Brookfield Business Corp. Class A (BBUC)
NYSE:BBUC
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Brookfield Business Corp. Class A
(NYSE:BBUC)
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Rating:49Neutral
Price Target:
$32.00
▼(-7.27% Downside)
Action:N/A
Date:06/17/26
The score is held back primarily by weak financial performance (net losses, very high leverage, and sharply pressured free cash flow) and a weak technical setup (below major moving averages with negative MACD). The latest earnings call was a notable positive due to sizeable recurring Clarios tax credits, realized monetization gains, and strong liquidity/capital allocation, while valuation support is limited because losses drive a negative P/E and the dividend yield is modest.
Positive Factors
Strong revenue growth and operating cash flow
Sustained TTM revenue growth of ~34.6% and meaningful underlying EBIT/EBITDA margins indicate the portfolio is expanding and generating operating profitability. Over a 2–6 month horizon this supports durable cash generation potential as operational improvements and same‑store growth translate into recurring cash flows.
Negative Factors
Very high financial leverage
Debt-to-equity near 8.3x leaves limited balance‑sheet cushion and elevates refinancing and interest‑cost risk if operating performance weakens. High structural leverage constrains flexibility for acquisitions, dividends or buybacks and increases downside sensitivity to cyclical shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and operating cash flow
Sustained TTM revenue growth of ~34.6% and meaningful underlying EBIT/EBITDA margins indicate the portfolio is expanding and generating operating profitability. Over a 2–6 month horizon this supports durable cash generation potential as operational improvements and same‑store growth translate into recurring cash flows.
Read all positive factors
Brookfield Business Corp. Class A (BBUC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.77B
Dividend Yield0.7%
Average Volume (3M)180.51K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth40.06%
EPS Growth-3.56%
CountryUS
Employees25,000
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-11.23
Shares Outstanding207,007,460
10 Day Avg. Volume235,090
30 Day Avg. Volume180,507
Financial Highlights & Ratios
PEG Ratio-11.87
Price to Book (P/B)-3.84
Price to Sales (P/S)0.36
P/FCF Ratio2.23
Enterprise Value/Market Cap6.40
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit14.10
Enterprise Value/Ebitda10.18
Forecast
1Y Price Target
$40.30Price Target Upside16.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Brookfield Business Corp. Class A Business Overview & Revenue Model
Company Description
Brookfield Business Corporation (BBUC) is a diversified global entity with significant interests in healthcare, construction, and water management. Its operations span multiple international territories, including the United States, Europe, Austra...
How the Company Makes Money
BBUC makes money primarily through the operating earnings and cash flows generated by its controlled portfolio companies. Its core revenue streams are the sales of products and services produced by those operating businesses (e.g., industrial manu...
Brookfield Business Corp. Class A Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presents multiple strategically significant positives — notably the $1B recurring Clarios tax credits, La Trobe monetization (3x multiple, 35% IRR), a $150M BBUC stake in an OpenAI DeployCo (preferred structure), improved trading liquidity (+40%), robust corporate liquidity (~$2.4B) and underlying same‑store segment growth. Offsets include a meaningful decline in adjusted EFO (~19%), a rise in Sagen’s loss ratio to ~12% amid a ~20% decline in Canadian house prices, comparability headwinds in Infrastructure Services, and some pending items (2024 tax credits, isolated portfolio stress). Overall, the positives — including durable cash generation, high‑conviction AI deployment exposure, and significant realized value creation — materially outweigh the operational and accounting headwinds discussed on the call.Positive Updates
Clarios $1B Annual Cash Tax Credit
Clarios received a $1.0 billion cash tax refund for fiscal 2025 (equivalent to ~ $1.50 per BBUC share) and management expects similar credits annually through the end of the decade, materially bolstering free cash flow and valuation prospects.
Negative Updates
Adjusted EFO Decline
Adjusted EFO fell to $279M from $345M in the prior period, a decline of ~19% year-over-year; prior period included a $114M net gain from a disposition, contributing to the YoY swing.
Read all updates
Q1-2026 Updates
Positive
Negative
Clarios $1B Annual Cash Tax Credit
Clarios received a $1.0 billion cash tax refund for fiscal 2025 (equivalent to ~ $1.50 per BBUC share) and management expects similar credits annually through the end of the decade, materially bolstering free cash flow and valuation prospects.
Read all positive updates
Company Guidance
Management guided that Clarios will receive ~$1.0 billion of annual cash tax credits (fiscal 2025 received), equivalent to about $1.50 per BBUC share and expected through the decade, and expects Clarios’ value to double over five years (today ~30% of NAV ≈ $15/share; LTM EBITDA ~$2.3bn with a path to >$3bn, a 9x–10x multiple → ~ $30bn EV, ~$8bn cash generation lowering net debt from ~$11bn to < $4bn and implying ~ $26bn equity); they monetized a 27% stake in La Trobe at a $2bn valuation (AUM up from $10bn to $16bn), realizing $1.00 per share, a 35% IRR and a 3x multiple; Brookfield committed to lead a $500m DeployCo investment (BBUC share ≈ $150m) via preferred securities with high‑teens minimum returns (target >15%); Sagen reiterated strong resilience with ROE >20% (from low double digits), average new‑loan scores largely >760, ~80% fixed‑rate portfolio, a current loss ratio near 12% expected to stay comfortably below long‑run pricing loss targets of 15%–20%, and capacity to support ~ $400m of annual distributions on a full‑cycle run‑rate; corporate Q1 adjusted EBITDA was $582m (vs $591m prior; same‑store EBITDA up ~5% ex tax items), adjusted EFO $279m (vs $345m), pro‑forma liquidity $2.4bn, completed a $250m buyback program and deployed ~$285m to repurchases (including ~$65m during/subsequent to quarter), trading volumes are up ~40% post‑simplification and management expects ~5m shares of incremental index demand.Brookfield Business Corp. Class A Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
28
Negative
Cash Flow
40
Negative
| Breakdown | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.29B | 8.21B | 7.68B | 6.80B | 6.38B |
| Gross Profit | 647.13M | 640.00M | 889.00M | 640.00M | 392.00M |
| EBITDA | 7.18B | 843.00M | 1.65B | 1.33B | 828.00M |
| Net Income | -890.32M | -888.00M | 519.00M | 911.00M | 36.00M |
Balance Sheet | |||||
| Total Assets | 16.40B | 19.10B | 21.18B | 27.38B | 15.92B |
| Cash, Cash Equivalents and Short-Term Investments | 1.23B | 1.01B | 787.00M | 736.00M | 894.00M |
| Total Debt | 44.57B | 8.77B | 9.13B | 13.41B | 7.58B |
| Total Liabilities | 60.45B | 16.46B | 16.42B | 23.30B | 14.78B |
| Stockholders Equity | -677.76M | -59.00M | 880.00M | 359.00M | -516.00M |
Cash Flow | |||||
| Free Cash Flow | 1.17B | -408.00M | -496.00M | -474.00M | -110.00M |
| Operating Cash Flow | 3.23B | -111.00M | 138.00M | 181.00M | 618.00M |
| Investing Cash Flow | -294.00M | -335.00M | 3.79B | -9.23B | -478.00M |
| Financing Cash Flow | -1000.00K | 797.00M | -3.93B | 8.91B | 14.00M |
Brookfield Business Corp. Class A Risk Analysis
Brookfield Business Corp. Class A disclosed 1 risk factors in its most recent earnings report. Brookfield Business Corp. Class A reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brookfield Business Corp. Class A Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$702.61M | 1.48 | 78.23% | 2.20% | 89.66% | ― | |
71 Outperform | C$1.04B | 14.64 | 5.72% | 0.14% | -57.36% | -41.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$8.46B | 9.99 | 6.52% | 0.36% | 2.88% | 32.70% | |
49 Neutral | $6.77B | -3.75 | -58.74% | 0.70% | 40.06% | -3.56% | |
49 Neutral | C$771.33M | -8.22 | -9.69% | ― | 396.46% | 12.99% |
* Financial Sector Average
BBUC
Brookfield Business Corp. Class A
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14.26%
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Brookfield Business Corp. Class A Corporate Events
Brookfield Business Corporation Renames Itself Brookfield Business Holdings Corporation
Mar 27, 2026
On March 27, 2026, the company legally changed its name from Brookfield Business Corporation to Brookfield Business Holdings Corporation under the British Columbia Business Corporations Act, with the change effective at 12:01 a.m. Pacific Time and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.