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NEW YORK - Brookfield Business Partners (NYSE:BBU) reported mixed first quarter results on Friday, with earnings beating estimates but revenue declining significantly year-over-year.
The company’s shares fell -1.23% in premarket trading following the announcement.
The business services and industrials company reported adjusted earnings per share of $0.38 for Q1 2025, up from $0.23 in the same quarter last year and above analyst expectations. However, revenue dropped sharply to $6.75 billion from $12.02 billion in Q1 2024.
"We had an active start to the year, generating over $1.5 billion from our capital recycling initiatives, progressing the acquisition of two market-leading industrial operations and investing approximately $140 million to repurchase our units and shares," said CEO Anuj Ranjan.
The company’s Adjusted EBITDA, a key profitability metric, rose to $591 million in Q1 2025 from $544 million a year earlier. This increase came despite the significant revenue decline, suggesting improved operational efficiency.
Brookfield Business Partners’ Industrials segment was a bright spot, with Adjusted EBITDA jumping to $304 million from $228 million YoY. The company said this included $72 million of tax benefits at its advanced energy storage operation.
The Business Services segment saw a modest increase in Adjusted EBITDA to $213 million from $205 million last year. However, the Infrastructure Services segment declined to $104 million from $143 million.
Looking ahead, Brookfield Business Partners announced plans to acquire Antylia Scientific, a manufacturer of lab equipment, for approximately $1.3 billion. The company expects to invest about $160 million for a 25% stake.
Despite the mixed results and slight stock decline, Brookfield Business Partners maintained its quarterly dividend of $0.0625 per unit.
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