brookfield Business Partners L.P. | ||||||||||||||||||||
| Reconciliation of Non-IFRS Measure | ||||||||||||||||||||
| US$ millions, unaudited | Six Months Ended June 30, 2023 | |||||||||||||||||||
| Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | ||||||||||||||||
| Net income (loss) | $ | 430 | $ | (35 | ) | $ | (57 | ) | $ | (94 | ) | $ | 244 | |||||||
| Add back or deduct the following: | ||||||||||||||||||||
| Depreciation and amortization expense | 505 | 604 | 698 | — | 1,807 | |||||||||||||||
| Impairment reversal (expense), net | 6 | 1 | — | — | 7 | |||||||||||||||
| Gain (loss) on acquisitions/dispositions, net | (154 | ) | (14 | ) | — | — | (168 | ) | ||||||||||||
| Other income (expense), net1 | (185 | ) | (176 | ) | 90 | 4 | (267 | ) | ||||||||||||
| Income tax expense (recovery) | 201 | 14 | (68 | ) | (38 | ) | 109 | |||||||||||||
| Equity accounted income (loss), net | (12 | ) | (20 | ) | (21 | ) | — | (53 | ) | |||||||||||
| Interest income (expense), net | 506 | 541 | 685 | 65 | 1,797 | |||||||||||||||
| Equity accounted Adjusted EBITDA2 | 29 | 86 | 31 | — | 146 | |||||||||||||||
| Amounts attributable to non-controlling interests3 | (891 | ) | (560 | ) | (943 | ) | — | (2,394 | ) | |||||||||||
| Adjusted EBITDA | $ | 435 | $ | 441 | $ | 415 | $ | (63 | ) | $ | 1,228 | |||||||||
Notes:
- Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net includes
$392 million of net gains on debt modification and extinguishment,$113 million of business separation expenses, stand-up costs and restructuring charges,$48 million of transaction costs,$87 million of net revaluation gains,$13 million of net gains on the sale of property, plant and equipment and$64 million of other expenses. - Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by our investments in associates and joint ventures accounted for using the equity method.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
Brookfield Business Corporation Reports Second Quarter 2024 Results
Brookfield, News, August 2, 2024 – Brookfield Business Corporation (NYSE, TSX: BBUC) announced today its net income (loss) for the quarter ended June 30, 2024.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||
| Net income (loss) attributable to Brookfield Business Partners | $ | 124 | $ | 108 | $ | (26 | ) | $ | (32 | ) | |
Net income attributable to Brookfield Business Partners for the three months ended June 30, 2024 was
Dividend
The Board of Directors has declared a quarterly dividend in the amount of
Additional Information
Each exchangeable share of Brookfield Business Corporation has been structured with the intention of providing an economic return equivalent to one unit of Brookfield Business Partners L.P. Each exchangeable share will be exchangeable at the option of the holder for one unit. Brookfield Business Corporation will target that dividends on its exchangeable shares be declared and paid at the same time as distributions are declared and paid on the Brookfield Business Partners’ units and that dividends on each exchangeable share will be declared and paid in the same amount as distributions are declared and paid on each unit to provide holders of exchangeable shares with an economic return equivalent to holders of units.
In addition to carefully considering the disclosures made in this news release in its entirety, shareholders are strongly encouraged to carefully review the Letter to Unitholders, Supplemental Information and other continuous disclosure filings which are available at https://bbu.brookfield.com.
Please note that Brookfield Business Corporation’s previous audited annual and unaudited quarterly reports have been filed on SEDAR+ and EDGAR and are available at https://bbu.brookfield.com/bbuc under Reports & Filings. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
| Brookfield Business Corporation | |||||||||
| Consolidated Statements of Financial Position | |||||||||
| As at | |||||||||
| US$ millions, unaudited | June 30, 2024 | December 31, 2023 | |||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 754 | $ | 772 | |||||
| Financial assets | 324 | 224 | |||||||
| Accounts and other receivable, net | 3,335 | 3,569 | |||||||
| Inventory, net | 63 | 61 | |||||||
| Other assets | 774 | 737 | |||||||
| Property, plant and equipment | 2,671 | 2,743 | |||||||
| Deferred income tax assets | 263 | 221 | |||||||
| Intangible assets | 6,411 | 6,931 | |||||||
| Equity accounted investments | 208 | 222 | |||||||
| Goodwill | 5,700 | 5,702 | |||||||
| Total Assets | $ | 20,503 | $ | 21,182 | |||||
| Liabilities and Equity | |||||||||
| Liabilities | |||||||||
| Accounts payable and other | $ | 5,030 | $ | 4,818 | |||||
| Non-recourse borrowings in subsidiaries of Brookfield Business Corporation | 8,332 | 8,823 | |||||||
| Exchangeable and class B shares | 1,375 | 1,501 | |||||||
| Deferred income tax liabilities | 1,184 | 1,280 | |||||||
| Equity | |||||||||
| Brookfield Business Partners | $ | 849 | $ | 880 | |||||
| Non-controlling interests | 3,733 | 3,880 | |||||||
| 4,582 | 4,760 | ||||||||
| Total Liabilities and Equity | $ | 20,503 | $ | 21,182 | |||||
| Brookfield Business Corporation | |||||||||||||
| Consolidated Statements of Operating Results | |||||||||||||
| US$ millions, unaudited | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 20231 | 2024 | 20231 | ||||||||||
| Continuing operations | |||||||||||||
| Revenues | $ | 1,929 | $ | 1,908 | $ | 3,794 | $ | 3,773 | |||||
| Direct operating costs | (1,860 | ) | (1,669 | ) | (3,512 | ) | (3,285 | ) | |||||
| General and administrative expenses | (77 | ) | (63 | ) | (141 | ) | (124 | ) | |||||
| Interest income (expense), net | (203 | ) | (233 | ) | (413 | ) | (445 | ) | |||||
| Equity accounted income (loss) | 2 | 2 | 3 | — | |||||||||
| Impairment reversal (expense), net | — | (7 | ) | (2 | ) | (7 | ) | ||||||
| Gain (loss) on acquisitions/dispositions, net | — | 87 | — | 87 | |||||||||
| Remeasurement of exchangeable and class B shares | 237 | 101 | 126 | (20 | ) | ||||||||
| Other income (expense), net | (59 | ) | 171 | (70 | ) | 133 | |||||||
| Income (loss) before income tax from continuing operations | (31 | ) | 297 | (215 | ) | 112 | |||||||
| Income tax (expense) recovery | |||||||||||||
| Current | 16 | (112 | ) | (28 | ) | (122 | ) | ||||||
| Deferred | 55 | 10 | 109 | 23 | |||||||||
| Net income (loss) from continuing operations | $ | 40 | $ | 195 | $ | (134 | ) | $ | 13 | ||||
| Discontinued operations | |||||||||||||
| Net income (loss) from discontinued operations | — | (37 | ) | — | (40 | ) | |||||||
| Net income (loss) | $ | 40 | $ | 158 | $ | (134 | ) | $ | (27 | ) | |||
| Attributable to: | |||||||||||||
| Brookfield Business Partners | $ | 124 | $ | 108 | $ | (26 | ) | $ | (32 | ) | |||
| Non-controlling interests | (84 | ) | 50 | (108 | ) | 5 | |||||||
Notes:
- Comparative prior period results have been adjusted to reflect our nuclear technology services operation as a discontinued operation presented as a single amount excluded from continuing operations. Our nuclear technology services operation was reported as part of continuing operations until the end of the third quarter of 2023. Following the sale in the fourth quarter of 2023, comparative prior period results reflect the classification as a discontinued operation.
Cautionary Statement Regarding Forward-looking Statements and Information
Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield Business Partners, as well as regarding recently completed and proposed acquisitions, dispositions, and other transactions, and the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts”, “views”, “potential”, “likely” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.
Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, investors and other readers should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Business Partners to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and results of operations and our plans and strategies may vary materially from those expressed in the forward-looking statements and forward-looking information herein.
Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the cyclical nature of our operating businesses and general economic conditions and risks relating to the economy, including unfavorable changes in interest rates, foreign exchange rates, inflation and volatility in the financial markets; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including our ability to complete dispositions and achieve the anticipated benefits therefrom; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes, hurricanes and pandemics/epidemics; cybersecurity incidents; the possible impact of international conflicts, wars and related developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States including those set forth in the “Risk Factors” section in our annual report for the year ended December 31, 2023 filed on Form 20-F.
Statements relating to “reserves” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described herein can be profitably produced in the future. We qualify any and all of our forward-looking statements by these cautionary factors.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.
Cautionary Statement Regarding the Use of a Non-IFRS Measure
This news release contains references to a Non-IFRS measure. Adjusted EBITDA is not a generally accepted accounting measure under IFRS and therefore may differ from definitions used by other entities. We believe this is a useful supplemental measure that may assist investors in assessing the financial performance of Brookfield Business Partners and its subsidiaries. However, Adjusted EBITDA should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS.
References to Brookfield Business Partners are to Brookfield Business Partners L.P. together with its subsidiaries, controlled affiliates and operating entities. Unitholders’ results include limited partnership units, redemption-exchange units, general partnership units, BBUC exchangeable shares and special limited partnership units. More detailed information on certain references made in this news release will be available in our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our interim report for the second quarter ended June 30, 2024 furnished on Form 6-K.
FAQ
What were Brookfield Business Partners' Q2 2024 financial results?
How did the Industrials segment perform for Brookfield Business Partners in Q2 2024?
What impact did the sale of the nuclear technology services operation have on Q2 2024 results?
What strategic initiatives did Brookfield Business Partners undertake in Q2 2024?
What is the declared quarterly distribution for Brookfield Business Partners?
