Brookfield Business Corp. Class A (TSE:BBUC)
TSX:BBUC
Want to see TSE:BBUC full AI Analyst Report?
Top Page
Brookfield Business Corp. Class A
(TSX:BBUC)
Select Model
Select Model
Rating:50Neutral
Price Target:
C$45.00
▼(-6.02% Downside)
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
Strong revenue growth and margins
Sustained top-line expansion with healthy gross and EBITDA margins indicates repeatable operating strength across portfolio companies. Durable revenue growth and mid‑teens operating margins provide a structural buffer to support reinvestment, service obligations and long‑term cash generation.
Negative Factors
Very high leverage and past negative equity
An aggressive capital structure with very high leverage and intermittent negative equity materially reduces financial flexibility. This elevates refinancing and covenant risk, increases sensitivity to interest rates and cyclical shocks, and can constrain strategic choices during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and margins
Sustained top-line expansion with healthy gross and EBITDA margins indicates repeatable operating strength across portfolio companies. Durable revenue growth and mid‑teens operating margins provide a structural buffer to support reinvestment, service obligations and long‑term cash generation.
Read all positive factors
Brookfield Business Corp. Class A (BBUC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$9.43B
Dividend Yield0.71%
Average Volume (3M)61.12K
Price to Earnings (P/E)46.7
Beta (1Y)1.86
Revenue Growth38.75%
EPS Growth-3.34%
CountryCA
Employees25,000
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-11.23
Shares Outstanding207,007,460
10 Day Avg. Volume45,055
30 Day Avg. Volume61,118
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$57.61Price Target Upside20.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Brookfield Business Corp. Class A Business Overview & Revenue Model
Company Description
Brookfield Business Corporation focuses on healthcare, construction, and wastewater services in the United States, Europe, Australia, the United Kingdom, Canada, and Brazil. It operates through three segments: Business Services, Infrastructure Ser...
How the Company Makes Money
BBUC makes money primarily through the operating earnings and cash flows generated by its controlled portfolio companies. Key revenue streams generally include: (1) recurring and contracted or service-based revenues earned by its operating subsidi...
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
21
Negative
Cash Flow
38
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 | -281.85M | 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 Technical Analysis
Neutral
47.88
Price Trends
45.11
Positive
46.96
Negative
47.07
Negative
Market Momentum
-0.32
Positive
49.76
Neutral
60.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBUC, the sentiment is Neutral. The current price of 47.88 is above the 20-day moving average (MA) of 45.66, above the 50-day MA of 45.11, and above the 200-day MA of 47.07, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 49.76 is Neutral, neither overbought nor oversold. The STOCH value of 60.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BBUC.
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$716.89M | 1.29 | 78.23% | 2.20% | 89.66% | ― | |
71 Outperform | C$1.03B | 2.39 | 5.72% | 0.14% | -57.36% | -41.04% | |
70 Outperform | C$8.30B | 10.50 | 6.52% | 0.36% | 2.88% | 32.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
50 Neutral | C$9.43B | 46.70 | -58.74% | 0.71% | 38.75% | -3.34% | |
49 Neutral | C$768.96M | -4.30 | -9.69% | ― | 396.46% | 12.55% |
* Financial Sector Average
TSE:BBUC
Brookfield Business Corp. Class A
45.49
5.79
14.57%
TSE:QRC
Queen's Road Capital Investment
14.05
7.91
128.94%
TSE:CVG
Clairvest
75.21
5.92
8.54%
TSE:ONEX
ONEX Corporation
108.75
4.21
4.03%
TSE:WED
Westaim
23.07
-8.72
-27.43%
Brookfield Business Corp. Class A Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Brookfield Business Corp Files 2025 Annual Report and Launches Simplified Share Structure
Positive
Mar 31, 2026
Brookfield Business Corporation has filed its 2025 annual report on Form 20‑F, including audited financial statements for the year ended December 31, 2025, with U.S. and Canadian securities regulators, and made the documents available online...
Business Operations and StrategyDelistings and Listing Changes
Brookfield Business Partners Sets Date to Complete Corporate Simplification
Positive
Mar 16, 2026
Brookfield Business Partners and Brookfield Business Corporation have secured all necessary approvals to consolidate into a single publicly traded Canadian corporation, marking a key step in simplifying their structure. The new entity, to be named...
Business Operations and StrategyDividends
Brookfield Business Partners Maintains Payout as It Nears Corporate Reorganization
Positive
Mar 12, 2026
Brookfield Business Partners declared a quarterly distribution and dividend of $0.0625 per unit and per share, payable on March 31, 2026 to holders of record as of March 23, 2026, maintaining its current capital return level to unitholders and sha...
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.