Brookfield Business (BBU) Earnings Call Transcript

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Fri, January 30, 2026 astatine 9:58 AM CST 22 min read

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Jan. 30, 2026, 10 a.m. ET

• Managing Partner — Anuj Ranjan

• Chief Executive Officer — Adrian Letts

• Chief Financial Officer — Jaspreet Dehl

• Operator

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Anuj Ranjan: Thanks, Alan, and bully morning, everyone. Thank you for joining america connected the telephone today. 2025 was an fantabulous twelvemonth for Brookfield Business Partners L.P. and the execution of our strategy to proceed compounding worth for our shareholders. Over the past year, we generated much than $2 cardinal of proceeds from superior recycling, repaid astir $1 cardinal of our firm borrowings, invested $700 cardinal successful 4 maturation acquisitions, and we purchased astir $235 cardinal of banal astatine a important discount to intrinsic value. We besides delivered beardown underlying fiscal performance, driven by the continued execution of our worth instauration plans, which Adrian volition get into much later.

In addition, we're adjacent to completing our firm reorganization, which volition effect successful america being a azygous recently listed corporation. This is simply a large change, and we deliberation that it volition amended our trading liquidity, treble the index-driven request for our shares, and marque it easier for investors globally to put successful our business. We received the required portion and shareholder approvals earlier this month, and we're connected way to implicit the conversion implicit the coming weeks, pending last regulatory approval. Stepping back, we created our concern astir a decennary agone with a elemental purpose: to supply nationalist marketplace investors with entree to Brookfield's planetary backstage equity capabilities, which has compounded worth astatine exceptional rates for implicit twenty-five years. The strategy is straightforward. We find large businesses, we bargain them for a tenable value, and we execute connected our operational plans to amended performance. More than fractional of the worth we person historically realized has travel from improving the businesses we own. In a satellite wherever returns tin nary longer beryllium connected falling rates, inexpensive financing, oregon aggregate expansion, our attack to operational excellence matters much than ever. This is the situation that our concern was built for, and 2 forces are accelerating request for that strategy.

First, deglobalization is reshaping proviso chains, causing businesses to rethink sourcing, manufacturing, and organisation strategies, which necessitate some superior and important alteration absorption expertise. Just to exemplify this, CapEx successful US manufacturing has grown from $50 cardinal successful 2020 to astir $250 cardinal successful 2025. At the aforesaid time, AI is reshaping concern and indispensable services businesses, not conscionable exertion platforms down the models. The beneficiaries volition beryllium those who tin instrumentality tools to automate processes, trim costs, code labour shortages, and alteration analog systems to integer operations. The accidental is massive. The constraint is not technology; it's experienced operators who tin instrumentality existent alteration and decently transform. That is wherever we basal apart.