Financial Performance - For the year ended December 31, 2024, Brookfield Business Partners reported a net loss attributable to unitholders of $109 million, equating to a loss of $0.50 per limited partnership unit, compared to a net income of $1,405 million ($6.49 per unit) in 2023[2][3]. - Adjusted EBITDA for 2024 was $2,565 million, an increase of 2.97% from $2,491 million in 2023, driven by improved operational performance and tax benefits[3][4]. - The company reported an adjusted EBITDA of $653 million for the three months ended December 31, 2024, a decrease from $608 million in the same period of 2023[25]. - Revenues for the three months ended December 31, 2024, were $2,209 million, an increase of 13.5% compared to $1,946 million for the same period in 2023[43]. - Net income from continuing operations for the year ended December 31, 2024, was a loss of $1,927 million, compared to a loss of $983 million in 2023[43]. - Total net income (loss) for the three months ended December 31, 2024, was $(1,108) million, compared to $3,484 million in the same period of 2023[25]. - The company reported a net loss of $1,282 million for the three months ended December 31, 2024, compared to a net income of $2,849 million in the same period of 2023[43]. - The company recognized $208 million of remeasurement loss on exchangeable and class B shares classified as liabilities under IFRS as of December 31, 2024[34]. - Interest income (expense), net for the year ended December 31, 2024, was $3,104 million, an increase from $3,596 million in 2023[27]. Segment Performance - The Industrials segment generated Adjusted EBITDA of $1,247 million in 2024, up 46% from $855 million in 2023, benefiting from $371 million in tax benefits[4][5]. - The Business Services segment's Adjusted EBITDA decreased to $832 million in 2024 from $900 million in 2023, impacted by a cyber incident and reduced performance in construction and healthcare services[5][6]. - The Infrastructure Services segment reported Adjusted EBITDA of $606 million in 2024, down from $853 million in 2023, primarily due to the sale of the nuclear technology services operation[6][7]. Liquidity and Capital Management - Brookfield Business Partners ended 2024 with approximately $1.3 billion in liquidity, including $91 million in cash and liquid securities, and $1.2 billion available on corporate credit facilities[11]. - The company completed the acquisition of Chemelex for a total enterprise value of $1.7 billion, with Brookfield investing $212 million for a 25% economic interest[10]. - Brookfield Business Partners generated over $2 billion from capital recycling initiatives and acquired two market-leading operations in 2024[2]. - Cash and cash equivalents increased to $1,008 million as of December 31, 2024, from $772 million in 2023[40]. - Total assets decreased from $16,000 million in 2023 to $14,000 million in 2024[40]. - Total assets decreased from $21,182 million in 2023 to $19,098 million in 2024, a decline of 9.8%[41]. Expenses and Dividends - The company reported depreciation and amortization expense of $3,204 million for the year ended December 31, 2024[27]. - Direct operating costs increased to $2,041 million, up from $1,749 million, reflecting a rise of 16.7% year-over-year[43]. - General and administrative expenses rose to $107 million for the three months ended December 31, 2024, compared to $78 million in 2023, marking a 37.2% increase[43]. - The company experienced an impairment expense of $689 million for the three months ended December 31, 2024, compared to $599 million in the same period of 2023[43]. - The Board of Directors declared a quarterly dividend of $0.0625 per share, payable on March 31, 2025[35]. - A quarterly distribution of $0.0625 per unit has been declared, payable on March 31, 2025[12]. Future Outlook and Risks - The company anticipates future results may be affected by various risks including economic conditions and changes in interest rates[46]. - Adjusted EBITDA is referenced as a non-IFRS measure, which may assist investors in assessing financial performance[50].

Financial Performance - For the three months ended September 30, 2024, the company reported revenues of $2,205 million, an increase from $1,964 million in the same period of 2023, representing a growth of 12.2%[116] - The net loss from continuing operations for the three months ended September 30, 2024, was $511 million, a decrease of $551 million compared to a net income of $40 million for the same period in 2023[117] - For the nine months ended September 30, 2024, the company recognized a net loss from continuing operations of $645 million, compared to a net income of $53 million for the same period in 2023[118] - For the nine months ended September 30, 2024, revenues increased by $262 million (approximately 4.6%) to $5,999 million, compared to $5,737 million for the same period in 2023[122] - Total revenues for the nine months ended September 30, 2024, were $41,663 million, compared to $33,193 million for the same period in 2023, reflecting a significant increase[150] - Net income for the nine months ended September 30, 2024, was $2,003 million, compared to $293 million for the same period in 2023, indicating a substantial improvement[150] Operating Costs - The company incurred direct operating costs of $2,015 million for the three months ended September 30, 2024, compared to $1,760 million in the same period of 2023, reflecting an increase of 14.5%[116] - For the nine months ended September 30, 2024, direct operating costs increased by $482 million (approximately 9.6%) to $5,527 million, compared to $5,045 million for the same period in 2023[125] - General and administrative expenses for the three months ended September 30, 2024, were $78 million, up from $66 million in the same period of 2023, indicating a rise of 18.2%[116] Financial Losses and Gains - The remeasurement loss on exchangeable and class B shares for the three months ended September 30, 2024, was $325 million, compared to a gain of $148 million in the same period of 2023[116] - For the nine months ended September 30, 2024, net other expense decreased by $279 million to $197 million, compared to net other income of $82 million for the same period in 2023[133] Cash Flow and Expenses - Cash flow used in operating activities for the nine months ended September 30, 2024, was $216 million, compared to $43 million used in the same period of 2023[162] - Interest expense for the three months ended September 30, 2024, was $207 million, a decrease from $227 million in the same period of 2023, showing a reduction of 8.8%[116] - For the nine months ended September 30, 2024, interest expense, net decreased by $52 million (approximately 7.7%) to $620 million, compared to $672 million for the same period in 2023[129] Assets and Liabilities - As of September 30, 2024, total assets decreased by $557 million to $20,625 million compared to $21,182 million as of December 31, 2023[138] - Financial assets increased by $43 million to $267 million as of September 30, 2024, compared to $224 million as of December 31, 2023[139] - Accounts receivable decreased by $83 million to $3,486 million as of September 30, 2024, from $3,569 million as of December 31, 2023, primarily due to repayment of a receivable and foreign exchange impacts[140] - Total non-recourse borrowings in subsidiaries decreased by $301 million to $8,522 million as of September 30, 2024, from $8,823 million as of December 31, 2023[153] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2024, were $70 million for maintenance and $144 million for growth, down from $132 million and $356 million, respectively, in the same period of 2023[143] Legal and Regulatory Matters - The company is subject to several class action lawsuits related to a cybersecurity incident, with ongoing assessments of potential impacts[169] - The global minimum top-up tax, effective January 1, 2024, is not expected to materially impact the company's financial position[176] - The company adopted amendments to IAS 1 on January 1, 2024, clarifying the classification of debt and liabilities, with no material impact on financial statements[179] Strategic Initiatives - The company aims to enhance cash flows and pursue new acquisitions as part of its operations-oriented approach to building value[115] - The company may make future commitments to Brookfield-sponsored private equity funds for target acquisitions as part of its strategy[170] - The Board of Directors declared a quarterly dividend of $0.0625 per exchangeable share, payable on December 31, 2024[159]

Financial Overview - Brookfield Business Corporation's financial information is derived from unaudited interim condensed consolidated financial statements prepared in accordance with IAS 34, presented in U.S. dollars rounded to the nearest million[131]. - The financial statements are for the interim period ending June 30, 2024, and include results for the three and six months ended June 30, 2024 and 2023[190]. - The financial position and operating results are presented in the unaudited interim condensed consolidated financial statements[190]. - Comprehensive income and cash flow statements are included in the financial disclosures[190]. - Management's discussion and analysis of financial condition and results of operations is provided[190]. Performance Metrics - For the three months ended June 30, 2024, net income from continuing operations decreased by $155 million to $40 million, compared to $195 million for the same period in 2023[134]. - Revenues for the three months ended June 30, 2024, were $1,929 million, an increase of $21 million from $1,908 million in the same period of 2023[136]. - Direct operating costs for the three months ended June 30, 2024, increased by $191 million to $1,860 million, compared to $1,669 million for the same period in 2023[138]. - General and administrative expenses for the three months ended June 30, 2024, rose by $14 million to $77 million, compared to $63 million for the same period in 2023[139]. - Interest expense, net for the three months ended June 30, 2024, decreased by $30 million to $203 million, compared to $233 million for the same period in 2023[140]. - Remeasurement gain on exchangeable shares and class B shares for the three months ended June 30, 2024, was $237 million, compared to a gain of $101 million for the same period in 2023[141]. - Net other expense for the three months ended June 30, 2024, was $59 million, a decrease of $230 million from net other income of $171 million for the same period in 2023[141]. - For the six months ended June 30, 2024, net loss from continuing operations was $134 million, compared to net income of $13 million for the same period in 2023[135]. - Revenues for the six months ended June 30, 2024, were $3,794 million, an increase of $21 million from $3,773 million in the same period of 2023[138]. - Revenues for Q2 2024 were $1,929 million, a 3.4% increase from Q1 2024's $1,865 million[146]. - Net income from continuing operations was $40 million in Q2 2024, compared to a loss of $174 million in Q1 2024[146]. Cash Flow and Liquidity - Cash flow used in operating activities for the six months ended June 30, 2024 was $19 million, compared to $69 million used in the same period in 2023[171]. - Cash flow provided by financing activities was $234 million for the six months ended June 30, 2024, compared to cash used of $239 million in the same period in 2023[172]. - Cash flow used in investing activities was $171 million for the six months ended June 30, 2024, compared to cash flow provided of $375 million in the same period in 2023[173]. - The company aims to maintain strong liquidity through cash flows, credit facilities, and monetization of mature operations[161]. - Cash and cash equivalents as of June 30, 2024 were $754 million, a decrease from $772 million as of December 31, 2023[169]. Assets and Liabilities - Financial assets increased by $100 million to $324 million as of June 30, 2024, compared to $224 million at December 31, 2023[151]. - Accounts receivable decreased by $234 million to $3,335 million as of June 30, 2024, from $3,569 million at December 31, 2023[152]. - Property, plant, and equipment (PP&E) decreased by $72 million to $2,671 million as of June 30, 2024, primarily due to foreign exchange impacts[153]. - Intangible assets decreased by $520 million to $6,411 million as of June 30, 2024, mainly due to amortization and foreign exchange movements[154]. - Accounts payable increased by $212 million to $5,030 million as of June 30, 2024, compared to $4,818 million at December 31, 2023[156]. - Non-recourse borrowings in subsidiaries decreased to $8,332 million as of June 30, 2024, from $8,823 million at December 31, 2023[162]. - Total non-recourse borrowings in subsidiaries decreased by $491 million from $8,823 million as of December 31, 2023 to $8,332 million as of June 30, 2024[163]. - The company has a total of $16,236 million in undiscounted contractual obligations as of June 30, 2024[185]. Strategic Initiatives - The company aims to enhance cash flows and pursue new acquisitions through an operations-oriented approach, focusing on profitability and sustainability[132]. - The company emphasizes the importance of reviewing the partnership's periodic reporting for shareholders[120]. - The company has an equity commitment of $2 billion from its partnership to maximize access to equity capital[164]. - The Board of Directors declared a quarterly dividend of $0.0625 per exchangeable share, payable on September 27, 2024[168]. - The company has not repurchased any of its exchangeable shares during the six months ended June 30, 2024[178]. Risks and Uncertainties - Forward-looking statements in the MD&A are subject to risks and uncertainties that could cause actual results to differ materially[122]. - The MD&A includes cautionary statements regarding forward-looking information, highlighting the potential for changes in economic conditions and other factors[123]. - The company does not have control over all businesses in which it owns investments, which may impact its financial performance[127]. - No future changes to IFRS are expected to have material impacts on the company[188].

Group 1: Market Overview - The Russell 2000 index, representing the 2,000 smallest companies by market capitalization, experienced a gain of over 3% on July 17, marking its fifth consecutive day of increases [1] - Year-to-date, the Russell 2000 is up 11.8%, which is 631 basis points lower than the S&P 500 [1] - Fundstrat Global Advisors' Tom Lee suggests that the Russell 2000 has significant upside potential, predicting a possible increase of up to 40% over the next 10 weeks [1] Group 2: Company Highlights - Brookfield Business Corporation (BBUC) focuses on business services, industrials, and infrastructure services, generating approximately $6 billion in proceeds from monetizing 20 businesses since its inception [2][3] - Enstar Group (ESGR) is the world's largest standalone run-off consolidator, with a book value per share of $341.53, reflecting a 1.4% increase from the previous quarter and a compound annual growth rate of 16.1% since 2003 [4][5] - Taylor Morrison Home (TMHC) has seen its stock price increase by 179% since September 2022, following its acquisition of William Lyon Homes for $2.5 billion, which expanded its market presence significantly [6][7]

Financial Performance - For the three months ended March 31, 2024, net loss from continuing operations decreased by $8 million to $174 million, compared to a net loss of $182 million for the same period in 2023[134]. - Net income (loss) attributable to Brookfield Business Partners for the three months ended March 31, 2024 was a loss of $150 million, compared to a loss of $140 million for the same period in 2023[135]. - Revenues for the three months ended March 31, 2024 were $1,865 million, consistent with revenues for the same period in 2023, driven by higher recurring revenues in dealer software and technology services[136]. - Revenues for Q1 2024 were $12,015 million, a decrease of 12.7% from $13,758 million in Q1 2023[156]. - Net income for Q1 2024 was $203 million, with total assets at $81,415 million and total liabilities at $63,015 million as of March 31, 2024[156]. - Adjusted EBITDA for Q1 2024 was $622 million, compared to $nil in the previous year[156]. Operating Costs - Direct operating costs for the three months ended March 31, 2024 were $1,652 million, an increase from $1,616 million in the same period of 2023[133]. - Direct operating costs increased by $36 million to $1,652 million for Q1 2024, compared to $1,616 million in Q1 2023[137]. - General and administrative expenses for the three months ended March 31, 2024 were $64 million, compared to $61 million for the same period in 2023[133]. - General and administrative expenses rose by $3 million to $64 million in Q1 2024, up from $61 million in Q1 2023[137]. - Interest expense for the three months ended March 31, 2024 was $210 million, slightly down from $212 million in the same period of 2023[133]. - Interest expense, net decreased by $2 million to $210 million in Q1 2024, compared to $212 million in Q1 2023[137]. - Current income tax expense increased by $34 million to $44 million in Q1 2024, compared to $10 million in Q1 2023[140]. Cash Flow and Liquidity - Cash flow used in operating activities for Q1 2024 was $53 million, an improvement from $140 million used in Q1 2023[168]. - Cash and cash equivalents decreased to $743 million as of March 31, 2024, down from $772 million at the end of 2023[166]. - The company aims to maintain strong liquidity through cash flows, credit facilities, and monetization of mature operations[157]. Assets and Liabilities - Property, plant, and equipment decreased by $121 million to $2,622 million as of March 31, 2024, compared to $2,743 million at the end of 2023[149]. - Financial assets increased by $79 million to $303 million as of March 31, 2024, compared to $224 million at the end of 2023[147]. - Total non-recourse borrowings in subsidiaries decreased to $8,545 million from $8,823 million as of December 31, 2023[158]. - Total contractual obligations as of March 31, 2024, amounted to $17,314 million, with $2,730 million due within one year[179]. Corporate Actions and Changes - The company declared a quarterly dividend of $0.0625 per exchangeable share, payable on June 28, 2024[165]. - The company has a commitment agreement with Brookfield for up to $1.5 billion in perpetual preferred equity securities, with $725 million subscribed from other subsidiaries as of March 31, 2024[162]. - The company continues to focus on enhancing cash flows and opportunistically recycling capital to grow existing operations and make new acquisitions[132]. - The company adopted amendments to IAS 1 regarding the classification of debt and other liabilities as current or non-current, effective January 1, 2024, with no material impact on the unaudited interim condensed consolidated financial statements[186]. - There were no changes in internal control over financial reporting that materially affected or are likely to materially affect internal control during the period from January 1, 2024, to March 31, 2024[185]. - There are currently no future changes to IFRS expected to have material impacts on the company[187]. Discontinued Operations - The company’s nuclear technology services operation was sold in November 2023 and is presented as a discontinued operation[131]. Tax and Regulatory Matters - The 2024 Canadian federal budget included potential changes to tax rules, but the company does not expect them to materially impact its business or investors[128]. - The company has applied a temporary mandatory relief from recognizing and disclosing information related to the global minimum top-up tax, with no material current tax impact for the quarter ended March 31, 2024[184]. Remeasurement and Other Expenses - The exchangeable shares and class B shares were remeasured to reflect a closing price of $22.10 per unit as of March 31, 2024[134]. - Remeasurement loss on exchangeable and class B shares was $111 million in Q1 2024, down from a loss of $121 million in Q1 2023[138]. - Net other expense decreased by $27 million to $11 million in Q1 2024, compared to $38 million in Q1 2023[139]. - Capital expenditures for Q1 2024 included $26 million in maintenance and $48 million in growth, down from $47 million and $96 million respectively in Q1 2023[150].

Financial Reporting and Performance - The financial information is presented in United States dollars and prepared in accordance with IFRS, with all figures being unaudited unless otherwise indicated[12]. - The company emphasizes that historical results and market data may not be indicative of future performance[11]. - Forward-looking statements include expectations regarding operations, financial condition, and anticipated results, with terms such as "expects," "anticipates," and "forecasts" used to describe these projections[13]. - The company cautions against placing undue reliance on forward-looking statements due to inherent risks and uncertainties[20]. - The accuracy of management's assumptions and estimates is critical, as significant deviations could lead to material adverse effects on financial condition and results[43]. Risks and Uncertainties - Factors that could cause actual results to differ materially include economic conditions, competition, and changes in interest rates[15]. - The company does not have control over all businesses in which it owns investments, which may impact performance[15]. - The company is subject to various risks including changes in government policy, litigation, and operational risks specific to its businesses[16]. - Increased inflationary pressures have led to tightening monetary policies, posing risks to economic growth and potentially resulting in recessionary pressures[35]. - The company faces risks related to its indebtedness, which may restrict its ability to engage in certain activities or make distributions to equity[46]. - Rising interest rates could increase the cost of financing investments and make it more challenging to complete acquisitions[48]. - The group may face challenges in accessing credit and capital markets, impacting capital expenditure and acquisition funding[49]. - Economic conditions, including inflation and interest rate increases, could raise borrowing costs and affect financing availability[50]. - Political instability and cultural factors in various markets may negatively impact investment values and financial performance[54]. - The uncertainty following Brexit could lead to increased costs and regulatory complexities for operations in Europe[55]. - Currency fluctuations, particularly in the Brazilian real, could materially affect cash flows and operational costs[62]. - Labor disruptions and collective bargaining agreements may lead to operational inefficiencies and increased labor costs[66]. - The group is exposed to litigation risks that could result in significant liabilities and adversely affect financial performance[70]. - The company is exposed to significant risks from environmental damage and compliance costs associated with environmental laws, particularly in its water and wastewater operations in Brazil[77]. - The company faces increasing environmental legislation and climate change impacts, which may reduce demand for certain commodities supplied by its operations[78]. - Stricter environmental standards and regulations could lead to increased operational costs that may not be passed on to customers, adversely affecting growth prospects[79]. - The company relies on joint ventures and partnerships, which may reduce control over operations and expose it to additional obligations and risks[84]. - The company is heavily dependent on technology and information systems, which face cybersecurity threats that could materially affect its operations[88]. - Rapidly evolving global privacy laws could increase compliance costs and expose the company to enforcement risks and reputational damage[90]. - The company has made significant investments to ensure compliance with privacy obligations, but potential liabilities remain due to the rapid development of privacy regulations[92]. - Governmental investigations and audits could divert management attention and result in significant liabilities or penalties, impacting business operations[94]. Operational Performance - The company's operations are highly cyclical and sensitive to general economic conditions, which may adversely affect growth and profitability[31]. - The company's healthcare services are dependent on revenues from private health insurance funds and relationships with accredited medical practitioners[25]. - The company is subject to risks related to the unpredictable award of new contracts in the construction market, which could impact profitability[25]. - The construction operation's revenues are largely dependent on the award of new contracts, which are unpredictable and outside the company's control, leading to potential fluctuations in financial results[108]. - The construction operation may experience reduced profits or losses if costs increase above estimates, particularly under fixed-price contracts where the company bears significant risk for cost overruns[109]. - Macroeconomic factors, including inflationary pressures and general economic conditions, significantly impact the construction operation's profitability and demand for services[115]. - The company faces intense competition in its dealer software and technology services operation, which could materially affect business results if it fails to respond to technological developments and customer needs[105]. - The construction operation is vulnerable to cyclical market conditions, with demand influenced by economic trends and client capital expenditures[107]. - The healthcare services segment's profitability is influenced by ongoing commercial agreements with private health insurance funds, with potential negative impacts on financial performance if satisfactory agreements are not reached[101]. - Rising labor costs, particularly for nursing staff, are a significant concern for the healthcare services, which could adversely affect financial and operational performance[102]. - Climate change may lead to increased frequency and severity of extreme weather events, impacting construction operations and raw material supply chains[116]. - The transition to a lower-carbon economy could disrupt traditional business models, with potential shifts in infrastructure priorities from clients due to regulatory changes[117]. - Water usage restrictions in Brazil may decrease demand for water services, affecting financial performance[118]. - Significant capital expenditures are required for water and wastewater operations, and failure to secure funding could hinder project completion[118]. - The Brazilian government’s influence on the economy poses risks to water and wastewater operations, potentially affecting financial results[122]. Corporate Governance and Control - Brookfield holds approximately 64.8% of exchangeable shares, providing substantial control over the company and its strategic decisions[124]. - Brookfield Business Partners holds a 75% voting interest, allowing it to influence the appointment of directors and operational strategies[124]. - The company relies on Brookfield for acquisition opportunities, but there is no obligation for Brookfield to source these opportunities[125]. - The management fee paid to Service Providers is 0.3125% of total capitalization, which is calculated based on the trading price of units and outstanding debt[136]. - Conflicts of interest may arise due to the organizational structure, potentially affecting decision-making in favor of Brookfield over the company’s interests[134]. - Changes in Brookfield's ownership level may impact the trading price of exchangeable shares and the company's ability to raise capital[144]. - The company may face legal claims for indemnification that could be adverse to its interests due to the indemnification arrangements with service providers[141]. - The board of directors can redeem exchangeable shares at any time without holder consent, which could impact the value received by shareholders[173]. - Holders of exchangeable shares do not have the right to choose between cash or units upon liquidation or redemption events[174]. - The company intends to satisfy exchange requests for exchangeable shares through the delivery of units rather than cash[175]. - Any delay in receiving units upon exchange requests may affect the value of the units received by holders[176]. - The partnership must maintain an effective registration statement in the U.S. for exchanges of exchangeable shares for units to occur[179]. - The market price of the company's exchangeable shares is expected to be significantly impacted by the market price of the units and the overall business performance[159]. - The company relies on distributions and payments from its operating subsidiaries to meet financial obligations, as it has no independent revenue generation capabilities[161]. - The company currently has interests in Healthscope, CDK Global, Multiplex, and BRK Ambiental, which are part of Brookfield Business Partners' operations[164]. - Future acquisitions may significantly increase the scale and scope of operations, but they also involve risks such as integration challenges and potential disruptions[166][168]. - The company is not regulated as an investment company under the Investment Company Act, which allows for greater operational flexibility[169][170]. - The volatility of market prices for exchangeable shares and units could result in substantial investment losses for holders[183]. - Future issuances of exchangeable shares may dilute existing unit holders and negatively impact the market price of units[185]. - The company may issue additional securities that could dilute the interests of existing equity holders[186]. - Dividends on exchangeable shares may not match those paid on units, affecting the expected economic equivalence[190]. - Non-U.S. shareholders face foreign currency risks that could adversely affect the value of dividends received[192]. - Changes in tax laws could materially impact the operations and distributions of the partnership and the company[201]. - The company is subject to risks related to enforcement of judgments and service of process due to its international structure[200]. - The Rights Agreement will terminate five years after the special distribution date, affecting the protections for exchangeable share holders[198]. - The partnership may face transfer pricing risks, potentially leading to increased tax liabilities and reduced returns for unitholders[203]. - The company believes that the base management fee paid to service providers will be aligned with the value of services provided, comparable to arm's-length arrangements[204]. - U.S. Holders exchanging exchangeable shares for units may recognize capital gain or loss depending on the nature of the exchange[206]. - If the partnership satisfies an exchange request by delivering units, the exchange may qualify as tax-free under Section 721(a) of the Internal Revenue Code, subject to certain conditions[207]. - U.S. Holders may be subject to special rules that could result in the recognition of additional taxable gain or income upon the exchange of exchangeable shares for units[208].

Financial Performance - For the three months ended September 30, 2023, net income decreased by $24 million to $7 million, compared to $31 million for the same period in 2022[143]. - Revenues for the three months ended September 30, 2023, increased by $49 million to $2,954 million, compared to $2,905 million for the same period in 2022[146]. - For the nine months ended September 30, 2023, revenues increased by $1,315 million to $8,789 million, compared to $7,474 million for the same period in 2022[146]. - The company recognized a net loss of $20 million for the nine months ended September 30, 2023, compared to net income of $918 million for the same period in 2022[145]. - Total revenues for Q3 2023 were $2,954 million, compared to $2,905 million in Q3 2022, reflecting a year-over-year increase[156]. - Net income for Q3 2023 was $7 million, a decrease from a net income of $158 million in Q3 2022[156]. - Total revenues for the nine months ended September 30, 2023, were $41,663 million, down from $42,745 million in 2022, while net income increased to $293 million from $205 million[169]. Operating Costs and Expenses - Direct operating costs for the three months ended September 30, 2023, decreased by $1 million to $2,603 million, compared to $2,604 million for the same period in 2022[148]. - General and administrative expenses for the three months ended September 30, 2023, decreased by $5 million to $124 million, compared to $129 million for the same period in 2022[149]. - Interest expense, net for the three months ended September 30, 2023, increased by $54 million to $302 million, compared to $248 million for the same period in 2022[149]. - For the nine months ended September 30, 2023, interest expense increased by $400 million to $888 million compared to $488 million for the same period in 2022[150]. - Other expenses, net for the nine months ended September 30, 2023, decreased by $90 million to $20 million compared to $110 million for the same period in 2022[152]. - Current income tax expense for the nine months ended September 30, 2023, increased by $135 million to $195 million compared to $60 million for the same period in 2022[153]. Assets and Liabilities - Financial assets increased by $187 million to $684 million as of September 30, 2023, compared to $497 million as of December 31, 2022[160]. - Accounts receivable and other, net decreased by $205 million to $2,986 million as of September 30, 2023, compared to $3,191 million as of December 31, 2022[161]. - Property, plant, and equipment decreased by $158 million to $3,607 million as of September 30, 2023, compared to $3,765 million as of December 31, 2022[163]. - Intangible assets decreased by $388 million to $8,907 million as of September 30, 2023, compared to $9,295 million as of December 31, 2022[163]. - Goodwill decreased by $263 million to $6,651 million as of September 30, 2023, primarily due to the sale of a non-core division and foreign exchange impacts[165]. - Accounts payable decreased by $478 million to $7,161 million as of September 30, 2023, mainly due to lower liabilities in healthcare services[166]. Cash Flow and Investments - Cash and cash equivalents decreased to $646 million as of September 30, 2023, from $736 million at the end of 2022[178]. - Cash flow used in operating activities was $43 million for the nine months ended September 30, 2023, compared to cash provided of $60 million in 2022[180]. - Total cash flow used in financing activities was $266 million for the nine months ended September 30, 2023, compared to $9,000 million provided in 2022[181]. - Total cash flow provided by investing activities was $207 million for the nine months ended September 30, 2023, compared to cash used of $9,015 million in 2022[182]. Significant Transactions - The company completed the sale of its nuclear technology services operations on November 7, 2023, for proceeds of approximately $4 billion[147]. - Revenues from nuclear technology services operations for the three and nine months ended September 30, 2023, were $990 million and $3,052 million, respectively[147]. - Direct operating costs from nuclear technology services operations for the three and nine months ended September 30, 2023, were $843 million and $2,676 million, respectively[148]. Financial Obligations and Provisions - As of September 30, 2023, the company's total undiscounted contractual obligations amount to $26,752 million, with $3,701 million due within one year[189]. - The company has pension obligations totaling $3,775 million, with $88 million due within one year[189]. - The company has a total interest expense obligation of $6,927 million, with $949 million due within one year[189]. - The company has decommissioning liabilities amounting to $718 million, with $1 million due within one year[189]. - The company has recorded provisions for potential losses where estimable, but has not recorded provisions for claims that cannot be measured or are not probable at this time[186]. - The company has entered into indemnity agreements with Brookfield related to certain construction projects in the Middle East, which have been in place for several years[185]. - Historically, the company has made no significant payments under indemnification agreements, indicating a low risk of financial impact from such agreements[185]. Accounting Standards - The company adopted amendments to IAS 12 and IAS 1 on January 1, 2023, which did not have a material impact on its financial statements[194][196]. - The company is currently assessing the impact of future amendments to IAS 1, which clarify the classification of debt and other liabilities as current or non-current, effective January 1, 2024[197].

Financial Performance - For Q2 2023, the company reported revenues of $2,914 million, an increase of $596 million (25.7%) compared to $2,318 million in Q2 2022[141]. - For the first half of 2023, revenues reached $5,835 million, up $1,266 million (27.7%) from $4,569 million in the same period of 2022[144]. - Net income for Q2 2023 decreased to $158 million, down $892 million (84.9%) from $1,050 million in Q2 2022[143]. - The company recognized a net loss of $27 million for the first half of 2023, compared to a net income of $887 million in the same period of 2022[143]. - Total revenues for the six months ended June 30, 2023, were $27,264 million, a decrease from $28,034 million in the same period of 2022[168]. - Adjusted EBITDA for the six months ended June 30, 2023, was $1,228 million, compared to $1,016 million for the same period in 2022, reflecting a 20.9% increase[169]. Operating Costs and Expenses - Direct operating costs for Q2 2023 increased to $2,566 million, up $456 million (21.6%) from $2,110 million in Q2 2022[146]. - General and administrative expenses for Q2 2023 rose to $117 million, an increase of $45 million (62.5%) compared to $72 million in Q2 2022[147]. - Interest expense, net increased by $174 million to $307 million for Q2 2023, primarily due to higher borrowings and interest rates[149]. - Current income tax expense rose by $96 million to $113 million for Q2 2023, primarily due to a taxable gain on the sale of a non-core division[153]. - Interest expense for the period is reported at $4,856 million, with $906 million due in the next year[189]. Revenue Sources - Revenues from nuclear technology services operations for Q2 2023 were $1,006 million, and for the first half of 2023, they were $2,062 million[145]. - The increase in revenues was primarily driven by contributions from dealer software and technology services operations acquired in 2022[143]. Assets and Liabilities - Financial assets increased by $139 million to $636 million as of June 30, 2023, compared to $497 million at the end of 2022[160]. - Accounts receivable and other, net decreased by $208 million to $2,983 million as of June 30, 2023[161]. - Total assets decreased by $450 million to $26,926 million as of June 30, 2023, compared to $27,376 million at the end of 2022[158]. - Non-recourse borrowings in subsidiaries increased by $258 million to $13,171 million as of June 30, 2023[159]. - Property, plant & equipment (PP&E) decreased by $15 million to $3,750 million as of June 30, 2023, primarily due to $172 million in depreciation and $35 million in dispositions[163]. - Intangible assets decreased by $213 million to $9,082 million as of June 30, 2023, mainly due to the sale of a non-core division[163]. - Goodwill decreased by $202 million to $6,712 million as of June 30, 2023, primarily due to the sale of a non-core division[165]. Cash Flow - Cash flow used in operating activities for the six months ended June 30, 2023, was $69 million, compared to cash provided of $196 million in the same period of 2022[180]. - Total cash flow provided by investing activities was $375 million for the six months ended June 30, 2023, compared to cash used of $1,683 million in the same period of 2022[182]. - The company had cash and cash equivalents of $836 million as of June 30, 2023, an increase from $736 million as of December 31, 2022[178]. Dividends and Share Repurchase - The Board of Directors declared a quarterly dividend of $0.0625 per exchangeable share, payable on September 29, 2023[177]. - The company has not repurchased any of its exchangeable shares during the six months ended June 30, 2023[187]. - The company is authorized to repurchase up to 5% of its issued and outstanding exchangeable shares, equating to 3,647,810 shares[186]. Regulatory and Legal Matters - The proposed sale of the nuclear technology services operations has an enterprise value of approximately $8 billion, pending regulatory approvals[145]. - The company has entered into indemnity agreements with Brookfield related to certain construction projects in the Middle East[185]. - The company assesses potential litigation claims but has determined that the potential loss amount cannot be measured and is not probable at this time[186]. Accounting Changes - The company adopted amendments to IAS 12 and IAS 1 effective January 1, 2023, with no material impact on its financial statements[195][197].

Financial Performance - For Q1 2023, total revenues increased by $670 million to $2,921 million, compared to $2,251 million in Q1 2022, driven by contributions from dealer software and nuclear technology services operations [142]. - Direct operating costs rose by $526 million to $2,551 million in Q1 2023, up from $2,025 million in Q1 2022, primarily due to acquisitions in dealer software and nuclear technology services [143]. - General and administrative expenses increased by $39 million to $107 million in Q1 2023, compared to $68 million in Q1 2022, mainly due to recent acquisitions [144]. - Net loss for Q1 2023 was $185 million, an increase of $22 million from a net loss of $163 million in Q1 2022 [141]. - Interest expense, net increased by $172 million to $279 million in Q1 2023, compared to $107 million in Q1 2022, attributed to higher borrowings and interest rates [145]. - Revenues for Q1 2023 were $2,921 million, a decrease of 6.5% from Q4 2022's $3,124 million [150]. - Net income for Q1 2023 was a loss of $185 million, compared to a profit of $158 million in Q4 2022 [150]. - Adjusted EBITDA for Q1 2023 was $622 million, an increase from $486 million in Q1 2022 [164]. Cash Flow and Liquidity - Cash flow used in operating activities for the three months ended March 31, 2023 was $140 million, compared to cash provided of $34 million for the same period in 2022 [175]. - Cash flow provided by financing activities was $89 million for the three months ended March 31, 2023, a significant improvement from cash used of $155 million in the same period in 2022 [176]. - Cash flow provided by investing activities was $110 million for the three months ended March 31, 2023, compared to cash used of $135 million in the same period in 2022 [177]. - The company aims to maintain sufficient liquidity through cash flows, credit facilities, and monetization of mature operations [165]. - As of March 31, 2023, the company had cash and cash equivalents of $810 million, an increase from $736 million as of December 31, 2022 [173]. Assets and Liabilities - Accounts receivable increased by $321 million to $3,512 million as of March 31, 2023, due to timing of billed receivables [155]. - Other assets rose by $343 million to $1,809 million as of March 31, 2023, attributed to reclassification of a non-core division [156]. - Goodwill decreased by $286 million to $6,628 million as of March 31, 2023, primarily due to reclassification related to a non-core division [159]. - Non-recourse borrowings in subsidiaries increased by $283 million to $13,196 million as of March 31, 2023, driven by higher borrowings in water and wastewater operations [165]. - The company has total contractual obligations of $24.65 billion as of March 31, 2023, including borrowings of $13.55 billion and pension obligations of $3.81 billion [184]. Investments and Capital Expenditures - Capital expenditures for Q1 2023 included $47 million for maintenance and $96 million for growth, compared to $42 million and $97 million respectively in Q1 2022 [158]. - The company has an equity commitment of $2 billion from Brookfield Business Partners to enhance access to equity capital [167]. - Brookfield has subscribed for up to $1.5 billion of 6% perpetual preferred equity securities, with $1,475 million subscribed from other subsidiaries as of March 31, 2023 [170]. Other Financial Activities - The board declared a quarterly dividend of $0.0625 per exchangeable share, payable on June 30, 2023 [172]. - The company has outstanding bank guarantees, insurance bonds, and letters of credit totaling approximately $1.6 billion as of March 31, 2023 [178]. - The company did not repurchase any of its exchangeable shares during the three months ended March 31, 2023 [182]. - Remeasurement losses on exchangeable and class B shares were $121 million in Q1 2023, compared to a loss of $168 million in Q1 2022, reflecting the closing price of one LP Unit at $18.62 [146]. - Other net expenses increased by $14 million to $57 million in Q1 2023, compared to $43 million in Q1 2022, including $31 million in business separation expenses and restructuring charges [147]. Future Outlook - The company anticipates continued growth in revenues from healthcare services due to higher admission rates and patient days, despite foreign exchange impacts [142]. - The increase in revenues was partially offset by lower revenues from construction operations, indicating a mixed performance across segments [142]. - The company is focused on enhancing cash flows and pursuing new acquisitions to drive future growth [138].

Financial Reporting and Compliance - The financial information is presented in United States dollars and prepared in accordance with IFRS, with all figures being unaudited unless otherwise indicated[14]. - The company is exempt from certain U.S. securities regulations as a foreign private issuer, resulting in potentially less publicly available information compared to U.S. domestic registrants[36][37]. - Effective internal controls are crucial, as failures could lead to material weaknesses in financial reporting and affect investor confidence[44][45]. - The accuracy of management's assumptions and estimates is critical, as significant deviations could materially affect financial results[165]. Forward-Looking Statements and Risks - The company emphasizes that historical performance and market data may not be indicative of future results[13]. - Forward-looking statements include expectations regarding operations, financial condition, and anticipated benefits from acquisitions, with terms like "expects" and "anticipates" used to describe these projections[15]. - Risks include general economic conditions, competition, operational risks, and changes in government regulation, which may impact future performance[16]. - The company acknowledges the potential impact of international conflicts, such as Russia's invasion of Ukraine, on its operations[17]. - The ongoing conflict in Ukraine has created significant uncertainty in the global financial system, impacting costs and operations, although direct exposure remains limited[169]. Operational Risks and Market Conditions - The company faces risks related to its healthcare services operations, including reliance on private health insurance funds and relationships with medical practitioners[26]. - The healthcare services operations are facing rising labor costs, particularly in nursing, which is the most significant cost in hospital operations[77]. - The construction operations are highly dependent on the award of new contracts, which are unpredictable and can fluctuate quarterly and annually[83]. - The profitability of construction operations is closely tied to macroeconomic factors, including the impacts of the COVID-19 pandemic and rising inflation[91]. - Climate change may disrupt construction operations due to extreme weather events, impacting the availability and cost of raw materials[92]. - The company is vulnerable to business disruptions from various sources, which could materially affect financial condition and operational results[189]. Financial Structure and Shareholder Relations - The company is dependent on Brookfield for acquisition opportunities and management, which may create conflicts of interest[28]. - Brookfield holds approximately 64.8% of the exchangeable shares, providing it with significant control over the company[125]. - The company may redeem exchangeable shares at any time without the consent of holders, which could occur under specific circumstances[46]. - The company has guaranteed Brookfield Business Partners' obligations under a $2.3 billion bilateral credit facility and a $1 billion revolving acquisition credit facility, exposing it to credit risk[140]. - The arrangements with Brookfield may contain terms less favorable than those that could have been negotiated with unrelated parties[130]. Market and Economic Factors - Rising inflation rates in 2022 have exceeded target ranges, driven by increased costs in labor, energy, and supply chain disruptions, potentially affecting operational performance[181]. - Economic conditions, including interest rate fluctuations, could adversely impact the company's ability to obtain financing and affect overall financial health[175][179]. - Foreign currency risks are present due to operations in countries with currencies other than the U.S. dollar, which may impact cash flows and service costs[191]. - Political instability in key markets could create economic uncertainty, negatively impacting financial performance and operational relationships[184]. Environmental and Regulatory Challenges - The company is subject to increasingly stringent environmental legislation, which may result in higher operational costs and affect growth prospects[207]. - Climate change-related regulations may increase the company's regulatory compliance burden and impact its financial performance[210]. - Environmental damage risks and compliance costs with environmental laws could materially impact the company's financial performance[205]. Acquisition Strategy and Competition - The group operates in a highly competitive market for acquisition opportunities, facing competition from larger investment funds and companies[162]. - The group's acquisition strategy may involve acquiring distressed companies, which carries substantial financial and business risks[160]. - The company may face challenges in sourcing suitable investment opportunities due to inflationary pressures and economic conditions[181]. Insurance and Liability Risks - The company maintains insurance coverage for healthcare services operations, but future availability and adequacy of coverage are uncertain[78]. - The company faces challenges in obtaining necessary insurance, which could increase overall risk exposure and operational expenses[194]. - Labor disruptions and unfavorable collective bargaining agreements could significantly disrupt operations and increase labor costs[195].