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Brookfield Business Corp. Class A
(NYSE:BBUC)
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Rating:47Neutral
Price Target:
$29.00
▼(-6.78% Downside)
Action:Reiterated
Date:08/10/26
BBUC scores lower primarily due to high financial risk: very heavy leverage and inconsistent/negative equity, alongside volatile and currently negative net profitability and relatively thin, weakening free cash flow. Technicals add further pressure with the stock trading below key moving averages and negative MACD. Partially offsetting these are a generally positive earnings-call backdrop (liquidity, capital recycling, buybacks, and operational initiatives like AI-driven savings), while valuation support is limited given negative earnings and a modest dividend yield.
Positive Factors
Strong Revenue Growth and Operating Margins
Strong revenue growth alongside solid gross and EBIT margins indicates durable operating traction across the portfolio. This provides a foundation for earnings expansion if portfolio companies sustain productivity, pricing, and capacity improvements.
Negative Factors
Very High Leverage and Balance Sheet Fragility
Heavy leverage limits financial flexibility and increases sensitivity to refinancing costs, asset impairments, and weaker operating performance. Recurring or negative equity periods further reduce protection for shareholders during portfolio stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth and Operating Margins
Strong revenue growth alongside solid gross and EBIT margins indicates durable operating traction across the portfolio. This provides a foundation for earnings expansion if portfolio companies sustain productivity, pricing, and capacity improvements.
Read all positive factors
Brookfield Business Corp. Class A (BBUC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.78B
Dividend Yield0.88%
Average Volume (3M)180.51K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth97.51%
EPS Growth34.53%
CountryUS
Employees72,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-6.91
Shares Outstanding204,710,800
10 Day Avg. Volume235,090
30 Day Avg. Volume180,507
Financial Highlights & Ratios
PEG Ratio-1.52
Price to Book (P/B)0.00
Price to Sales (P/S)0.12
P/FCF Ratio-10.86
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$39.38Price Target Upside26.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)5.86
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:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive strategic and financial momentum: strong capital recycling ($1.2B), meaningful liquidity ($2.8B), disciplined buybacks (> $300M repurchased at large discounts), targeted acquisitions, and early traction from a strategic AI partnership that management expects will drive material operational savings. Operationally, same-store EBITDA growth (~+5–6% in key segments) and a sizable increase in adjusted EFO (+~23.5%) provide additional upside. Offsetting these positives are near-term pressure points: a slight decline in consolidated adjusted EBITDA, weakness in Infrastructure Services (≈-11.9%), rising insurance loss ratios at Sagen, elevated investment spending (e.g., Scientific Games), and capital-structure/credit concerns at CDK. Overall, the highlights outweigh the lowlights, though several items warrant monitoring.Positive Updates
Strong Capital Recycling and Monetizations
Generated $1.2 billion in proceeds from asset sales and distributions over the past 6 months, including a sale agreement for Multiplex for ~ $650 million; on track toward a $2 billion capital recycling target (about $1.2 billion achieved in <1 year).
Negative Updates
Quarterly Adjusted EBITDA Slightly Lower
Reported second quarter adjusted EBITDA of $587 million versus $591 million in the prior period, a modest decline of ~-0.7% year-over-year, partly reflecting lower ownership in three businesses after partial sales.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Capital Recycling and Monetizations
Generated $1.2 billion in proceeds from asset sales and distributions over the past 6 months, including a sale agreement for Multiplex for ~ $650 million; on track toward a $2 billion capital recycling target (about $1.2 billion achieved in <1 year).
Read all positive updates
Company Guidance
Management reiterated a balanced growth and capital-allocation plan with many concrete metrics: Q2 adjusted EBITDA was $587M and adjusted EFO $289M; pro forma corporate liquidity was about $2.8B; the company generated ~$1.2B of asset-sale/distribution proceeds in the past six months (including the ~$650M Multiplex sale); it committed >$300M for two acquisitions (WFC and Gregg) and closed a $100M DeployCo investment (up to a $150M commitment); buyback activity includes >$300M repurchased since early last year at roughly a 50% discount to NAV, ~$50M repurchased in the quarter, and management is allocating $150M of recent proceeds to further repurchases while renewing the NCIB; the firm is tracking toward a $2B capital-recycling target over 24 months with ~ $1.2B realized so far; segment results cited industrial EBITDA $323M (+6% same-store), business services $204M (+6% same-store) and infrastructure services $96M; Clarios repaid $500M of debt and is accelerating a multibillion‑dollar U.S. investment program; Sagen’s loss ratio is ~17% with an expected long‑term range of 15–25% (reserve strengthening ~1/3 of the reported loss ratio); recent buy multiples were ~9–11x EBITDA (≈10x average); and management highlighted AI upside—“thousands” of use cases and “hundreds of millions” of potential run‑rate cost savings across the portfolio.Brookfield Business Corp. Class A Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
24
Negative
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.62B | 27.46B | 8.21B | 7.68B | 6.80B | 6.38B |
| Gross Profit | 4.18B | 5.31B | 640.00M | 889.00M | 640.00M | 392.00M |
| EBITDA | 4.94B | 7.18B | 843.00M | 1.65B | 1.33B | 828.00M |
| Net Income | -439.55M | 26.00M | -888.00M | 519.00M | 911.00M | 36.00M |
Balance Sheet | ||||||
| Total Assets | 78.82B | 75.76B | 19.10B | 21.18B | 27.38B | 15.92B |
| Cash, Cash Equivalents and Short-Term Investments | 18.09B | 4.27B | 1.01B | 787.00M | 736.00M | 894.00M |
| Total Debt | 45.68B | 44.57B | 8.77B | 9.13B | 13.41B | 7.58B |
| Total Liabilities | 63.38B | 60.45B | 16.46B | 16.42B | 23.30B | 14.78B |
| Stockholders Equity | 5.43B | 0.00 | -59.00M | 880.00M | 359.00M | -516.00M |
Cash Flow | ||||||
| Free Cash Flow | 402.00M | -314.00M | -408.00M | -496.00M | -474.00M | -110.00M |
| Operating Cash Flow | 2.70B | -58.00M | -111.00M | 138.00M | 181.00M | 618.00M |
| Investing Cash Flow | -3.23B | -294.00M | -335.00M | 3.79B | -9.23B | -478.00M |
| Financing Cash Flow | 1.05B | -1.00M | 797.00M | -3.93B | 8.91B | 14.00M |
Brookfield Business Corp. Class A Technical Analysis
Negative
31.11
Price Trends
30.50
Negative
31.89
Negative
33.11
Negative
Market Momentum
-0.70
Positive
39.71
Neutral
20.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBUC, the sentiment is Negative. The current price of 31.11 is above the 20-day moving average (MA) of 29.46, above the 50-day MA of 30.50, and below the 200-day MA of 33.11, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 20.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBUC.
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 (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | C$1.10B | 7.81 | 11.06% | 1.24% | -93.61% | 24.49% | |
74 Outperform | C$8.79B | 12.43 | 5.25% | 0.38% | 1.85% | -9.67% | |
70 Outperform | C$750.62M | 2.17 | 47.52% | 2.40% | 33.16% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
50 Neutral | C$649.93M | -3.27 | -9.69% | ― | 49.20% | -207.59% | |
47 Neutral | $5.78B | -4.09 | -18.05% | 0.80% | 97.51% | 34.53% |
* Industrials Sector Average
BBUC
Brookfield Business Corp. Class A
28.26
-6.24
-18.08%
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Queen's Road Capital Investment
14.01
7.08
102.02%
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16.66%
TSE:ONEX
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TSE:WED
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Brookfield Business Corp. Class A Corporate Events
Brookfield Business Corp. Renews Share Buyback Program on TSX and NYSE
Aug 14, 2026
On August 14, 2026, Brookfield Business Corporation announced that the Toronto Stock Exchange had accepted its notice to renew a normal course issuer bid for its class A subordinate voting shares. The company believes its shares may at times trade...
Brookfield Business Corp. Files Q2 2026 Interim Results on Form 6-K
Aug 5, 2026
On August 5, 2026, Brookfield Business Corporation filed a Form 6-K with the U.S. Securities and Exchange Commission for the month of August 2026, providing investors with its interim report for the quarter ended June 30, 2026. The filing, signed ...
Brookfield Business Corporation Posts Strong Q2 2026 Results and Accelerates AI-Driven Growth
Jul 31, 2026
Brookfield Business Corporation reported strong second quarter 2026 results on July 31, 2026, with net income attributable to shareholders rising to $37 million, or $0.18 per Class A share, from $26 million a year earlier. Adjusted EBITDA held bro...
Brookfield Business Corporation Shareholders Back Board Slate and Auditor at June 18 AGM
Jun 19, 2026
At Brookfield Business Corporation’s annual general meeting held virtually on June 18, 2026, shareholders representing over 92% of Class A shares and all Class B shares were present or represented by proxy, reflecting strong participation un...
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.