Brookfield Business Partners (NYSE:BBU) Posts Earnings Results, Misses Estimates By $1.86 EPS

Brookfield Business Partners (NYSE:BBU) issued its earnings results on Friday. The business services provider reported ($0.48) earnings per share for the quarter, missing the consensus estimate of $1.38 by ($1.86), Zacks reports. The business had revenue of $7 billion for the quarter, compared to analyst estimates of $3.46 billion. Brookfield Business Partners had a negative return on equity of 5.59% and a negative net margin of 3.02%.

Here are the key takeaways from Brookfield Business Partners’ conference call:

• Brookfield generated more than $2 billion of proceeds from capital recycling, repaid roughly $1 billion of corporate borrowings, invested $700 million in four acquisitions, and repurchased about $235 million of stock as part of a $250 million buyback program.
• Management is on track to complete a conversion to a single newly listed corporation, which they expect will improve trading liquidity and roughly double index-driven demand for the shares pending final regulatory approval.
• Operational value creation is driving performance at core assets—Clarios has grown underlying EBITDA ~40% (~$700M) since acquisition with a multi‑year growth path, and Nielsen has realized about $800M of cost savings and materially improved margins.
• Reported full‑year Adjusted EBITDA was $2.4 billion (down from $2.6B) but on a comparable basis Adjusted EBITDA rose to $2.1B from $2.0B, and the company finished the year with approximately $2.6 billion of pro forma corporate liquidity and strong access to financing.
• Headwinds persist in parts of the portfolio—European activity remains soft, infrastructure segment EBITDA declined due to disposals, dealer software modernization costs will pressure results through 2026, and Scientific Games received a credit‑rating downgrade despite management’s view that growth will help delever.

Brookfield Business Partners Stock Performance

Shares of BBU stock opened at $35.25 on Friday. The stock’s 50-day moving average price is $35.29 and its 200 day moving average price is $31.60. The company has a quick ratio of 1.41, a current ratio of 1.71 and a debt-to-equity ratio of 2.84. The stock has a market capitalization of $3.09 billion, a PE ratio of -19.58 and a beta of 1.31. Brookfield Business Partners has a 52-week low of $18.63 and a 52-week high of $37.38.

Brookfield Business Partners Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Friday, November 28th were issued a dividend of $0.0625 per share. The ex-dividend date of this dividend was Friday, November 28th. This represents a $0.25 dividend on an annualized basis and a dividend yield of 0.7%. Brookfield Business Partners’s dividend payout ratio (DPR) is currently -13.89%.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Zacks Research raised shares of Brookfield Business Partners from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 11th. BMO Capital Markets reissued an “outperform” rating on shares of Brookfield Business Partners in a research report on Friday. National Bankshares upped their price objective on shares of Brookfield Business Partners from $39.00 to $43.00 and gave the company an “outperform” rating in a research note on Friday, November 7th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Brookfield Business Partners in a research report on Wednesday, January 21st. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Brookfield Business Partners presently has an average rating of “Moderate Buy” and an average price target of $37.00.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Bank of Montreal Can raised its stake in shares of Brookfield Business Partners by 14.4% during the third quarter. Bank of Montreal Can now owns 553,148 shares of the business services provider’s stock worth $18,140,000 after purchasing an additional 69,657 shares during the last quarter. Legal & General Group Plc lifted its stake in shares of Brookfield Business Partners by 0.6% in the 3rd quarter. Legal & General Group Plc now owns 130,620 shares of the business services provider’s stock worth $4,285,000 after acquiring an additional 726 shares during the period. Bank of America Corp DE lifted its stake in shares of Brookfield Business Partners by 30,100.0% in the 2nd quarter. Bank of America Corp DE now owns 1,208 shares of the business services provider’s stock worth $31,000 after acquiring an additional 1,204 shares during the period. Finally, JPMorgan Chase & Co. boosted its holdings in shares of Brookfield Business Partners by 636.4% in the second quarter. JPMorgan Chase & Co. now owns 36,027 shares of the business services provider’s stock valued at $934,000 after acquiring an additional 31,135 shares in the last quarter. Institutional investors and hedge funds own 85.04% of the company’s stock.

About Brookfield Business Partners

Brookfield Business Partners L.P. (NYSE: BBU) is a publicly traded partnership sponsored by Brookfield Asset Management. The company focuses on acquiring and operating high-quality businesses across a range of industrial and service-oriented sectors. Through a partnership structure, Brookfield Business Partners seeks to provide investors with returns generated from stable, cash-flowing enterprises that benefit from Brookfield Asset Management’s global scale and operational expertise.

The company’s investment strategy centers on businesses within the industrial services, manufacturing, transportation, and business services segments.