Brookfield Business Partners (BBU) Q1 2026 earnings summary

Executive summary

• Clarios received $1 billion in cash tax credits, expected to recur annually through 2030, positioning the company for significant value growth over the next five years.

• Net income attributable to shareholders was $40 million ($0.19 per share) for Q1 2026, down from $80 million ($0.38 per share) year-over-year.

• A 27% stake in La Trobe Financial was sold at a 3x capital multiple, realizing $1 per share in cash and a 35%+ IRR.

• Led a $500 million investment in DeployCo with OpenAI, aiming to scale enterprise AI deployment.

• Completed corporate simplification, increasing trading volumes by 40% and anticipating further index demand.

Financial highlights

• Adjusted EBITDA for Q1 2026 was $582 million, down from $591 million year-over-year, with margin improving to 25% from 23%.

• Adjusted EFO was $279 million, compared to $345 million last year; excluding gains/losses on dispositions, Adjusted EFO rose to $263 million from $231 million.

• Revenues for Q1 2026 were $2,362 million, down from $2,618 million year-over-year, mainly due to deconsolidation of healthcare services and lower construction activity.

• Industrial segment Adjusted EBITDA rose to $320 million from $304 million, a 7% increase excluding M&A and tax effects.

• Business services segment Adjusted EBITDA was $208 million, up 7% on a same-store basis.

Outlook and guidance

• Monetization activity is expected to continue, focusing on cash-generative industrial and services businesses.

• Clarios is projected to double in value over five years, driven by EBITDA growth, tax credits, and deleveraging.

• Proceeds from the sale of a 27% interest in La Trobe Financial are expected to be approximately $200 million, with closing anticipated in the second half of 2026.

• Investment of $150 million in DeployCo, an AI services platform, is expected to drive future growth.

• BRK Ambiental's new concession in Brazil is expected to become a significant earnings contributor as it ramps up.