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Brookfield Business Corp. Class A
(TSX:BBUC)
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Rating:50Neutral
Price Target:
C$45.00
▲(2.53% Upside)
Action:Reiterated
Date:05/16/26
The score is held back primarily by high leverage/negative-equity periods and recent net losses with uneven free-cash-flow conversion. The earnings call was a meaningful positive (notably recurring Clarios cash tax credits, monetizations, liquidity and buybacks), but technicals are neutral-to-soft and valuation is expensive (high P/E with low yield).
Positive Factors
Operating Profitability
Sustained high top-line growth with strong gross and EBIT margins indicates durable operating leverage across diversified industrial and services platforms. That margin base supports internal reinvestment, acquisition integration, and resilience through cycle-driven revenue swings over months to years.
Negative Factors
Very High Leverage
Extremely elevated leverage and episodic negative equity materially reduce financial flexibility. Over a multi‑month horizon this heightens refinancing risk, sensitivity to interest rates, and potential for forced asset sales or equity dilution if operating performance or valuations deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating Profitability
Sustained high top-line growth with strong gross and EBIT margins indicates durable operating leverage across diversified industrial and services platforms. That margin base supports internal reinvestment, acquisition integration, and resilience through cycle-driven revenue swings over months to years.
Read all positive factors
Brookfield Business Corp. Class A (BBUC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$8.20B
Dividend Yield0.86%
Average Volume (3M)61.12K
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth95.36%
EPS Growth34.59%
CountryCA
Employees72,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-6.91
Shares Outstanding204,710,800
10 Day Avg. Volume45,055
30 Day Avg. Volume61,118
Financial Highlights & Ratios
PEG Ratio-1.52
Price to Book (P/B)-5.02
Price to Sales (P/S)0.12
P/FCF Ratio-10.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$54.94Price Target Upside25.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)8.23
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
46
Neutral
Balance Sheet
28
Negative
Cash Flow
40
Negative
| 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 | 16.43B | 19.10B | 21.18B | 27.38B | 15.92B |
| Cash, Cash Equivalents and Short-Term Investments | 18.09B | 790.00M | 1.01B | 787.00M | 736.00M | 894.00M |
| Total Debt | 44.82B | 44.57B | 8.77B | 9.13B | 13.41B | 7.58B |
| Total Liabilities | 63.38B | 14.33B | 16.46B | 16.42B | 23.30B | 14.78B |
| Stockholders Equity | 5.43B | -679.00M | -59.00M | 880.00M | 359.00M | -516.00M |
Cash Flow | ||||||
| Free Cash Flow | 404.04M | -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
43.89
Price Trends
44.03
Negative
44.77
Negative
46.38
Negative
Market Momentum
-0.85
Positive
36.85
Neutral
7.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBUC, the sentiment is Negative. The current price of 43.89 is above the 20-day moving average (MA) of 43.05, below the 50-day MA of 44.03, and below the 200-day MA of 46.38, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 7.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BBUC.
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 |
|---|---|---|---|---|---|---|---|
74 Outperform | C$1.09B | 9.83 | 9.03% | 1.24% | -102.62% | -2.25% | |
70 Outperform | C$785.70M | 2.26 | 47.52% | 2.40% | 33.16% | ― | |
66 Neutral | C$8.46B | 9.93 | 6.52% | 0.38% | 2.88% | 32.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
50 Neutral | C$8.20B | -4.16 | -18.05% | 0.78% | 95.36% | 34.59% | |
49 Neutral | C$740.73M | -8.23 | -9.69% | ― | 396.46% | 12.99% |
* Industrials Sector Average
TSE:BBUC
Brookfield Business Corp. Class A
40.30
-0.72
-1.75%
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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.