Brookfield Business Touts Record Capital Recycling, Nears Corporate Reorganization Milestone

January 30, 2026 – Brookfield Business Partners L.P. (NYSE: BBU) capped off a transformative 2025 with strong financial execution and strategic progress, positioning the global alternative asset manager for its next phase as a unified public corporation. In its year-end earnings call, management highlighted a year of significant capital recycling, debt reduction, and strategic growth investments against a backdrop of evolving macroeconomic trends.

"2025 was an excellent year for the execution of our strategy to compound value," said CEO Anuj Ranjan. The firm generated more than $2 billion in proceeds from asset sales, repaid approximately $1 billion in corporate borrowings, and deployed $700 million into four growth-oriented acquisitions. Additionally, the company repurchased about $235 million of its own shares, which it views as trading at a "significant discount to intrinsic value."

A central theme of the call was the impending corporate reorganization, which received necessary approvals earlier this month. The shift from a partnership structure to a single, newly listed corporation is expected to enhance trading liquidity, double index-driven demand for its shares, and simplify global investor access. "This is a big change," Ranjan noted, "and we think it will make it easier for investors globally to invest in our business."

Management framed the firm's operational expertise as increasingly critical in today's environment. "In a world where returns can no longer depend on falling rates, cheap financing, or multiple expansion, our approach to operational excellence matters more than ever," Ranjan stated. He pointed to two accelerating forces driving demand for their model: deglobalization, which is reshaping supply chains and requiring capital and change management, and the integration of artificial intelligence into industrial and essential services businesses.

CFO Jaspreet Dehl reported full-year adjusted EBITDA of $2.4 billion, compared to $2.6 billion in 2024. The year-over-year change reflects portfolio activity, including partial asset sales. On a same-store basis, excluding acquisitions, dispositions, and tax benefits, segment performance increased by approximately 10%. The firm ended the year with approximately $2.6 billion in corporate liquidity, providing "significant flexibility" for future growth and capital allocation.

Operational updates showcased the firm's hands-on approach. COO Adrian Letts highlighted portfolio company Clarios, a battery manufacturer, which has seen a 40% increase in underlying EBITDA since acquisition. He also noted progress at Nielsen, where about $800 million in cost savings have been executed, and at the Middle East payment processor Network, where technology upgrades and an add-on acquisition are positioning the business for growth.

During the Q&A session, analysts probed topics including the timing of production tax credits for Clarios, the monetization outlook for mature assets like BRK and Latrobe, and the pace of new capital deployment in 2026. Management expressed confidence in receiving the tax credits, indicated active evaluation of exit options for several businesses, and suggested 2026 would be "a very active year" for new investments.

The call concluded with management reiterating its commitment to balancing capital allocation between growth investments, debt repayment, and opportunistic share buybacks, emphasizing a continued focus on closing the gap between its market price and its view of net asset value.

Market Voices: Analyst & Investor Reactions

Eleanor Vance, Portfolio Manager at Stirling Capital: "The reorganization is a long-awaited and positive step. Simplifying the structure addresses a key investor grievance and should mechanically improve the valuation multiple. Their capital recycling numbers are impressive—it shows discipline and an active approach to portfolio management that pure-play asset managers often lack."

Marcus Thorne, Independent Financial Analyst: "I'm more skeptical. They're touting $2 billion in 'recycling,' but the net EBITDA is down year-over-year. Are they selling the crown jewels to fund buybacks and pay down debt from the parent? The 'discount to NAV' narrative is getting old. If the intrinsic value is so clear and growing, why does the discount persist even after a 50% rally? It feels like a self-referential argument."

David Chen, Senior Associate at Greystone Research: "The operational deep-dive on Clarios and Nielsen was the most valuable part. It moves the story beyond financial engineering to tangible value creation. In a higher-rate, deglobalizing world, that operational muscle they keep referencing is their real moat. The challenge is whether the market will ever value it appropriately within a conglomerate structure, even a simplified one."

Rebecca Shaw, Retail Investor & Contributor to 'Value Walk' Forum: "As a long-term unit holder, the buyback is welcome, but the pace needs to accelerate. The discount is an opportunity they should be more aggressive on. The reorganization is good news, but the proof will be in sustained volume and narrowed discount post-conversion. I'm holding, but I want to see action matching the rhetoric."