Brookfield Business Corporation

Second quarter adjusted EBITDA was $587 million, compared with $591 million in the prior period. Excluding the impact of acquisitions and dispositions, adjusted EBITDA was up approximately 5% year over year. Adjusted EFO was $289 million versus $234 million in the prior period, and included a $40 million net gain primarily from proceeds from the sale of securities. By segment, industrial 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 liquidity at the corporate level, repurchased about $50 million of shares, and said it would renew its NCIB in the next few weeks. For forward capital deployment, management said it allocated $150 million of recycling proceeds to additional repurchases and remains active when the stock trades at a meaningful discount to intrinsic value.

Anuj Ranjan framed the quarter as evidence that Brookfield is compounding value through capital recycling, acquisitions, and buybacks. He said the company is shifting capital out of legacy assets and into larger, higher-quality businesses, citing $1.2 billion of proceeds over the past 6 months and the sale of Multiplex for about $650 million. He also emphasized resilience, mission-critical assets, and AI as key themes, saying the company sees momentum heading into the second half of the year.

Jaspreet Dehl highlighted the quarter’s financial bridge: adjusted EBITDA of $587 million versus $591 million, adjusted EFO of $289 million versus $234 million, and $23 million of contributions from new acquisitions. He noted industrial same-store adjusted EBITDA rose 6%, Business Services same-store EBITDA rose 6%, while Infrastructure declined due partly to a partial sale of a work access business and a lottery contract penalty. He also pointed to approximately $2.8 billion of pro forma liquidity, about $50 million of share repurchases in the quarter, and said the company intends to stay active under the NCIB while shares trade at a discount to intrinsic value.

Analysts focused on CDK’s debt stress, potential lender negotiations, and whether Brookfield might need to inject more capital; management said CDK remains a strong business with stable performance, positive operating cash flow over the last 12 months, and strong liquidity, while declining to comment on media reports. Questions on Sagen centered on the higher loss ratio; management said the business is moving toward a more normalized 15% to 25% long-term loss ratio as home prices normalize and cure rates soften. Analysts also asked about DeployCo sizing, buybacks, and capital recycling; management said the DeployCo investment was syndicated down from an initial up-to-$150 million commitment to $100 million, and reiterated confidence in reaching or exceeding the $2 billion recycling target over 24 months.