Brookfield Business Partners Reports 2024 Year End Results

Jan 31, 2025

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	Three Months Ended December 31,					Year Ended December 31,
US$ millions (except per unit amounts), unaudited		2024			2023		2024			2023
Net income (loss) attributable to Unitholders¹	$	(438	)	$	1,423	$	(109	)	$	1,405
Net income (loss) per limited partnership unit²	$	*(2.02*	)	$	6.57	$	*(0.50*	)	$	6.49

Adjusted EBITDA³	$	653		$	608	$	2,565		$	2,491

	Three Months Ended December 31,						Year Ended December 31,
US$ millions, unaudited		2024			2023			2024			2023
Industrials	$	306		$	222		$	1,247		$	855
Business Services		217			227			832			900
Infrastructure Services		160			184			606			853
Corporate and Other		(30	)		(25	)		(120	)		(117	)
Adjusted EBITDA	$	653		$	608		$	2,565		$	2,491

	Three Months Ended December 31,						Year Ended December 31,
US$ millions, unaudited		2024			2023			2024			2023
Adjusted EFO
Industrials	$	193		$	115		$	935		$	492
Business Services		142			181			641			636
Infrastructure Services		78			1,790			287			2,070
Corporate and Other		(83	)		(77	)		(331	)		(335	)

¹	^{Attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders, special limited partnership unitholders and BBUC exchangeable shareholders.}
²	^{Net income (loss) per limited partnership unit calculated as net income (loss) attributable to limited partners divided by the average number of limited partnership units outstanding for the three and twelve months ended December 31, 2024 which were 74.3 million and 74.3 million, respectively (December 31, 2023: 74.3 million and 74.5 million, respectively).}
³	^{Adjusted EBITDA is a non-IFRS measure of operating performance presented as net income and equity accounted income at the partnership’s economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of interest income (expense), net, income taxes, depreciation and amortization expense, gains (losses) on acquisitions/dispositions, net, transaction costs, restructuring charges, revaluation gains or losses, impairment expenses or reversals, other income or expenses, and preferred equity distributions. The partnership’s economic ownership interest in consolidated subsidiaries and equity accounted investments excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its IFRS consolidated statements of operating results. The partnership believes that Adjusted EBITDA provides a comprehensive understanding of the ability of its businesses to generate recurring earnings which allows users to better understand and evaluate the underlying financial performance of the partnership’s operations and excludes items that the partnership believes do not directly relate to revenue earning activities and are not normal, recurring items necessary for business operations. Please refer to the reconciliation of net income (loss) to Adjusted EBITDA included elsewhere in this news release.}
⁴	^{Adjusted EFO is the partnership’s segment measure of profit or loss and is presented as net income and equity accounted income at the partnership’s economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of depreciation and amortization expense, deferred income taxes, transaction costs, restructuring charges, unrealized revaluation gains or losses, impairment expenses or reversals and other income or expense items that are not directly related to revenue generating activities. The partnership’s economic ownership interest in consolidated subsidiaries excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its IFRS consolidated statements of operating results. In order to provide additional insight regarding the partnership’s operating performance over the lifecycle of an investment, Adjusted EFO includes the impact of preferred equity distributions and realized disposition gains or losses recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. Adjusted EFO does not include legal and other provisions that may occur from time to time in the partnership’s operations and that are one-time or non-recurring and not directly tied to the partnership’s operations, such as those for litigation or contingencies. Adjusted EFO includes expected credit losses and bad debt allowances recorded in the normal course of the partnership’s operations. Adjusted EFO allows the partnership to evaluate its segments on the basis of return on invested capital generated by its operations and allows the partnership to evaluate the performance of its segments on a levered basis.}


Brookfield Business Partners L.P. Consolidated Statements of Operating Results

US$ millions, unaudited	Three Months Ended December 31,						Year Ended December 31,
US$ millions, unaudited		2024			2023			2024			2023

Revenues	$	7,427		$	13,405		$	40,620		$	55,068
Direct operating costs		(6,008	)		(12,209	)		(34,883	)		(50,021	)
General and administrative expenses		(324	)		(336	)		(1,267	)		(1,538	)
Interest income (expense), net		(752	)		(858	)		(3,104	)		(3,596	)
Equity accounted income (loss), net		35			48			90			132
Impairment reversal (expense), net		(991	)		(780	)		(981	)		(831	)
Gain (loss) on acquisitions/dispositions, net		—			4,477			692			4,686
Other income (expense), net		(360	)		(344	)		(573	)		(178	)
Income (loss) before income tax		(973	)		3,403			594			3,722
Income tax (expense) recovery
Current		(158	)		(171	)		(646	)		(775	)
Deferred		23			252			947			830
Net income (loss)	$	(1,108	)	$	3,484		$	895		$	3,777
Attributable to:
Limited partners	$	(150	)	$	488		$	(37	)	$	482
Non-controlling interests attributable to:
Redemption-exchange units		(141	)		457			(35	)		451
Special limited partner		—			—			—			—
BBUC exchangeable shares		(147	)		478			(37	)		472
Preferred securities		13			17			52			83
Interest of others in operating subsidiaries		(683	)		2,044			952			2,289


Media: Marie Fuller Tel: +44 207 408 8375 Email: [email protected]	Investors: Alan Fleming Tel: +1 (416) 645-2736 Email: [email protected]


Brookfield Business Partners L.P. Reconciliation of Non-IFRS Measures

US$ millions, unaudited	Three Months Ended December 31, 2024
US$ millions, unaudited			Business Services			Infrastructure Services			Industrials			Corporate and Other			Total

Net income (loss)		$	(955	)	$	(72	)	$	(31	)	$	(50	)	$	(1,108	)

Add or subtract the following:
Depreciation and amortization expense			223			228			328			—			779
Impairment reversal (expense), net			690			1			300			—			991
Gain (loss) on acquisitions/dispositions, net			—			—			—			—			—
Other income (expense), net¹			312			4			47			(3	)		360
Income tax (expense) recovery			28			9			115			(17	)		135
Equity accounted income (loss), net			(4	)		(12	)		(19	)		—			(35	)
Interest income (expense), net			233			166			313			40			752
Equity accounted Adjusted EBITDA²			25			47			17			—			89
Amounts attributable to non-controlling interests³			(335	)		(211	)		(764	)		—			(1,310	)
Adjusted EBITDA		$	217		$	160		$	306		$	(30	)	$	653

^Notes:
¹		^{Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $407 million related to a provision for payment of a litigation settlement at our dealer software and technology services operation, $116 million of net gains on the sale of property, plant and equipment and other assets, $57 million related to provisions recorded at our construction operation, $52 million of business separation expenses, stand-up costs and restructuring charges, $27 million of net gains on debt modification and extinguishment, $16 million of net revaluation gains and $3 million in transaction costs.}
²		^{Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by its investments in associates and joint ventures accounted for using the equity method.}
³		^{Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.}


Brookfield Business Partners L.P. Reconciliation of Non-IFRS Measures

US$ millions, unaudited	Year Ended December 31, 2024
US$ millions, unaudited			Business Services			Infrastructure Services			Industrials			Corporate and Other			Total

Net income (loss)		$	(169	)	$	(347	)	$	1,654		$	(243	)	$	895

Add or subtract the following:
Depreciation and amortization expense			961			888			1,355			—			3,204
Impairment reversal (expense), net			686			(11	)		306			—			981
Gain (loss) on acquisitions/dispositions, net			(608	)		—			(84	)		—			(692	)
Other income (expense), net¹			365			32			164			12			573
Income tax (expense) recovery			75			6			(341	)		(41	)		(301	)
Equity accounted income (loss), net			(4	)		(23	)		(63	)		—			(90	)
Interest income (expense), net			972			701			1,279			152			3,104
Equity accounted Adjusted EBITDA²			79			168			61			—			308
Amounts attributable to non-controlling interests³			(1,525	)		(808	)		(3,084	)		—			(5,417	)
Adjusted EBITDA		$	832		$	606		$	1,247		$	(120	)	$	2,565

¹	^{Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $407 million related to a provision for payment of a litigation settlement at our dealer software and technology services operation, $251 million related to provisions recorded at our construction operation, $168 million of net revaluation gains, $158 million of business separation expenses, stand-up costs and restructuring charges, $108 million of net gains on the sale of property, plant and equipment and other assets, $52 million of net gains on debt modification and extinguishment, $50 million of other income related to a distribution at our entertainment operation, $35 million in transaction costs and $100 million of other expenses.}
²	^{Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by its investments in associates and joint ventures accounted for using the equity method.}
³	^{Adjusted EBITDA that is attributable to non-controlling interests in consolidated subsidiaries.}


Brookfield Business Partners L.P. Reconciliation of Non-IFRS Measures

US$ millions, unaudited	Three Months Ended December 31, 2023
US$ millions, unaudited			Business Services			Infrastructure Services			Industrials			Corporate and Other			Total

Net income (loss)		$	51		$	3,744		$	(264	)	$	(47	)	$	3,484

Add or subtract the following:
Depreciation and amortization expense			287			257			347			—			891
Impairment reversal (expense), net			650			33			97			—			780
Gain (loss) on acquisitions/dispositions, net			(566	)		(3,902	)		(9	)		—			(4,477	)
Other income (expense), net¹			(24	)		46			317			5			344
Income tax (expense) recovery			18			(10	)		(68	)		(21	)		(81	)
Equity accounted income (loss), net			(6	)		(22	)		(20	)		—			(48	)
Interest income (expense), net			259			225			336			38			858
Equity accounted Adjusted EBITDA²			17			51			17			—			85
Amounts attributable to non-controlling interests³			(459	)		(238	)		(531	)		—			(1,228	)
Adjusted EBITDA		$	227		$	184		$	222		$	(25	)	$	608


Brookfield Business Partners L.P. Reconciliation of Non-IFRS Measures

US$ millions, unaudited	Year Ended December 31, 2023
US$ millions, unaudited			Business Services			Infrastructure Services			Industrials			Corporate and Other			Total

Net income (loss)		$	602		$	3,616		$	(245	)	$	(196	)	$	3,777

Add or subtract the following:
Depreciation and amortization expense			1,045			1,174			1,373			—			3,592
Impairment reversal (expense), net			656			(13	)		188			—			831
Gain (loss) on acquisitions/dispositions, net			(720	)		(3,916	)		(50	)		—			(4,686	)
Other income (expense), net¹			(138	)		(90	)		396			10			178
Income tax (expense) recovery			245			(6	)		(218	)		(76	)		(55	)
Equity accounted income (loss), net			(25	)		(51	)		(56	)		—			(132	)
Interest income (expense), net			1,031			1,051			1,369			145			3,596
Equity accounted Adjusted EBITDA²			61			183			63			—			307
Amounts attributable to non-controlling interests³			(1,857	)		(1,095	)		(1,965	)		—			(4,917	)
Adjusted EBITDA		$	900		$	853		$	855		$	(117	)	$	2,491


Brookfield Business Corporation Consolidated Statements of Financial Position

	As at
US$ millions, unaudited	December 31, 2024					December 31, 2023

Assets
Cash and cash equivalents				$	1,008			$	772
Financial assets					353				224
Accounts and other receivable, net					3,229				3,569
Inventory, net					52				61
Other assets					627				737
Property, plant and equipment					2,480				2,743
Deferred income tax assets					197				221
Intangible assets					5,966				6,931
Equity accounted investments					198				222
Goodwill					4,988				5,702
Total Assets				$	19,098			$	21,182

Liabilities and Equity
Liabilities
Accounts payable and other				$	5,276			$	4,818
Non-recourse borrowings in subsidiaries of Brookfield Business Corporation					8,490				8,823
Exchangeable and class B shares					1,709				1,501
Deferred income tax liabilities					988				1,280

Equity
Brookfield Business Partners	$	(59	)			$	880
Non-controlling interests		2,694					3,880
					2,635				4,760
Total Liabilities and Equity				$	19,098			$	21,182