Brookfield Business Corporation

Second-quarter adjusted EBITDA was $587 million versus $591 million in the prior period. Adjusted EFO was $289 million versus $234 million, including a $40 million net gain primarily from securities sale proceeds. Industrial adjusted EBITDA was $323 million versus $305 million last year; Business Services was $204 million versus $205 million; Infrastructure Services was $96 million versus $109 million. On a same-store basis, adjusted EBITDA was up about 5% overall, up 6% in Industrial, up 6% in Business Services, and the industrial segment’s same-store adjusted EBITDA was up 6% in one business and about 5% in another, while Infrastructure reflected a partial sale and contract penalties/investment spend. For liquidity, the company ended with about $2.8 billion of pro forma liquidity at the corporate level. Forward-looking commentary centered on continued capital recycling, active buybacks, and ongoing investment in growth; management reiterated a $2 billion capital recycling target over 24 months and said it is on track to meet or potentially exceed it, having already generated about $1.2 billion.

Anuj Ranjan framed the quarter as evidence that the company’s long-running strategy is working: sell legacy assets, redeploy into higher-quality businesses, and compound value. He emphasized that BBUC is seeing a stronger premium for resilient, hard-to-replicate businesses and said the company continues to find attractive carve-outs and fragmented services markets. He also highlighted AI as a strategic advantage, saying the DeployCo investment gives Brookfield access to leading models and talent to accelerate deployment across the portfolio.

Jaspreet Dehl walked through the numbers: $587 million of adjusted EBITDA, $289 million of adjusted EFO, $2.8 billion of pro forma corporate liquidity, and about $50 million of share repurchases in the quarter. He said the quarter’s EBITDA was affected by lower ownership in three businesses and included $23 million from new acquisitions, while adjusted EFO benefited from a $40 million net gain from securities sales. On capital allocation, he reiterated that buybacks remain attractive while the stock trades at a meaningful discount to intrinsic value, and said the company will renew its NCIB in the next few weeks. He also said the firm’s typical acquisition multiple is around 9x to 11x, with the two recent deals averaging about 10x.

Analysts pressed on CDK’s distressed debt trading, negative ratings watch, lender discussions, and whether Brookfield might need to inject more capital. Management did not comment on media reports or lender talks, but said CDK’s business remains strong, performance is stable, liquidity is strong, and the company has generated positive operating cash flow over the last 12 months. On Sagen, management said the loss ratio moving toward 17% is a normalization of a business that had benefited from unusually low losses, and they expect the long-term range to stabilize around 15% to 25%. Questions on DeployCo centered on why the investment was reduced from up to $150 million to about $100 million; management said strong outside demand led them to syndicate part of the deal, while the strategic value remained intact.