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Brookfield Business Corp. Class A (BBUC) AI Stock Analysis
Brookfield Business Corp. Class A
(NYSE:BBUC)
BBUC scores lower primarily due to high financial risk: very heavy leverage and inconsistent/negative equity, alongside volatile and currently negative net profitability and relatively thin, weakening free cash flow. Technicals add further pressure with the stock trading below key moving averages and negative MACD. Partially offsetting these are a generally positive earnings-call backdrop (liquidity, capital recycling, buybacks, and operational initiatives like AI-driven savings), while valuation support is limited given negative earnings and a modest dividend yield.
Brookfield Business Corp. Class A (BBUC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $6.36B
- Dividend Yield
- 0.81%
- Average Volume (3M)
- 337.96K
- Price to Earnings (P/E)
- -4.5
- Beta (1Y)
- 1.21
- Revenue Growth
- 97.51%
- EPS Growth
- 34.53%
- Country
- US
- Employees
- 72,000
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Conglomerates
Brookfield Business Corp. Class A Business Overview & Revenue Model
Company Description
Brookfield Business Corporation (BBUC) is a diversified global entity with significant interests in healthcare, construction, and water management. Its operations span multiple international territories, including the United States, Europe, Australia...
How the Company Makes Money
Brookfield Business Corp. makes money primarily through the operating earnings and cash flows generated by its controlled portfolio companies. Revenue is earned at the underlying operating businesses (rather than at the holding-company level) from se...
Brookfield Business Corp. Class A Earnings Call Summary
The call conveyed a generally positive strategic and financial momentum: strong capital recycling ($1.2B), meaningful liquidity ($2.8B), disciplined buybacks (> $300M repurchased at large discounts), targeted acquisitions, and early traction from a strategic AI partnership that management expects will drive material operational savings. Operationally, same-store EBITDA growth (~+5–6% in key segments) and a sizable increase in adjusted EFO (+~23.5%) provide additional upside. Offsetting these positives are near-term pressure points: a slight decline in consolidated adjusted EBITDA, weakness in Infrastructure Services (≈-11.9%), rising insurance loss ratios at Sagen, elevated investment spending (e.g., Scientific Games), and capital-structure/credit concerns at CDK. Overall, the highlights outweigh the lowlights, though several items warrant monitoring.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management reiterated a balanced growth and capital-allocation plan with many concrete metrics: Q2 adjusted EBITDA was $587M and adjusted EFO $289M; pro forma corporate liquidity was about $2.8B; the company generated ~$1.2B of asset-sale/distribution proceeds in the past six months (including the ~$650M Multiplex sale); it committed >$300M for two acquisitions (WFC and Gregg) and closed a $100M DeployCo investment (up to a $150M commitment); buyback activity includes >$300M repurchased since early last year at roughly a 50% discount to NAV, ~$50M repurchased in the quarter, and management is allocating $150M of recent proceeds to further repurchases while renewing the NCIB; the firm is tracking toward a $2B capital-recycling target over 24 months with ~ $1.2B realized so far; segment results cited industrial EBITDA $323M (+6% same-store), business services $204M (+6% same-store) and infrastructure services $96M; Clarios repaid $500M of debt and is accelerating a multibillion‑dollar U.S. investment program; Sagen’s loss ratio is ~17% with an expected long‑term range of 15–25% (reserve strengthening ~1/3 of the reported loss ratio); recent buy multiples were ~9–11x EBITDA (≈10x average); and management highlighted AI upside—“thousands” of use cases and “hundreds of millions” of potential run‑rate cost savings across the portfolio.
Brookfield Business Corp. Class A Financial Statement Overview
Summary
Operational performance is strong (TTM revenue +27.31% with solid ~19% gross margin and ~15% EBIT margin) and operating cash flow improved to about $2.7B. However, bottom-line results are loss-making (TTM net margin ~-2.0%) and historically volatile, free cash flow is relatively thin (~$0.4B) and down materially (~-48%), and balance-sheet leverage is very high (debt-to-equity ~8.25x with inconsistent/negative equity in multiple years).
Income Statement
56NeutralBalance Sheet
24NegativeCash Flow
41Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.62B | 27.46B | 8.21B | 7.68B | 6.80B | 6.38B |
| Gross Profit | 4.18B | 5.31B | 640.00M | 889.00M | 640.00M | 392.00M |
| EBITDA | 6.32B | 7.18B | 843.00M | 1.65B | 1.33B | 828.00M |
| Net Income | -439.55M | 26.00M | -888.00M | 519.00M | 911.00M | 36.00M |
Balance Sheet | ||||||
| Total Assets | 78.82B | 75.76B | 19.10B | 21.18B | 27.38B | 15.92B |
| Cash, Cash Equivalents and Short-Term Investments | 18.09B | 4.27B | 1.01B | 3.84B | 736.00M | 894.00M |
| Total Debt | 45.68B | 44.57B | 8.77B | 44.18B | 13.41B | 7.58B |
| Total Liabilities | 63.38B | 60.45B | 16.46B | 63.85B | 23.30B | 14.78B |
| Stockholders Equity | 5.43B | -679.00M | -59.00M | 880.00M | 359.00M | -516.00M |
Cash Flow | ||||||
| Free Cash Flow | 402.00M | -314.00M | -408.00M | -496.00M | -474.00M | -110.00M |
| Operating Cash Flow | 2.70B | -58.00M | -111.00M | 138.00M | 181.00M | 618.00M |
| Investing Cash Flow | -3.23B | -294.00M | -335.00M | 3.79B | -9.23B | -478.00M |
| Financing Cash Flow | 1.05B | -1.00M | 797.00M | -3.93B | 8.91B | 14.00M |
Brookfield Business Corp. Class A Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBUC, the sentiment is Positive. The current price of 30.95 is above the 20-day moving average (MA) of 27.69, above the 50-day MA of 26.85, and below the 200-day MA of 31.07, indicating a neutral trend. The MACD of 0.93 indicates Negative momentum. The RSI at 78.64 is Negative, neither overbought nor oversold. The STOCH value of 88.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBUC.
Brookfield Business Corp. Class A Risk Analysis
Brookfield Business Corp. Class A disclosed 1 risk factors in its most recent earnings report. Brookfield Business Corp. Class A reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
0 New RisksBrookfield Business Corp. Class A Peers Comparison
Overall Rating
TSE:CVG81Outperform
TSE:QRC79Outperform
TSE:ONEX71Outperform- BBUC47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:CVG | 81Outperform | CAD 1.16B | 8.29 | 11.06% | 1.12% | -93.61% | 24.49% |
| TSE:QRC | 79Outperform | CAD 717.45M | 2.05 | 47.52% | 2.63% | 33.16% | ― |
| TSE:ONEX | 71Outperform | CAD 8.17B | 11.97 | 5.25% | 0.36% | 1.85% | -9.67% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| BBUC | 47Neutral | $6.19B | -4.48 | -18.05% | 0.81% | 97.51% | 34.53% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| BBUC | Brookfield Business Corp. Class A | 30.95 | -3.43 | -9.98% | |
| TSE:QRC | Queen's Road Capital Investment Ltd. | 13.51 | 4.91 | 57.17% | |
| TSE:CVG | Clairvest Group Inc | 86.12 | 15.95 | 22.72% | |
| TSE:ONEX | ONEX Corporation | 111.91 | -5.30 | -4.52% |
Brookfield Business Corp. Class A Corporate Events
Brookfield Business Corp. Renews Share Buyback Program on TSX and NYSE
On August 14, 2026, Brookfield Business Corporation announced that the Toronto Stock Exchange had accepted its notice to renew a normal course issuer bid for its class A subordinate voting shares. The company believes its shares may at times trade be...
Brookfield Business Corp. Files Q2 2026 Interim Results on Form 6-K
On August 5, 2026, Brookfield Business Corporation filed a Form 6-K with the U.S. Securities and Exchange Commission for the month of August 2026, providing investors with its interim report for the quarter ended June 30, 2026. The filing, signed by...
Brookfield Business Corporation Posts Strong Q2 2026 Results and Accelerates AI-Driven Growth
Brookfield Business Corporation reported strong second quarter 2026 results on July 31, 2026, with net income attributable to shareholders rising to $37 million, or $0.18 per Class A share, from $26 million a year earlier. Adjusted EBITDA held broadl...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 10, 2026