Brookfield Business Partners L.P.

Second-quarter adjusted EBITDA was $587 million, compared with $591 million in the prior period. Adjusted EFO was $289 million, compared with $234 million in the prior period, and included a $40 million net gain primarily from proceeds from the sale of securities. On a same-store basis, adjusted EBITDA was up approximately 5% overall; industrial segment adjusted EBITDA was $323 million versus $305 million last year, Business Services was $204 million versus $205 million, and Infrastructure Services was $96 million versus $109 million. The company ended the quarter with approximately $2.8 billion of pro forma corporate liquidity and repurchased approximately $50 million of shares during the quarter. For forward commentary, management said they expect to remain active in buybacks if the shares continue to trade at a meaningful discount to intrinsic value, and they reiterated the $2 billion capital recycling target over 24 months.

Anuj Ranjan framed the quarter as evidence that the company is compounding value through monetization and reinvestment, saying BBUC generated $1.2 billion of proceeds over six months and is putting capital back into larger, higher-quality businesses. He emphasized resilience, mission-critical assets, and AI as key themes, citing DeployCo as a way to accelerate AI deployment across the portfolio. His tone was confident and opportunistic, with repeated references to strong momentum, a strong balance sheet, and the attractiveness of share repurchases at the current discount to NAV.

Jaspreet Dehl highlighted the main financial drivers behind the quarter: adjusted EBITDA of $587 million, adjusted EFO of $289 million, and a $40 million net gain from securities sale proceeds. He noted the year-over-year mix effects from partial sales of three businesses and said excluding acquisitions and dispositions, adjusted EBITDA rose about 5%. He also pointed to segment-level performance, including Clarios debt repayment of $500 million during the quarter, approximately $2.8 billion of pro forma liquidity, about $50 million of buybacks in the quarter, and a plan to renew the NCIB in the next few weeks.

Analysts pressed management on CDK’s distressed debt, negative rating watch, and whether Brookfield might need to add capital; management said they cannot comment on media reports but believe CDK remains a strong business with stable performance, strong liquidity, and positive operating cash flow over the last 12 months. Questions also focused on Sagen’s rising loss ratio, and management said losses are normalizing toward a long-term range of 15% to 25% as home-price appreciation fades and cure rates soften. On DeployCo, management said they reduced the initial commitment from up to $150 million to $100 million because partners syndicated part of the investment, while keeping the strategic value intact and seeing early benefits from OpenAI access and AI deployment across the portfolio.