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Brookfield Business Partners LP (TSE:BBU.UN)
TSX:BBU.UN
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Brookfield Business Partners (BBU.UN) AI Stock Analysis

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TSE:BBU.UN

Brookfield Business Partners

(TSX:BBU.UN)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
C$50.00
â–˛(1.52% Upside)
Brookfield Business Partners' overall stock score is primarily influenced by its challenging financial performance, marked by declining revenues and high leverage. While technical indicators show a positive trend, the valuation remains unattractive due to a negative P/E ratio. The earnings call provided some optimism with strategic initiatives, but financial and operational challenges persist.
Positive Factors
Capital Recycling Program
The capital recycling program enhances liquidity and financial flexibility, allowing the company to reinvest in growth opportunities and reduce debt, supporting long-term stability.
Strategic Growth Acquisitions
These acquisitions expand market reach and operational efficiency, positioning the company for sustained growth and competitive advantage in key sectors.
Corporate Structure Simplification
Simplifying the corporate structure can enhance market perception, improve liquidity, and support a higher market valuation, benefiting long-term shareholder value.
Negative Factors
High Leverage
High leverage increases financial risk, potentially limiting the company's ability to invest in growth and affecting its long-term financial health.
Decline in Adjusted EBITDA
A decline in EBITDA indicates reduced profitability and operational challenges, which could impact the company's ability to fund future growth initiatives.
Regulatory Challenges
Regulatory challenges can affect business operations and reputation, potentially leading to increased compliance costs and impacting long-term strategic execution.

Brookfield Business Partners (BBU.UN) vs. iShares MSCI Canada ETF (EWC)

Brookfield Business Partners Business Overview & Revenue Model

Company DescriptionBrookfield Business Partners L.P. is a private equity firm specializes in acquisition. The firm typically invests in business services, construction, energy, and industrials sector. It prefers to take majority stake in companies. The firm seeks returns of at least 15% on its investments. Brookfield Business Partners L.P. is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Asset Management Inc.
How the Company Makes MoneyBrookfield Business Partners generates revenue primarily through the acquisition and management of businesses across various sectors. Its revenue model includes fees for managing investments, performance fees based on the success of its portfolio companies, and dividends received from its investments. Key revenue streams come from operational improvements in acquired companies, strategic asset sales, and periodic realizations of investments. The company also benefits from partnerships with other investment firms and institutional investors, which provide additional capital and co-investment opportunities, further contributing to its earnings.

Brookfield Business Partners Earnings Call Summary

Earnings Call Date:Nov 10, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 30, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in capital recycling, strategic acquisitions, and corporate restructuring, indicating strong future potential. However, challenges in EBITDA performance and specific segments, along with regulatory issues, present concerns. Overall, the positive strategic progress is tempered by notable financial and operational challenges.
Q3-2025 Updates
Positive Updates
Capital Recycling Program Success
Generated more than $2 billion from capital recycling, repaid $1 billion of borrowings, and bought back over $160 million of units and shares.
Strategic Growth Acquisitions
Invested $525 million in three strategic growth acquisitions, including First National, Chemelex, and Antylia Scientific, enhancing operational efficiency and expanding market reach.
Corporate Structure Simplification
Announced plans to simplify corporate structure, improving trading liquidity and increasing market cap by nearly $1 billion.
Strong Segment Performance
Industrial segment performance increased 17% year-over-year, driven by advanced energy storage and engineered components, despite partial sales of interests.
Positive Market Reception
Positive feedback for corporate reorganization, leading to increased market cap and potential for future growth.
Negative Updates
Decline in Adjusted EBITDA
Third quarter adjusted EBITDA decreased from $844 million to $575 million year-over-year, impacted by lower ownership in businesses and reduced tax benefits.
Business Services Segment Challenges
EBITDA for Business Services dropped from $228 million to $188 million due to the partial sale of interests and strategic investments affecting short-term financials.
Infrastructure Services Segment Decline
Infrastructure Services adjusted EBITDA fell from $146 million to $104 million, reflecting the sale of offshore oil services and partial interests, impacting segment stability.
Regulatory Challenges for La Trobe
La Trobe faced regulatory issues affecting disclosure, with potential implications for business perception and operations.
Company Guidance
During the Brookfield Business Partners Third Quarter 2025 Results Conference Call, the company reported significant financial metrics and strategic initiatives. Since the beginning of the year, Brookfield has generated over $2 billion from its capital recycling program and repaid $1 billion in corporate credit facility borrowings. The company also repurchased $160 million worth of units and shares and invested $525 million in strategic growth acquisitions. In terms of market performance, the reorganization plans announced in September have led to a nearly $1 billion increase in market capitalization. The company's shares have appreciated approximately 150% over the past two years, reflecting a narrowed trading discount to NAV, which continues to grow. Financial results for the third quarter showed an adjusted EBITDA of $575 million, down from $844 million in the prior period, with tax benefits contributing $77 million. Despite lower ownership in some businesses, adjusted EBITDA excluding tax benefits stood at $512 million, compared to $501 million previously. The Industrial segment's adjusted EBITDA was $316 million, while the Business Services and Infrastructure Services segments reported $188 million and $104 million, respectively. The company ended the quarter with approximately $2.9 billion in pro forma liquidity, positioning it well for future growth and capital allocation priorities.

Brookfield Business Partners Financial Statement Overview

Summary
Brookfield Business Partners is facing financial challenges with declining revenues and profitability pressures. The high leverage poses financial risks, although operational efficiency remains a strength. Cash flow generation is under pressure, but there is some resilience in free cash flow relative to net income.
Income Statement
45
Neutral
Brookfield Business Partners has faced challenges in maintaining revenue growth, with a negative growth rate of -7.68% in the TTM period. The gross profit margin stands at 18.90%, which is moderate, but the net profit margin is negative, indicating profitability issues. The EBIT and EBITDA margins are relatively healthy at 14.64% and 23.07% respectively, suggesting operational efficiency despite the net loss.
Balance Sheet
40
Negative
The company exhibits a high debt-to-equity ratio of 18.40, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the net loss and challenges in generating returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing.
Cash Flow
50
Neutral
Operating cash flow remains positive, but free cash flow has declined by 24.95% in the TTM period. The operating cash flow to net income ratio is 0.16, indicating some cash generation capability despite the net loss. The free cash flow to net income ratio is positive, suggesting some level of cash flow resilience.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.79B40.62B53.05B57.38B46.59B37.63B
Gross Profit5.25B5.74B2.12B4.28B3.44B3.00B
EBITDA6.09B7.67B6.29B6.14B4.71B4.20B
Net Income-108.00M15.00M482.00M63.00M258.00M-91.00M
Balance Sheet
Total Assets75.40B75.47B81.96B89.21B64.13B54.75B
Cash, Cash Equivalents and Short-Term Investments3.50B4.03B4.04B4.44B4.39B5.12B
Total Debt43.30B39.81B45.29B50.59B33.10B27.39B
Total Liabilities59.86B58.17B63.53B70.79B51.15B43.41B
Stockholders Equity2.35B1.75B1.90B1.41B2.25B1.93B
Cash Flow
Free Cash Flow1.42B724.46M-158.00M-737.00M243.00M2.80B
Operating Cash Flow3.51B3.12B2.13B1.01B1.69B4.21B
Investing Cash Flow-2.09B-2.22B2.54B-18.72B-8.93B-2.33B
Financing Cash Flow-850.19M-480.75M-4.37B18.07B7.06B-1.08B

Brookfield Business Partners Technical Analysis

Technical Analysis Sentiment
Positive
Last Price49.25
Price Trends
50DMA
46.55
Positive
100DMA
41.33
Positive
200DMA
37.18
Positive
Market Momentum
MACD
0.57
Negative
RSI
60.66
Neutral
STOCH
86.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBU.UN, the sentiment is Positive. The current price of 49.25 is above the 20-day moving average (MA) of 45.77, above the 50-day MA of 46.55, and above the 200-day MA of 37.18, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 60.66 is Neutral, neither overbought nor oversold. The STOCH value of 86.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BBU.UN.

Brookfield Business Partners Risk Analysis

Brookfield Business Partners disclosed 1 risk factors in its most recent earnings report. Brookfield Business Partners 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 Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$4.20B28.919.88%3.22%15.47%9.40%
70
Outperform
C$3.64B36.7911.37%2.19%-1.47%-79.68%
69
Neutral
C$3.28B27.548.88%―57.77%57.55%
67
Neutral
$2.44B31.9922.05%1.03%13.02%52.88%
64
Neutral
C$1.62B16.3921.68%3.18%6.26%0.52%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
53
Neutral
$4.27B-216.08-6.18%0.73%-36.15%-122.76%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BBU.UN
Brookfield Business Partners
49.25
13.30
37.00%
TSE:BDGI
Badger Infrastructure Solutions
72.26
34.62
91.96%
TSE:BDT
Bird Construction
26.40
-3.39
-11.38%
TSE:EIF
Exchange Income
82.24
27.67
50.71%
TSE:SES
SECURE Waste Infrastructure
17.80
1.54
9.47%
TSE:MDA
MDA Space Ltd
23.12
-4.57
-16.50%

Brookfield Business Partners Corporate Events

Brookfield Business Partners Reports Q3 2025 Financial Stability
Nov 10, 2025

Brookfield Business Partners L.P. released its interim report for the quarter ended September 30, 2025, highlighting a stable financial position with total assets slightly decreasing from $75,474 million at the end of 2024 to $75,403 million. The report indicates a decrease in current liabilities and an increase in equity, suggesting a strengthening financial structure. This financial update may positively impact the company’s market positioning and reassure investors of its operational stability.

The most recent analyst rating on ($TSE:BBU.UN) stock is a Hold with a C$42.00 price target. To see the full list of analyst forecasts on Brookfield Business Partners stock, see the TSE:BBU.UN Stock Forecast page.

Brookfield Business Partners’ Earnings Call: Strategic Wins Amid Challenges
Nov 8, 2025

Brookfield Business Partners’ recent earnings call showcased a blend of strategic achievements and operational challenges. The company emphasized its success in capital recycling and strategic acquisitions, which promise strong future potential. However, concerns were raised regarding EBITDA performance and regulatory issues, highlighting a complex financial landscape. Overall, while strategic progress is evident, financial and operational hurdles remain.

Brookfield Business Partners Reports Q3 2025 Results
Nov 7, 2025

Brookfield Business Partners, a global business services and industrials company, focuses on owning and operating high-quality businesses that provide essential products and services. It operates as the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group.

Brookfield Business Partners Announces Strategic Arrangement Agreement
Nov 6, 2025

On November 6, 2025, Brookfield Business Partners L.P. announced an arrangement agreement with 1559985 B.C. Ltd. and Brookfield Business Corporation. This strategic move aims to provide additional benefits to unitholders and shareholders by restructuring their investments through a newly formed corporation. The boards of both Brookfield Business Partners and Brookfield Business Corporation have unanimously determined that this arrangement is in their best interests, following recommendations from their respective special committees.

The most recent analyst rating on ($TSE:BBU.UN) stock is a Buy with a C$39.00 price target. To see the full list of analyst forecasts on Brookfield Business Partners stock, see the TSE:BBU.UN Stock Forecast page.

Brookfield Business Partners Reports Q3 2025 Loss Amid Strategic Acquisitions
Nov 6, 2025

On November 6, 2025, Brookfield Business Partners reported its financial results for the third quarter ending September 30, 2025. The company experienced a net loss of $59 million, a significant decline from the previous year’s net income of $301 million. This decrease was attributed to lower tax recoveries and reduced ownership in certain businesses. Despite the loss, the company made strategic progress by acquiring a Canadian mortgage lender and simplifying its corporate structure, which was positively received by investors. The company’s capital recycling and deployment initiatives, including the sale of its FPSO operation and the privatization of First National Financial Corporation, are expected to enhance its financial position.

The most recent analyst rating on ($TSE:BBU.UN) stock is a Buy with a C$39.00 price target. To see the full list of analyst forecasts on Brookfield Business Partners stock, see the TSE:BBU.UN Stock Forecast page.

Brookfield Business Partners Reports Q3 2025 Loss Amid Strategic Acquisitions
Nov 6, 2025

On November 6, 2025, Brookfield Business Partners announced its financial results for the third quarter of 2025, revealing a net loss of $59 million compared to a net income of $301 million in the same period last year. The company completed the acquisition of a Canadian mortgage lender and announced plans to simplify its corporate structure, which has been positively received by investors. Despite a decrease in Adjusted EBITDA from $844 million to $575 million, the company reported strong performance in its industrials segment, driven by recent acquisitions and operational improvements in energy storage and engineered components manufacturing.

The most recent analyst rating on ($TSE:BBU.UN) stock is a Buy with a C$39.00 price target. To see the full list of analyst forecasts on Brookfield Business Partners stock, see the TSE:BBU.UN Stock Forecast page.

Brookfield Business Partners Announces Corporate Simplification Plan
Sep 25, 2025

On September 25, 2025, Brookfield Business Partners announced its plan to simplify its corporate structure by converting into a single publicly traded Canadian corporation, BBU Inc. This reorganization aims to broaden the investor base, increase index demand, and enhance trading liquidity, which is expected to drive long-term value for shareholders. The transaction, anticipated to complete in the first quarter of 2026, will involve exchanging all existing shares and units for new class A shares of BBU Inc., which will be listed on the NYSE and TSX. The reorganization is designed to provide broader access to global investors, improve trading liquidity, and simplify financial reporting, with no change to Brookfield’s ownership.

The most recent analyst rating on ($TSE:BBU.UN) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Brookfield Business Partners stock, see the TSE:BBU.UN Stock Forecast page.

Brookfield Business Partners to Simplify Structure with Canadian Corporation Conversion
Sep 25, 2025

On September 25, 2025, Brookfield Business Partners announced plans to simplify its corporate structure by converting Brookfield Business Partners LP and Brookfield Business Corporation into a single publicly traded Canadian corporation, BBU Inc. This strategic move aims to broaden the investor base, increase index demand, and simplify financial reporting, ultimately driving long-term value for shareholders. The reorganization will involve exchanging existing shares and units for new class A shares of BBU Inc., which will be listed on the NYSE and TSX. The transaction is expected to be completed in the first quarter of 2026, pending necessary approvals.

The most recent analyst rating on ($TSE:BBU.UN) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Brookfield Business Partners stock, see the TSE:BBU.UN Stock Forecast page.

Brookfield Business Partners Renews Issuer Bids for Units and Shares
Aug 15, 2025

On August 15, 2025, Brookfield Business Partners announced the renewal of its normal course issuer bids for its limited partnership units and class A exchangeable subordinate voting shares. The Toronto Stock Exchange accepted the renewal, allowing Brookfield to purchase up to 5% of its outstanding units and shares, reflecting the company’s belief that their current market prices do not fully reflect their value. The purchases, commencing on August 19, 2025, will be made through various trading systems and are subject to compliance with applicable securities laws. This move is expected to optimize the use of available funds and potentially enhance shareholder value.

The most recent analyst rating on ($TSE:BBU.UN) stock is a Buy with a C$32.00 price target. To see the full list of analyst forecasts on Brookfield Business Partners stock, see the TSE:BBU.UN Stock Forecast page.

Brookfield Business Partners Renews Issuer Bids for Units and Shares
Aug 15, 2025

On August 15, 2025, Brookfield Business Partners announced the renewal of its normal course issuer bids for its limited partnership units and class A exchangeable subordinate voting shares. The Toronto Stock Exchange has accepted the notices for these renewals, allowing the company to purchase up to 5% of its issued and outstanding units and shares. This strategic move is aimed at capitalizing on potential undervaluation in the market and represents an attractive use of available funds. The purchases are authorized to commence on August 19, 2025, and will terminate on August 18, 2026, unless completed earlier.

The most recent analyst rating on ($TSE:BBU.UN) stock is a Buy with a C$32.00 price target. To see the full list of analyst forecasts on Brookfield Business Partners stock, see the TSE:BBU.UN Stock Forecast page.

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.Date of analysis: Nov 30, 2025