Brookfield Business Partners Reports Third Quarter 2024 Results
Brookfield Business Partners reported strong Q3 2024 financial results with net income of $301 million ($1.39 per unit) compared to a net loss of $44 million in Q3 2023. Adjusted EBITDA increased to $844 million from $655 million year-over-year. The company generated over $350 million from distributions and monetizations, including a significant sale of its offshore oil services operation. The Industrials segment showed notable growth with Adjusted EBITDA of $500 million, benefiting from a $296 million U.S. IRA benefit. The company ended the quarter with approximately $1.5 billion in corporate liquidity and declared a quarterly distribution of $0.0625 per unit.
Brookfield Business Partners ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un reddito netto di 301 milioni di dollari (1,39 dollari per unità) rispetto a una perdita netta di 44 milioni di dollari nel terzo trimestre del 2023. L'EBITDA rettificato è aumentato a 844 milioni di dollari, rispetto ai 655 milioni dell'anno precedente. L'azienda ha generato oltre 350 milioni di dollari da distribuzioni e monetizzazioni, inclusa una significativa vendita della sua operazione di servizi petroliferi offshore. Il segmento Industrials ha mostrato una crescita notevole con un EBITDA rettificato di 500 milioni di dollari, beneficiando di un vantaggio di 296 milioni di dollari derivante dall'IRA statunitense. L'azienda ha concluso il trimestre con circa 1,5 miliardi di dollari di liquidità aziendale e ha dichiarato una distribuzione trimestrale di 0,0625 dollari per unità.
Brookfield Business Partners informó resultados financieros sólidos para el tercer trimestre de 2024, con un ingreso neto de 301 millones de dólares (1,39 dólares por unidad) en comparación con una pérdida neta de 44 millones de dólares en el tercer trimestre de 2023. El EBITDA ajustado aumentó a 844 millones de dólares desde los 655 millones del año anterior. La empresa generó más de 350 millones de dólares a partir de distribuciones y monetizaciones, incluida una venta significativa de su operación de servicios petroleros en alta mar. El segmento Industrial mostró un crecimiento notable con un EBITDA ajustado de 500 millones de dólares, beneficiándose de un beneficio de 296 millones de dólares del IRA de EE. UU. La compañía terminó el trimestre con aproximadamente 1.5 mil millones de dólares en liquidez corporativa y declaró una distribución trimestral de 0.0625 dólares por unidad.
브룩필드 비즈니스 파트너스는 2024년 3분기 강력한 재무 실적을 보고했으며, 순이익은 3억 1천만 달러(주당 1.39달러)로, 2023년 3분기 4천4백만 달러의 순손실에 비해 호조를 보였습니다. 조정된 EBITDA는 전년 동기 6억 5천5백만 달러에서 8억 4천4백만 달러로 증가했습니다. 이 회사는 해양 석유 서비스 운영의 상당한 판매를 포함하여 분배 및 자산 매각을 통해 3억 5천만 달러 이상을 생성했습니다. 산업 부문은 5억 달러의 조정된 EBITDA를 기록하며 주목할 만한 성장을 보였고, 2억 9천6백만 달러의 미국 IRA 혜택을 받아 혜택을 누렸습니다. 이 회사는 분기 말에 약 15억 달러의 기업 유동성을 보유하고 있으며, 주당 0.0625달러의 분기 배당금을 선언했습니다.
Brookfield Business Partners a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec un revenu net de 301 millions de dollars (1,39 dollar par unité) comparé à une perte nette de 44 millions de dollars au troisième trimestre 2023. Le EBITDA ajusté a augmenté à 844 millions de dollars contre 655 millions de dollars l'année précédente. L'entreprise a généré plus de 350 millions de dollars provenant de distributions et de monétisations, y compris une vente significative de son opération de services pétroliers en mer. Le segment Industrie a montré une croissance notable avec un EBITDA ajusté de 500 millions de dollars, bénéficiant d'un avantage de 296 millions de dollars de l’IRA américain. L'entreprise a terminé le trimestre avec environ 1,5 milliard de dollars de liquidités et a déclaré une distribution trimestrielle de 0,0625 dollar par unité.
Brookfield Business Partners berichtete über starke Finanzzahlen für das 3. Quartal 2024 mit einem Nettogewinn von 301 Millionen US-Dollar (1,39 US-Dollar pro Einheit) im Vergleich zu einem Nettoverlust von 44 Millionen US-Dollar im 3. Quartal 2023. Das bereinigte EBITDA stieg im Jahresvergleich von 655 Millionen US-Dollar auf 844 Millionen US-Dollar. Das Unternehmen erzielte über 350 Millionen US-Dollar aus Ausschüttungen und Monetarisierungen, darunter einen erheblichen Verkauf seiner Offshore-Öldienstleistung. Der Sektor Industrie zeigte ein bemerkenswertes Wachstum mit einem bereinigten EBITDA von 500 Millionen US-Dollar, begünstigt durch einen Vorteil von 296 Millionen US-Dollar aus dem US IRA. Das Unternehmen schloss das Quartal mit etwa 1,5 Milliarden US-Dollar an Unternehmensliquidität und erklärte eine vierteljährliche Ausschüttung von 0,0625 US-Dollar pro Einheit.
- Net income increased to $301 million from a $44 million loss year-over-year
- Adjusted EBITDA grew to $844 million from $655 million
- Generated $350 million from distributions and monetizations
- Industrials segment Adjusted EBITDA increased to $500 million from $218 million
- Strong liquidity position with $1.5 billion at corporate level
- Business Services Adjusted EBITDA declined to $228 million from $238 million
- Infrastructure Services Adjusted EBITDA decreased to $146 million from $228 million
- Higher costs in dealer software and technology services operation
Insights
Strong Q3 2024 results show significant improvement with net income of
The sale of the shuttle tanker segment for
Key concerns include reduced performance in engineered components manufacturing and lower contribution from dealer software operations due to higher technology upgrade costs. The Infrastructure Services segment shows weakness with Adjusted EBITDA declining
The strategic repositioning through divestitures and acquisitions is reshaping the portfolio effectively. The completion of Network International acquisition and combination with existing payment processing services strengthens BBU's position in the growing Middle East and Africa digital payments market.
The quarterly distribution of
The diversified business model across Industrials, Business Services and Infrastructure Services provides resilience, though performance varies by segment. The
BROOKFIELD, News, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) announced today financial results for the quarter ended September 30, 2024.
“We had a good quarter, achieving solid financial results and generating over
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
US$ millions (except per unit amounts), unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net income (loss) attributable to Unitholders1 | $ | 301 | $ | (44 | ) | $ | 329 | $ | (18 | ) | |||||
Net income (loss) per limited partnership unit2 | $ | 1.39 | $ | (0.20 | ) | $ | 1.52 | $ | (0.08 | ) | |||||
Adjusted EBITDA3 | $ | 844 | $ | 655 | $ | 1,912 | $ | 1,883 |
Net income attributable to Unitholders for the three months ended September 30, 2024 was
Adjusted EBITDA for the three months ended September 30, 2024 was
Operational Update
The following table presents Adjusted EBITDA by segment:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||||
Industrials | $ | 500 | $ | 218 | $ | 941 | $ | 633 | |||||||
Business Services | 228 | 238 | 615 | 673 | |||||||||||
Infrastructure Services | 146 | 228 | 446 | 669 | |||||||||||
Corporate and Other | (30 | ) | (29 | ) | (90 | ) | (92 | ) | |||||||
Adjusted EBITDA | $ | 844 | $ | 655 | $ | 1,912 | $ | 1,883 |
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 September 30, | Nine Months Ended September 30, | ||||||||||||||
US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||||
Adjusted EFO | |||||||||||||||
Industrials | $ | 356 | $ | 152 | $ | 742 | $ | 377 | |||||||
Business Services | 245 | 123 | 499 | 455 | |||||||||||
Infrastructure Services | 61 | 106 | 209 | 280 | |||||||||||
Corporate and Other | (80 | ) | (93 | ) | (248 | ) | (258 | ) |
Adjusted EFO for the three months ended September 30, 2024 reflected increased contribution from our Industrials and Business Services segments. 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
Strategic Initiatives
- Offshore Oil Services
Earlier this week, our offshore oil services operation agreed to sell its shuttle tanker segment for total consideration of approximately$1.9 billion . Proceeds from the sale of BBU’s interest are expected to be approximately$265 million after the repayment of debt. The sale is expected to close in the first half of 2025, subject to customary closing conditions and regulatory approval.
- Payment Processing Services
In September, we completed the acquisition of Network International, a leading digital payment processor in the Middle East and Africa. Following the acquisition, we combined the business with our existing payment processing services operation. BBU invested an incremental$156 million for an11% economic interest in the combined business alongside new strategic partners.
- Unit Repurchase Program
During the quarter, Brookfield Corporation, the parent company of Brookfield Business Partners, purchased 428,511 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 nine months ended September 30, 2024 which were 74.3 million and 74.3 million, respectively (September 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 news 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.
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 Partners L.P. (NYSE: BBU; TSX: BBU.UN), a limited partnership or Brookfield Business Corporation (NYSE, TSX: BBUC), a corporation. 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’ third 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 November 8, 2024 at 10:00 a.m. Eastern Time at BBU2024Q3Webcast or participants can preregister at BBU2024Q3ConferenceCall. 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 | September 30, 2024 | December 31, 2023 | |||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 3,003 | $ | 3,252 | |||||||||||
Financial assets | 13,384 | 13,176 | |||||||||||||
Accounts and other receivable, net | 6,480 | 6,563 | |||||||||||||
Inventory and other assets | 4,715 | 5,321 | |||||||||||||
Property, plant and equipment | 15,527 | 15,724 | |||||||||||||
Deferred income tax assets | 1,909 | 1,220 | |||||||||||||
Intangible assets | 19,334 | 20,846 | |||||||||||||
Equity accounted investments | 2,364 | 2,154 | |||||||||||||
Goodwill | 13,540 | 14,129 | |||||||||||||
Total Assets | $ | 80,256 | $ | 82,385 | |||||||||||
Liabilities and Equity | |||||||||||||||
Liabilities | |||||||||||||||
Corporate borrowings | $ | 1,978 | $ | 1,440 | |||||||||||
Accounts payable and other | 16,460 | 18,378 | |||||||||||||
Non-recourse borrowings in subsidiaries of Brookfield Business Partners | 39,571 | 40,809 | |||||||||||||
Deferred income tax liabilities | 2,886 | 3,226 | |||||||||||||
Equity | |||||||||||||||
Limited partners | $ | 1,980 | $ | 1,909 | |||||||||||
Non-controlling interests attributable to: | |||||||||||||||
Redemption-exchange units | 1,858 | 1,792 | |||||||||||||
Special limited partner | — | — | |||||||||||||
BBUC exchangeable shares | 1,945 | 1,875 | |||||||||||||
Preferred securities | 740 | 740 | |||||||||||||
Interest of others in operating subsidiaries | 12,838 | 12,216 | |||||||||||||
19,361 | 18,532 | ||||||||||||||
Total Liabilities and Equity | $ | 80,256 | $ | 82,385 |
Brookfield Business Partners L.P. Consolidated Statements of Operating Results | |||||||||||||||
US$ millions, unaudited | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenues | $ | 9,232 | $ | 14,399 | $ | 33,193 | $ | 41,663 | |||||||
Direct operating costs | (7,069 | ) | (13,016 | ) | (28,875 | ) | (37,812 | ) | |||||||
General and administrative expenses | (319 | ) | (403 | ) | (943 | ) | (1,202 | ) | |||||||
Interest income (expense), net | (778 | ) | (941 | ) | (2,352 | ) | (2,738 | ) | |||||||
Equity accounted income (loss) | 1 | 31 | 55 | 84 | |||||||||||
Impairment reversal (expense), net | — | (44 | ) | 10 | (51 | ) | |||||||||
Gain (loss) on acquisitions/dispositions, net | 593 | 41 | 692 | 209 | |||||||||||
Other income (expense), net | (229 | ) | (101 | ) | (213 | ) | 166 | ||||||||
Income (loss) before income tax | 1,431 | (34 | ) | 1,567 | 319 | ||||||||||
Income tax (expense) recovery | |||||||||||||||
Current | (276 | ) | (211 | ) | (488 | ) | (604 | ) | |||||||
Deferred | 580 | 294 | 924 | 578 | |||||||||||
Net income (loss) | $ | 1,735 | $ | 49 | $ | 2,003 | $ | 293 | |||||||
Attributable to: | |||||||||||||||
Limited partners | $ | 103 | $ | (15 | ) | $ | 113 | $ | (6 | ) | |||||
Non-controlling interests attributable to: | |||||||||||||||
Redemption-exchange units | 97 | (14 | ) | 106 | (6 | ) | |||||||||
Special limited partner | — | — | — | — | |||||||||||
BBUC exchangeable shares | 101 | (15 | ) | 110 | (6 | ) | |||||||||
Preferred securities | 13 | 22 | 39 | 66 | |||||||||||
Interest of others in operating subsidiaries | 1,421 | 71 | 1,635 | 245 |
Brookfield Business Partners L.P. Reconciliation of Non-IFRS Measure | |||||||||||||||||||
US$ millions, unaudited | Three Months Ended September 30, 2024 | ||||||||||||||||||
Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | |||||||||||||||
Net income (loss) | $ | 551 | $ | (118 | ) | $ | 1,371 | $ | (69 | ) | $ | 1,735 | |||||||
Add or subtract the following: | |||||||||||||||||||
Depreciation and amortization expense | 236 | 226 | 346 | — | 808 | ||||||||||||||
Gain (loss) on acquisitions/dispositions, net | (593 | ) | — | — | — | (593 | ) | ||||||||||||
Other income (expense), net1 | 142 | 24 | 59 | 4 | 229 | ||||||||||||||
Income tax (expense) recovery | 40 | (4 | ) | (338 | ) | (2 | ) | (304 | ) | ||||||||||
Equity accounted income (loss) | 6 | 4 | (11 | ) | — | (1 | ) | ||||||||||||
Interest income (expense), net | 234 | 177 | 330 | 37 | 778 | ||||||||||||||
Equity accounted Adjusted EBITDA2 | 19 | 38 | 13 | — | 70 | ||||||||||||||
Amounts attributable to non-controlling interests3 | (407 | ) | (201 | ) | (1,270 | ) | — | (1,878 | ) | ||||||||||
Adjusted EBITDA | $ | 228 | $ | 146 | $ | 500 | $ | (30 | ) | $ | 844 |
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 include
$112 million related to provisions recorded at our construction operation,$44 million of business separation expenses, stand-up costs and restructuring charges,$27 million of net revaluation losses,$13 million of net losses on debt modification and extinguishment,$3 million of transaction costs and$30 million of other expenses. - Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by its investments in associates and joint ventures accounted for using the equity method.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
Brookfield Business Partners L.P. Reconciliation of Non-IFRS Measure | |||||||||||||||||||
US$ millions, unaudited | Nine Months Ended September 30, 2024 | ||||||||||||||||||
Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | |||||||||||||||
Net income (loss) | $ | 786 | $ | (275 | ) | $ | 1,685 | $ | (193 | ) | $ | 2,003 | |||||||
Add or subtract the following: | |||||||||||||||||||
Depreciation and amortization expense | 738 | 660 | 1,027 | — | 2,425 | ||||||||||||||
Impairment reversal (expense), net | (4 | ) | (12 | ) | 6 | — | (10 | ) | |||||||||||
Gain (loss) on acquisitions/dispositions, net | (608 | ) | — | (84 | ) | — | (692 | ) | |||||||||||
Other income (expense), net1 | 53 | 28 | 117 | 15 | 213 | ||||||||||||||
Income tax (expense) recovery | 47 | (3 | ) | (456 | ) | (24 | ) | (436 | ) | ||||||||||
Equity accounted income (loss) | — | (11 | ) | (44 | ) | — | (55 | ) | |||||||||||
Interest income (expense), net | 739 | 535 | 966 | 112 | 2,352 | ||||||||||||||
Equity accounted Adjusted EBITDA2 | 54 | 121 | 44 | — | 219 | ||||||||||||||
Amounts attributable to non-controlling interests3 | (1,190 | ) | (597 | ) | (2,320 | ) | — | (4,107 | ) | ||||||||||
Adjusted EBITDA | $ | 615 | $ | 446 | $ | 941 | $ | (90 | ) | $ | 1,912 |
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 include
$194 million related to provisions recorded at our construction operation,$152 million of net revaluation gains,$105 million of business separation expenses, stand-up costs and restructuring charges,$50 million of other income related to a distribution at our entertainment operation,$32 million of transaction costs,$25 million of net gains on debt modification and extinguishment and$109 million of other expenses. - Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by our investments in associates and joint ventures accounted for using the equity method.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
Brookfield Business Partners L.P. Reconciliation of Non-IFRS Measure | |||||||||||||||||||
US$ millions, unaudited | Three Months Ended September 30, 2023 | ||||||||||||||||||
Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | |||||||||||||||
Net income (loss) | $ | 121 | $ | (93 | ) | $ | 76 | $ | (55 | ) | $ | 49 | |||||||
Add back or deduct the following: | |||||||||||||||||||
Depreciation and amortization expense | 253 | 313 | 328 | — | 894 | ||||||||||||||
Impairment reversal (expense), net | — | (47 | ) | 91 | — | 44 | |||||||||||||
Gain (loss) on acquisitions/dispositions, net | — | — | (41 | ) | — | (41 | ) | ||||||||||||
Other income (expense), net1 | 71 | 40 | (11 | ) | 1 | 101 | |||||||||||||
Income tax expense (recovery) | 26 | (10 | ) | (82 | ) | (17 | ) | (83 | ) | ||||||||||
Equity accounted income (loss) | (7 | ) | (9 | ) | (15 | ) | — | (31 | ) | ||||||||||
Interest income (expense), net | 266 | 285 | 348 | 42 | 941 | ||||||||||||||
Equity accounted Adjusted EBITDA2 | 15 | 46 | 15 | — | 76 | ||||||||||||||
Amounts attributable to non-controlling interests3 | (507 | ) | (297 | ) | (491 | ) | — | (1,295 | ) | ||||||||||
Adjusted EBITDA | $ | 238 | $ | 228 | $ | 218 | $ | (29 | ) | $ | 655 |
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 include
$54 million of business separation expenses, stand-up costs and restructuring charges,$42 million of net losses on debt modification and extinguishment,$33 million of net revaluation gains,$31 million of transaction costs and$7 million of other expenses. - Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by our investments in associates and joint ventures accounted for using the equity method.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
Brookfield Business Partners L.P. Reconciliation of Non-IFRS Measure | |||||||||||||||||||
US$ millions, unaudited | Nine Months Ended September 30, 2023 | ||||||||||||||||||
Business Services | Infrastructure Services | Industrials | Corporate and Other | Total | |||||||||||||||
Net income (loss) | $ | 551 | $ | (128 | ) | $ | 19 | $ | (149 | ) | $ | 293 | |||||||
Add back or deduct the following: | |||||||||||||||||||
Depreciation and amortization expense | 758 | 917 | 1,026 | — | 2,701 | ||||||||||||||
Impairment reversal (expense), net | 6 | (46 | ) | 91 | — | 51 | |||||||||||||
Gain (loss) on acquisitions/dispositions, net | (154 | ) | (14 | ) | (41 | ) | — | (209 | ) | ||||||||||
Other income (expense), net1 | (114 | ) | (136 | ) | 79 | 5 | (166 | ) | |||||||||||
Income tax expense (recovery) | 227 | 4 | (150 | ) | (55 | ) | 26 | ||||||||||||
Equity accounted income (loss), net | (19 | ) | (29 | ) | (36 | ) | — | (84 | ) | ||||||||||
Interest income (expense), net | 772 | 826 | 1,033 | 107 | 2,738 | ||||||||||||||
Equity accounted Adjusted EBITDA2 | 44 | 132 | 46 | — | 222 | ||||||||||||||
Amounts attributable to non-controlling interests3 | (1,398 | ) | (857 | ) | (1,434 | ) | — | (3,689 | ) | ||||||||||
Adjusted EBITDA | $ | 673 | $ | 669 | $ | 633 | $ | (92 | ) | $ | 1,883 |
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 include
$350 million of net gains on debt modification and extinguishment,$166 million of business separation expenses, stand-up costs and restructuring charges,$119 million of net revaluation gains,$79 million of transaction costs and$58 million of other expenses. - Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by our investments in associates and joint ventures accounted for using the equity method.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
Brookfield Business Corporation Reports Third Quarter 2024 Results
Brookfield, News, November 8, 2024 – Brookfield Business Corporation (NYSE, TSX: BBUC) announced today its net income (loss) for the quarter ended September 30, 2024.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net income (loss) attributable to Brookfield Business Partners | $ | (466 | ) | $ | 97 | $ | (492 | ) | $ | 65 |
Net loss attributable to Brookfield Business Partners for the three months ended September 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 | September 30, 2024 | December 31, 2023 | |||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 673 | $ | 772 | |||||||||||
Financial assets | 267 | 224 | |||||||||||||
Accounts and other receivable, net | 3,486 | 3,569 | |||||||||||||
Inventory, net | 64 | 61 | |||||||||||||
Other assets | 744 | 737 | |||||||||||||
Property, plant and equipment | 2,773 | 2,743 | |||||||||||||
Deferred income tax assets | 301 | 221 | |||||||||||||
Intangible assets | 6,365 | 6,931 | |||||||||||||
Equity accounted investments | 208 | 222 | |||||||||||||
Goodwill | 5,744 | 5,702 | |||||||||||||
Total Assets | $ | 20,625 | $ | 21,182 | |||||||||||
Liabilities and Equity | |||||||||||||||
Liabilities | |||||||||||||||
Accounts payable and other | $ | 5,206 | $ | 4,818 | |||||||||||
Non-recourse borrowings in subsidiaries of Brookfield Business Corporation | 8,522 | 8,823 | |||||||||||||
Exchangeable and class B shares | 1,700 | 1,501 | |||||||||||||
Deferred income tax liabilities | 1,150 | 1,280 | |||||||||||||
Equity | |||||||||||||||
Brookfield Business Partners | $ | 378 | $ | 880 | |||||||||||
Non-controlling interests | 3,669 | 3,880 | |||||||||||||
4,047 | 4,760 | ||||||||||||||
Total Liabilities and Equity | $ | 20,625 | $ | 21,182 |
Brookfield Business Corporation Consolidated Statements of Operating Results | |||||||||||||||
US$ millions, unaudited | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2024 | 20231 | 2024 | 20231 | ||||||||||||
Continuing operations | |||||||||||||||
Revenues | $ | 2,205 | $ | 1,964 | $ | 5,999 | $ | 5,737 | |||||||
Direct operating costs | (2,015 | ) | (1,760 | ) | (5,527 | ) | (5,045 | ) | |||||||
General and administrative expenses | (78 | ) | (66 | ) | (219 | ) | (190 | ) | |||||||
Interest income (expense), net | (207 | ) | (227 | ) | (620 | ) | (672 | ) | |||||||
Equity accounted income (loss) | 3 | 1 | 6 | 1 | |||||||||||
Impairment reversal (expense), net | — | — | (2 | ) | (7 | ) | |||||||||
Gain (loss) on acquisitions/dispositions, net | — | — | — | 87 | |||||||||||
Remeasurement of exchangeable and class B shares | (325 | ) | 148 | (199 | ) | 128 | |||||||||
Other income (expense), net | (127 | ) | (51 | ) | (197 | ) | 82 | ||||||||
Income (loss) before income tax from continuing operations | (544 | ) | 9 | (759 | ) | 121 | |||||||||
Income tax (expense) recovery | |||||||||||||||
Current | (14 | ) | (40 | ) | (42 | ) | (162 | ) | |||||||
Deferred | 47 | 71 | 156 | 94 | |||||||||||
Net income (loss) from continuing operations | $ | (511 | ) | $ | 40 | $ | (645 | ) | $ | 53 | |||||
Discontinued operations | |||||||||||||||
Net income (loss) from discontinued operations | — | (33 | ) | — | (73 | ) | |||||||||
Net income (loss) | $ | (511 | ) | $ | 7 | $ | (645 | ) | $ | (20 | ) | ||||
Attributable to: | |||||||||||||||
Brookfield Business Partners | $ | (466 | ) | $ | 97 | $ | (492 | ) | $ | 65 | |||||
Non-controlling interests | (45 | ) | (90 | ) | (153 | ) | (85 | ) |
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 third quarter ended September 30, 2024 furnished on Form 6-K.
FAQ
What was Brookfield Business Partners (BBU) net income for Q3 2024?
How much was BBU's Adjusted EBITDA in Q3 2024?
What is BBU's quarterly distribution for Q4 2024?