Brookfield Business Corp. Class A (TSE:BBUC)
TSX:BBUC
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Brookfield Business Corp. Class A
(TSX:BBUC)
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Rating:55Neutral
Price Target:
C$49.00
▲(2.34% Upside)
Action:ReiteratedDate:04/07/26
The score is held back primarily by weak financial performance—sharp profitability deterioration and a highly leveraged balance sheet with negative equity—despite improved 2025 cash generation. The latest earnings call was broadly constructive (capital recycling, debt paydown, liquidity, operational progress), and technicals are positive, but valuation remains challenged due to losses (negative P/E) and a low dividend yield.
Positive Factors
Stronger corporate liquidity & debt reduction
Sustained capital recycling and meaningful debt paydown materially improve financial flexibility. Higher liquidity and completed refinancings (lower funding costs) create durable capacity to fund operations, opportunistic buybacks, M&A or further deleveraging without relying on volatile markets.
Negative Factors
Very high leverage and recurring negative equity
Persistent negative equity and heavy leverage materially constrain financial flexibility and amplify downside in weaker operating periods. This structural capital weakness raises refinancing, covenant and solvency risks and limits strategic optionality for investment or dividend policy over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger corporate liquidity & debt reduction
Sustained capital recycling and meaningful debt paydown materially improve financial flexibility. Higher liquidity and completed refinancings (lower funding costs) create durable capacity to fund operations, opportunistic buybacks, M&A or further deleveraging without relying on volatile markets.
Read all positive factors
Brookfield Business Corp. Class A (BBUC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.72B
Dividend Yield0.71%
Average Volume (3M)61.12K
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth-0.16%
EPS Growth-2945.66%
CountryCA
Employees25,000
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-2.89
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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
Brookfield Business Corp. generates earnings primarily from the operating profits and cash flows of its controlled portfolio companies. Key revenue streams depend on the underlying businesses, which typically earn revenue by selling manufactured p...
Brookfield Business Corp. Class A Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Positive
The call emphasized multiple clear operational and financial positives — substantial capital recycling (~$2B), balance sheet repair (~$1B debt repayment), disciplined deployment (~$700M in acquisitions), strong progress at key platform companies (Clarios' 40% EBITDA growth, Nielsen's ~$800M cost savings and >350 bps margin improvement), robust liquidity (~$2.6B) and completed financings that lowered funding costs — while acknowledging near-term headwinds including a ~7.7% decline in consolidated adjusted EBITDA to $2.4B (driven in part by lower ownership after partial disposals and timing impacts), regional softness in parts of Europe, volume and utilization weakness in specific operations, and a credit rating downgrade at Scientific Games. Overall, positive underlying operational execution and capital allocation progress were presented alongside manageable but notable near-term challenges.Positive Updates
Strong capital recycling and balance sheet actions
Generated more than $2.0 billion of proceeds from capital recycling, repaid ~ $1.0 billion of corporate borrowings, completed > $20 billion of financings across operations over the past year, reduced the cost of refinanced borrowings by over 50 basis points, and ended the year with ~ $2.6 billion of pro forma corporate-level liquidity.
Negative Updates
Decline in consolidated adjusted EBITDA
Full-year adjusted EBITDA declined to $2.4 billion from $2.6 billion in 2024, a decrease of ~$200 million (~-7.7% year-over-year), reflecting lower ownership in three businesses following partial disposals and other timing items.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong capital recycling and balance sheet actions
Generated more than $2.0 billion of proceeds from capital recycling, repaid ~ $1.0 billion of corporate borrowings, completed > $20 billion of financings across operations over the past year, reduced the cost of refinanced borrowings by over 50 basis points, and ended the year with ~ $2.6 billion of pro forma corporate-level liquidity.
Read all positive updates
Company Guidance
Management guided that they expect to complete the corporate reorganization into a single newly listed corporation in the coming weeks (pending regulatory approval) and to finish the $250 million NCIB (about $235 million repurchased to date at an average ~ $26/unit) while remaining opportunistic for further buybacks; they reported 2025 adjusted EBITDA of $2.4 billion (down from $2.6B in 2024) including $297 million of tax credits, Industrial segment adjusted EBITDA of $1.3B (vs $1.2B) with a ~10% underlying increase ex M&A/tax, Business Services adjusted EBITDA of $823M (vs $832M) with same‑store EBITDA up ~5%, and company-wide activity that included >$2B of capital recycling proceeds, roughly $1B of corporate borrowings repaid, $700M invested in four acquisitions, >$20B of financings completed (reducing refinanced borrowing costs by >50 bps), pro forma corporate liquidity of about $2.6B (with $87M of units redeemed in the quarter), Nielsen cost savings of ~ $800M (including >$250M in the past year) driving >350 bps of margin improvement and roughly $90M of annual interest savings from refinancings, Clarios’ underlying annual EBITDA up ~40% (≈$700M) since acquisition with a path to similar growth over the next five years, Dexco EBITDA up low single digits, and a share price ~50% higher year‑over‑year but still at a material discount to NAV.Brookfield Business Corp. Class A Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
14
Very Negative
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | 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 | -3.18B | -335.00M | 3.79B | -9.23B | -478.00M |
| Financing Cash Flow | 72.00M | 797.00M | -3.93B | 8.91B | 14.00M |
Brookfield Business Corp. Class A Technical Analysis
Neutral
47.88
Price Trends
46.38
Negative
47.53
Negative
46.50
Negative
Market Momentum
0.12
Negative
52.06
Neutral
80.65
Negative
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 43.92, above the 50-day MA of 46.38, and above the 200-day MA of 46.50, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 80.65 is Negative, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | C$1.01B | 2.39 | 5.72% | 0.14% | -44.78% | -95.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | C$799.89M | 1.64 | 35.97% | 2.20% | -1.35% | 496.34% | |
65 Neutral | C$7.87B | 9.04 | 7.20% | 0.36% | 2.46% | -27.48% | |
55 Neutral | C$10.72B | -2.93 | 201.17% | 0.71% | -0.16% | -2945.66% | |
50 Neutral | C$816.63M | -14.64 | -6.91% | ― | 333.02% | -196.36% |
* Financial Sector Average
TSE:BBUC
Brookfield Business Corp. Class A
46.02
11.88
34.80%
TSE:QRC
Queen's Road Capital Investment
15.67
9.93
173.09%
TSE:CVG
Clairvest
73.94
8.06
12.23%
TSE:ONEX
ONEX Corporation
103.17
8.52
9.00%
TSE:WED
Westaim
24.50
-6.55
-21.10%
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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Brookfield Business Partners Swings to Profit as Capital Recycling, Acquisitions Reshape Portfolio
Positive
Jan 30, 2026
Brookfield Business Partners reported a return to profitability in 2025 with net income attributable to unitholders of $43 million, reversing a loss of $109 million in the prior year, as it executed a busy year of capital recycling and portfolio r...
Business Operations and StrategyStock BuybackFinancial Disclosures
Brookfield Business Partners Returns to Profit as Industrials Drive Growth Amid Capital Recycling
Positive
Jan 30, 2026
Brookfield Business Partners reported a return to profitability in 2025, posting net income attributable to unitholders of $43 million after a loss in the prior year, while Adjusted EBITDA slipped to $2.41 billion from $2.57 billion due largely to...
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.