BBUC

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is executing a 'compounding capital' playbook by divesting legacy assets, such as the $650 million sale of Multiplex, to reinvest in higher-quality, market-leading businesses. The company is pivoting toward 'resilient' businesses with hard-to-replicate assets and durable cash flows, noting that market premiums have shifted from high-growth to stability. Strategic focus remains on complex industrial carve-outs from large conglomerates and consolidating fragmented essential services markets where operational expertise can unlock value. The investment in OpenAI Deployment Company (DeployCo) is a strategic move to secure technical talent and leading models to accelerate AI implementation across the existing portfolio. Management attributes a 5% same-store EBITDA increase to cost optimization and commercial execution, which successfully offset soft end-market conditions in certain segments. Capital allocation is increasingly favoring share buybacks, with $150 million in new proceeds allocated to repurchases due to shares trading at a nearly 50% discount to net asset value. Management targets $2 billion in capital recycling proceeds over a 24-month period, with $1.2 billion already generated in the first year. Operational improvements at newly acquired World Freight Company will focus on standardizing decentralized regional brands into an integrated platform using AI for high-volume workflows. The industrial segment expects end-market demand to begin normalizing in the future, particularly for engineered components where cost-cutting is currently bridging the gap. Sagen's loss ratios are expected to stabilize within a historical range of 15% to 25% as home prices normalize and cure rates adjust to lower equity levels. The company plans to continue scaling the Brookfield Evergreen Fund (BPE) by expanding distribution from Canadian and U.S. platforms to international markets. Sagen's loss ratio increased to 17%, driven by reserve strengthening and lower cure rates as Canadian home price appreciation normalized. Lottery services performance was negatively impacted by a contract penalty payment at a joint venture and increased strategic investment spending. Dealer software services (CDK) is managing 'elevated churn' through modernization initiatives and product enhancements to support customer retention. The industrial segment's engineered components manufacturer refinanced its capital structure, extending maturities by approximately 3 years to provide flexibility during market recoveries. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management characterized CDK's underlying performance as stable with positive operating cash flow over the last 12 months. They declined to comment on specific lender negotiations but emphasized that modernization initiatives are progressing to address elevated churn. The uptick in loss ratios to 17% represents a return to 'normalized' levels (15-25%) after a period of unsustainably low losses driven by rapid home price appreciation. Recent regulatory changes increasing the amortization period to 30 years and raising the home price cap have expanded the business's total addressable market. The investment was reduced from $150 million to $100 million due to high demand from institutional co-investment partners. Management emphasized that the strategic value—access to OpenAI talent and deployment capabilities—remains fully intact regardless of the final dollar amount. At Clarios, AI and sensors are used to monitor machine cycle times and maintenance, significantly improving efficiency and inventory planning. Chemelex implemented machine learning to optimize polymer blending settings based on ambient plant conditions, reducing yield loss and manual error.

BROOKFIELD, NEWS, July 31, 2026 (GLOBE NEWSWIRE) -- Brookfield Business Corporation (NYSE, TSX: BBUC) announced today financial results for the quarter ended June 30, 2026. “Since the start of the year, we have generated over $1.2 billion of proceeds from asset sales and distributions, including our agreement to sell Multiplex during the quarter. These transactions delivered exceptional value, strengthening our balance sheet, allowing us to invest in the growth of our business, and supporting our consistent practice of share purchases when it is attractive to do so.” said Anuj Ranjan, CEO of Brookfield Business Corporation. “Our approach is straightforward — we buy, build and operate high-quality industrial and services businesses. Demand for these businesses is increasing, and AI is creating real opportunities to transform them faster than ever before. Combined with our operational expertise built over decades, we are well positioned to continue generating strong returns for shareholders.” Brookfield Business Corporation reported net income attributable to Shareholders for the three months ended June 30, 2026 of $37 million ($0.18 per Class A Share), compared to income of $26 million ($0.12 per Class A Share) in the prior period. Operating Results Our business generated strong second quarter financial results, driven by the durability of our underlying cash flows, contribution from recent acquisitions and the continued progress of our operational value creation plans. Adjusted EBITDA was $587 million during the quarter, an approximate 5% increase over the prior year, excluding the impact of acquisitions and dispositions. Our Industrials segment generated $323 million of Adjusted EBITDA, an increase of 6% over the prior year excluding the impact of acquisitions and dispositions. Results were supported by performance at our advanced energy storage operation which continues to benefit from ongoing commercial actions and growing demand for higher-margin advanced batteries. Underpinned by its strong cash flow generation, the business repaid $500 million of debt during the quarter, further strengthening its balance sheet as it executes on a multi-billion-dollar U.S. investment program. Business Services segment Adjusted EBITDA was $204 million, an increase of 6% over the prior year excluding the impact of acquisitions and dispositions. Our residential mortgage insurer continued to benefit from resilient first-time homebuyer demand, while losses on claims normalized as expected. Our Infrastructure Services segment Adjusted EBITDA was $96 million. Performance at modular building leasing services and work access services was stable during the quarter. A contract penalty at a joint venture and increased investment spend more than offset revenue growth at our lottery services operation where we are accelerating strategic initiatives to drive volume growth, expand margins and execute on a strong pipeline of new commercial opportunities. The following table presents Adjusted EFO4 by segment: Capital Deployment and Recycling We continue to invest in the future growth of our business, committing over $300 million to acquire two market-leading providers of mission-critical products and services and closing our strategic investment in The OpenAI Deployment Company during the quarter. We agreed to acquire World Freight Company, the world’s largest global air freight services provider, which works on behalf of airlines to sell and manage their cargo capacity. The business is a vital service provider to the air freight industry, benefiting from long-term customer relationships, stable demand and a track record of consistent growth and cash flow generation. We have identified meaningful value creation opportunities through business process outsourcing, automation and the development of AI-enabled operating platforms. Brookfield Business Corporation's share of the equity investment is expected to be approximately $175 million for a 25% interest in the business. The transaction is expected to close in the third quarter of 2026. We reached an agreement to acquire Gregg Distributors, a leading industrial maintenance, repair and operations distributor primarily serving customers across Western Canada. The business operates in a highly fragmented market with long-standing customer relationships and recurring demand for essential industrial products. We see opportunities to improve commercial execution, procurement and technology capabilities to support long-term growth. Brookfield Business Corporation's share of the equity investment is expected to be approximately $140 million for a 30% interest in the business. The transaction is expected to close in the second half of 2026. We closed our previously announced investment in The OpenAI Deployment Company (“DeployCo”), a newly formed AI services platform created in partnership with OpenAI and a group of leading global investors. Our preferred equity investment provides an attractive contracted return while also providing access to OpenAI’s leading models, technology and engineering talent to accelerate the deployment of AI at scale within our own operations. We also continue to advance our capital recycling initiatives, generating over $850 million in expected proceeds from asset sales and distributions during the quarter. Since the beginning of the year, we have generated over $1.2 billion of proceeds from capital recycling. During the quarter, we agreed to sell Multiplex to Obayashi Corporation, one of Japan’s largest construction companies, for approximately $650 million including approximately $530 million of cash proceeds on closing and an earn-out based on future business performance. The transaction demonstrates our strategy of monetizing legacy businesses and redeploying capital into larger-scale, higher-quality businesses more aligned with our strategy for compounding long-term value. Closing is expected in the fourth quarter of 2026. Altera, our offshore oil services operation, closed the previously announced sale of its Floating Production, Storage and Offloading (FPSO) operation. This is a strong outcome for one of our more challenging investments, made possible by taking a long-term view, leveraging our operational capabilities to support the business and optimize the value of its assets. Our share of proceeds from the FPSO sale, together with distributions, is approximately $240 million. We closed the previously announced partial sale of La Trobe Financial, our Australian asset manager and lender. Combined with distributions received to date, the transaction represents a 3x multiple of our original investment and an IRR over 35%. Our share of proceeds from the sale, together with distributions, is approximately $200 million. Balance Sheet and Capital Allocation Our balance sheet is strong, and, consistent with past practice, we continue to opportunistically repurchase our own shares when it is attractive to do so. Since launching our share buyback program in early 2025, we have repurchased over $320 million of shares, including $50 million of repurchases during the quarter. We expect to continue to allocate capital to share repurchases, supported by our strong balance sheet and the substantial proceeds we have generated from our capital recycling initiatives since the beginning of the year. We ended the quarter with $1.9 billion of available liquidity. Pro forma for announced and recently closed transactions, available liquidity is approximately $2.8 billion, providing significant flexibility to support our growth and capital allocation priorities. Dividend Declaration The Board of Directors has declared a quarterly dividend in the amount of $0.0625 per Class A Share, payable on September 29, 2026 to shareholders of record as at the close of business on August 31, 2026. Investor Day We look forward to hosting our Investor Day on September 29, 2026 in Toronto with presentations given by members of our senior management team. Additional Information The Board has reviewed and approved this news release, including the summarized unaudited interim condensed consolidated financial statements contained herein. Brookfield Business Corporation's Supplemental Information is available on our website https://bbuc.brookfield.com under Reports & Filings. Brookfield Business Corporation (NYSE, TSX: BBUC) is a global owner and operator of vital industrial and business services operations. Our objective is to acquire market-leading businesses for value, execute our operational improvement plans to increase cash flows, and recycle capital to compound long-term growth. For more information, please visit https://bbuc.brookfield.com. Brookfield Business Corporation is the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over $1 trillion of assets under management. Please note that Brookfield Business Corporation's previous audited annual and unaudited quarterly reports have been filed on SEDAR+ and EDGAR and are available at https://bbuc.brookfield.com under Reports & Filings. Hard copies of the annual and quarterly reports can be obtained free of charge upon request. For more information, please contact: Conference Call and Quarterly Earnings Webcast Details Investors, analysts, and other interested parties can access Brookfield Business Corporation's second quarter 2026 results as well as the Supplemental Information on our website https://bbuc.brookfield.com under Reports & Filings. The results call can be accessed via webcast on July 31, 2026 at 10:00 a.m. Eastern Time at BBU2026Q2Webcast or participants can preregister at BBU2026Q2ConferenceCall. Upon registering, participants will be emailed a dial-in number and unique PIN. A replay of the webcast will be available at https://bbuc.brookfield.com. Brookfield Business CorporationReconciliation of Non-IFRS Measure Cautionary Statement Regarding Forward-looking Statements and Information Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws, including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield Business Corporation, expected future dividends, as well as regarding recently completed and proposed acquisitions, dispositions, and other transactions, and the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts”, “views”, “potential”, “likely” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, investors and other readers should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Business Corporation to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and results of operations and our plans and strategies may vary materially from those expressed in the forward-looking statements and forward-looking information herein. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the cyclical nature of our operating businesses and general economic conditions and risks relating to the economy, including unfavorable changes in interest rates, foreign exchange rates, inflation and volatility in the financial markets; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including our ability to complete dispositions and achieve the anticipated benefits therefrom; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; changes to U.S. laws or policies, including changes in U.S. domestic economic policies and foreign trade policies and tariffs; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes, hurricanes and pandemics/epidemics; cybersecurity incidents; the possible impact of international conflicts, wars and related developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States including those set forth in the “Risk Factors” section in the annual report for the year ended December 31, 2025 filed by Brookfield Business Corporation on Form 20-F. Statements relating to “reserves” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described herein can be profitably produced in the future. We qualify any and all of our forward-looking statements by these cautionary factors. We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise. Cautionary Statement Regarding the Use of a Non-IFRS Measure This news release contains references to a Non-IFRS measure. Adjusted EBITDA is not a generally accepted accounting measure under IFRS and therefore may differ from definitions used by other entities. We believe this is a useful supplemental measure that may assist investors in assessing the financial performance of Brookfield Business Corporation and its subsidiaries. However, Adjusted EBITDA should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS. References to Brookfield Business Corporation are inclusive of its subsidiaries, controlled affiliates, and operating entities. Shareholders' results include class A subordinate voting shares, class B multiple voting shares, and special incentive shares. For the periods prior to the completion of the corporate reorganization on March 27, 2026, reflects amounts previously attributable to limited partnership unitholders, redemption-exchange unitholders, exchangeable shareholders, general partnership unitholders, and special limited partnership unitholders. More detailed information on certain references made in this news release will be available in our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our interim report for the second quarter ended June 30, 2026 furnished on Form 6-K.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Brookfield Business Partners (BBU) is in focus after Brookfield Business Corporation reported first quarter 2026 results, showing sales of US$6,436 million and net income of US$40 million, both lower than in the same period a year earlier. See our latest analysis for Brookfield Business Partners. The recent 1-day share price decline of 2.09% to US$31.46 and a 30-day share price return down 9.21%, alongside a year to date share price return down 12.20%, contrasts with a 1-year total shareholder return of 30.82% and 3-year total shareholder return of 87.45%. This suggests longer term holders have still seen strong compounding even as short term momentum has cooled following softer first quarter earnings and a pause in buybacks. If these moves have you reassessing your watchlist, this could be a good moment to look across other stocks using our screener for 19 top founder-led companies With BBU trading at US$31.46, sitting at a discount to the average analyst price target and with recent earnings softness already on the table, you have to ask: is there genuine upside here or is the market already pricing in future growth? On a P/S of 0.2x at a last close of $31.46, Brookfield Business Partners screens as cheap compared with both its peers and the broader global Industrials sector. The P/S ratio compares the company’s market value with its revenue, which can be useful when earnings are volatile or loss making. For a private equity focused business like Brookfield Business Partners, where net income can swing with deal timing, this can give you a cleaner way to benchmark what investors are paying for each dollar of sales. Relative to the global Industrials industry average of 0.8x, the stock trades at a steep discount. It also sits far below the peer average of 1.9x. This is a multiple level the market could move toward if sentiment or fundamentals change. At the same time, our fair P/S estimate of 0.2x suggests the current pricing is close to what the SWS model implies based on historical relationships. Explore the SWS fair ratio for Brookfield Business Partners Result: Price-to-Sales of 0.2x (ABOUT RIGHT) However, the declining annual revenue of 38.79% and a reported net loss of US$26 million highlight business pressures that could keep the valuation subdued. Find out about the key risks to this Brookfield Business Partners narrative. While the P/S of 0.2x makes BBU look inexpensive compared with peers, the SWS DCF model presents a more detailed view, with an estimated future cash flow value of $109.73 per unit versus the current $31.46 price. That difference suggests a very different balance of risk and potential reward, so which signal do you place more weight on? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Brookfield Business Partners for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Mixed signals on valuation and business momentum can be confusing, so it makes sense to look through the numbers yourself and decide where you stand. If you want a concise summary of both the bullish and cautious talking points in one place, start with 1 key reward and 3 important warning signs If you stop here, you could miss other stocks that better fit your goals, so use these focused lists to quickly spot ideas worth a closer look. Target resilience first and check companies screened as 66 resilient stocks with low risk scores to see which stocks rate strongly on lower risk scores. Hunt for potential mispricings with the 51 high quality undervalued stocks and see which stocks pair quality fundamentals with pricing that looks appealing. Build a steadier income stream by reviewing the 13 dividend fortresses and focusing on stocks with yields at 5% or higher. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BBU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Brookfield Business Corporation recently reported first-quarter 2026 results, with sales of US$6,436 million and net income of US$40 million, and its Board declared a quarterly dividend of US$0.0625 per Class A share payable on June 30, 2026 to shareholders of record on May 29, 2026. The combination of softer quarterly earnings and an ongoing cash dividend highlights how the business is balancing current profitability with continued capital returns to shareholders. Next, we will examine how the weaker first-quarter earnings performance and continued dividend commitment shape Brookfield Business Partners’ investment narrative. AI is about to change healthcare. These 35 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Brookfield Business Partners, you need to be comfortable with a complex, acquisition-driven business that is still working through uneven profitability. The latest quarter, with softer earnings of US$40 million on US$6,436 million of sales, reinforces that earnings can be lumpy, especially after a year where the group reported a small net loss and revenue contraction. At the same time, the Board’s decision to maintain the US$0.0625 quarterly dividend suggests management is reluctant to signal any pullback in capital returns, even with interest costs not fully covered by earnings. In the near term, key catalysts still sit around portfolio reshaping and any outcomes from the June 18 meetings, while the risk side tilts more toward balance sheet pressure and execution on asset sales than this quarter’s results alone, which look more incremental than transformational. However, one issue in particular could matter far more than a single soft quarter. Despite retreating, Brookfield Business Partners' shares might still be trading above their fair value and there could be some more downside. Discover how much. The Simply Wall St Community’s single fair value estimate clusters around US$109.73, implying a very large valuation gap. Yet recent weaker earnings and stretched interest coverage remind you that differing views on risk can be just as wide, so it pays to weigh several perspectives before deciding how this fits in your portfolio. Explore another fair value estimate on Brookfield Business Partners - why the stock might be worth just $109.73! Disagree with this assessment? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Brookfield Business Partners research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision. Our free Brookfield Business Partners research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brookfield Business Partners' overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: The future of work is here. Discover the 32 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This technology could replace computers: discover 27 stocks that are working to make quantum computing a reality. We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BBU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Clarios received a $1 billion cash tax credit for fiscal 2025 related to U.S. production in the critical minerals sector, with similar annual amounts expected through 2030. The partial sale of La Trobe Financial at a $2 billion valuation realized a 3x multiple on capital, driven by its transformation from a mortgage lender to a leading Australian asset manager. Management committed $150 million to DeployCo, a joint venture with OpenAI designed to bridge the gap between AI pilot programs and full-scale enterprise implementation. Corporate simplification efforts in March led to a 40% increase in daily trading volumes, with an additional 5 million shares of demand anticipated from upcoming index rebalancing. Industrial segment growth of 7% was supported by a mix shift toward higher-margin advanced batteries at Clarios, despite slightly lower overall volumes. Business Services performance was bolstered by contractual price increases in dealer software and resilient returns from the Canadian residential mortgage insurance business. Infrastructure Services results were impacted by the partial sale of work access services and the disposition of offshore oil shuttle tanker operations. Management projects the equity value of Clarios could double over the next five years, driven by mid-single-digit EBITDA growth and $8 billion in organic cash generation used for deleveraging. Sagen's annual distributions are expected to remain stable at approximately $400 million on a full-cycle run-rate basis, supported by high-quality loan underwriting and regulatory capital buffers. The company expects to remain opportunistic with its Normal Course Issuer Bid (NCIB) program, balancing share buybacks against new capital deployment opportunities. Monetization of BRK Ambiental remains focused on a potential IPO, contingent on the continued stabilization of the Brazilian market and interest rate environment. The DeployCo investment is structured as a preferred instrument with a minimum return in the high teens, providing downside protection while offering early access to AI technology for portfolio companies. Canadian housing market headwinds, including a 20% price decline since 2022, have led to a normalization of Sagen's loss ratios toward the long-term target of 15% to 20%. The 2024 Clarios tax credits remain under IRS processing, though management indicates the basis for these credits is identical to the successfully received 2025 refund. Management addressed underperforming situations by emphasizing a 'value preservation' strategy, involving the deployment of specialized operating teams to recover capital in difficult assets. Recent changes to Canadian mortgage insurance eligibility, including 30-year amortizations and higher price caps, are providing a floor for demand among first-time homebuyers. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The loss ratio increased to 12% primarily due to higher 'loss given default' on 2022 and 2023 loan vintages where borrowers have less embedded equity. Management expects the ratio to remain comfortably below the long-term pricing target of 15% to 20% and does not anticipate any impact on dividend distribution capacity. The investment addresses the 'change management' bottleneck in AI adoption by providing talent and engineering to implement OpenAI models at scale. Brookfield maintains standard minority governance and a preferred return structure, while retaining the flexibility to use non-OpenAI models across its portfolio. Value creation is predicated on growing EBITDA toward $3 billion and using significant free cash flow plus tax credits to reduce net debt from $11 billion to under $4 billion. Management is in 'no hurry' to exit the business given its strong cash compounding profile, but remains open to opportunistic monetization if market valuations align with internal NAV. The base case for exit remains an IPO once a suitable market window opens; interest rates in Brazil have begun to decline from 15% to 13.5%. A new concession win in northeastern Brazil is expected to meaningfully contribute to the business's earnings power once fully ramped up.

BROOKFIELD, NEWS, May 08, 2026 (GLOBE NEWSWIRE) -- Brookfield Business Corporation (NYSE, TSX: BBUC) announced today financial results for the quarter ended March 31, 2026. "Three things defined our quarter," said Anuj Ranjan, CEO of Brookfield Business Corporation. "Clarios received $1 billion of cash tax credits, with similar amounts expected annually through the end of the decade. We sold a 27% interest in La Trobe, generating a 3x multiple of our original investment only four years after acquiring it. We also committed $500 million with our partners alongside OpenAI in The OpenAI Deployment Company, a new platform built to deploy enterprise AI inside real operating businesses." He added, "We run a simple business: we buy, build, and operate essential industrial and services companies with a goal of compounding capital in them at excellent returns. Our business and investment approach is built for this environment, and demand for essential services and industrial businesses has rarely been stronger. We expect our strong start to continue throughout 2026, positioning us well to keep compounding capital for our shareholders." Brookfield Business Corporation reported Net income attributable to Shareholders for the three months ended March 31, 2026 of $40 million ($0.19 per Class A Share), compared to $80 million ($0.38 per Class A Share) in the prior period. Operating Results Our business performed well during the quarter. Adjusted EBITDA was $582 million, compared to $591 million in the prior period, which included $72 million of tax credits and $51 million of contribution from disposed operations. Excluding the impact of acquisitions, dispositions, and tax credits, Adjusted EBITDA was $488 million, an approximate 5% increase over the prior year. Our Industrials segment generated $320 million of Adjusted EBITDA, an increase of 7% over the prior year excluding the impact of recent acquisitions, dispositions, and tax credits. Results benefited from strong performance at our advanced energy storage operation and at our engineered components manufacturer which delivered more than 10% same-store growth in Adjusted EBITDA over the prior year driven by commercial actions and cost initiatives. Business Services segment Adjusted EBITDA was $208 million, an increase of 7% compared to the prior year excluding the impact of recent acquisitions and dispositions. Performance included solid results and realized investment gains at our residential mortgage insurer which continues to perform well despite an overall weaker Canadian housing market. Our Infrastructure Services segment Adjusted EBITDA was $90 million. Prior year included contribution from our offshore oil services’ shuttle tanker operation which was sold in January 2025. Results were supported by our lottery services operation driven by the ramp-up of recently secured contracts and stable performance at our modular building leasing services operation which benefited from increased sales of value-added products and services during the quarter. Adjusted EFO4 included the benefit of lower current taxes at our advanced energy storage operation. Prior year Adjusted EFO included a $114 million net gain from the disposition of the shuttle tanker operation at our offshore oil services operation and the impact of withholding taxes on a distribution received from our advanced energy storage operation. Growth and Value Creation We are executing on our strategy to buy, build, and operate essential industrial and services businesses with the goal of compounding large scale capital over the long-term. Opportunistically, we monetize to realize value. We made excellent progress on all fronts during the quarter. Clarios, our advanced energy storage operation, is focused on executing its multi-billion-dollar investment program in the U.S. designed to further strengthen domestic capabilities. These investments will improve product mix, reinforce supply-chain resilience, and position the business to meet growing demand for advanced energy storage solutions across transportation and adjacent end markets. In March, Clarios received its fiscal 2025 cash tax refund of approximately $1 billion tied to its U.S. production and critical minerals activity, which will support its U.S. reinvestment plans. We expect Clarios to be eligible for approximately $1 billion of future credits annually between now and the beginning of the phase out period in 2030. Excluding manufacturing credits, Clarios' annual EBITDA has grown $700 million since acquisition and could exceed $3 billion within five years, with cumulative free cash flow generation, including credits, expected to exceed $8 billion over that period. We reached an agreement to sell a 27% interest in La Trobe Financial, our Australian asset manager and lender. This is an excellent outcome for BBUC, delivering meaningful proceeds while retaining upside in a high-quality business with strong cash flow and growth potential. Together with distributions received to date from the business, the transaction represents a 3x multiple of our original investment and an IRR over 35%. Brookfield agreed to invest $500 million in the OpenAI Deployment Company (“DeployCo”), a newly created standalone AI services platform established through a joint venture partnership with OpenAI and a group of leading global investors. DeployCo is focused on enabling large organizations to move from pilot use cases to full enterprise-wide implementation – addressing one of the primary bottlenecks in realizing AI-driven productivity. The returns from AI will not only accrue to those who build the models, but to those who deploy them at scale, inside real operating businesses, against real P&L. With more than 300 operating companies across the Brookfield ecosystem, BBUC has unparalleled visibility into where AI creates value, and where it does not – and we expect to draw on DeployCo’s capabilities to accelerate value creation across our operations. We closed our previously announced acquisition of Fosber, a global leader in advanced machinery and services for the corrugated packaging industry. The business generates nearly two-thirds of its profits from recurring parts and services revenue, supported by a large installed base and the high cost of failure of its machines. We have identified opportunities to accelerate growth focused on strengthening its commercial discipline, optimizing the supply chain, and investing in R&D and digital capabilities. In addition, we completed our previously announced corporate simplification, an important step toward improving the liquidity and index demand for our shares. The newly issued Class A Shares of Brookfield Business Corporation began trading on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "BBUC" on March 31, 2026. Since closing, our daily trading volumes have increased by approximately 40% compared to average levels last year and we are anticipating significant incremental demand from index rebalancing over the next few months. Balance Sheet and Liquidity Our balance sheet remains well capitalized, with liquidity at the end of the first quarter totaling $2 billion, including $1.9 billion of availability on our credit facilities. Pro forma for announced and recently closed transactions, corporate liquidity is approximately $2.4 billion. Our liquidity position gives us significant flexibility to support our growth and balanced capital allocation priorities. During the quarter we completed the $250 million buyback program launched in February last year. We have deployed approximately $285 million toward repurchases since that time, including approximately $65 million of repurchases during and subsequent to quarter end. Dividend The Board of Directors has declared a quarterly dividend in the amount of $0.0625 per Class A Share, payable on June 30, 2026 to shareholders of record as at the close of business on May 29, 2026. Additional Information The Board has reviewed and approved this news release, including the summarized unaudited interim condensed consolidated financial statements contained herein. Brookfield Business Corporation's Supplemental Information is available on our website https://bbuc.brookfield.com under Reports & Filings. Notes: Brookfield Business Corporation (NYSE, TSX: BBUC) is a global owner and operator of vital industrial and business services operations. Our objective is to acquire market-leading businesses for value, execute our operational improvement plans to increase cash flows, and recycle capital to compound long-term growth. For more information, please visit https://bbuc.brookfield.com. Brookfield Business Corporation is the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over $1 trillion of assets under management. Please note that Brookfield Business Corporation's previous audited annual and unaudited quarterly reports have been filed on SEDAR+ and EDGAR and are available at https://bbuc.brookfield.com under Reports & Filings. Hard copies of the annual and quarterly reports can be obtained free of charge upon request. For more information, please contact: Conference Call and Quarterly Earnings Webcast Details Investors, analysts, and other interested parties can access Brookfield Business Corporation's first quarter 2026 results as well as the Supplemental Information on our website https://bbuc.brookfield.com under Reports & Filings. The results call can be accessed via webcast on May 8, 2026 at 11:00 a.m. Eastern Time at BBU2026Q1Webcast or participants can preregister at BBU2026Q1ConferenceCall. Upon registering, participants will be emailed a dial-in number and unique PIN. A replay of the webcast will be available at https://bbuc.brookfield.com. Notes: Notes: Notes: Notes: Cautionary Statement Regarding Forward-looking Statements and Information Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield Business Corporation, expected future dividends, as well as regarding recently completed and proposed acquisitions, dispositions, and other transactions, and the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts”, “views”, “potential”, “likely” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, investors and other readers should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Business Corporation to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and results of operations and our plans and strategies may vary materially from those expressed in the forward-looking statements and forward-looking information herein. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the cyclical nature of our operating businesses and general economic conditions and risks relating to the economy, including unfavorable changes in interest rates, foreign exchange rates, inflation and volatility in the financial markets; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including our ability to complete dispositions and achieve the anticipated benefits therefrom; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; changes to U.S. laws or policies, including changes in U.S. domestic economic policies and foreign trade policies and tariffs; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes, hurricanes and pandemics/epidemics; cybersecurity incidents; the possible impact of international conflicts, wars and related developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States including those set forth in the “Risk Factors” section in the annual report for the year ended December 31, 2025 filed by Brookfield Business Corporation on Form 20-F. Statements relating to “reserves” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described herein can be profitably produced in the future. We qualify any and all of our forward-looking statements by these cautionary factors. We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise. Cautionary Statement Regarding the Use of a Non-IFRS Measure This news release contains references to a Non-IFRS measure. Adjusted EBITDA is not a generally accepted accounting measure under IFRS and therefore may differ from definitions used by other entities. We believe this is a useful supplemental measure that may assist investors in assessing the financial performance of Brookfield Business Corporation and its subsidiaries. However, Adjusted EBITDA should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS. References to Brookfield Business Corporation are inclusive of its subsidiaries, controlled affiliates, and operating entities. Shareholders' results include class A subordinate voting shares, class B multiple voting shares, and special incentive shares. For the periods prior to the completion of the corporate reorganization on March 27, 2026, reflects amounts previously attributable to limited partnership unitholders, redemption-exchange unitholders, exchangeable shareholders, general partnership unitholders, and special limited partnership unitholders. More detailed information on certain references made in this news release will be available in our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our interim report for the first quarter ended March 31, 2026 furnished on Form 6-K.