Brookfield Business Corp 6-K, filed Aug 5, 2026
Brookfield Business Corp (BBUC)
6-K
2026-08-05
For: 2026-06-30
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Added on
August 05, 2026
About this 6-K
Brookfield Business Corp filed this 6-K on August 5, 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________
FORM 6-K
____________________________________________________________________________
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2026
Commission File Number: 000-56830
____________________________________________________________________________
(Translation of registrant's name into English)
____________________________________________________________________________
Brookfield Place
225 Liberty Street, 8th Floor
New York, NY, 10281-1048
(Address of principal executive office)
____________________________________________________________________________
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ý Form 40-F o
Exhibit 99.1 included in this Form 6-K is incorporated by reference into Brookfield Business Corporation's registration statement on Form F-10 (File No: 333-294846).
EXHIBIT LIST
| Exhibit | Title | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 99.3 | ||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| BROOKFIELD BUSINESS CORPORATION | |||||||||||
| /s/ A.J. Silber | |||||||||||
| Date: August 5, 2026 | By: | Name: A.J. Silber Title: Managing Director, General Counsel and Corporate Secretary | |||||||||
QuickLinks
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
BROOKFIELD BUSINESS CORPORATION
As at June 30, 2026 and December 31, 2025 and for the
three and six months ended June 30, 2026 and 2025
1
INDEX TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS OF BROOKFIELD BUSINESS CORPORATION
| Unaudited Interim Condensed Consolidated Statements of Financial Position | |||||
| Unaudited Interim Condensed Consolidated Statements of Operating Results | |||||
| Unaudited Interim Condensed Consolidated Statements of Comprehensive Income (Loss) | |||||
| Unaudited Interim Condensed Consolidated Statements of Changes in Equity | |||||
| Unaudited Interim Condensed Consolidated Statements of Cash Flow | |||||
| Notes to Unaudited Interim Condensed Consolidated Financial Statements | |||||
2
BROOKFIELD BUSINESS CORPORATION
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION
| (US$ MILLIONS) | Notes | June 30, 2026 | December 31, 2025 | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Current Assets | ||||||||||||||||||||
| Cash and cash equivalents | 4 | $ | $ | |||||||||||||||||
| Financial assets | 5 | |||||||||||||||||||
| Accounts and other receivable, net | 6 | |||||||||||||||||||
| Inventory, net | 7 | |||||||||||||||||||
| Other assets | 10 | |||||||||||||||||||
| Non-Current Assets | ||||||||||||||||||||
| Financial assets | 5 | |||||||||||||||||||
| Accounts and other receivable, net | 6 | |||||||||||||||||||
| Other assets | 10 | |||||||||||||||||||
| Property, plant and equipment | 11 | |||||||||||||||||||
| Deferred income tax assets | ||||||||||||||||||||
| Intangible assets | 12 | |||||||||||||||||||
| Equity accounted investments | 14 | |||||||||||||||||||
| Goodwill | 13 | |||||||||||||||||||
| $ | $ | |||||||||||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Current Liabilities | ||||||||||||||||||||
| Accounts payable and other | 15 | $ | $ | |||||||||||||||||
| Non-recourse borrowings in subsidiaries of the Corporation | 17 | |||||||||||||||||||
| Non-Current Liabilities | ||||||||||||||||||||
| Accounts payable and other | 15 | |||||||||||||||||||
| Corporate borrowings | 17 | |||||||||||||||||||
| Non-recourse borrowings in subsidiaries of the Corporation | 17 | |||||||||||||||||||
| Deferred income tax liabilities | ||||||||||||||||||||
| $ | $ | |||||||||||||||||||
| Equity | ||||||||||||||||||||
Class A shareholders (1) | 20 | $ | $ | |||||||||||||||||
| Non-controlling interests attributable to: | ||||||||||||||||||||
Special shareholder (1) | 20 | |||||||||||||||||||
| Preferred securities | 20 | |||||||||||||||||||
| Interest of others in operating subsidiaries | ||||||||||||||||||||
| $ | $ | |||||||||||||||||||
_______________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one -for-one basis, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one -for-one basis. See Note 2(b) for additional information.
The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.
3
BROOKFIELD BUSINESS CORPORATION
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF OPERATING RESULTS
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (US$ MILLIONS, except per share amounts) | Notes | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
| Revenues | 23 | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Direct operating costs | 22 | ( | ( | ( | ( | |||||||||||||||||||||||||||
| General and administrative expenses | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Interest income (expense), net | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Equity accounted income (loss) | 14 | ( | ||||||||||||||||||||||||||||||
| Impairment reversal (expense), net | ( | ( | ||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | 9 | |||||||||||||||||||||||||||||||
| Other income (expense), net | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Income (loss) before income tax | ||||||||||||||||||||||||||||||||
| Income tax (expense) recovery | ||||||||||||||||||||||||||||||||
| Current | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Deferred | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Attributable to: | ||||||||||||||||||||||||||||||||
Class A shareholders (1) | 20 | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Non-controlling interests attributable to: | ||||||||||||||||||||||||||||||||
Special shareholder (1) | 20 | |||||||||||||||||||||||||||||||
| Preferred securities | 20 | |||||||||||||||||||||||||||||||
| Interest of others in operating subsidiaries | ||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||||||||
Basic and diluted earnings (loss) per Class A share (1) | 20 | $ | $ | $ | $ | |||||||||||||||||||||||||||
_______________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one -for-one basis, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one -for-one basis. See Note 2(b) for additional information.
The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.
4
BROOKFIELD BUSINESS CORPORATION
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME (LOSS)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Notes | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
| Net income (loss) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
| Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||
| Fair value through other comprehensive income | ||||||||||||||||||||||||||||||||
| Insurance finance reserve | 26 | ( | ( | ( | ||||||||||||||||||||||||||||
| Foreign currency translation | ( | ( | ||||||||||||||||||||||||||||||
| Net investment and cash flow hedges | 4 | ( | ( | |||||||||||||||||||||||||||||
| Equity accounted investments | 14 | ( | ( | |||||||||||||||||||||||||||||
| Taxes on the above items | ( | |||||||||||||||||||||||||||||||
| Reclassification to profit or loss | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| ( | ||||||||||||||||||||||||||||||||
| Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||
| Revaluation of pension obligations | ( | |||||||||||||||||||||||||||||||
| Fair value through other comprehensive income | ( | |||||||||||||||||||||||||||||||
| Taxes on the above items | ||||||||||||||||||||||||||||||||
| ( | ||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) | ( | |||||||||||||||||||||||||||||||
| Comprehensive income (loss) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Attributable to: | ||||||||||||||||||||||||||||||||
Class A shareholders (1) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Non-controlling interests attributable to: | ||||||||||||||||||||||||||||||||
Special shareholder (1) | ||||||||||||||||||||||||||||||||
| Preferred securities | ||||||||||||||||||||||||||||||||
| Interest of others in operating subsidiaries | ||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||||||||
______________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one -for-one basis, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one -for-one basis. See Note 2(b) for additional information.
The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.
5
BROOKFIELD BUSINESS CORPORATION
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Class A shareholders (1) | Non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Capital | Retained earnings | Ownership changes | Accumulated other comprehensive income (loss) (2) | Total Class A shareholders | Special shareholder (1) | Preferred securities | Interest of others in operating subsidiaries | Total equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as at January 1, 2026 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions and capital paid (3) | — | ( | — | — | ( | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ownership changes and other (3) | — | ( | ( | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases (3) | ( | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as at June 30, 2026 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as at January 1, 2025 | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions and capital paid (3) | — | ( | — | — | ( | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ownership changes and other (3) | — | ( | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases (3) | ( | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of interest (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as at June 30, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one -for-one basis, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one -for-one basis. See Note 2(b) for additional information.
(2)See Note 21 for additional information.
(3)See Note 20 for additional information on distributions, share repurchases, and ownership changes and other.
(4)See Note 3 for additional information.
The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.
6
BROOKFIELD BUSINESS CORPORATION
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
| Six Months Ended June 30, | ||||||||||||||||||||
| (US$ MILLIONS) | Notes | 2026 | 2025 | |||||||||||||||||
| Operating Activities | ||||||||||||||||||||
| Net income (loss) | $ | $ | ||||||||||||||||||
| Adjusted for the following items: | ||||||||||||||||||||
| Equity accounted earnings, net of distributions | 14 | |||||||||||||||||||
| Impairment expense (reversal), net | ( | |||||||||||||||||||
| Depreciation and amortization expense | 22 | |||||||||||||||||||
| (Gain) loss on dispositions, net | 9 | ( | ( | |||||||||||||||||
| Provisions and other items | ( | |||||||||||||||||||
| Deferred income tax expense (recovery) | ( | ( | ||||||||||||||||||
| Changes in non-cash working capital, net | 25 | ( | ||||||||||||||||||
| Cash from (used in) operating activities | ||||||||||||||||||||
| Financing Activities | ||||||||||||||||||||
| Proceeds from non-recourse subsidiary borrowings of the Corporation | ||||||||||||||||||||
| Repayment of non-recourse subsidiary borrowings of the Corporation | ( | ( | ||||||||||||||||||
| Proceeds from corporate borrowings | ||||||||||||||||||||
| Repayment of corporate borrowings | ( | ( | ||||||||||||||||||
| Proceeds from other financing | ||||||||||||||||||||
| Repayment of other financing | ( | ( | ||||||||||||||||||
| Proceeds from (repayment of) other credit facilities, net | ||||||||||||||||||||
| Lease liability repayment | ( | ( | ||||||||||||||||||
| Capital provided by others who have interests in operating subsidiaries | 20 | |||||||||||||||||||
| Repurchases of Class A shares | 20 | ( | ( | |||||||||||||||||
| Distributions to Class A shareholders | 20 | ( | ( | |||||||||||||||||
| Distributions to preferred securities holders | 20 | ( | ( | |||||||||||||||||
| Distributions to Special shareholder | 20 | ( | ||||||||||||||||||
| Distributions and capital paid to others who have interests in operating subsidiaries | 20 | ( | ( | |||||||||||||||||
| Cash from (used in) financing activities | ||||||||||||||||||||
| Investing Activities | ||||||||||||||||||||
| Acquisitions | ||||||||||||||||||||
| Subsidiaries, net of cash acquired | 3 | ( | ( | |||||||||||||||||
| Property, plant and equipment and intangible assets | ( | ( | ||||||||||||||||||
| Equity accounted investments | ( | ( | ||||||||||||||||||
| Financial assets and other | ( | ( | ||||||||||||||||||
| Dispositions | ||||||||||||||||||||
| Subsidiaries, net of cash disposed | 9 | |||||||||||||||||||
| Property, plant and equipment and intangible assets | ||||||||||||||||||||
| Equity accounted investments | 14 | |||||||||||||||||||
| Financial assets and other | ||||||||||||||||||||
| Net settlement of derivative assets and liabilities | ( | ( | ||||||||||||||||||
| Restricted cash and deposits | ( | |||||||||||||||||||
| Cash from (used in) investing activities | ( | ( | ||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||
| Change during the period | ( | |||||||||||||||||||
| Impact of foreign exchange | ||||||||||||||||||||
| Net change in cash classified within assets held for sale | ( | ( | ||||||||||||||||||
| Balance, beginning of year | ||||||||||||||||||||
| Balance, end of period | $ | $ | ||||||||||||||||||
Supplemental cash flow information is presented in Note 25.
The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.
7
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 1. NATURE AND DESCRIPTION OF THE CORPORATION
(a)Brookfield Business Corporation
Brookfield Business Corporation and its subsidiaries (collectively, the “Corporation”) is an owner and operator of business services and industrials operations on a global basis. Brookfield Business Corporation was incorporated under the Business Corporations Act (British Columbia) on October 10, 2025 under the name 1559985 B.C. Ltd. and changed its name to Brookfield Business Corporation on March 27, 2026. Brookfield Corporation (together with its controlled subsidiaries, excluding the Corporation, “Brookfield”) is the ultimate parent of the Corporation. “Brookfield Holders” refers to Brookfield, Brookfield Wealth Solutions Ltd. (“Brookfield Wealth Solutions”) and their related parties. The Corporation’s class A subordinate voting shares (“Class A Shares”) are listed on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”) under the symbol “BBUC”. The Corporation’s head office is located at 225 Liberty Street, 8th Floor, New York, NY 10281-1048 and its registered office is located at 1055 West Georgia Street, 1500 Royal Centre, P.O. Box 11117, Vancouver, British Columbia V6E 4N7.
The Corporation’s consolidated equity interests include newly issued publicly traded Class A Shares held by public shareholders and Brookfield Holders and newly issued class B multiple voting shares (“Class B Shares”) and newly issued non-voting incentive shares (“Special Shares”) held by Brookfield. Holders of the Class A Shares, Class B Shares, and Special Shares will be collectively referred to throughout as “Shareholders”, unless the context indicates or requires otherwise. Class A Shares, Class B Shares and Special Shares will be collectively referred to throughout as “Shares” unless the context indicates or requires otherwise.
The Corporation’s principal operations include business services operations such as a dealer software and technology services operation, non-bank financial services operations, a residential mortgage insurer and fleet management and car rental services. The Corporation’s industrials operations include an advanced energy storage operation and an engineered components manufacturing operation, among others. The Corporation’s infrastructure services operations include modular building leasing services, a lottery services operation, offshore oil services and work access services. The Corporation’s operations are primarily located in the United States, Europe, Australia, Brazil and Canada.
(b)The Arrangement
On March 27, 2026, Brookfield Business Partners L.P. (“BBU”), Brookfield Business Holdings Corporation (“BBHC”, formerly Brookfield Business Corporation) and the Corporation completed a reorganization by way of a plan of arrangement under the laws of the Province of British Columbia (the “Arrangement”) to simplify BBU’s and BBHC’s corporate structure by replacing BBU and BBHC with a single publicly traded corporate entity. Pursuant to the Arrangement, (i) limited partnership units (“LP Units”) of BBU, the Corporation’s predecessor, class A exchangeable subordinate voting shares (“BBHC exchangeable shares”) of BBHC and redemption-exchange partnership units (“Redemption-Exchange Units”) of Brookfield Business L.P. (the “Holding LP”) were exchanged on a one -for-one basis for newly issued Class A Shares, (ii) general partnership units (“GP Units”) of BBU were exchanged for newly issued Class B Shares, and (iii) the special limited partnership units (“Special LP Units”) in the Holding LP were exchanged on a one -for-one basis for newly issued Special Shares. Following the completion of the Arrangement, BBU and BBHC became subsidiaries of the Corporation, were delisted, and ceased to be reporting issuers, with the Corporation succeeding BBU, its predecessor.
8
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION
(a)Basis of presentation
These unaudited interim condensed consolidated financial statements of the Corporation have been prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”) and using the accounting policies of BBU, the Corporation’s predecessor, applied in its annual consolidated financial statements as at and for the year ended December 31, 2025. The Corporation’s accounting policies are consistent with BBU’s historical accounting policies. The accounting policies BBU applied in its annual consolidated financial statements as at and for the year ended December 31, 2025 are disclosed in Note 2 of such BBU consolidated financial statements, with which reference should be made in reading these unaudited interim condensed consolidated financial statements. All defined terms are also described in BBU’s annual consolidated financial statements. The unaudited interim condensed consolidated financial statements are prepared on a going concern basis and have been presented in U.S. dollars rounded to the nearest million unless otherwise indicated. Historical financial information for periods prior to the completion of the Arrangement on March 27, 2026 relates to BBU, the Corporation’s predecessor, which became a subsidiary of the Corporation following the Arrangement. Accordingly, the interim financial statements as at December 31, 2025 and for the three and six months ended June 30, 2025 reflect the historical information of BBU. Certain comparative figures have been reclassified to conform to the current year's presentation of the Corporation's consolidated equity interests and net income attributable to common equity following completion of the Arrangement.
These unaudited interim condensed consolidated financial statements were approved by the Board of Directors of the Corporation and authorized for issue on August 5, 2026.
(b)Continuity of interests
As described in Note 1, the Corporation was established on October 10, 2025 and became the successor to BBU on March 27, 2026 following completion of the Arrangement. Brookfield directly controlled BBU and the Corporation prior to the Arrangement and continues to control the Corporation subsequent to the Arrangement through its interest in the Corporation’s Class A Shares and Class B Shares. As a result, the transfer of interests in BBU and BBHC to the Corporation pursuant to the Arrangement is a transaction between entities under common control, and has been reflected at the historical carrying values as previously reported by BBU, in accordance with the Corporation’s policy for such transactions. To reflect this continuity of interests and in line with the Corporation’s accounting policy, historical financial information presented for periods prior to the completion of the Arrangement has been retrospectively recast to reflect the net income, comprehensive income and equity attribution of the Corporation following the Arrangement.
(c)Critical accounting judgments and measurement uncertainty
The preparation of financial statements in accordance with IAS 34 requires management to make critical judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period of the financial statements that are not readily apparent from other sources. The critical accounting estimates and judgments have been set out in Note 2 to BBU’s annual consolidated financial statements as at and for the year ended December 31, 2025. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. There have been no significant changes to the method of determining critical accounting estimates and judgments relative to those described in BBU’s annual consolidated financial statements as at and for the year ended December 31, 2025.
9
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
(i)Impact of U.S. tax legislation for domestic energy production and manufacturing
On August 16, 2022, the United States enacted laws providing incentives for domestic energy production and manufacturing. In December 2023, the United States Department of the Treasury issued proposed regulations, which were subsequently finalized in October 2024, that provided guidance in determining eligibility to claim tax benefits. The tax benefits are available for qualifying activities from 2023 to 2032, subject to phase out beginning in 2030. For qualified business activities in the Corporation’s advanced energy storage operation beginning in its fiscal year 2024, these tax benefits are eligible to be refundable or transferable, and therefore the benefits are accounted for in accordance with IAS 20, Accounting for Government Grants and Disclosure of Government Assistance (“IAS 20”). IAS 20 permits a policy choice to present benefits of a similar nature as income or an offset to a related expense. The Corporation has elected to present these benefits as a reduction to direct operating costs. For the three and six months ended June 30, 2026, the Corporation recorded a benefit of $256 million and $497 million respectively (June 30, 2025: $256 million and $515 million respectively).
(ii)Going concern
In assessing whether the going concern assumption is appropriate and whether there are material uncertainties that cast significant doubt on the Corporation’s ability to continue as a going concern, management has made certain estimates and assumptions about future cash flows. These judgments considered various forward-looking factors, such as forecasted cash flows, access to financing and liquidity reserves, planned capital expenditures and debt repayment obligations. The assumptions underlying this assessment are based on actual operating results and the most relevant available information about the future, including the Corporation’s strategic initiatives and business plans and may be affected by market conditions, regulatory developments and macroeconomic risks.
(d)New accounting policies adopted
The Corporation has applied certain new and revised IFRS® Accounting Standards issued by the IASB (“IFRS”) that are effective for the period beginning on or after January 1, 2026.
(i)Amendments to IFRS 9, Financial Instruments (“IFRS 9”) and IFRS 7, Financial Instruments: Disclosures (“IFRS 7”) - Classification and Measurement of Financial Instruments
The amendments clarify the requirements for the timing of recognition and derecognition of financial liabilities settled through an electronic cash transfer system, add further guidance for assessing the contractual cash flow characteristics of financial assets with contingent feature, and add new or amended disclosures relating to investments in equity instruments designated at FVOCI and financial instruments with contingent features. The Corporation adopted these amendments on January 1, 2026 and the adoption did not have a material impact on the Corporation’s unaudited interim condensed consolidated financial statements.
(e)Future changes in accounting policies
(i)IFRS 18, Presentation and Disclosure of Financial Statements (“IFRS 18”)
In April 2024, the IASB issued IFRS 18 to replace IAS 1 Presentation of Financial Statements (“IAS 1”). IFRS 18 is effective for periods beginning on or after January 1, 2027, with early adoption permitted. IFRS 18 aims to improve financial reporting by requiring additional defined subtotals in the statement of profit or loss, requiring disclosures about management-defined performance measures, and adding new principles for the aggregation and disaggregation of items. The Corporation is currently assessing the impact of these amendments.
There are currently no other future changes to IFRS Accounting Standards with expected material impacts on the Corporation.
NOTE 3. ACQUISITION OF BUSINESSES
When determining the basis of accounting for the Corporation’s investees, the Corporation evaluates the degree of influence that it exerts directly or through an arrangement over the investees’ relevant activities. Control is obtained when the Corporation has power over the acquired entities and an ability to use its power to affect the returns of these entities.
The Corporation accounts for business combinations using the acquisition method of accounting, pursuant to which identifiable tangible and intangible assets and liabilities are recognized and measured on the basis of their estimated fair values at the date of acquisition.
10
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
(a)Acquisitions completed in the six months ended June 30, 2026
There were no significant acquisitions during the six months ended June 30, 2026.
(b)Acquisitions completed in 2025
Industrials
Chemelex
On January 30, 2025, the Corporation, together with institutional partners, acquired a 100 % economic interest in Chemelex, a leading manufacturer of electric heat tracing systems. Total consideration for the business was $1,656 million, funded with debt and equity. The Corporation received 100 % of the voting rights, which provided the Corporation with control, and accordingly, the Corporation has consolidated the business for financial reporting purposes. The Corporation’s economic ownership interest in the business is 26 %.
Goodwill of $673 million was recognized and represents the growth the Corporation expects to experience from the operations. The goodwill recognized was not deductible for income tax purposes. Intangible assets of $804 million were acquired as part of the transaction, comprising customer relationships of $498 million, brand and trademarks of $198 million, and developed technology and software of $108 million. Other items include $115 million of property, plant and equipment, $109 million of inventory, and $45 million of net other liabilities. Transaction costs of approximately $34 million were recorded as other expenses in the consolidated statements of operating results.
NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are determined by reference to quoted bid or ask prices, as appropriate. Where bid and ask prices are unavailable, the closing price of the most recent transaction of that instrument is used. In the absence of an active market, fair values are determined based on prevailing market rates such as bid and ask prices, as appropriate, for instruments with similar characteristics and risk profiles or internal or external valuation models, such as option pricing models and discounted cash flow analysis, using observable market inputs when available.
Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, the Corporation looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates and price and rate volatility, as applicable.
11
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
The following table provides the details of financial instruments and their associated financial instrument classifications as at June 30, 2026:
| (US$ MILLIONS) | ||||||||||||||||||||||||||
| MEASUREMENT BASIS | FVTPL | FVOCI | Amortized cost | Total | ||||||||||||||||||||||
| Financial assets | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | ||||||||||||||||||||||
Accounts and other receivable, net (current and non-current) (1) | ||||||||||||||||||||||||||
Financial assets (current and non-current) (2) (3) | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
| Financial liabilities | ||||||||||||||||||||||||||
Accounts payable and other (current and non-current) (2) (4) | $ | $ | $ | $ | ||||||||||||||||||||||
| Borrowings (current and non-current) | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
____________________________________
(1)Includes a receivable of $1,850 million related to the tax benefits at the Corporation’s advanced energy storage operation. Refer to Note 2(c)(i) for additional details.
(2)FVOCI and FVTPL include derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging activities in Note 4(a) below.
(3)FVOCI includes $490 million of units in an evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 18(a)(i) for additional information.
(4)Includes derivative liabilities, and excludes provisions, decommissioning liabilities, deferred revenue, insurance contract liabilities, work in progress, post-employment benefits, other liabilities, and liabilities associated with assets held for sale of $9,216 million. Refer to Note 8 for additional information.
Included in cash and cash equivalents as at June 30, 2026 was $2,332 million of cash (December 31, 2025: $2,392 million) and $1,115 million of cash equivalents (December 31, 2025: $1,154 million).
Included in financial assets (current and non-current) as at June 30, 2026 was $1,081 million (December 31, 2025: $1,115 million) of equity instruments and $4,037 million (December 31, 2025: $3,865 million) of debt instruments designated and measured at fair value through other comprehensive income.
12
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2025:
| (US$ MILLIONS) | ||||||||||||||||||||||||||
| MEASUREMENT BASIS | FVTPL | FVOCI | Amortized cost | Total | ||||||||||||||||||||||
| Financial assets | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | ||||||||||||||||||||||
Accounts and other receivable, net (current and non-current) (1) | ||||||||||||||||||||||||||
Financial assets (current and non-current) (2) (3) | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
| Financial liabilities | ||||||||||||||||||||||||||
Accounts payable and other (2) (4) | $ | $ | $ | $ | ||||||||||||||||||||||
| Borrowings (current and non-current) | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
____________________________________
(1)Includes a receivable of $2,412 million related to the tax benefits at the Corporation’s advanced energy storage operation. Refer to Note 2(c)(i) for additional details.
(2)FVOCI and FVTPL include derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 4(a) below.
(3)FVOCI includes $584 million of units in an evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 18(a)(i) for additional information.
(4)Includes derivative liabilities and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenues, insurance contract liabilities, work in progress, post-employment benefits and other liabilities of $6,941 million.
(a)Hedging activities
Derivative instruments not designated in a hedging relationship are classified as FVTPL, with changes in fair value recognized in the unaudited interim condensed consolidated statements of operating results.
Net investment hedges
The Corporation uses foreign exchange derivative contracts, currency options and foreign currency denominated debt instruments to manage foreign currency exposures arising from net investments in foreign operations. For the three and six months ended June 30, 2026, a pre-tax net loss of $1 million and $3 million, respectively (June 30, 2025: pre-tax net loss of $147 million and $188 million, respectively) was recorded in other comprehensive income for the effective portion of hedges of net investments in foreign operations. As at June 30, 2026, there was a derivative asset balance of $60 million (December 31, 2025: $34 million) and a derivative liability balance of $41 million (December 31, 2025: $14 million) relating to derivative contracts designated as net investment hedges.
Cash flow hedges
The Corporation uses commodity swap contracts to hedge the sale price of natural gas contracts, purchase price of lead, polypropylene, and tin, foreign exchange contracts and option contracts to hedge highly probable future transactions, and interest rate contracts to hedge the cash flows on its floating rate borrowings. For the three and six months ended June 30, 2026, a pre-tax net gain of $42 million and $149 million, respectively (June 30, 2025: pre-tax net loss of $6 million and $94 million, respectively) was recorded in other comprehensive income for the effective portion of cash flow hedges. As at June 30, 2026, there was a derivative asset balance of $157 million (December 31, 2025: $58 million) and derivative liability balance of $23 million (December 31, 2025: $43 million) relating to the derivative contracts designated as cash flow hedges.
Fair value hedges
The Corporation uses cross currency interest rate swap contracts to hedge its fair value exposure on certain foreign currency borrowings resulting from changes in foreign currency. As at June 30, 2026, there was a derivative asset balance of $33 million (December 31, 2025: $81 million) and derivative liability balance of $83 million (December 31, 2025: $76 million) relating to derivative contracts designated as fair value hedges.
13
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
(b)Fair value hierarchical levels – financial instruments
Level 3 assets and liabilities measured at fair value on a recurring basis include $1,883 million (December 31, 2025: $1,578 million) of financial assets and $25 million (December 31, 2025: $25 million) of financial liabilities, which are measured at fair value using valuation inputs based on management’s best estimates.
The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at June 30, 2026 and December 31, 2025:
| June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
| Financial assets | ||||||||||||||||||||||||||||||||||||||
Common shares (1) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Corporate and government bonds | ||||||||||||||||||||||||||||||||||||||
| Derivative assets | ||||||||||||||||||||||||||||||||||||||
Other financial assets (2) | ||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
| Financial liabilities | ||||||||||||||||||||||||||||||||||||||
| Derivative liabilities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Other financial liabilities | ||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
____________________________________
(1)Level 3 common shares include $490 million (December 31, 2025: $584 million) of units in an evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 18(a)(i) for additional information.
(2)Other financial assets include secured debentures, asset-backed securities and preferred shares. Level 1 other financial assets are primarily mutual funds. Level 2 other financial assets are primarily asset-backed securities and Level 3 financial assets are primarily convertible preferred securities in the Corporation’s audience measurement operation and secured debentures.
There were no transfers between levels during the six months ended June 30, 2026.
The following table presents the change in the balance of financial assets classified as Level 3 for the six-month period ended June 30, 2026 and the year ended December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Balance at beginning of period | $ | $ | ||||||||||||
| Fair value change recorded in net income | ||||||||||||||
| Fair value change recorded in other comprehensive income | ( | |||||||||||||
| Additions | ||||||||||||||
| Disposals | ( | ( | ||||||||||||
| Foreign currency translation and other | ( | |||||||||||||
| Balance at end of period | $ | $ | ||||||||||||
14
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
The following table represents a component of the Level 3 financial asset balance, and presents the change in the balance of Level 3 equity instruments measured at fair value through other comprehensive income for the six-month period ended June 30, 2026 and the year ended December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Balance at beginning of period | $ | $ | ||||||||||||
| Fair value change recorded in other comprehensive income | ( | |||||||||||||
| Additions | ||||||||||||||
| Disposals | ( | ( | ||||||||||||
| Foreign currency translation and other | ( | |||||||||||||
Balance at end of period (1) | $ | $ | ||||||||||||
(1)Includes $490 million (December 31, 2025: $584 million) of units in an evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 18(a)(i) for additional information.
There was no change in the balance of financial liabilities classified as Level 3 for the six-month period ended June 30, 2026 and the year ended December 31, 2025.
NOTE 5. FINANCIAL ASSETS
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Current | ||||||||||||||
| Marketable securities | $ | $ | ||||||||||||
| Restricted cash | ||||||||||||||
| Derivative assets | ||||||||||||||
| Loans and notes receivable | ||||||||||||||
Other financial assets (1) | ||||||||||||||
| Total current | $ | $ | ||||||||||||
| Non-current | ||||||||||||||
Marketable securities (2) | $ | $ | ||||||||||||
| Restricted cash | ||||||||||||||
| Derivative assets | ||||||||||||||
Loans and notes receivable (3) | ||||||||||||||
Other financial assets (1) | ||||||||||||||
| Total non-current | $ | $ | ||||||||||||
____________________________________
(1)Other financial assets primarily consist of asset-backed securities and high yield bonds at the Corporation’s residential mortgage insurer and convertible preferred shares held in the Corporation’s audience measurement operation.
(2)Marketable securities include $490 million (December 31, 2025: $584 million) of units in an evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 18(a)(i) for additional information.
(3)Loans and notes receivable includes $6,895 million (December 31, 2025: $5,110 million) of mortgage receivables related to the Corporation’s Australian asset manager and lender.
15
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 6. ACCOUNTS AND OTHER RECEIVABLE, NET
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Current, net | $ | $ | ||||||||||||
| Non-current, net | ||||||||||||||
| Accounts receivable | ||||||||||||||
| Retainer on customer contract | ||||||||||||||
| Billing rights | ||||||||||||||
| Total non-current, net | $ | $ | ||||||||||||
Total (1) | $ | $ | ||||||||||||
_________________________________
(1)Includes a receivable of $1,850 million (December 31, 2025: $2,412 million) related to tax benefits at the Corporation’s advanced energy storage operation. Refer to Note 2(c)(i) for additional information.
Non-current billing rights represent unbilled rights from the Corporation’s water and wastewater operation in Brazil from revenues earned from the construction of public concession contracts classified as financial assets, which are recognized when there is an unconditional right to receive cash or other financial assets from the concession authority for the construction services.
The Corporation’s construction operation has a retention balance, which comprises amounts that have been earned but held back until the satisfaction of certain conditions specified in the contract. The retention balance included in the current accounts and other receivable, net as at June 30, 2026 was $60 million (December 31, 2025: $63 million).
NOTE 7. INVENTORY, NET
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Raw materials and consumables | $ | $ | ||||||||||||
| Work in progress | ||||||||||||||
Finished goods and other (1) | ||||||||||||||
| Carrying amount of inventories | $ | $ | ||||||||||||
____________________________________
(1)Finished goods and other primarily comprises finished goods inventory at the Corporation’s advanced energy storage operation and engineered components manufacturing operation.
NOTE 8. ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
Infrastructure services
During the quarter, the conditions precedent to the sale of the Corporation’s offshore oil services operation were met for its floating production, storage and offloading (“FPSO”) operation to be presented as a disposal group held for sale. The Corporation completed the sale on July 20, 2026.
16
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
The major classes of assets and liabilities of the businesses classified as held for sale as at June 30, 2026 are shown in the table below. There were no significant assets or liabilities classified as held for sale as at December 31, 2025.
| (US$ MILLIONS) | June 30, 2026 | |||||||
| Cash and cash equivalents | $ | |||||||
| Accounts receivable and other | ||||||||
| Property, plant and equipment | ||||||||
| Assets classified as held for sale | $ | |||||||
| Accounts payable and other | $ | |||||||
| Non-recourse borrowings | ||||||||
| Liabilities classified as held for sale | $ | |||||||
NOTE 9. DISPOSITIONS
(a) Dispositions completed in the six months ended June 30, 2026
There were no significant dispositions during the six months ended June 30, 2026.
(b) Dispositions completed in the six months ended June 30, 2025
Infrastructure services
Offshore oil services’ shuttle tanker operation
On January 16, 2025, the Corporation’s offshore oil services completed the sale of its shuttle tanker operation for consideration of $484 million, resulting in a net gain of $214 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on dispositions, net.
NOTE 10. OTHER ASSETS
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Current | ||||||||||||||
Work in progress (1) | $ | $ | ||||||||||||
| Prepayments and other assets | ||||||||||||||
Assets reclassified as held for sale (2) | ||||||||||||||
| Total current | $ | $ | ||||||||||||
| Non-current | ||||||||||||||
| Prepayments and other assets | $ | $ | ||||||||||||
| Total non-current | $ | $ | ||||||||||||
____________________________________
(1)See Note 16 for additional information.
(2)See Note 8 for additional information.
17
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 11. PROPERTY, PLANT AND EQUIPMENT
The following table presents the change in the balance of property, plant and equipment for the six-month period ended June 30, 2026 and the year ended December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Gross carrying amount | ||||||||||||||
| Balance at beginning of period | $ | $ | ||||||||||||
| Additions (cash and non-cash) | ||||||||||||||
Dispositions (1) (2) | ( | ( | ||||||||||||
| Acquisitions through business combinations | ||||||||||||||
Assets reclassified as held for sale (3) | ( | ( | ||||||||||||
| Foreign currency translation and other | ||||||||||||||
| Balance at end of period | $ | $ | ||||||||||||
| Accumulated depreciation and impairment | ||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | ||||||||||
| Depreciation/depletion/impairment expense | ( | ( | ||||||||||||
Dispositions (1) (2) | ||||||||||||||
Assets reclassified as held for sale (3) | ||||||||||||||
| Foreign currency translation and other | ( | |||||||||||||
| Balance at end of period | $ | ( | $ | ( | ||||||||||
Net book value (4) | $ | $ | ||||||||||||
____________________________________
(1)The prior period includes the deconsolidation of the Corporation’s healthcare services operation.
(2)The prior period includes reclassification of $1,419 million from property, plant and equipment into finance lease receivables related to vessels at
the Corporation’s offshore oil services.
(3)See Note 8 for additional information.
(4)Includes right-of-use assets of $799 million as at June 30, 2026 (December 31, 2025: $767 million).
18
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 12. INTANGIBLE ASSETS
The following table presents the change in the balance of intangible assets for the six-month period ended June 30, 2026 and the year ended December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Gross carrying amount | ||||||||||||||
| Balance at beginning of period | $ | $ | ||||||||||||
| Additions | ||||||||||||||
Acquisitions through business combinations | ||||||||||||||
Dispositions (1) | ( | ( | ||||||||||||
| Assets reclassified as held for sale | ( | |||||||||||||
| Foreign currency translation | ||||||||||||||
| Balance at end of period | $ | $ | ||||||||||||
| Accumulated amortization and impairment | ||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | ||||||||||
| Amortization and impairment expense | ( | ( | ||||||||||||
Dispositions (1) | ||||||||||||||
| Assets reclassified as held for sale | ||||||||||||||
| Foreign currency translation | ( | ( | ||||||||||||
| Balance at end of period | $ | ( | $ | ( | ||||||||||
| Net book value | $ | $ | ||||||||||||
____________________________________
(1)The prior period includes the deconsolidation of the Corporation’s healthcare services operation.
NOTE 13. GOODWILL
The following table presents the change in the balance of goodwill for the six-month period ended June 30, 2026 and the year ended December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Balance at beginning of period | $ | $ | ||||||||||||
Acquisitions through business combinations (1) | ||||||||||||||
Impairment (2) | ( | |||||||||||||
| Dispositions | ( | |||||||||||||
| Foreign currency translation | ( | |||||||||||||
| Balance at end of period | $ | $ | ||||||||||||
____________________________________
(1)See Note 3 for additional information.
(2)The prior period includes a goodwill impairment of $71 million at the Corporation’s solar power solutions.
19
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 14. EQUITY ACCOUNTED INVESTMENTS
The following table presents the change in the balance of equity accounted investments for the six-month period ended June 30, 2026 and the year ended December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Balance at beginning of period | $ | $ | ||||||||||||
| Additions (cash and non-cash) | ||||||||||||||
| Dispositions | ( | ( | ||||||||||||
| Share of net income (loss) | ||||||||||||||
| Share of other comprehensive income (loss) | ( | |||||||||||||
| Distributions received | ( | ( | ||||||||||||
| Foreign currency translation and other | ( | |||||||||||||
Assets reclassified as held for sale (1) | ( | |||||||||||||
| Balance at end of period | $ | $ | ||||||||||||
(1)See Note 8 for additional information.
On April 9, 2026, the Corporation invested $173 million of equity in Fosber, a global leader in the design and production of advanced machinery, parts, and services for the corrugated packaging industry, for a 37 % economic interest.
NOTE 15. ACCOUNTS PAYABLE AND OTHER
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Current | ||||||||||||||
| Accounts payable | $ | $ | ||||||||||||
Accrued and other liabilities (1) | ||||||||||||||
| Lease liabilities | ||||||||||||||
| Financial liabilities | ||||||||||||||
| Insurance liabilities | ||||||||||||||
Work in progress (2) | ||||||||||||||
| Provisions and decommissioning liabilities | ||||||||||||||
Liabilities associated with assets held for sale (3) | ||||||||||||||
| Total current | $ | $ | ||||||||||||
| Non-current | ||||||||||||||
| Accounts payable | $ | $ | ||||||||||||
Accrued and other liabilities (1) | ||||||||||||||
| Lease liabilities | ||||||||||||||
| Financial liabilities | ||||||||||||||
| Insurance liabilities | ||||||||||||||
Work in progress (2) | ||||||||||||||
| Provisions and decommissioning liabilities | ||||||||||||||
| Total non-current | $ | $ | ||||||||||||
____________________________________
(1)Includes post-employment benefits of $194 million ($8 million current and $186 million non-current) as at June 30, 2026 and $194 million ($8 million current and $186 million non-current) as at December 31, 2025.
(2)See Note 16 for additional information.
(3)See Note 8 for additional information.
20
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 16. CONTRACTS IN PROGRESS
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Contract costs incurred to date | $ | $ | ||||||||||||
| Profit recognized to date | ||||||||||||||
| $ | $ | |||||||||||||
| Less: progress billings | ( | ( | ||||||||||||
| Contract work in progress (liability) | $ | ( | $ | ( | ||||||||||
| Comprising: | ||||||||||||||
| Amounts due from customers – work in progress | $ | $ | ||||||||||||
| Amounts due to customers – creditors | ( | ( | ||||||||||||
| Net work in progress | $ | ( | $ | ( | ||||||||||
NOTE 17. BORROWINGS
(a)Corporate borrowings
The Corporation has bilateral credit facilities backed by large global banks. The credit facilities are available in Euros, British pounds, Australian dollars, U.S. dollars and Canadian dollars. Advances under the credit facilities bear interest at the specified SOFR, SONIA, EURIBOR, CORRA or BBSY rate plus 2.25 %, or the specified base rate or prime rate plus 1.50 %. The credit facilities require the Corporation to maintain a minimum tangible net worth and deconsolidated debt to capitalization ratio at the corporate level. The total capacity on the bilateral credit facilities is $2,450 million with a maturity date of June 29, 2031. The balance drawn on the bilateral credit facilities, net of deferred financing costs, as at June 30, 2026 was $1,629 million (December 31, 2025: $1,325 million).
The Corporation had $1 billion available on its revolving acquisition credit facility with Brookfield (the “Brookfield Credit Agreement”) as at June 30, 2026. The credit facility is guaranteed by the Corporation. The credit facility is available in U.S. dollars or Canadian dollars and advances are made by way of SOFR, CORRA, base rate or prime rate loans. The credit facility bears interest at the specified SOFR or CORRA rate plus 3.45 %, or the specified base rate or prime rate plus 2.45 %. The credit facility requires the Corporation to maintain a minimum deconsolidated net worth and contains restrictions on the ability of the borrowers and the guarantors to, among other things, incur certain liens or enter into speculative hedging arrangements. The maturity date of the credit facility is April 27, 2031, subject to automatic one year extensions occurring on April 27 of each year unless Brookfield provides written notice of its intention not to further extend the prevailing maturity date. The total available amount on the credit facility will decrease to $500 million on May 7, 2027. As at June 30, 2026, the credit facility remained undrawn.
The Corporation is currently in compliance with covenant requirements of its corporate borrowings and continues to monitor performance against such covenant requirements.
As at June 30, 2026, there were no funds on deposit from and/or placed with Brookfield (December 31, 2025: $nil ). Refer to Note 18 for further details on the Deposit Agreements (defined herein) with Brookfield.
(b)Non-recourse subsidiary borrowings of the Corporation
Current and non-current non-recourse subsidiary borrowings of the Corporation as at June 30, 2026, net of deferred financing costs, premiums and discounts were $1,962 million and $41,231 million, respectively (December 31, 2025: $1,352 million and $41,072 million, respectively). Non-recourse borrowings in subsidiaries of the Corporation include borrowings made under subscription facilities of Brookfield-sponsored private equity funds.
Some of the Corporation’s operations have credit facilities in which they borrow and repay on a short-term basis. This movement has been shown on a net basis in the Corporation’s unaudited interim condensed consolidated statements of cash flow.
21
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
The Corporation has financing arrangements within its operating businesses that trade in public markets or are held at major financial institutions. The financing arrangements primarily comprise term loans, securitization programs, credit facilities and notes and debentures which are subject to fixed or floating interest rates. Most of these borrowings are not subject to financial maintenance covenants, however, some are subject to fixed charge coverage ratios, leverage ratios and minimum equity or liquidity covenants.
The Corporation principally finances assets at the subsidiary level with debt that is non-recourse to both the Corporation and to its other subsidiaries and is generally secured against assets within the respective subsidiaries. Moreover, debt instruments at the Corporation’s subsidiaries do not cross-accelerate or cross-default to debt at other subsidiaries. As at June 30, 2026, the Corporation’s subsidiaries were in compliance with all material covenant requirements and the Corporation continues to work with its businesses to monitor performance against such covenant requirements.
NOTE 18. RELATED PARTY TRANSACTIONS
In the normal course of operations, the Corporation entered into the transactions below with related parties. These transactions have been measured at fair value and are recognized in the unaudited interim condensed consolidated financial statements. The ultimate parent of the Corporation is Brookfield Corporation. Other related parties of the Corporation include Brookfield Corporation’s subsidiaries, affiliates, and operating entities.
(a)Transactions with Brookfield
As at June 30, 2026, the Corporation had $1 billion available on its revolving acquisition credit facility with Brookfield and $nil was drawn (December 31, 2025: $nil ). Refer to Note 17 for further details.
From time to time, each of Brookfield and the Corporation may place funds on deposit with the other, on terms approved by the independent directors of the Corporation, pursuant to deposit agreements entered into between Brookfield and the Corporation (the “Deposit Agreements”). Interest earned or incurred on such deposits is at market terms. As at June 30, 2026, the net deposit from and/or placed with Brookfield was $nil (December 31, 2025: $nil ) and the Corporation incurred interest income (expense) of $nil nil
Pursuant to the Master Services Agreement (“Master Services Agreement”), the Corporation and other service recipients (the “Service Recipients” as defined in the Master Services Agreement) pay a base management fee, referred to as the Base Management Fee, to certain service providers (the “Service Providers” as defined in the Master Services Agreement) which are wholly-owned subsidiaries of Brookfield Asset Management, equal to 0.3125 % per quarter (1.25 % annually) of the total capitalization of the Corporation, which is reflected within general and administrative expenses. For purposes of calculating the Base Management Fee, the total capitalization of the Corporation is equal to the quarterly volume-weighted average trading price of a Class A Share on the principal stock exchange for the Class A Shares (based on trading volumes) multiplied by the number of Class A Shares outstanding at the end of the quarter, plus the value of securities of the other Service Recipients that are not held by the Corporation, plus all outstanding debt with recourse to a Service Recipient, less all cash held by such entities. The Base Management Fee for the three and six months ended June 30, 2026 was $28 million and $57 million, respectively (June 30, 2025: $22 million and $43 million, respectively).
In its capacity as the holder of the Special Shares, Brookfield is entitled to incentive dividends. The incentive dividend for the three and six months ended June 30, 2026 was $nil nil
An integral part of the Corporation’s strategy is to participate alongside institutional investors in Brookfield-sponsored private equity funds that target acquisitions that suit the Corporation’s investment mandate. In the normal course of business, the Corporation and institutional investors have made commitments to Brookfield-sponsored private equity funds, and in connection therewith, the Corporation, together with institutional investors, has access to short-term financing using the private equity funds’ credit facilities to facilitate investments that Brookfield has determined to be in the Corporation’s best interests.
In addition, at the time of spin-off of BBU, the Corporation’s predecessor, from Brookfield in 2016, BBU entered into indemnity agreements with Brookfield that relate to certain contracts that were in place prior to the spin-off. Under these indemnity agreements, Brookfield has agreed to indemnify BBU for payments relating to such contracts.
22
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
(i) Redemption of units held in evergreen private equity fund
In July 2025, the Corporation sold a partial interest in three businesses to an evergreen private equity fund, managed by Brookfield Asset Management, in exchange for units in the fund with an initial redemption value of $688 million, representing an 8.6 % discount to the net asset value of the interests sold. In the 18 -month period following the initial closing of the evergreen private equity fund, the units are redeemable for cash at an 8.6 % discount to their net asset value at the time of redemption. Any remaining units still outstanding after this 18 -month period will be redeemable at their net asset value.
The units of the evergreen private equity fund received represent an investment in an equity instrument of the fund and are accounted for as a financial asset measured at FVOCI. For the three and six months ended June 30, 2026, the evergreen private equity fund partially redeemed units held by the Corporation for proceeds of $34 million and $77 million respectively. To date, the evergreen private equity fund has redeemed 25 % of the units held by the Corporation for proceeds of $164 million. The fair value of the units remaining as at June 30, 2026 was $490 million.
(b)Other
In the normal course of operations, the Corporation’s residential mortgage insurer provides insurance policies to borrowers of the Corporation’s Canadian residential and multi-family mortgage lender at market rates. The Corporation’s residential mortgage insurer has provided the Corporation’s Canadian residential and multi-family mortgage lender with bulk insurance at market premiums. For the three and six months ended June 30, 2026, the total bulk insurance premiums received by the Corporation’s residential mortgage insurer were not material.
During the six months ended June 30, 2026, an associate of the Corporation entered into tax credit transfer agreements on market terms with an associate of Brookfield Renewable for $92 million.
The following table summarizes revenues the Corporation has earned from transactions with related parties for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Related Parties | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||
Brookfield Corporation (1) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Joint ventures of operating subsidiaries (2) | ||||||||||||||||||||||||||||||||
Associates of operating subsidiaries (3) | ||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||||||||
____________________________________
(1)Includes revenues earned by the Corporation’s construction services from an affiliate of Brookfield Corporation.
(2)Includes revenues earned by the Corporation’s advanced energy storage operation from an associate.
(3)The Corporation corrected its comparative period disclosure for the three and six months ended June 30, 2025, to include revenue earned by the Corporation’s Australian asset manager and lender from an associate.
23
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
The following table summarizes balances with related parties as at June 30, 2026 and December 31, 2025:
| (US$ MILLIONS) | Related Parties | June 30, 2026 | December 31, 2025 | |||||||||||||||||
| Financial assets | Brookfield Corporation (1) | $ | $ | |||||||||||||||||
| Associates of operating subsidiaries | ||||||||||||||||||||
| $ | $ | |||||||||||||||||||
| Accounts and other receivable, net | ||||||||||||||||||||
| Brookfield Corporation | $ | $ | ||||||||||||||||||
| Joint ventures of operating subsidiaries | ||||||||||||||||||||
| Associates of operating subsidiaries | ||||||||||||||||||||
| Other | ||||||||||||||||||||
| $ | $ | |||||||||||||||||||
Accounts payable and other | Brookfield Corporation (2) | $ | $ | |||||||||||||||||
| Non-recourse borrowings in subsidiaries of the Corporation | ||||||||||||||||||||
| Brookfield Wealth Solutions | $ | |||||||||||||||||||
| Associates of operating subsidiaries | ||||||||||||||||||||
| $ | $ | |||||||||||||||||||
| Interest of others in operating subsidiaries | Brookfield Wealth Solutions | $ | $ | |||||||||||||||||
____________________________________
(1)Includes the fair value of units in an evergreen private equity fund managed by Brookfield Asset Management.
(2)Includes $177 million related to a tax receivable agreement due to an affiliate of Brookfield Corporation by the Corporation’s advanced energy storage operation (December 31, 2025: $170 million).
NOTE 19. DERIVATIVE FINANCIAL INSTRUMENTS
The Corporation’s activities expose it to a variety of financial risks, including market risk (currency risk, interest rate risk, commodity risk and other price risks), credit risk and liquidity risk. The Corporation selectively uses derivative financial instruments principally to manage these risks.
The aggregate fair values of the Corporation’s derivative financial instrument positions as at June 30, 2026 and December 31, 2025 were as follows:
| June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| (US$ MILLIONS) | Financial Assets | Financial Liabilities | Financial Assets | Financial Liabilities | ||||||||||||||||||||||
| Foreign exchange contracts | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
| Cross currency swaps | ( | ( | ||||||||||||||||||||||||
| Interest rate derivatives | ( | ( | ||||||||||||||||||||||||
| Commodities contracts | ( | ( | ||||||||||||||||||||||||
| Currency option contracts | ||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
| Total current | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
| Total non-current | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
24
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 20. EQUITY
As at June 30, 2026, the Corporation’s consolidated equity interests include Class A Shares held by the public and Brookfield Holders and Class B Shares and Special Shares held by Brookfield, collectively, “Shares” or “Shareholders” as described in Note 1, and $740 million of preferred securities held by Brookfield. As at June 30, 2026, Brookfield Holders owned approximately 69 % of the Corporation.
As described in Note 1(b), pursuant to the Arrangement, LP Units, BBHC exchangeable shares and Redemption-Exchange Units in the Holding LP were exchanged on a one -for-one basis for Class A Shares, GP Units were exchanged for Class B Shares, and Special LP Units were exchanged for Special Shares. In line with the Corporation's accounting policy on continuity of interests as described in Note 2(b), for the periods prior to the completion of the Arrangement on March 27, 2026, Class A Shares reflect amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, Class B Shares reflect amounts previously attributable to GP Units, and Special Shares reflect amounts previously attributable to Special LP units.
For the three and six months ended June 30, 2026, the Corporation made distributions on the Class A Shares of $13 million and $26 million, respectively or $0.0625 14 million and $27 million, respectively or $0.0625 13 million and $26 million, respectively (June 30, 2025: $13 million and $26 million, respectively). For the three and six months ended June 30, 2026, the Corporation made distributions to others who have interests in operating subsidiaries of $234 million and $426 million, respectively (June 30, 2025: $76 million and $3,592 million, respectively).
(a)Class A Shares
Class A Shares entitle the holders to receive dividends as declared by the Board and to vote on matters presented to shareholders. Holders of Class A Shares hold an aggregate voting interest of 25 % in the Corporation.
The following table provides a continuity of Class A Shares outstanding for the six-month period ended June 30, 2026:
| SHARES | Class A Shares(1) | |||||||
| Authorized and issued | ||||||||
| Opening balance | ||||||||
| Issuance of Class A Shares | ||||||||
| Repurchased and canceled | ( | |||||||
| Issued as at June 30, 2026 | ||||||||
(1)Included in the Class A Shares that Brookfield Holders beneficially own as of June 30, 2026 are 86,643,362 Class A Shares (December 31, 2025: 53,651,499 Class A Shares) held by subsidiaries of Brookfield Wealth Solutions. Brookfield and Brookfield Wealth Solutions have agreed that all decisions to be made by subsidiaries of Brookfield Wealth Solutions with respect to the voting of the securities held by subsidiaries of Brookfield Wealth Solutions will be made jointly by mutual agreement of the applicable Brookfield Wealth Solutions subsidiary and Brookfield Corporation.
The weighted average number of Class A Shares outstanding for the three and six months ended June 30, 2026 was 206.2 million and 207.0 million, respectively (June 30, 2025: 211.0 million and 213.3 million, respectively).
During the six months ended June 30, 2026, the Corporation repurchased 1,565,451 Class A Shares under the Corporation’s normal course issuer bid “NCIB”. Brookfield Corporation did not repurchase any Class A Shares under the Corporation’s NCIB.
The following sections (a)(i)–(iii) provide additional details on LP Units, BBHC exchangeable shares and Redemption-Exchange Units for the period up until the completion of the Arrangement on March 27, 2026.
Basic and diluted earnings (loss) per Class A share is calculated by dividing net income allocable to Class A shareholders by the weighted-average number of Class A shares outstanding during the period. In line with the Corporation's accounting policy on continuity of interests as described in Note 2(b), historical financial information presented for periods prior to the completion of the Arrangement has been retrospectively recast to reflect the net income attribution of the Corporation following the Arrangement.
25
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
(i) LP Units
| UNITS | LP Units | |||||||
| Authorized and issued | ||||||||
| Opening balance | ||||||||
| Repurchased and canceled | ( | |||||||
Exchanged into Class A Shares on March 27, 2026 | ( | |||||||
| Issued as at June 30, 2026 | ||||||||
During the period up to and including the date of the Arrangement on March 27, 2026, BBU repurchased 499,420 LP Units and Brookfield Corporation purchased 98,088 LP Units, respectively, under BBU’s NCIB (June 30, 2025: 3,559,221 and nil , respectively).
(ii) Redemption-Exchange Units
| UNITS | Redemption-Exchange Units | |||||||
| Authorized and issued | ||||||||
| Opening balance | ||||||||
Exchanged into Class A Shares on March 27, 2026 | ( | |||||||
| Issued as at June 30, 2026 | ||||||||
(iii) BBHC exchangeable shares
| SHARES | BBHC exchangeable shares | |||||||
| Authorized and issued | ||||||||
| Opening balance | ||||||||
| Repurchased and canceled | ( | |||||||
Exchanged into Class A Shares on March 27, 2026 | ( | |||||||
| Issued as at June 30, 2026 | ||||||||
During the period up until the completion of the Arrangement on March 27, 2026, no BBHC exchangeable shares were exchanged into LP Units (June 30, 2025: 184 ).
During the period up to and including the date of the Arrangement on March 27, 2026, BBHC repurchased 891,240 BBHC exchangeable shares and Brookfield Corporation purchased 98,336 BBHC exchangeable shares, respectively, under BBHC’s NCIB (June 30, 2025: 2,957,523 and nil , respectively).
(b)Class B Shares held by Brookfield
Class B Shares entitle the holders to receive dividends as declared by the Board and to vote on matters presented to shareholders. Holders of the Class B Shares hold an aggregate 75 % voting interest in the Corporation.
Pursuant to the Arrangement, GP Units held by Brookfield were exchanged for Class B Shares. Refer to Note 20(b)(i) for additional details regarding the GP Units. The Class B Shares are not quantitatively material to the financial statements and therefore have not been separately presented on the unaudited interim condensed consolidated financial statements.
26
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
The following table provides a continuity of Class B Shares outstanding for the six-month period ended June 30, 2026:
| SHARES | Class B Shares held by Brookfield | |||||||
| Authorized and issued | ||||||||
| Opening balance | ||||||||
| Issuance of Class B Shares | ||||||||
| Issued as at June 30, 2026 | ||||||||
The weighted average number of Class B Shares outstanding for the three and six months ended June 30, 2026 was 4 4
The following section (b)(i) provides additional details on GP Units for the period up until the completion of the Arrangement on March 27, 2026.
(i) GP Units
| UNITS | GP Units | |||||||
| Authorized and issued | ||||||||
| Opening balance | ||||||||
Exchanged into Class B Shares on March 27, 2026 | ( | |||||||
| Issued as at June 30, 2026 | ||||||||
(c)Special Shares held by Brookfield
Pursuant to the Arrangement, the Special LP Units in the Holding LP were exchanged on a one -for-one basis for Special Shares. Refer to Note 20(c)(i) for additional details on Special LP Units.
The following table provides a continuity of Special Shares outstanding for the six-month period ended June 30, 2026:
| SHARES | Special Shares held by Brookfield | |||||||
| Authorized and issued | ||||||||
| Opening balance | ||||||||
| Issuance of Special Shares | ||||||||
| Issued as at June 30, 2026 | ||||||||
The weighted average number of Special Shares outstanding for the three and six months ended June 30, 2026 was 4 4
In its capacity as the holder of the Special Shares, the special shareholder is entitled to incentive dividends which are calculated as 20 % of the increase in the market value of the Class A Shares over an initial threshold based on the volume-weighted average price of the Class A Shares, subject to a high-water mark.
During the three months ended June 30, 2026, the volume-weighted average price per Class A Share was $33.06 , which was below the current incentive dividend threshold of $33.81 per Class A Share, resulting in no incentive dividend declared during the period (June 30, 2025: $nil ).
The following section (c)(i) provides additional details on Special LP Units for the period up until the completion of the Arrangement on March 27, 2026.
27
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
(i) Special LP Units held by Brookfield
| UNITS | Special LP Units held by Brookfield | |||||||
| Authorized and issued | ||||||||
| Opening balance | ||||||||
Exchanged into Special Shares on March 27, 2026 | ( | |||||||
| Issued as at June 30, 2026 | ||||||||
(d)Preferred securities held by Brookfield
| ($US MILLIONS) | Preferred securities held by Brookfield | |||||||
| Authorized and issued | ||||||||
| Opening balance | $ | |||||||
| Balance as at June 30, 2026 | $ | |||||||
Brookfield has subscribed for an aggregate of $15 million of preferred shares of three subsidiaries of the Corporation. The preferred shares are entitled to receive a cumulative preferential cash dividend equal to 5 % of their redemption value per annum as and when declared by the Board of Directors of the applicable entity and are redeemable at the option of the applicable entity at any time after the twentieth anniversary of their issuance. The Corporation is not obligated to redeem the preferred shares and accordingly, the preferred shares have been determined to be equity instruments of the applicable entities in accordance with IAS 32, Financial Instruments: Presentation (“IAS 32”) and are reflected as a component of non-controlling interests in the unaudited interim condensed consolidated statements of financial position.
Brookfield has a commitment agreement with the Corporation to subscribe for up to $1.5 billion of perpetual preferred equity securities of subsidiaries of the Corporation. The preferred securities are redeemable at the option of Brookfield to the extent the Corporation completes asset sales, financings or equity issuances. These perpetual preferred securities are presented as equity instruments in accordance with IAS 32, and accordingly the Corporation has classified them as a component of non-controlling interests in the unaudited interim condensed consolidated statements of financial position and changes in equity. As of June 30, 2026, the amount subscribed from the Corporation was $725 million with an annual dividend of 7 % (December 31, 2025: $725 million). The remaining capacity available on the commitment agreement with Brookfield is $25 million, expiring on December 31, 2026.
NOTE 21. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Attributable to Class A Shareholders
The following tables present the changes in accumulated other comprehensive income (loss) reserves attributable to shareholders for the six months ended June 30, 2026 and 2025.
In line with the Corporation's accounting policy on continuity of interests as described in Note 2(b), for the periods prior to the completion of the Arrangement on March 27, 2026, the following tables reflect amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one -for-one basis.
| (US$ MILLIONS) | Foreign currency translation | FVOCI | Other (1) | Accumulated other comprehensive income (loss) | ||||||||||||||||||||||
| Balance as at January 1, 2026 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
| Other comprehensive income (loss) | ||||||||||||||||||||||||||
| Balance as at June 30, 2026 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
____________________________________
(1)Represents net investment hedges, cash flow hedges and other reserves.
28
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
| (US$ MILLIONS) | Foreign currency translation | FVOCI | Other (1) | Accumulated other comprehensive income (loss) | ||||||||||||||||||||||
| Balance as at January 1, 2025 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
| Other comprehensive income (loss) | ( | |||||||||||||||||||||||||
| Balance as at June 30, 2025 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
____________________________________
(1)Represents net investment hedges, cash flow hedges and other reserves.
NOTE 22. DIRECT OPERATING COSTS
The Corporation has no key employees or directors and does not remunerate key management personnel. Key decision makers of the Corporation are all employees of Brookfield or its subsidiaries, which provide management services under the Master Services Agreement with Brookfield. Refer to Note 18.
Direct operating costs are costs incurred to earn revenues and include all attributable expenses. The following table presents direct operating costs by nature for the three and six months ended June 30, 2026 and 2025.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Inventory costs | $ | $ | $ | $ | ||||||||||||||||||||||
| Subcontractor and consultant costs | ||||||||||||||||||||||||||
| Concession construction materials and labor costs | ||||||||||||||||||||||||||
| Depreciation and amortization expense | ||||||||||||||||||||||||||
| Compensation | ||||||||||||||||||||||||||
| Other direct costs | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
Other direct costs include freight, cost of construction expensed and expected credit loss provisions on financial assets.
During the three and six months ended June 30, 2026, the Corporation recorded a reduction in inventory costs of $256 million and $497 million, respectively (June 30, 2025: $256 million and $515 million, respectively) related to tax benefits recognized. Refer to Note 2(c)(i) for additional details.
NOTE 23. REVENUES
(a)Revenues by type
The tables below summarize the Corporation’s segment revenues by type of revenue for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| Revenues by type | ||||||||||||||||||||||||||||||||
| Revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||
29
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| Revenues by type | ||||||||||||||||||||||||||||||||
| Revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| Revenues by type | ||||||||||||||||||||||||||||||||
| Revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| Revenues by type | ||||||||||||||||||||||||||||||||
| Revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||
(b)Timing of recognition of revenues from contracts with customers
The tables below summarize the Corporation’s segment revenues by timing of revenue recognition for total revenues from contracts with customers for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| Timing of revenue recognition | ||||||||||||||||||||||||||||||||
| Goods and services provided at a point in time | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Services transferred over a period of time | ||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| Timing of revenue recognition | ||||||||||||||||||||||||||||||||
| Goods and services provided at a point in time | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Services transferred over a period of time | ||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
30
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| Timing of revenue recognition | ||||||||||||||||||||||||||||||||
| Goods and services provided at a point in time | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Services transferred over a period of time | ||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| Timing of revenue recognition | ||||||||||||||||||||||||||||||||
| Goods and services provided at a point in time | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Services transferred over a period of time | ||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
(c)Revenues by geography
The tables below summarize the Corporation’s segment revenues by geography for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| United States | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Europe | ||||||||||||||||||||||||||||||||
| Australia | ||||||||||||||||||||||||||||||||
| Brazil | ||||||||||||||||||||||||||||||||
| United Kingdom | ||||||||||||||||||||||||||||||||
| Mexico | ||||||||||||||||||||||||||||||||
| Canada | ||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||
31
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| United States | ||||||||||||||||||||||||||||||||
| Europe | ||||||||||||||||||||||||||||||||
| Australia | ||||||||||||||||||||||||||||||||
| Brazil | ||||||||||||||||||||||||||||||||
| United Kingdom | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Mexico | ||||||||||||||||||||||||||||||||
| Canada | ||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| United States | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Europe | ||||||||||||||||||||||||||||||||
| Australia | ||||||||||||||||||||||||||||||||
| Brazil | ||||||||||||||||||||||||||||||||
| United Kingdom | ||||||||||||||||||||||||||||||||
| Mexico | ||||||||||||||||||||||||||||||||
| Canada | ||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| United States | ||||||||||||||||||||||||||||||||
| Europe | ||||||||||||||||||||||||||||||||
| Australia | ||||||||||||||||||||||||||||||||
| Brazil | ||||||||||||||||||||||||||||||||
| United Kingdom | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Mexico | ||||||||||||||||||||||||||||||||
| Canada | ||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||
32
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 24. SEGMENT INFORMATION
The Corporation’s operations are organized into four operating segments which are regularly reviewed by the CODM for the purpose of allocating resources to the segment and to assess its performance. The CODM uses adjusted earnings from operations (“Adjusted EFO”) to assess performance and make resource allocation decisions. Adjusted EFO allows the CODM to evaluate the Corporation’s segments on the basis of return on invested capital generated by its operations and to evaluate the performance of its segments on a levered basis. Adjusted EFO is calculated as net income and equity accounted income at the Corporation’s economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of depreciation and amortization expense, deferred income taxes, transaction costs, restructuring charges, unrealized revaluation gains or losses, impairment expenses or reversals and other income or expense items that are not directly related to revenue generating activities. The Corporation’s economic ownership interest in consolidated subsidiaries excludes amounts attributable to non-controlling interests consistent with how the Corporation determines net income attributable to non-controlling interests in its unaudited interim condensed consolidated statements of operating results. In order to provide additional insight regarding the Corporation’s operating performance over the lifecycle of an investment, Adjusted EFO includes the impact of preferred equity distributions and realized disposition gains or losses recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. Adjusted EFO does not include legal and other provisions that may occur from time to time in the Corporation’s operations and that are one-time or non-recurring and not directly tied to the Corporation’s operations, such as those for litigation or contingencies. Adjusted EFO includes expected credit losses and bad debt allowances recorded in the normal course of the Corporation’s operations.
Other income (expense), net in the Corporation’s unaudited interim condensed consolidated statements of operating results includes amounts that are not related to revenue generating activities, and are not normal, recurring operating income and expenses necessary for business operations. These include revaluation gains and losses, transaction costs, restructuring charges, stand-up costs and business separation expenses, gains or losses on debt extinguishments or modifications, gains or losses on dispositions of property, plant and equipment, employee incentive payments linked to the realization of value at the Corporation’s operations, non-recurring and one-time provisions that may occur from time to time at one of the Corporation’s operations that are not reflective of normal operations, and other items. Other income (expense), net included within Adjusted EFO in the tables below corresponds to items of other income (expense), net at the Corporation’s economic ownership interest that are considered by the Corporation when evaluating operating performance and returns on invested capital generated by its businesses and may include realized revaluation gains and losses, realized gains or losses on the disposition of property, plant and equipment, and other items. Refer to the footnotes to the tables below for additional details on items included therein.
Gain (loss) on dispositions, net in Adjusted EFO reflects the Corporation’s economic ownership interest in the gains or losses on acquisitions/dispositions recognized during the period in the unaudited interim condensed consolidated statements of operating results that are considered by the Corporation when evaluating the performance and returns on invested capital generated by its businesses.
Gain (loss) on dispositions, net recorded in equity in Adjusted EFO corresponds to the Corporation’s economic ownership interest in gains and losses recorded in the unaudited interim condensed consolidated statements of changes in equity that have been realized through a completed disposition, including material realized disposition gains or losses that may be recorded in equity on the partial disposition of a subsidiary where the Corporation retains control and through the sale of an investment in securities accounted for as financial assets measured at fair value with changes in fair value recorded in other comprehensive income.
The following tables provide each segment’s results at the Corporation’s economic ownership interest, in the format that the CODM organizes reporting segments to make resource allocation decisions and assess performance. Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by non-controlling interests in consolidated subsidiaries. The tables below reconcile the Corporation’s economic ownership interest in its consolidated results to the Corporation’s unaudited interim condensed consolidated statements of operating results.
33
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
| Three Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Total attributable to Shareholders | Attributable to non-controlling interests | As per Financials | |||||||||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Corporate | Total (1) | ||||||||||||||||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Direct operating costs (2) | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| General and administrative expenses | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | ( | ||||||||||||||||||||||||||||||||||||||||
Gain (loss) on dispositions, net recorded in equity | ( | ||||||||||||||||||||||||||||||||||||||||
Other income (expense), net (3) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
| Interest income (expense), net | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Current income tax (expense) recovery | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Preferred equity distributions | ( | ( | |||||||||||||||||||||||||||||||||||||||
Equity accounted Adjusted EFO (4) | |||||||||||||||||||||||||||||||||||||||||
| Adjusted EFO | ( | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense (2) (5) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | |||||||||||||||||||||||||||||||||||||||||
Gain (loss) on dispositions, net recorded in equity | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other income (expense), net (3) | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Deferred income tax (expense) recovery | |||||||||||||||||||||||||||||||||||||||||
Non-cash items attributable to equity accounted investments (4) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
____________________________________
(1)Adjusted EFO and net income (loss) attributable to Shareholders include Adjusted EFO and net income (loss) attributable to Class A shareholders, Class B shareholders and Special shareholder.
(2)The sum of these amounts equates to direct operating costs of $5,224 million as per the unaudited interim condensed consolidated statements of operating results.
(3)The sum of these amounts equates to other income (expense), net of $(170 ) million as per the unaudited interim condensed consolidated statements of operating results. Other income (expense), net at the Corporation’s economic ownership interest of $(5 ) million is included in Adjusted EFO. Other income (expense), net at the Corporation’s economic ownership interest that is excluded from Adjusted EFO of $30 million includes $70 million of unrealized net revaluation gains, $25 million of expenses related to expected employee incentive payments linked to the eventual realization of value at the Corporation’s operations, $8 million of business separation expenses, stand-up costs and restructuring charges, $11 million of net gains on debt modification and extinguishment, $9 million of transaction costs, and $9 million of other expenses.
(4)The sum of these amounts equates to equity accounted income (loss), net of $(6 ) million as per the unaudited interim condensed consolidated statements of operating results.
(5)For the three months ended June 30, 2026, depreciation and amortization expense by segment is as follows: business services $198 million, infrastructure services $180 million, industrials $397 million and corporate $nil .
34
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
| Six Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
Total attributable to Shareholders (1) | Attributable to non-controlling interests | As per Financials | |||||||||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Corporate | Total (2) | ||||||||||||||||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Direct operating costs (3) | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| General and administrative expenses | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net in equity | ( | ||||||||||||||||||||||||||||||||||||||||
Other income (expense), net (4) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
| Interest income (expense), net | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Current income tax (expense) recovery | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Preferred equity distributions | ( | ( | |||||||||||||||||||||||||||||||||||||||
Equity accounted Adjusted EFO (5) | |||||||||||||||||||||||||||||||||||||||||
| Adjusted EFO | ( | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense (3) (6) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Impairment reversal (expense), net | |||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | |||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net in equity | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other income (expense), net (4) | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Deferred income tax (expense) recovery | |||||||||||||||||||||||||||||||||||||||||
Non-cash items attributable to equity accounted investments (5) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
____________________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one -for-one basis, amounts previously attributable to GP Units, which were exchanged for Class B Shares, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one -for-one basis. See Note 2(b) for additional information.
(2)Adjusted EFO and net income (loss) attributable to Shareholders include Adjusted EFO and net income (loss) attributable to Class A shareholders, Class B shareholders and Special shareholder.
(3)The sum of these amounts equates to direct operating costs of $10,350 million as per the unaudited interim condensed consolidated statements of operating results.
(4)The sum of these amounts equates to other income (expense), net of $(146 ) million as per the unaudited interim condensed consolidated statements of operating results. Other income (expense), net at the Corporation’s economic ownership interest of $(7 ) million is included in Adjusted EFO. Other income (expense), net at the Corporation’s economic ownership interest that is excluded from Adjusted EFO of $51 million includes $115 million of unrealized net revaluation gains, $27 million of net gains on debt modification and extinguishment, $22 million of business separation expenses, stand-up costs and restructuring charges, $25 million of expenses related to expected employee incentive payments linked to the eventual realization of value at the Corporation’s operations, $13 million of transaction costs and $31 million of other expenses.
(5)The sum of these amounts equates to equity accounted income (loss), net of $5 million as per the unaudited interim condensed consolidated statements of operating results.
(6)For the six months ended June 30, 2026, depreciation and amortization expense by segment is as follows: business services $390 million, infrastructure services $358 million, industrials $787 million, and corporate $nil .
35
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
Total attributable to Shareholders (1) | Attributable to non-controlling interests | As per Financials | |||||||||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Corporate | Total (2) | ||||||||||||||||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Direct operating costs (3) | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| General and administrative expenses | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | |||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net recorded in equity | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Other income (expense), net (4) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
| Interest income (expense), net | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Current income tax (expense) recovery | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Preferred equity distributions | ( | ( | |||||||||||||||||||||||||||||||||||||||
Equity accounted Adjusted EFO (5) | |||||||||||||||||||||||||||||||||||||||||
| Adjusted EFO | ( | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense (3) (6) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Impairment reversal (expense), net | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net recorded in equity | |||||||||||||||||||||||||||||||||||||||||
Other income (expense), net (4) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Deferred income tax (expense) recovery | |||||||||||||||||||||||||||||||||||||||||
Non-cash items attributable to equity accounted investments (5) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
____________________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one -for-one basis, amounts previously attributable to GP Units, which were exchanged for Class B Shares, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one -for-one basis. See Note 2(b) for additional information.
(2)Adjusted EFO and net income (loss) attributable to Shareholders include Adjusted EFO and net income (loss) attributable to Class A shareholders, Class B shareholders and Special shareholder.
(3)The sum of these amounts equates to direct operating costs of $5,465 million as per the unaudited interim condensed consolidated statements of operating results.
(4)The sum of these amounts equates to other income (expense), net of $(103 ) million as per the unaudited interim condensed consolidated statements of operating results. Other income (expense), net at the Corporation’s economic ownership interest that is included in Adjusted EFO of $(14 ) million primarily related to $16 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations. Other income (expense), net at the Corporation’s economic ownership interest that is excluded from Adjusted EFO of $(3 ) million includes $76 million of net gain recognized upon deconsolidation of the Corporation’s healthcare services operations, $38 million of expenses related to expected employee incentive payments linked to the eventual realization of value at the Corporation’s operations, $20 million of net revaluation losses, $16 million of business separation expenses, stand-up costs and restructuring charges, $4 million of net loss on debt modification and extinguishment, and $1 million of transaction costs.
(5)The sum of these amounts equates to equity accounted income (loss), net of $23 million as per the unaudited interim condensed consolidated statements of operating results.
(6)For the three months ended June 30, 2025, depreciation and amortization expense by segment is as follows: business services $208 million, infrastructure services $175 million, industrials $384 million and corporate $nil .
36
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
Total attributable to Shareholders (1) | Attributable to non-controlling interests | As per Financials | |||||||||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Corporate and other | Total (2) | ||||||||||||||||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Direct operating costs (3) | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| General and administrative expenses | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Gain (loss) on dispositions, net (4) | |||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net recorded in equity | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Other income (expense), net (5) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Interest income (expense), net | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Current income tax (expense) recovery | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Preferred equity distributions | ( | ( | |||||||||||||||||||||||||||||||||||||||
Equity accounted Adjusted EFO (6) | |||||||||||||||||||||||||||||||||||||||||
| Adjusted EFO | ( | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense (3) (7) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net recorded in equity | |||||||||||||||||||||||||||||||||||||||||
| Impairment reversal (expense), net | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Other income (expense), net (5) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Deferred income tax (expense) recovery | |||||||||||||||||||||||||||||||||||||||||
Non-cash items attributable to equity accounted investments (6) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
____________________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one -for-one basis, amounts previously attributable to GP Units, which were exchanged for Class B Shares, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one -for-one basis. See Note 2(b) for additional information.
(2)Adjusted EFO and net income (loss) attributable to Shareholders include Adjusted EFO and net income (loss) attributable to Class A shareholders, Class B shareholders and Special shareholder.
(3)The sum of these amounts equates to direct operating costs of $10,867 million as per the unaudited interim condensed consolidated statements of operating results.
(4)Gain (loss) on dispositions, net recorded in Adjusted EFO of $116 million primarily represents the Corporation’s economic interest in gains of $114 million related to the disposition of the Corporation’s offshore oil services' shuttle tanker operation.
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NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
(5)The sum of these amounts equates to other income (expense), net of $(186 ) million as per the unaudited interim condensed consolidated statements of operating results. Other income (expense), net at the Corporation’s economic ownership interest that is included in Adjusted EFO of $4 million includes $19 million of realized gain relating to upgrades completed for customers on certain vessels at the Corporation’s offshore oil services, $16 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations, $5 million of net revaluation gains and $4 million of other expenses. Other income (expense), net at the Corporation’s economic ownership interest that is excluded from Adjusted EFO of $(16 ) million includes $76 million of net gain recognized upon deconsolidation of the Corporation’s healthcare services operation, $48 million of unrealized gains recorded on reclassification of property, plant and equipment to finance leases at the Corporation’s offshore oil services, $40 million of net revaluation losses, $38 million of business separation expenses, stand-up costs and restructuring charges, $40 million of expenses related to expected employee incentive payments linked to the eventual realization of value at the Corporation’s operations, $11 million of transaction costs, $5 million of net loss on debt modification and extinguishment and $6 million of other expenses.
(6)The sum of these amounts equates to equity accounted income (loss), net of $15 million as per the unaudited interim condensed consolidated statements of operating results.
(7)For the six months ended June 30, 2025, depreciation and amortization expense by segment is as follows: business services $430 million, infrastructure services $340 million, industrials $727 million, and corporate and other nil .
Segment Assets
For the purpose of monitoring segment performance and allocating resources between segments, the CODM monitors the assets, including investments accounted for using the equity method, attributable to each segment.
The following table presents the Corporation’s assets by reportable operating segment as at June 30, 2026 and December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Business services | $ | $ | ||||||||||||
| Infrastructure services | ||||||||||||||
| Industrials | ||||||||||||||
Corporate (1) | ||||||||||||||
| Total | $ | $ | ||||||||||||
____________________________________
(1)As at June 30, 2026, corporate segment’s assets included $490 million (December 31, 2025: $584 million) of units in an evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 18(a)(i) for additional information.
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NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
NOTE 25. SUPPLEMENTAL CASH FLOW INFORMATION
| Six Months Ended June 30, | ||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | ||||||||||||
| Net interest paid (received) | $ | $ | ||||||||||||
| Net income taxes paid (received) | ||||||||||||||
Amounts paid and received for interest were reflected as operating cash flows in the unaudited interim condensed consolidated statements of cash flow.
Details of “Changes in non-cash working capital, net” on the unaudited interim condensed consolidated statements of cash flow are as follows:
| Six Months Ended June 30, | ||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | ||||||||||||
| Accounts and other receivable | $ | ( | $ | |||||||||||
| Inventory | ( | ( | ||||||||||||
| Other assets | ( | ( | ||||||||||||
| Accounts payable and other | ||||||||||||||
| Changes in non-cash working capital, net | $ | ( | $ | |||||||||||
NOTE 26. INSURANCE CONTRACTS
The following table shows the reconciliation from the opening to the closing balances of the insurance liabilities related to the Corporation’s insurance contracts from its residential mortgage insurer, reported by measurement components.
| (US$ MILLIONS) | Estimates of present value of future cash flows | Risk adjustment | Contractual service margin | Total | ||||||||||||||||||||||
| Insurance liabilities, as at January 1, 2026 | $ | $ | $ | $ | ||||||||||||||||||||||
| Change during period: | ||||||||||||||||||||||||||
| Changes that relate to current service: | ||||||||||||||||||||||||||
| Contractual service margin recognized for services provided | ( | ( | ||||||||||||||||||||||||
| Change in risk adjustment recognized for the risk expired | ( | ( | ||||||||||||||||||||||||
| Experience adjustments | ||||||||||||||||||||||||||
| Changes that relate to future service: | ||||||||||||||||||||||||||
| Contracts initially recognized in the period | ( | |||||||||||||||||||||||||
| Changes in estimates that adjust the contractual service margin | ( | |||||||||||||||||||||||||
| Changes that relate to past services: | ||||||||||||||||||||||||||
| Adjustments to liabilities for incurred claims | ||||||||||||||||||||||||||
| Insurance finance income/(expenses) | ||||||||||||||||||||||||||
| Foreign currency translation | ( | ( | ( | ( | ||||||||||||||||||||||
| ( | ( | ( | ||||||||||||||||||||||||
| Cash flows: | ||||||||||||||||||||||||||
| Premiums received | ||||||||||||||||||||||||||
| Claims and other insurance service expenses paid | ( | ( | ||||||||||||||||||||||||
| Insurance acquisition cash flows | ( | ( | ||||||||||||||||||||||||
| Insurance liabilities, as at June 30, 2026 | $ | $ | $ | $ | ||||||||||||||||||||||
39
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2026 and December 31, 2025 and
for the three and six months ended June 30, 2026 and 2025
| (US$ MILLIONS) | Estimates of present value of future cash flows | Risk adjustment | Contractual service margin | Total | ||||||||||||||||||||||
| Insurance liabilities, as at January 1, 2025 | $ | $ | $ | $ | ||||||||||||||||||||||
| Changes during period: | ||||||||||||||||||||||||||
| Changes that relate to current service: | ||||||||||||||||||||||||||
| Contractual service margin recognized for services provided | ( | ( | ||||||||||||||||||||||||
| Change in risk adjustment recognized for the risk expired | ( | ( | ||||||||||||||||||||||||
| Experience adjustments | ( | ( | ||||||||||||||||||||||||
| Changes that relate to future service: | ||||||||||||||||||||||||||
| Contracts initially recognized in the period | ( | |||||||||||||||||||||||||
| Changes in estimates that adjust the contractual service margin | ( | |||||||||||||||||||||||||
| Changes that relate to past services: | ||||||||||||||||||||||||||
| Adjustments to liabilities for incurred claims | ( | ( | ||||||||||||||||||||||||
| Insurance finance income/(expenses) | ||||||||||||||||||||||||||
| Foreign currency translation | ||||||||||||||||||||||||||
| ( | ( | |||||||||||||||||||||||||
| Cash flows: | ||||||||||||||||||||||||||
| Premiums received | ||||||||||||||||||||||||||
| Claims and other insurance service expenses paid | ( | ( | ||||||||||||||||||||||||
| Insurance acquisition cash flows | ( | ( | ||||||||||||||||||||||||
| Insurance liabilities, as at June 30, 2025 | $ | $ | $ | $ | ||||||||||||||||||||||
NOTE 27. SUBSEQUENT EVENTS
(a)Sale of offshore oil services’ FPSO operation
On July 20, 2026, the Corporation’s offshore oil services operation completed the previously announced sale of its FPSO operation.
(b)Sale of interests in Australian asset manager and lender
On July 22, 2026, the Corporation completed the previously announced sale of a 27 % interest in the Corporation’s Australian asset manager and lender. Following completion of the transaction, the Corporation continues to control and consolidate the business.
(c)Dividend
On July 30, 2026, the Board of Directors declared a quarterly dividend in the amount of $0.0625 per Class A Share, payable on September 29, 2026 to shareholders of record as at the close of business on August 31, 2026.
(d)Acquisition of World Freight Company
On July 31, 2026, the Corporation, together with institutional partners, completed the acquisition of World Freight Company, the world’s largest global air freight services provider, which works on behalf of airlines to sell and manage their cargo capacity. Total consideration for the transaction was approximately $1.2 billion, of which the Corporation’s share of equity was approximately $175 million for a 25 % economic interest.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Introduction
This management’s discussion and analysis of financial condition and results of operations (“MD&A”) of Brookfield Business Corporation and its subsidiaries (collectively, the “Corporation”, or “we”, or “our”), covers the financial position of the Corporation as at June 30, 2026 and December 31, 2025, and results of operations for the three and six months ended June 30, 2026 and 2025. Historical financial information for periods prior to the completion of the reorganization completed by way of a plan of arrangement under the laws of the Province of British Columbia (the "Arrangement") on March 27, 2026 relates to Brookfield Business Partners L.P. (“BBU”), the Corporation’s predecessor, which became a subsidiary of the Corporation pursuant to the Arrangement. Accordingly, the financial position as at December 31, 2025 and results of operations for the three and six months ended June 30, 2025 presented within this MD&A reflect the historical financial information of BBU. Brookfield Corporation (together with its controlled subsidiaries, excluding the Corporation, referred to as “Brookfield”) is the ultimate parent of the Corporation. “Brookfield Holders” refers to Brookfield, Brookfield Wealth Solutions Ltd. and their related parties. The information in this MD&A should be read in conjunction with the interim financial statements as at June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and 2025 (the “unaudited interim condensed consolidated financial statements”). This MD&A was prepared as of August 5, 2026. Additional information relating to the Corporation can be found at www.sedarplus.ca or www.sec.gov.
In addition to historical information, this MD&A contains forward-looking statements. Readers are cautioned that these forward-looking statements are subject to risks and uncertainties and actual results could differ materially from those reflected in the forward-looking statements.
Cautionary Statement Regarding Forward-Looking Statements and Information
This MD&A contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws, including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Corporation, as well as regarding recently completed and proposed acquisitions, dispositions and other transactions, and the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts”, “views”, “potential”, “likely” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.
Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, investors and other readers should not place undue reliance on forward-looking statements and information because they involve assumptions, known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of the Corporation to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and result of operations and our plans and strategies may vary materially from those expressed in the forward-looking statements and forward-looking information herein.
Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to, the following:
•the cyclical nature of our operating businesses and general economic conditions and risks relating to the economy, including unfavorable changes in interest rates, foreign exchange rates, inflation, commodity prices, and volatility in the financial markets;
•the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits;
•business competition, including competition for acquisition opportunities;
•strategic actions including our ability to complete dispositions and achieve the anticipated benefits therefrom;
•restrictions on our ability to engage in certain activities or make distributions due to our indebtedness;
•global equity and capital markets and the availability of equity and debt financing and refinancing within these markets;
•changes to our credit ratings;
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•changes to U.S. laws or policies, including changes in U.S. domestic and economic policies as well as foreign trade policies and tariffs;
•technological change;
•the ability to obtain insurance for our business operations;
•labor disruptions and economically unfavorable collective bargaining agreements;
•litigation;
•investments in jurisdictions with less developed legal systems;
•we do not have control over all of the businesses in which we own investments;
•changes to the market price of any investments in public companies;
•our compliance with environmental laws and the broader impacts of climate change;
•cybersecurity incidents;
•the possible impact of international conflicts, wars and related developments including terrorist acts and cyber terrorism;
•the effectiveness of our internal controls over financial reporting;
•the market price of our class A subordinate voting shares (“Class A Shares”) may be volatile;
•political instability and unfamiliar cultural factors;
•changes in government policy and legislation;
•federal, state and foreign anti-corruption and trade sanctions laws and restrictions on foreign direct investment applicable to us and our operating businesses create the potential for significant liabilities and penalties, the inability to complete transactions, imposition of significant costs and burdens, and reputational harm;
•operational or business risks that are specific to any of our business services operations, infrastructure services operations or industrials operations;
•reliance on third party service providers;
•Brookfield’s significant influence over us;
•the lack of an obligation of Brookfield to source acquisition opportunities to us;
•the departure of some or all of Brookfield’s professionals;
•control of our company may change without shareholder consent;
•Brookfield may increase its ownership in our company;
•none of British Columbia corporate law, our Master Services Agreement or our other arrangements with Brookfield impose on Brookfield any fiduciary duties to act in the best interests of our shareholders;
•conflicts of interest between our company and our shareholders, on the one hand, and Brookfield, on the other hand;
•our arrangements with Brookfield may contain terms that are less favorable than those which otherwise might have been obtained from unrelated parties;
•we may be unable or unwilling to terminate our Master Services Agreement;
•the limited liability of, and our indemnification of, the Service Providers;
•Brookfield’s relationship with businesses managed pursuant to an information barrier;
•our company is a holding entity that relies on its subsidiaries, including BBU and Brookfield Business L.P. (the “Holding LP”), to provide us with the funds necessary to pay dividends and meet our financial obligations;
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•we may be subject to the risks commonly associated with a separation of economic interest from control or the incurrence of debt at multiple levels within an organizational structure;
•our company may become regulated as an investment company under the Investment Company Act;
•future sales or issuances of our securities will result in dilution of existing holders and even the perception of such sales or issuances taking place could depress the trading price of the Class A Shares;
•limits on shareholders’ ability to obtain favorable judicial forum for disputes related to the company or to enforce judgments against us;
•changes in tax law and practice; and
•other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States including those set forth in the “Risk Factors” section in our annual report on Form 20-F for the year ended December 31, 2025 (our “2025 Annual Report”).
Statements relating to “reserves” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described herein can be profitably produced in the future.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
For a more comprehensive list of risks and uncertainties, please refer to our 2025 Annual Report under the heading “Risk Factors” available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. New risk factors may arise from time to time and it is not possible to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance or achievements of our Corporation to be materially different from those contained in forward-looking statements or information. Given these risks, assumptions, and uncertainties, the reader should not place undue reliance on forward-looking statements or information as a prediction of actual results. We qualify any and all of our forward-looking statements by these cautionary factors. Although the forward-looking statements and information contained in this MD&A are based upon what we believe to be reasonable assumptions, we cannot assure investors that actual results will be consistent with these forward-looking statements and information. We undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise, except as required by law.
Continuity of Interests
On March 27, 2026, BBU, Brookfield Business Holdings Corporation (“BBHC”, formerly Brookfield Business Corporation) and the Corporation completed the Arrangement to simplify BBU’s and BBHC's corporate structure by replacing BBU and BBHC with a single publicly traded corporate entity. Pursuant to the Arrangement, (i) limited partnership units (“LP Units”) of BBU, class A exchangeable subordinate voting shares (“BBHC exchangeable shares”) of BBHC and redemption-exchange partnership units (“Redemption-Exchange Units”) of the Holding LP were exchanged on a one-for-one basis for newly issued Class A Shares, (ii) general partnership units (“GP Units”) of BBU were exchanged for newly issued class B multiple voting shares (“Class B Shares”), and (iii) the special limited partnership units (“Special LP Units”) of the Holding LP were exchanged on a one-for-one basis for newly issued non-voting incentive shares (“Special Shares”). Following the completion of the Arrangement, BBU and BBHC became subsidiaries of the Corporation, were delisted, and ceased to be reporting issuers, with the Corporation succeeding BBU, its predecessor.
Brookfield directly controlled BBU and the Corporation prior to the Arrangement and continues to control the Corporation subsequent to the Arrangement through its interest in the Corporation’s Class A Shares and Class B Shares. As a result, the transfer of interests in BBU and BBHC to the Corporation pursuant to the Arrangement is a transaction between entities under common control, and has been reflected at the historical carrying values as previously reported by BBU, in accordance with the Corporation’s policy for such transactions.
To reflect this continuity of interests and in line with the Corporation’s accounting policy, historical financial information presented for periods prior to the completion of the Arrangement has been retrospectively recast to reflect the net income, comprehensive income, and equity attribution of the Corporation following the Arrangement.
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Basis of Presentation
The financial information in this MD&A is derived from the financial information included in the unaudited interim condensed consolidated financial statements of the Corporation, prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”), and using the accounting policies of BBU, the Corporation’s predecessor, applied in its annual consolidated financial statements as at and for the year ended December 31, 2025. All defined terms are also described in the annual consolidated financial statements. The unaudited interim condensed consolidated financial statements are prepared on a going concern basis and have been presented in U.S. dollars rounded to the nearest million unless otherwise indicated. The unaudited interim condensed consolidated financial statements include the accounts of Brookfield Business Corporation and its consolidated subsidiaries, which are the entities over which the Corporation has control. Certain comparative figures have been reclassified to conform to the current year's presentation of the Corporation's consolidated equity interests and net income attributable to common equity following completion of the Arrangement.
We also discuss the results of operations on a segment basis, consistent with how the Chief Operating Decision Maker (“CODM”) manages and views our business. Our operating segments are: (i) business services, (ii) infrastructure services, (iii) industrials, and (iv) corporate.
The Corporation’s consolidated equity interests include Class A Shares held by public shareholders and Brookfield Holders, Class B Shares held by Brookfield, and Special Shares held by Brookfield. Holders of the Class A Shares, Class B Shares and Special Shares will be collectively referred to throughout as “Shareholders” unless the context indicates or requires otherwise. Class A Shares, Class B Shares and Special Shares will be collectively referred to throughout as “Shares”, or as “per Share”, unless the context indicates or requires otherwise.
Non-IFRS measures used in this MD&A are reconciled to the most directly comparable measure prepared using IFRS® Accounting Standards (“IFRS”). All dollar references, unless otherwise stated, are in millions of U.S. dollars. Australian dollars are identified as “A$” or “AUD”, Brazilian reais are identified as “R$” or “BRL”, British pounds are identified as “£” or “GBP”, euros are identified as “€” or “EUR”, Canadian dollars are identified as “C$” or “CAD”, and Indian rupees are identified as “INR”.
Operating Segments
We have four operating segments which are organized based on how the CODM manages and views the business:
i.Our business services segment includes our dealer software and technology services operation, non-bank financial services operations, residential mortgage insurer, fleet management and car rental services, construction operation and other operations.
ii.Our infrastructure services segment includes our modular building leasing services, lottery services operation, offshore oil services and work access services.
iii.Our industrials segment includes our advanced energy storage operation, engineered components manufacturing operation, water and wastewater operation, electric heat tracing systems manufacturer and other operations.
iv.Our corporate segment includes corporate cash and liquidity management, as well as activities related to the management of the Corporation’s relationship with Brookfield.
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The following tables provide a breakdown of total assets of $78.8 billion as at June 30, 2026 and revenues of $12.9 billion for the six months ended June 30, 2026 by operating segment and region.
| Segments | Assets | Revenues | ||||||||||||
| As at | For the Six Months Ended | |||||||||||||
| (US$ MILLIONS) | June 30, 2026 | June 30, 2026 | ||||||||||||
| Business services | $ | 31,014 | $ | 4,162 | ||||||||||
| Infrastructure services | 16,897 | 1,517 | ||||||||||||
| Industrials | 30,045 | 7,254 | ||||||||||||
Corporate (1) | 864 | — | ||||||||||||
| Total | $ | 78,820 | $ | 12,933 | ||||||||||
(1)As at June 30, 2026, the corporate segment’s assets included $490 million of units in an evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 18(a)(i) of the unaudited interim condensed consolidated financial statements for additional information.
| Regions | Assets | Revenues | ||||||||||||
| As at | For the Six Months Ended | |||||||||||||
| (US$ MILLIONS) | June 30, 2026 | June 30, 2026 | ||||||||||||
| United States | $ | 26,292 | $ | 4,177 | ||||||||||
| Europe | 12,004 | 2,345 | ||||||||||||
| Australia | 10,231 | 1,530 | ||||||||||||
| Brazil | 9,074 | 1,435 | ||||||||||||
| Canada | 7,743 | 915 | ||||||||||||
| United Kingdom | 6,082 | 961 | ||||||||||||
| Mexico | 3,240 | 678 | ||||||||||||
| Other | 4,154 | 892 | ||||||||||||
| Total | $ | 78,820 | $ | 12,933 | ||||||||||
Business services
Our business services segment includes our (i) dealer software and technology services operation, (ii) non-bank financial services operations, (iii) residential mortgage insurer, (iv) fleet management and car rental services, (v) construction operation, and (vi) other operations.
Dealer software and technology services operation
Our dealer software and technology services operation provides mission-critical enterprise resource planning (“ERP”) software to automotive dealerships and original equipment manufacturers (“OEMs”), delivering high value technology solutions to its customers. The company’s cloud-based software enables dealerships to manage their end-to-end business operations, including the acquisition, sale, financing, insuring, and repair and maintenance of vehicles. By automating and streamlining critical workflows, the integrated platform of solutions enables dealers to sell and service more vehicles by creating simple and convenient experiences for customers to help improve their financial and operational performance.
The revenues at our dealer software and technology services operation are generated by providing a broad suite of subscription-based software and technology solutions for automotive retailers. Our flagship dealer management system (“DMS”) software solutions are hosted enterprise resource planning applications serving as the system of record and tailored to the unique requirements of the retail automotive industry. Our DMS products facilitate the sale of new and used vehicles, consumer financing, repair and maintenance services, and vehicle and parts inventory management. These solutions enable company-wide accounting, financial reporting, cash flow management, and payroll services. Our DMS software is typically integrated with OEM data processing systems that enable automotive retailers to order vehicles and parts, receive vehicle records, process warranties, and check recall campaigns and service bulletins while helping them to fulfill their franchisee responsibilities to their OEM franchisors.
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Non-bank financial services
Our Australian asset manager and lender provides credit and investment solutions to over 30,000 borrowers and over 125,000 investors. The business plays an important role in providing unique fixed-income investment solutions to Australians approaching retirement or in retirement, as well as providing secured credit to underserved customer segments that require specialized underwriting, such as small-to-medium sized business owners.
As described below under “Recent Developments in Our Business”, on July 22, 2026, we completed the previously announced sale of a 27% interest in our Australian asset manager and lender.
Our Indian non-bank financial services operation is a financing company primarily focused on used vehicle financing for small road transporters and offering small business loans. We cater to over 163,000 customers and help them either secure commercial vehicle financing or get loans to grow their small businesses. With a pan-India distribution network of 468 branches, our Indian non-bank financial services operation is well established to cater to the growing credit demand in the country. Apart from growing its core vehicle financing operation, the company is expanding its secured micro-enterprise lending, targeting an adjacent customer segment of individual small-scale entrepreneurs.
Our Canadian residential and multi-family mortgage lender is a leading essential service provider to the Canadian housing market, playing a critical role in the origination, underwriting, and servicing of single-family prime residential and multi-family mortgages. The business has a resilient financial profile supported by recurring and predictable revenues from its base of mortgages under administration. We have joint control over the business and have accounted for our investment as an equity accounted investment.
Residential mortgage insurer
Our residential mortgage insurer is the largest private sector residential mortgage insurer in Canada, providing mortgage default insurance to Canadian residential mortgage lenders. Regulations in Canada require lenders to purchase mortgage insurance in respect of a residential mortgage loan whenever the loan-to-value ratio exceeds 80%. Our residential mortgage insurer plays a significant role in increasing access to homeownership for Canadian residents, particularly for first-time homebuyers.
Our residential mortgage insurer has built a broad underwriting and distribution platform across Canada that provides customer-focused products and support services to the vast majority of Canada’s residential mortgage lenders and originators. We underwrite mortgage insurance for residential properties in all provinces and territories of Canada.
The revenues of our residential mortgage insurer consist primarily of: (i) insurance revenues earned on mortgage insurance contracts and (ii) net investment income and gains/losses on the investment portfolio within the business.
Fleet management and car rental services
Our fleet management and car rental services operation is one of the leading providers of heavy equipment and light vehicle leasing and car rental services in Brazil. Our fleet management services lease a variety of assets to corporate clients under medium-term contracts linked to inflation, including a fleet of trucks, trailers, tractors, harvesters and light vehicles, in addition to related services. We have been able to sustain high contract renewal rates with high-quality clients as well as diversify into new asset and industry classes. Our car rental services benefit from a nationwide presence with access to a wide network of accredited maintenance shops, longstanding relationships with OEMs and a reputation for value added services. Our combined fleet management and car rental services maintain a fleet of more than 118,000 vehicles.
Construction operation
Our construction operation is a global contractor with a focus on high-quality construction, primarily on large-scale landmark buildings and social infrastructure. Construction projects are generally delivered through contracts for the design and construction, including procurement for a defined price and program. To mitigate risk, contracts are generally procured using a two-stage approach, which includes early engagement during the design phase prior to the execution of the main contract. The business also engages in construction management contracts on a reduced risk model. Most construction activity is typically subcontracted to reputable specialists whose obligations generally align with those contained within the main construction contract. Our construction operation primarily operates in Australia, the United Kingdom and Canada across a broad range of sectors, including office, residential, health, tourism and leisure, education, data center, community, defense, retail, industrial and infrastructure.
We recognize revenues when it is highly probable that economic benefits will flow to the business, and when it can be reliably measured and collection is assured. Revenues are recognized over time as performance obligations are satisfied, by reference to the stage of completion of the contract activity at the reporting date, measured as the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. A large portion of construction revenues and
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costs are earned and incurred in Australia and the United Kingdom and may be impacted by fluctuations in the Australian dollar and British pound. A significant portion of our revenues are generated from large projects, and the results from our construction operation can fluctuate quarterly and annually, depending on the level of work during a period. Our business is impacted by the general economic conditions and economic growth of the particular region in which we provide construction services.
As described below under “Recent Developments in Our Business”, on June 18, 2026, we agreed to sell our construction operation. The transaction is expected to close in the fourth quarter of 2026, subject to substantive closing and regulatory conditions.
Other
Our payment processing services operation is a leading provider of payment solutions in the Middle East and Africa. The business provides government, merchant and institutional clients with a payment platform for acquiring, issuing and processing customer transactions. We have accounted for our interest in the underlying business as an equity accounted investment.
Our technology services operation provides customer management solutions which specialize in managing customer interactions for large global healthcare and technology clients primarily based in the United States. We have joint control over the business and have accounted for our investment as an equity accounted investment.
Our real estate services operation provides services to more than 20,000 residential real estate brokers through franchise arrangements under a number of brands in Canada, including a nationally recognized brand, Royal LePage. We also provide valuations and related analytic services to financial institutions in Canada through which we process in excess of 200,000 appraisals and valuations per year. We have accounted for our investment as an equity accounted investment.
Our entertainment operation, in partnership with a leading Canadian gaming operator, consists of four entertainment facilities in the Greater Toronto Area. Through a long-term contract with the Ontario Lottery and Gaming Corporation, we have the exclusive right to operate these facilities. Through our partnership, we have undertaken a growth strategy whereby we have been enhancing the guest experience and transforming our facilities into attractive, premier entertainment destinations. This modernization and development is intended to include enhanced entertainment offerings and integrated property expansions that incorporate leading world-class amenities such as hotels, meeting and event facilities, performance venues, restaurants and retail shopping. We have joint control over the business and have accounted for our investment as an equity accounted investment.
We hold a convertible preferred security investment in Nielsen, a market leader in third-party audience measurement, data and analytics. The business is an essential service provider to the video and audio advertising industry, providing critical measurement data for advertising buyers and sellers. We have accounted for our investment as a financial asset.
Infrastructure services
Our infrastructure services segment includes our (i) modular building leasing services, (ii) lottery services operation, (iii) offshore oil services and (iv) work access services.
Modular building leasing services
Our modular building leasing services provide modular workspaces in Europe and Asia-Pacific to a diversified customer base across the industrial, infrastructure and public sectors. With a global fleet of approximately 320,000 modular units across 23 countries, our operations service more than 53,000 customers through an established network of 152 service centers. The modular units provide customers with a wide range of flexible, cost-effective and environmentally friendly solutions for temporary space requirements. The primary source of revenues is the leasing of modular units and ancillary value added products and services (furniture, fire extinguishers, air conditioners, wireless internet access points, steps, ramps and damage waivers).
Lottery services operation
Our lottery services operation is a leading provider of products, services and technology across the lottery ecosystem in over 50 countries. Our business is an essential service provider to government-sponsored lottery programs, a critical and growing source of funding, through capabilities in game design, production, distribution, systems and terminals, and turnkey technology solutions. The revenues of our lottery services operation consist primarily of (i) the sale of instant lottery products and services, (ii) sale and ongoing maintenance of hardware products and technology and (iii) a full-suite of digital capabilities to support the development and operation of government sponsored iLottery programs.
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Offshore oil services
Our offshore oil services is a global provider of marine transportation, offshore oil production, facility storage, and offshore installation, maintenance and safety services to the offshore oil production industry. We operate floating production storage and offloading units (“FPSO”) and floating storage and offloading units (“FSO”), also with highly specialized capabilities including dynamic positioning. We operate in selected oil regions globally, including the North Sea (Norway and the United Kingdom) and Brazil.
As a fee-based business focused on critical services, our offshore oil services has limited direct commodity exposure and a portfolio which primarily comprises medium-term, fixed-rate contracts with high-quality, primarily investment grade counterparties. A substantial part of our revenues are based on contracts with customers and is fee-based which is recognized on a straight-line basis over the term of the contracts.
As described below under “Recent Developments in Our Business”, on July 20, 2026, our offshore oil services operation closed the previously announced sale of its FPSO operation.
Work access services
Our work access services is a leading global provider of scaffolding and related services to industrial and commercial markets, serving more than 27,000 customers across 25 countries. The platform’s scale, global footprint, and reputation for engineering innovation and productivity represent meaningful competitive advantages in a highly fragmented industry. Our solutions support a broad range of critical infrastructure ranging from refineries and petrochemical plants to commercial buildings, data centers, bridges, hydroelectric dams and other power facilities. A substantial portion of our services are recurring and based on the ongoing maintenance requirements of our customers’ mission-critical assets. Our work access services has pursued a disciplined growth strategy combining organic initiatives with targeted acquisitions. Under our ownership, we have completed ten acquisitions spanning multi-craft services, European and North American scaffolding providers, and complementary specialty services such as industrial coatings, cathodic protection, and insulation. Collectively, these initiatives have expanded the platform’s service capabilities, enhanced geographic reach, and strengthened its position as a scaled, diversified partner to global infrastructure customers. We have joint control over the business and have accounted for our investment as an equity accounted investment.
Industrials
Our industrials segment includes our (i) advanced energy storage operation, (ii) engineered components manufacturing operation, (iii) water and wastewater operation, (iv) electric heat tracing systems manufacturer and (v) other industrials operations.
Advanced energy storage operation
Our advanced energy storage operation is a global market leader in manufacturing automotive batteries that has over 18,000 employees around the world with a footprint that consists of over 50 manufacturing, recycling and distribution centers servicing a global customer base in over 100 countries. We manufacture and distribute over 150 million batteries per year, which power one in three cars in the world.
The batteries manufactured by our advanced energy storage operation power internal combustion, hybrid and electric vehicles. We sell starting, lighting and ignition batteries which are used primarily for initial engine ignition of traditional vehicles. The business has made significant investments to develop higher margin advanced energy storage solutions across a chemistry‑agnostic portfolio, including enhanced flooded and absorbent glass mat batteries, as well as emerging lithium, sodium‑ion, and supercapacitor technologies. These solutions support the growing electrification and digitalization of vehicles by delivering the energy density, reliability, and durability required for next‑generation platforms, including hybrid and electric vehicles, and for increasingly critical onboard systems such as advanced safety features, connectivity, and backup power.
Our advanced energy storage operation distributes products primarily to aftermarket retailers and OEMs. Approximately 80% of sales volume is generated through the stable aftermarket channel, providing a recurring revenue base driven by repeat battery replacements over the life of each vehicle and longstanding relationships with large aftermarket customers. The remaining 20% of our sales volume is generated through the OEM channel, which comprises sales to major car manufacturers globally and is driven by global demand for new vehicles.
On August 16, 2022, the United States enacted laws providing incentives for domestic energy production and manufacturing. In December 2023, the United States Department of the Treasury issued proposed regulations, which were subsequently finalized in October 2024, that provided guidance in determining eligibility to claim tax benefits. The tax benefits are available for qualifying activities from 2023 to 2032, subject to phase out beginning in 2030. For qualified business activities in the Corporation’s advanced energy storage operation beginning in its fiscal year 2024, these tax benefits are eligible to be
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refundable or transferable, and therefore the benefits are accounted for in accordance with IAS 20, Accounting for Government Grants and Disclosure of Government Assistance (“IAS 20”). IAS 20 permits a policy choice to present benefits of a similar nature as income or an offset to a related expense. The Corporation has elected to present these benefits as a reduction to direct operating costs. For the three and six months ended June 30, 2026, the Corporation recorded a benefit of $256 million and $497 million, respectively (June 30, 2025: $256 million and $515 million respectively).
On March 24, 2026, our advanced energy storage operation received a cash refund of $1,044 million relating to tax benefits recorded in its fiscal 2025 results. The proceeds will support the execution of its planned multi-billion-dollar investment program in the U.S. designed to further strengthen domestic capabilities. These investments will improve product mix, reinforce supply-chain resilience, and position the business to meet growing demand for advanced energy storage solutions across transportation and adjacent end markets. As at June 30, 2026, $1,850 million (December 31, 2025: $2,412 million) of cumulative tax benefits were recorded in the unaudited interim condensed consolidated statements of financial position, included within accounts and other receivable, net.
Engineered components manufacturing operation
Our engineered components manufacturing operation is a leading global manufacturer of highly engineered components primarily for industrial trailers and other towable-equipment providers. We have a leading presence in our core products across North America, Europe and Australia with vertically integrated production and distribution capabilities and a commitment to sustainability. We manufacture and distribute over 95,000 products including highly engineered, customized solutions for a diverse range of customers across our global footprint.
Water and wastewater operation
Our water and wastewater operation in Brazil is a leading private sanitation provider, including collection, treatment and distribution of water and wastewater services to a broad range of residential and governmental customers through long-term, inflation-adjusted concessions and public-private partnerships. We provide services that benefit more than 19 million people in over 230 municipalities in Brazil.
Electric heat tracing systems manufacturer
Our electric heat tracing systems manufacturer is a leading provider of electric heat management solutions primarily for the industrial, commercial and residential end markets. Our core products include electric heat tracing systems, electric floor heating, fire-rated wiring and leak detection solutions, supported by engineering and maintenance services. We operate 18 facilities across 12 countries, selling our products to over 3,000 customers globally. The business has a strong market position and generates a majority of its revenues from durable aftermarket replacement demand across a large customer installed base.
Other
Our Canadian natural gas production operation produces approximately 33,000 barrels of oil equivalent per day, or BOE/d. Our properties are characterized by long-life, low-decline reserves located at shallow depths and are low-risk with low-cost capital projects. Operational results and financial condition are dependent principally upon the prices received for gas production which have fluctuated widely in recent years. Any upward or downward movement in natural gas prices could have an impact on the natural gas operations’ financial condition.
Our advanced machinery and services provider is a leading global supplier of equipment, spare parts and maintenance services for the corrugated packaging industry. The business designs, manufactures and services full-line corrugators and standalone machines used in the production of corrugated board, and supports over 200 customers globally through a large installed base. Through its after-sales service network, the business provides replacement parts, upgrades and technical services that are critical to maintaining customer uptime and operating efficiency. We have joint control over the business and have accounted for our investment as an equity accounted investment.
Our specialty consumables and equipment manufacturing operation is a leading manufacturer and distributor of specialty consumables products serving diagnostics, environmental and life sciences labs, as well as research markets. The business manufactures and sells essential products that support the accuracy and repeatability of workflows in research and labs and benefits from a diverse and long-term customer base of over 50,000 customers, which supports its strong cash flow generation. We have joint control over the business and have accounted for our investment as an equity accounted investment.
Our returnable plastic packaging operation is a leading North American and European provider of returnable plastic packaging that has a strong competitive position given its extensive scale, diversified base of long-term customers serving multiple industries and its solid reputation for product innovation. We operate in an attractive segment of the packaging space that has favorable long-term trends driven by an increased focus on sustainability and logistics. We have accounted for our investment as an equity accounted investment.
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Our roofing products manufacturer is the world’s largest provider of slate roofing tiles. With its 30 quarries, the company produces and supplies premium slate roofing tiles globally to support the non-discretionary renovation of residential and heritage buildings in markets with strict local regulations that mandate the use of slate for roofing. We have joint control over the business and have accounted for our investment as an equity accounted investment.
Our solar power solutions provider is a distributor of solar power solutions for the distributed generation market in Brazil.
Corporate
Corporate includes corporate cash and liquidity management, as well as activities related to the management of the Corporation’s relationship with Brookfield.
Overview of Our Business
Our company is a Canadian corporation incorporated under the laws of British Columbia. The Corporation was established by Brookfield to be its flagship public vehicle for its business services and industrial operations. Our operations are primarily located in the United States, Europe, Australia, Brazil and Canada. We are focused on owning and operating high-quality operations that benefit from a strong competitive position and provide essential products and services. We seek to build value through enhancing the cash flows of our businesses, pursuing an operations-oriented acquisition strategy and opportunistically recycling capital generated from operations and dispositions into our existing operations, new acquisitions and investments. The Corporation’s goal is to generate returns to Shareholders primarily through capital appreciation with a modest distribution yield.
Recent Developments in Our Business
Below are the key developments in our business since March 31, 2026:
On May 11, 2026, we closed our previously announced investment in The OpenAI Deployment Company (“DeployCo”), a newly formed AI services platform created in partnership with OpenAI and a group of leading global investors. Our share of the equity investment is expected to be approximately $100 million. The preferred equity investment is accounted for as a financial asset.
On June 18, 2026, we agreed to sell our construction operation for proceeds of approximately $650 million, including approximately $530 million of cash on closing and an earn-out based on future business performance. The transaction is expected to close in the fourth quarter of 2026. As at June 30, 2026, our construction operation did not meet the criteria to be presented as a disposal group held for sale in the unaudited interim condensed consolidated financial statements due to substantive closing and regulatory conditions which remain outstanding.
On July 17, 2026, we reached an agreement to acquire Gregg Distributors, the leading industrial maintenance, repair and operations distributor serving customers across Western Canada, for total consideration of approximately $1.1 billion, of which our share of equity is expected to be approximately $140 million for a 30% economic interest. The transaction is expected to close in the second half of 2026.
On July 20, 2026, our offshore oil services operation closed the previously announced sale of its FPSO operation. As at June 30, 2026, our offshore oil services’ FPSO operation met the criteria to be presented as a disposal group held for sale in the unaudited interim condensed consolidated financial statements.
On July 22, 2026, we completed the previously announced sale of a 27% interest in our Australian asset manager and lender. Following completion of the transaction, the Corporation continues to control and consolidate the business.
On July 31, 2026, together with institutional partners, we completed the acquisition of World Freight Company, the world’s largest global air freight services provider, which works on behalf of airlines to sell and manage their cargo capacity, for total consideration of approximately $1.2 billion, of which our share of equity was approximately $175 million for a 25% economic interest.
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Outlook
Our objective is to acquire market-leading industrial and services businesses for value, execute our operational improvement plans and opportunistically recycle capital to generate strong risk adjusted returns. We focus on increasing cashflows and compounding long-term value. We have established a proven track record of generating strong returns through buying good businesses at reasonable value and executing operational improvements to create sustainable value for our investors across cycles. Most of our global operations are market leaders, largely providing goods and services where they are sourced, and as a result, are not overly reliant on cross-border trade. As global trade policies continue to evolve and geopolitical tensions persist, we do not expect a material effect on our operations. Where there are effects, we anticipate we will be able to implement operational and commercial plans to mitigate the impacts. An overall higher inflationary environment could delay long-term investment decisions, impact growth and result in a more pronounced pullback in global demand. While we have seen the resiliency of our operations demonstrated through past cycles, we are working with all our management teams to ensure our businesses are well positioned in any economic environment.
Business services
Our residential mortgage insurer delivered overall performance in line with expectations. Transaction volumes have increased compared to prior year, supported by the continued durability of first-time home buyer demand as well as improving sales activity across most regions. Losses on claims continue to normalize, as expected, and include the impact of reserve strengthening. The business ended the quarter with a mortgage insurer capital adequacy test (“MICAT”) ratio of 184%, above the minimum regulatory requirement of 150%, providing significant capital to manage the continued expected normalization in losses.
Our dealer software and technology services operation continues to advance its commercial initiatives and platform modernization program. Performance during the quarter benefited from contractual annual price increases, continued cross-sell and upsell and cost optimization initiatives, which offset the impact of customer churn.
During the quarter, we were active in both acquisitions and capital recycling. On acquisitions, we closed our previously announced investment in DeployCo, a newly formed AI services platform created in partnership with OpenAI and a group of leading global investors. Our preferred equity investment provides an attractive contracted return while also providing access to OpenAI’s leading models, technology and engineering talent to accelerate the deployment of AI at scale within our own operations.
On capital recycling, we agreed to sell Multiplex, our construction operation, for approximately $650 million including approximately $530 million of cash proceeds on closing and an earn-out based on future business performance. The transaction is expected to close in the fourth quarter of 2026, subject to substantive closing and regulatory conditions.
Subsequent to quarter end, we completed the previously announced sale of a 27% interest in La Trobe, our Australian asset manager and lender. We also completed the acquisition of World Freight Company, the world’s largest global air freight services provider, which works on behalf of airlines to sell and manage their cargo capacity. The business is a vital service provider to the air freight industry, benefiting from long-term customer relationships, stable demand and a track record of consistent growth and cash flow generation. Total consideration for the acquisition was approximately $1.2 billion, of which our share of equity was approximately $175 million for a 25% economic interest.
Infrastructure services
Performance at our lottery services operation reflects a contract penalty payment at a joint venture and increased investment spend which more than offset revenue growth from the ramp-up of recently secured lottery concessions. The business is generating positive cash flow as it continues to focus on growing margins, expanding cross-sell and upsell opportunities with existing customers and executing on a strong pipeline of new commercial opportunities.
Results at our modular building leasing services operation benefited from favorable foreign exchange movements and growth in value-added products and services. Overall end market conditions remain mixed, including ongoing challenges in the U.K. We are continuing to support the business on initiatives to accelerate volume growth in the current environment, strengthen execution and improve service levels to drive business performance.
Subsequent to quarter end, we completed the previously announced sale of our offshore oil services’ FPSO operation.
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Industrials
Performance at our advanced energy storage operation continues to benefit from commercial actions, a favorable mix shift toward higher-margin advanced batteries and higher aftermarket volumes, which more than offset softer original equipment manufacturing demand. Underpinned by its strong cash flow generation, the business repaid $500 million of debt during the quarter, further strengthening its balance sheet as it executes on a multi-billion-dollar U.S. investment program.
Our engineered components manufacturer continues to improve its margin performance, which more than offset the impact of continued soft end market conditions. During the quarter, the business extended the maturities of its borrowings by approximately three years, providing the business with greater flexibility to manage through an eventual recovery in end market demand.
Subsequent to quarter end, we reached an agreement to acquire Gregg Distributors, the leading industrial maintenance, repair and operations distributor serving customers across Western Canada. The business operates in a highly fragmented market with long-standing customer relationships and recurring demand for essential industrial products. The total consideration is expected to be approximately $1.1 billion, of which our share of equity is expected to be approximately $140 million for a 30% economic interest. The transaction is expected to close in the second half of 2026.
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Review of Consolidated Results of Operations
The table below summarizes our results of operations for the three and six months ended June 30, 2026 and 2025. Further details on our results of operations and our financial performance are presented within the “Segment Analysis” section.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (US$ MILLIONS, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Revenues | $ | 6,497 | $ | 6,695 | $ | 12,933 | $ | 13,444 | ||||||||||||||||||
| Direct operating costs | (5,224) | (5,465) | (10,350) | (10,867) | ||||||||||||||||||||||
| General and administrative expenses | (289) | (271) | (585) | (582) | ||||||||||||||||||||||
| Interest income (expense), net | (739) | (801) | (1,505) | (1,571) | ||||||||||||||||||||||
| Equity accounted income (loss) | (6) | 23 | 5 | 15 | ||||||||||||||||||||||
| Impairment reversal (expense), net | — | (14) | 5 | (14) | ||||||||||||||||||||||
| Gain (loss) on dispositions, net | 1 | 6 | 1 | 220 | ||||||||||||||||||||||
| Other income (expense), net | (170) | (103) | (146) | (186) | ||||||||||||||||||||||
| Income (loss) before income tax | 70 | 70 | 358 | 459 | ||||||||||||||||||||||
| Income tax (expense) recovery | ||||||||||||||||||||||||||
| Current | (147) | (119) | (257) | (316) | ||||||||||||||||||||||
| Deferred | 170 | 184 | 208 | 248 | ||||||||||||||||||||||
| Net income (loss) | $ | 93 | $ | 135 | $ | 309 | $ | 391 | ||||||||||||||||||
| Attributable to: | ||||||||||||||||||||||||||
Class A shareholders (1) | $ | 37 | $ | 26 | $ | 77 | $ | 106 | ||||||||||||||||||
| Non-controlling interests attributable to: | ||||||||||||||||||||||||||
Special shareholder (1) | — | — | — | — | ||||||||||||||||||||||
| Preferred securities | 13 | 13 | 26 | 26 | ||||||||||||||||||||||
| Interest of others in operating subsidiaries | 43 | 96 | 206 | 259 | ||||||||||||||||||||||
| $ | 93 | $ | 135 | $ | 309 | $ | 391 | |||||||||||||||||||
Basic and diluted earnings (loss) per Class A share (2) | $ | 0.18 | $ | 0.12 | $ | 0.37 | $ | 0.50 | ||||||||||||||||||
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(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one-for-one basis, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one-for-one basis.
(2)Average number of Class A Shares outstanding for the three and six months ended June 30, 2026 was 206.2 million and 207.0 million, respectively (June 30, 2025: 211.0 million and 213.3 million, respectively, adjusted for the Arrangement).
Comparison of the three and six months ended June 30, 2026 and 2025
For the three months ended June 30, 2026, net income was $93 million, with $37 million of net income attributable to Shareholders (income of $0.18 per Class A Share). For the three months ended June 30, 2025, net income was $135 million, with $26 million of net income attributable to Shareholders (income of $0.12 per Class A Share). The decrease was primarily due to the impact of dispositions completed over the last twelve months.
For the six months ended June 30, 2026, net income was $309 million, with $77 million of net income attributable to Shareholders (income of $0.37 per Class A Share). For the six months ended June 30, 2025, net income was $391 million, with $106 million of net income attributable to Shareholders (income of $0.50 per Class A Share). The decrease was primarily due to a $214 million net gain recognized in prior period results from the disposition of our offshore oil services’ shuttle tanker operation in January 2025, combined with the impact of dispositions completed over the last twelve months.
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Revenues
For the three months ended June 30, 2026, revenues decreased by $198 million to $6,497 million, compared to $6,695 million for the three months ended June 30, 2025. Revenues from our business services segment decreased by $263 million, primarily due to the deconsolidation of our healthcare services operation in May 2025, which reduced revenues by $325 million. This was partially offset by revenue growth from our fleet management and car rental services. Revenues from our infrastructure services segment decreased by $2 million, primarily due to the impact of dispositions within our offshore oil services over the last twelve months, partially offset by higher revenue from our lottery services operation driven by strategic initiatives. Revenues from our industrials segment increased by $67 million primarily due to strong performance at our advanced energy storage operation during the quarter driven by higher aftermarket volumes, commercial actions, and a continued mix shift towards higher margin advanced batteries, partially offset by the deconsolidation of our returnable plastic packaging operation in July 2025.
For the six months ended June 30, 2026, revenues decreased by $511 million to $12,933 million, compared to $13,444 million for the six months ended June 30, 2025. The decrease was primarily due to the same factors described above.
Direct operating costs
For the three months ended June 30, 2026, direct operating costs decreased by $241 million to $5,224 million, compared to $5,465 million for the three months ended June 30, 2025. The decrease was primarily due to the deconsolidation of our healthcare services operation in May 2025 and the deconsolidation of our returnable plastic packaging operation in July 2025, which reduced direct operating costs by $414 million. This was partially offset by increased costs due to inflation during the period within our advanced energy storage operation.
For the six months ended June 30, 2026, direct operating costs decreased by $517 million to $10,350 million, compared to $10,867 million for the six months ended June 30, 2025. The decrease was primarily due to the same factors described above.
General and administrative expenses
For the three months ended June 30, 2026, general and administrative expenses increased by $18 million to $289 million, compared to $271 million for the three months ended June 30, 2025. The increase was primarily due to higher activity at our electric heat tracing systems manufacturer and our advanced energy storage operation, partially offset by the impact of dispositions completed in the last twelve months.
For the six months ended June 30, 2026, general and administrative expenses increased by $3 million to $585 million, compared to $582 million for the six months ended June 30, 2025. The increase was primarily due to the same factors described above.
Interest income (expense), net
For the three months ended June 30, 2026, net interest expense decreased by $62 million to $739 million, compared to $801 million for the three months ended June 30, 2025. The decrease was primarily due to partial repayments of borrowings and the impact of debt refinancings which lowered the cost of debt at our advanced energy storage operation, combined with the impact of the deconsolidation of our healthcare services operation in May 2025.
For the six months ended June 30, 2026, net interest expense decreased by $66 million to $1,505 million, compared to $1,571 million for the six months ended June 30, 2025. The decrease was primarily due to the same factors described above.
Gain (loss) on dispositions, net
For the three months ended June 30, 2026, gain on dispositions completed within our operations was $1 million.
For the six months ended June 30, 2026, gain on dispositions was $1 million, compared to $220 million for the six months ended June 30, 2025 primarily related to a gain recognized from the disposition of our offshore oil services' shuttle tanker operation in the prior period.
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Other income (expense), net
For the three months ended June 30, 2026, net other expense increased by $67 million to $170 million, compared to net other expense of $103 million for the three months ended June 30, 2025. Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. For the three months ended June 30, 2026, the components of other income (expense), net include $77 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations, $75 million of net loss on debt modification and extinguishment, $60 million of net revaluation gains, $30 million of business separation expenses, stand-up costs and restructuring charges, $16 million of transaction costs and $32 million of other expenses. For the three months ended June 30, 2025, the components of other income (expense), net include $236 million of net gain recognized upon deconsolidation of our healthcare services operation, $189 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations, $59 million of net revaluation losses, $57 million of business separation expenses, stand-up costs and restructuring charges, $19 million of net loss on debt modification and extinguishment, $3 million of transaction costs and $12 million of other expenses.
For the six months ended June 30, 2026, net other expense decreased by $40 million to $146 million, compared to net other expense of $186 million for the six months ended June 30, 2025. For the six months ended June 30, 2026, the components of other income (expense), net include $121 million of net revaluation gains, $81 million of business separation expenses, stand-up costs and restructuring charges, $79 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations, $20 million of transaction costs, $9 million of net gains on debt modification and extinguishment and $96 million of other expenses. For the six months ended June 30, 2025, the components of other income (expense), net include $236 million of net gain recognized upon deconsolidation of our healthcare services operation, $196 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations, $135 million of business separation expenses, stand-up costs and restructuring charges, $125 million of gains recorded at our offshore oil services due to completed upgrades and unrealized gains recorded on reclassification of property, plant and equipment to finance leases, $110 million of net revaluation losses, $38 million of transaction costs, $22 million of net loss on debt modification and extinguishment and $46 million of other expenses.
Income tax (expense) recovery
For the three months ended June 30, 2026, current income tax expense increased by $28 million to $147 million, compared to $119 million for the three months ended June 30, 2025. The increase in current income tax expense was primarily due to a non-recurring prior period recovery related to a litigation payment settlement within our dealer software and technology services operation, partially offset by lower taxable income within our residential mortgage insurer and our modular building leasing services. Deferred income tax recovery decreased by $14 million to $170 million, compared to $184 million for the three months ended June 30, 2025. The decrease in deferred income tax recovery was primarily due to a lower recognition of tax attributes combined with foreign exchange movement on deferred tax balances within our advanced energy storage operation, partially offset by the recognition of tax attributes within our engineered components manufacturing operation.
For the six months ended June 30, 2026, current income tax expense decreased by $59 million to $257 million, compared to $316 million for the six months ended June 30, 2025. The decrease in current income tax expense was primarily due to lower taxable income within our residential mortgage insurer, and non-recurring withholding taxes on a special distribution received from our advanced energy storage operation in the prior period. Deferred income tax recovery decreased by $40 million to $208 million, compared to $248 million for the six months ended June 30, 2025. The decrease in deferred income tax recovery was primarily due to the same factors described above.
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Summary of Results
Quarterly results
Total revenues and net income (loss) for the eight most recent quarters were as follows:
| 2026 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (US$ MILLIONS, except per share amounts) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |||||||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 6,497 | $ | 6,436 | $ | 7,094 | $ | 6,919 | $ | 6,695 | $ | 6,749 | $ | 7,427 | $ | 9,232 | |||||||||||||||||||||||||||||||||||||
| Direct operating costs | (5,224) | (5,126) | (5,621) | (5,663) | (5,465) | (5,402) | (6,008) | (7,069) | |||||||||||||||||||||||||||||||||||||||||||||
| General and administrative expenses | (289) | (296) | (291) | (278) | (271) | (311) | (324) | (319) | |||||||||||||||||||||||||||||||||||||||||||||
| Interest income (expense), net | (739) | (766) | (784) | (784) | (801) | (770) | (752) | (778) | |||||||||||||||||||||||||||||||||||||||||||||
| Equity accounted income (loss) | (6) | 11 | 19 | 8 | 23 | (8) | 35 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
| Impairment reversal (expense), net | — | 5 | (74) | — | (14) | — | (991) | — | |||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | 1 | — | — | 105 | 6 | 214 | — | 593 | |||||||||||||||||||||||||||||||||||||||||||||
| Other income (expense), net | (170) | 24 | (167) | (462) | (103) | (83) | (360) | (229) | |||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income tax | 70 | 288 | 176 | (155) | 70 | 389 | (973) | 1,431 | |||||||||||||||||||||||||||||||||||||||||||||
| Income tax (expense) recovery | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current | (147) | (110) | (137) | (130) | (119) | (197) | (158) | (276) | |||||||||||||||||||||||||||||||||||||||||||||
| Deferred | 170 | 38 | 79 | 163 | 184 | 64 | 23 | 580 | |||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 93 | $ | 216 | $ | 118 | $ | (122) | $ | 135 | $ | 256 | $ | (1,108) | $ | 1,735 | ||||||||||||||||||||||||||||||||||||||
| Attributable to: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A shareholders (1) | $ | 37 | $ | 40 | $ | (99) | $ | (59) | $ | 26 | $ | 80 | $ | (438) | $ | 301 | |||||||||||||||||||||||||||||||||||||
| Non-controlling interests attributable to: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special shareholder (1) | — | — | 95 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Preferred securities | 13 | 13 | 13 | 13 | 13 | 13 | 13 | 13 | |||||||||||||||||||||||||||||||||||||||||||||
| Interest of others in operating subsidiaries | 43 | 163 | 109 | (76) | 96 | 163 | (683) | 1,421 | |||||||||||||||||||||||||||||||||||||||||||||
| $ | 93 | $ | 216 | $ | 118 | $ | (122) | $ | 135 | $ | 256 | $ | (1,108) | $ | 1,735 | ||||||||||||||||||||||||||||||||||||||
Basic and diluted earnings (loss) per Class A share (2) | $ | 0.18 | $ | 0.19 | $ | (0.48) | $ | (0.28) | $ | 0.12 | $ | 0.38 | $ | (2.02) | $ | 1.39 | |||||||||||||||||||||||||||||||||||||
____________________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one-for-one basis, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one-for-one basis.
(2)Average number of Class A Shares outstanding for the three and six months ended June 30, 2026 was 206.2 million and 207.0 million, respectively (June 30, 2025: 211.0 million and 213.3 million, adjusted for the Arrangement).
Revenues and direct operating costs vary from quarter to quarter primarily due to acquisitions and dispositions of businesses, fluctuations in foreign exchange rates, business and economic cycles, weather and seasonality, broader economic factors, and commodity market volatility. Within our industrials segment, at our natural gas production operation, the ability to move heavy equipment safely and efficiently in Western Canadian oil and gas fields is dependent on weather conditions. In addition, the demand for batteries at our advanced energy storage operation as well as electric heat management products and services at our electric heat tracing systems manufacturer is typically higher in the colder seasons. Within our infrastructure services segment, our work access services operation is impacted by seasonality in the industries it services; for example, most refineries tend to close down for turnarounds during the spring and fall. In addition, cold temperatures in the first and fourth fiscal quarters typically limit activity on maintenance and capital projects in cold climates. In our modular building leasing services, business activity peaks in the summer months while the fourth fiscal quarter is a seasonal low as deliveries typically reduce in the winter. Some of our business services activities are seasonal in nature and are affected by the general level of economic activity and related volume of services purchased by our clients. The mortgage insurance premiums underwritten at our residential mortgage insurer fluctuate based on the general seasonality and macroeconomic conditions affecting the Canadian housing market. Net income is impacted by periodic monetization gains and impairment losses.
16
Review of Consolidated Financial Position
The following is a summary of the unaudited and audited consolidated statements of financial position as at June 30, 2026 and December 31, 2025, respectively:
| Change | ||||||||||||||||||||
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | June 30, 2026 vs December 31, 2025 | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 3,447 | $ | 3,546 | $ | (99) | ||||||||||||||
| Financial assets | 14,640 | 12,483 | 2,157 | |||||||||||||||||
| Accounts and other receivable, net | 7,121 | 7,725 | (604) | |||||||||||||||||
| Inventory and other assets | 8,538 | 4,594 | 3,944 | |||||||||||||||||
| Property, plant and equipment | 9,343 | 11,013 | (1,670) | |||||||||||||||||
| Deferred income tax assets | 2,117 | 2,083 | 34 | |||||||||||||||||
| Intangible assets | 17,955 | 18,513 | (558) | |||||||||||||||||
| Equity accounted investments | 2,428 | 2,494 | (66) | |||||||||||||||||
| Goodwill | 13,231 | 13,310 | (79) | |||||||||||||||||
| $ | 78,820 | $ | 75,761 | $ | 3,059 | |||||||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Accounts payable and other | $ | 16,201 | $ | 14,188 | $ | 2,013 | ||||||||||||||
| Corporate borrowings | 1,629 | 1,325 | 304 | |||||||||||||||||
| Non-recourse borrowings in subsidiaries of the Corporation | 43,193 | 42,424 | 769 | |||||||||||||||||
| Deferred income tax liabilities | 2,358 | 2,513 | (155) | |||||||||||||||||
| $ | 63,381 | $ | 60,450 | $ | 2,931 | |||||||||||||||
| Equity | ||||||||||||||||||||
Class A shareholders (1) | $ | 5,431 | $ | 5,451 | $ | (20) | ||||||||||||||
| Non-controlling interests attributable to: | ||||||||||||||||||||
Special shareholder (1) | — | — | — | |||||||||||||||||
| Preferred securities | 740 | 740 | — | |||||||||||||||||
| Interest of others in operating subsidiaries | 9,268 | 9,120 | 148 | |||||||||||||||||
| 15,439 | 15,311 | 128 | ||||||||||||||||||
| $ | 78,820 | $ | 75,761 | $ | 3,059 | |||||||||||||||
____________________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one-for-one basis, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one-for-one basis.
Financial assets
Financial assets increased by $2,157 million to $14,640 million as at June 30, 2026, compared to $12,483 million as at December 31, 2025. The balance comprised marketable securities, loans and notes receivable, derivative assets and other financial assets including $490 million of marketable securities within our corporate segment related to units in a Brookfield-managed evergreen private equity fund. The increase was primarily due to higher mortgage receivables at our Australian asset manager and lender as a result of higher activity and volumes.
17
The following table presents financial assets by segment as at June 30, 2026 and December 31, 2025:
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Corporate | Total | |||||||||||||||||||||||||||
| June 30, 2026 | $ | 13,799 | $ | 32 | $ | 316 | $ | 493 | $ | 14,640 | ||||||||||||||||||||||
| December 31, 2025 | $ | 11,664 | $ | 27 | $ | 207 | $ | 585 | $ | 12,483 | ||||||||||||||||||||||
Accounts and other receivable, net
Accounts and other receivable, net decreased by $604 million to $7,121 million as at June 30, 2026, compared to $7,725 million as at December 31, 2025. The decrease was primarily due to the receipt of $1,044 million of tax benefits at our advanced energy storage operation, partially offset by an additional $497 million of tax benefits recorded at our advanced energy storage operation.
Inventory and other assets
Inventory and other assets increased by $3,944 million to $8,538 million as at June 30, 2026, compared to $4,594 million as at December 31, 2025. Other assets increased by $3,679 million primarily due to the classification of our offshore oil services’ FPSO operation as held for sale in the quarter. Inventory increased by $265 million primarily due to higher units on hand at our advanced energy storage operation.
Property, plant & equipment and intangible assets
PP&E decreased by $1,670 million to $9,343 million as at June 30, 2026, compared to $11,013 million as at December 31, 2025. The decrease was primarily due to the classification of our offshore oil services’ FPSO operation as held for sale, combined with regular depreciation expense, partially offset by the impact of foreign exchange movements of $73 million. As at June 30, 2026, PP&E included $799 million of right-of-use assets (December 31, 2025: $767 million).
Intangible assets decreased by $558 million to $17,955 million as at June 30, 2026, compared to $18,513 million as at December 31, 2025. The decrease was primarily due to regular amortization expense of $823 million during the period. This was partially offset by net additions of $188 million primarily at our water and wastewater operation and the impact of foreign exchange movements of $77 million.
Capital expenditures represent additions to PP&E and certain intangible assets. Included in capital expenditures are maintenance capital expenditures, which are required to sustain the current performance of our operations, and growth capital expenditures, which are made for incrementally new assets that are expected to expand existing operations. Within our business services segment, capital expenditures were primarily related to production costs associated with developing or enhancing proprietary technology as well as maintenance of computer and hosting equipment at our dealer software and technology services operation and maintenance and expansion of the fleet at our fleet management and car rental services operation. Within our infrastructure services segment, capital expenditures were primarily vessel dry-docking costs at our offshore oil services which are contractually reimbursed by our customer, and fleet investment at our modular building leasing services. Within our industrials segment, capital expenditures were primarily related to expansions and equipment replacement at our advanced energy storage operation. We also include additions to intangible assets in our water and wastewater operation within capital expenditures due to the nature of its concession agreements. Maintenance and growth capital expenditures for the three and six months ended June 30, 2026 were $422 million and $893 million, respectively (June 30, 2025: $398 million and $633 million, respectively). Growth capital expenditures include fleet expansion capital expenditures at our fleet management and car rental services operation presented as cash used in operating activities in the unaudited interim condensed consolidated statement of cash flows.
Corporate and non-recourse borrowings
Borrowings are discussed in the “Liquidity and Capital Resources” section of this MD&A.
18
Deferred income tax liabilities
Deferred income tax liabilities decreased by $155 million to $2,358 million as at June 30, 2026, compared to $2,513 million as at December 31, 2025. The decrease was primarily due to the reversal of acquisition-related deferred tax liabilities in our modular building leasing services and our lottery services operation, combined with the recognition of tax attributes within our dealer software and technology services operation and our engineered components manufacturing operation.
Equity attributable to Shareholders
As at June 30, 2026, our capital structure comprised of three classes of shares: Class A Shares, Class B Shares, and Special Shares. Class A Shares and Class B Shares entitle the holders to receive dividends as declared by the Board and to vote on matters presented to shareholders. Holders of Class A Shares and Class B Shares hold an aggregate voting interest of 25% and 75%, respectively, in the Corporation. Special Shares provide the holder with certain economic entitlements, including incentive dividends based on 20% of the growth in market value of the Class A Shares quarter-over-quarter, but only after the market value exceeds the incentive dividend threshold. See Item 10.B, “Memorandum and Articles of Association - Description of our Share Capital” in our 2025 Annual Report.
During the second quarter of 2026, the volume-weighted average price per Class A Share was $33.06, which was below the current incentive dividend threshold of $33.81 per Class A Share, resulting in no incentive dividend for the quarter.
On August 15, 2025, the TSX accepted a notice filed by BBU of its intention to renew the normal course issuer bid for its LP Units. Under the normal course issuer bid of BBU, BBU and Brookfield Corporation were collectively authorized to repurchase up to 5% of BBU’s issued and outstanding LP Units as at August 8, 2025, or 4,441,425 LP Units, including up to 10,076 LP Units on the TSX during any trading day. During the period up to and including the date of the Arrangement on March 27, 2026, BBU repurchased 499,420 LP Units and Brookfield Corporation purchased 98,088 LP Units under BBU’s normal course issuer bid.
On August 15, 2025, the TSX accepted a notice filed by BBHC of its intention to renew its normal course issuer bid in respect of BBHC exchangeable shares (the “NCIB”). Under the NCIB, BBHC and Brookfield Corporation were collectively authorized to repurchase up to 5% of the issued and outstanding BBHC exchangeable shares as at August 8, 2025 or 3,499,836 BBHC exchangeable shares, including up to 11,100 BBHC exchangeable shares on the TSX during any trading day. During the period up to and including the date of the Arrangement on March 27, 2026, BBHC repurchased 891,240 BBHC exchangeable shares and Brookfield Corporation purchased 98,336 BBHC exchangeable shares under the NCIB.
Following the completion of the Arrangement on March 27, 2026, the NCIB became the normal course issuer bid of the Corporation and the Corporation is authorized to repurchase up to 1,591,258 Class A Shares until it expires. During the three months ended June 30, 2026, the Corporation repurchased 1,565,451 Class A Shares under the NCIB and Brookfield Corporation did not purchase any Class A Shares under the NCIB.
As at June 30, 2026 and December 31, 2025, the total number of Shares outstanding are as follows:
| SHARES | June 30, 2026 | December 31, 2025 | ||||||||||||
Class A Shares (1) | 205,442,014 | 208,398,125 | ||||||||||||
Class B Shares (1) | 4 | 4 | ||||||||||||
| Non-controlling interests: | ||||||||||||||
Special Shares (1) | 4 | 4 | ||||||||||||
____________________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one-for-one basis, amounts previously attributable to GP Units, which were exchanged for Class B Shares, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one-for-one basis.
19
Segment Analysis
Our operations are organized into four operating segments which are regularly reviewed by the CODM for the purpose of allocating resources to the segment and to assess its performance. The key measures used by the CODM in assessing performance and in making resource allocation decisions are adjusted earnings from operations (“Adjusted EFO”) and Adjusted EBITDA.
Adjusted EFO is our segment measure of profit or loss reported in accordance with IFRS 8, Operating Segments. The CODM uses Adjusted EFO to assess performance and make resource allocation decisions. Adjusted EFO is used by the CODM to evaluate our segments on the basis of return on invested capital generated by the underlying operations and is used by the CODM to evaluate the performance of our segments on a levered basis.
Adjusted EFO is calculated as net income and equity accounted income at our economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of depreciation and amortization expense, deferred income taxes, transaction costs, restructuring charges, unrealized revaluation gains or losses, impairment reversals or expenses and other income or expense items that are not directly related to revenue generating activities. Our economic ownership interest in consolidated subsidiaries excludes amounts attributable to non-controlling interests consistent with how we determine net income attributable to non-controlling interests in our unaudited interim condensed consolidated statements of operating results prepared using IFRS Accounting Standards. In order to provide additional insight regarding our operating performance over the lifecycle of an investment, Adjusted EFO includes the impact of preferred equity distributions and realized disposition gains or losses, recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. Adjusted EFO does not include legal and other provisions that may occur from time to time in the Corporation’s operations and that are one-time or non-recurring and not directly tied to the Corporation’s operations, such as those for litigation or contingencies. Adjusted EFO includes expected credit losses and bad debt allowances recorded in the normal course of the Corporation’s operations.
Adjusted EBITDA, a non-IFRS measure of operating performance, provides a comprehensive understanding of the ability of the Corporation’s businesses to generate recurring earnings and assists our CODM in understanding and evaluating the core underlying financial performance of our businesses. For further information on Adjusted EBITDA, see the “Reconciliation of Non-IFRS Measures” section of this MD&A.
The following table presents net income (loss), net income (loss) attributable to Shareholders and Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net income (loss) | $ | 93 | $ | 135 | $ | 309 | $ | 391 | ||||||||||||||||||
Net income (loss) attributable to Class A Shares (1) | $ | 37 | $ | 26 | $ | 77 | $ | 106 | ||||||||||||||||||
Adjusted EBITDA | $ | 587 | $ | 591 | $ | 1,169 | $ | 1,182 | ||||||||||||||||||
____________________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one-for-one basis.
The following table presents Adjusted EFO per segment for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Business services | $ | 118 | $ | 105 | $ | 243 | $ | 222 | |||||||||||||||||||||
| Infrastructure services | 28 | 38 | 50 | 204 | |||||||||||||||||||||||||
| Industrials | 222 | 154 | 428 | 284 | |||||||||||||||||||||||||
| Corporate | (79) | (63) | (153) | (131) | |||||||||||||||||||||||||
20
Comparison of the three and six months ended June 30, 2026 and 2025
Net income attributable to Shareholders for the three months ended June 30, 2026 was $37 million, an increase of $11 million compared to net income attributable to Shareholders of $26 million for the three months ended June 30, 2025.
Net income attributable to Shareholders for the six months ended June 30, 2026 was $77 million, a decrease of $29 million compared to net income attributable to Shareholders of $106 million for the six months ended June 30, 2025.
Adjusted EBITDA for the three months ended June 30, 2026 was $587 million, a decrease of $4 million compared to $591 million for the three months ended June 30, 2025, reflecting the impact of recent dispositions. Current and prior period results included $71 million of tax benefits at our advanced energy storage operation.
Adjusted EBITDA for the six months ended June 30, 2026 was $1,169 million, a decrease of $13 million compared to $1,182 million for the six months ended June 30, 2025. The decrease was primarily due to the same factors described above.
Business services
The following table presents Adjusted EFO and Adjusted EBITDA for our business services segment for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Adjusted EFO | $ | 118 | $ | 105 | $ | 243 | $ | 222 | ||||||||||||||||||
| Adjusted EBITDA | $ | 204 | $ | 205 | $ | 412 | $ | 418 | ||||||||||||||||||
The following table presents equity attributable to Shareholders for our business services segment as at June 30, 2026 and December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Total assets | $ | 31,014 | $ | 28,578 | ||||||||||
| Total liabilities | 23,258 | 21,149 | ||||||||||||
| Interests of others in operating subsidiaries | 3,840 | 3,751 | ||||||||||||
| Equity attributable to Shareholders | 3,916 | 3,678 | ||||||||||||
| Total equity | $ | 7,756 | $ | 7,429 | ||||||||||
Comparison of the three and six months ended June 30, 2026 and 2025
Adjusted EFO in our business services segment for the three months ended June 30, 2026 was $118 million, representing an increase of $13 million, compared to $105 million for the three months ended June 30, 2025. The increase is primarily due to a decrease in interest expense of $14 million driven by the sale of a partial interest in our dealer software and technology services operation in July 2025 and the deconsolidation of healthcare services in May 2025, combined with a net gain of $8 million in the current period related to the partial redemption of units received following the sale of a partial interest in our dealer software and technology services operation to a Brookfield-managed evergreen fund in July 2025.
Adjusted EFO in our business services segment for the six months ended June 30, 2026 was $243 million, representing an increase of $21 million, compared to $222 million for the six months ended June 30, 2025. The increase was primarily due to the same factors described above.
Adjusted EBITDA in our business services segment for the three months ended June 30, 2026 was $204 million, representing a decrease of $1 million, compared to $205 million for the three months ended June 30, 2025. The decrease was primarily due to the impact of the sale of a partial interest in our dealer software and technology services operation in July 2025 to a Brookfield-managed evergreen fund and the deconsolidation of our healthcare services operation in May 2025, partially offset by contributions from our Canadian residential and multi-family mortgage lender acquired in October 2025 and increased contribution from our Australian asset manager and lender.
21
Our residential mortgage insurer contributed $46 million to Adjusted EBITDA for the three months ended June 30, 2026, compared to $49 million for the three months ended June 30, 2025. Overall transaction volumes increased compared to the prior period, supported by the continued durability of first-time homebuyer activity and improved sales activity across most regions during the quarter. Losses on claims continue to normalize, as expected, and include the impact of reserve strengthening.
Our dealer software and technology services operation contributed $34 million of Adjusted EBITDA for the three months ended June 30, 2026, compared to $43 million for the three months ended June 30, 2025. Results reflected an impact of $12 million related to the sale of a partial interest in the business in July 2025 to a Brookfield-managed evergreen fund. Current period results benefited from contractual annual price increases and continued cross-sell and upsell and cost optimization initiatives, which offset the impact of customer churn.
Adjusted EBITDA in our business services segment for the six months ended June 30, 2026 was $412 million, representing a decrease of $6 million compared to $418 million for the six months ended June 30, 2025. The decrease was primarily due to the same factors described above.
Infrastructure services
The following table presents Adjusted EFO and Adjusted EBITDA for our infrastructure services segment for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Adjusted EFO | $ | 28 | $ | 38 | $ | 50 | $ | 204 | ||||||||||||||||||
| Adjusted EBITDA | $ | 96 | $ | 109 | $ | 186 | $ | 213 | ||||||||||||||||||
The following table presents equity attributable to Shareholders for our infrastructure services segment as at June 30, 2026 and December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Total assets | $ | 16,897 | $ | 16,270 | ||||||||||
| Total liabilities | 11,943 | 11,033 | ||||||||||||
| Interests of others in operating subsidiaries | 2,046 | 2,213 | ||||||||||||
| Equity attributable to Shareholders | 2,908 | 3,024 | ||||||||||||
| Total equity | $ | 4,954 | $ | 5,237 | ||||||||||
Comparison of the three and six months ended June 30, 2026 and 2025
Adjusted EFO in our infrastructure services segment for the three months ended June 30, 2026 was $28 million, representing a decrease of $10 million, compared to $38 million for the three months ended June 30, 2025. The decrease was primarily due to the impact of dispositions within our offshore oil services over the last twelve months.
Adjusted EFO in our infrastructure services segment for the six months ended June 30, 2026 was $50 million, representing a decrease of $154 million, compared to $204 million for the six months ended June 30, 2025. Prior period results included a $114 million net gain recognized on the disposition of our offshore oil services’ shuttle tanker operation in January 2025.
Adjusted EBITDA in our infrastructure services segment for the three months ended June 30, 2026 was $96 million, representing a decrease of $13 million, compared to $109 million for the three months ended June 30, 2025. Prior period results included an impact of $8 million related to the sale of a partial interest in our work access services operation in July 2025 to a Brookfield-managed evergreen fund.
Our modular building leasing services operation contributed $39 million to Adjusted EBITDA for the three months ended June 30, 2026, compared to $38 million for the three months ended June 30, 2025. Performance benefited from favorable foreign exchange movements and growth in value-added products and services. Overall end market conditions remain mixed, including ongoing challenges in the U.K. We continue to support the business on initiatives to accelerate volume growth in the current environment, strengthen execution and improve service levels to drive business performance.
22
Our lottery services operation contributed $28 million to Adjusted EBITDA for the three months ended June 30, 2026, compared to $32 million for the three months ended June 30, 2025. Results included a contract penalty payment at a joint venture and increased investment spend which more than offset revenue growth from the ramp-up of recently secured lottery concessions. The business is generating positive cash flow as it continues to focus on growing margins, expanding cross-sell and upsell opportunities with existing customers, and executing on a strong pipeline of new commercial opportunities.
Adjusted EBITDA in our infrastructure services segment for the six months ended June 30, 2026 was $186 million, representing a decrease of $27 million compared to $213 million for the six months ended June 30, 2025. The decrease was primarily due to the reduced contribution from our offshore oil services’ shuttle tanker operation sold in January 2025, combined with the same factors described above.
Industrials
The following table presents Adjusted EFO and Adjusted EBITDA for our industrials segment for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Adjusted EFO | $ | 222 | $ | 154 | $ | 428 | $ | 284 | ||||||||||||||||||
| Adjusted EBITDA | $ | 323 | $ | 307 | $ | 643 | $ | 611 | ||||||||||||||||||
The following table presents equity attributable to Shareholders for our industrials segment as at June 30, 2026 and December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Total assets | $ | 30,045 | $ | 29,914 | ||||||||||
| Total liabilities | 23,341 | 23,623 | ||||||||||||
| Interests of others in operating subsidiaries | 3,382 | 3,156 | ||||||||||||
| Equity attributable to Shareholders | 3,322 | 3,135 | ||||||||||||
| Total equity | $ | 6,704 | $ | 6,291 | ||||||||||
Comparison of the three and six months ended June 30, 2026 and 2025
Adjusted EFO in our industrials segment for the three months ended June 30, 2026 was $222 million, representing an increase of $68 million, compared to $154 million for the three months ended June 30, 2025. Current period results reflected a $26 million net gain related to the disposition of securities and a $20 million decrease in interest expense primarily due to lower borrowings and interest rates at our advanced energy storage operation, combined with the sale of a partial interest in our engineered components manufacturing operation in July 2025. Prior period results reflected $16 million of expenses related to employee incentive payments linked to the realization of value at our advanced energy storage operation.
Adjusted EFO in our industrials segment for the six months ended June 30, 2026 was $428 million, representing an increase of $144 million, compared to $284 million for the six months ended June 30, 2025. The increase was primarily due to lower current income tax expense in the current period due to withholding tax incurred in the prior period relating to a special distribution to owners from our advanced energy storage operation, combined with the same factors described above.
Adjusted EBITDA in our industrials segment for the three months ended June 30, 2026 was $323 million, representing an increase of $16 million, compared to $307 million for the three months ended June 30, 2025. The increase was primarily driven by contributions from our advanced machinery and services provider acquired in April 2026, a full quarter of contributions from our specialty consumables and equipment manufacturer acquired in May 2025, and increased contribution from our water and wastewater operation, partially offset by the impact of the sale of a partial interest in our engineered components manufacturing operation in July 2025.
Our advanced energy storage operation contributed $232 million to Adjusted EBITDA for the three months ended June 30, 2026, compared to $228 million for the three months ended June 30, 2025. Current period results benefited from commercial actions, a favorable mix shift toward higher-margin advanced batteries and higher aftermarket volumes, which more than offset softer original equipment manufacturing demand.
23
Our engineered components manufacturing operation contributed $22 million to Adjusted EBITDA for the three months ended June 30, 2026, compared to $34 million for the three months ended June 30, 2025. Current period results included a $13 million reduction in contributions attributable to the sale of a partial interest in the business in July 2025 to a Brookfield-managed evergreen fund, partially offset by improved margins despite the impact of continued soft end market conditions.
Adjusted EBITDA in our industrials segment for the six months ended June 30, 2026 was $643 million, representing an increase of $32 million compared to $611 million for the six months ended June 30, 2025. The increase was primarily due to the factors described above.
Corporate
The following table presents Adjusted EFO and Adjusted EBITDA for our corporate segment for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Adjusted EFO | $ | (79) | $ | (63) | $ | (153) | $ | (131) | ||||||||||||||||||
| Adjusted EBITDA | $ | (36) | $ | (30) | $ | (72) | $ | (60) | ||||||||||||||||||
The following table presents equity attributable to Shareholders for our corporate segment as at June 30, 2026 and December 31, 2025:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Total assets | $ | 864 | $ | 999 | ||||||||||
| Total liabilities | 4,839 | 4,645 | ||||||||||||
| Equity attributable to preferred securities | 740 | 740 | ||||||||||||
| Equity attributable to Shareholders | (4,715) | (4,386) | ||||||||||||
| Total equity | $ | (3,975) | $ | (3,646) | ||||||||||
Pursuant to our Master Services Agreement, we pay Brookfield a base management fee equal to 0.3125% quarterly (1.25% annually) of our total market capitalization, plus recourse debt, net of cash, and other securities held by corporate entities. Management fees for the three and six months ended June 30, 2026 were $28 million and $57 million, respectively, compared to $22 million and $43 million for the three and six months ended June 30, 2025, respectively. General and administrative costs comprise management fees and corporate expenses, including audit and other expenses.
Adjusted EFO in the current period included higher general and administrative costs due to higher management fees.
24
Reconciliation of Non-IFRS Measures
Adjusted EBITDA
To measure our performance, amongst other measures, we focus on Adjusted EBITDA. Adjusted EBITDA is a non-IFRS measure of operating performance presented as net income and equity accounted income at our economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of interest income (expense), net, income taxes, depreciation and amortization expense, gains (losses) on acquisitions/dispositions, net, transaction costs, restructuring charges, revaluation gains or losses, impairment expenses or reversals, other income or expenses, and preferred equity distributions. Adjusted EBITDA excludes other income (expense), net as reported in our unaudited interim condensed consolidated statements of operating results prepared using IFRS Accounting Standards, because this includes amounts that are not related to revenue earning activities, and are not normal, recurring operating income or expenses necessary for business operations. Other income (expense), net includes revaluation gains and losses, transaction costs, restructuring charges, stand-up costs and business separation expenses, gains or loss on debt extinguishments or modifications, gains or losses on dispositions of property, plant and equipment, employee incentive payments linked to the realization of value at the Corporation’s operations, non-recurring and one-time provisions that may occur from time to time at one of the Corporation’s operations that are not reflective of normal operations, and other items. Our economic ownership interest in consolidated subsidiaries excludes amounts attributable to non-controlling interests consistent with how we determine net income attributable to non-controlling interests in our unaudited interim condensed consolidated statements of operating results prepared using IFRS Accounting Standards. Due to the size and diversification of our operations, including economic ownership interests that vary, Adjusted EBITDA is critical in assessing the overall operating performance of our business. When viewed with our results prepared using IFRS Accounting Standards, we believe Adjusted EBITDA is useful to investors because it provides a comprehensive understanding of the ability of our businesses to generate recurring earnings which allows users to better understand and evaluate the underlying financial performance of our operations and excludes items we believe do not directly relate to revenue earning activities and are not normal, recurring items necessary for business operations. Our presentation of Adjusted EBITDA also gives investors comparability of our ongoing performance across periods.
Adjusted EBITDA has limitations as an analytical tool as it does not include interest income (expense), net, income taxes, depreciation and amortization expense, gains (losses) on acquisitions/dispositions, net, transaction costs, restructuring charges, revaluation gains or losses, impairment reversals or expenses and other income (expense), net. As a result of these limitations, Adjusted EBITDA should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, analysis of our results as reported using IFRS Accounting Standards. However, Adjusted EBITDA is a key measure that we use to evaluate the performance of our operations.
25
Adjusted EBITDA Reconciliation
The following tables reconcile Adjusted EBITDA to net income (loss) for the three and six months ended June 30, 2026:
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business Services | Infrastructure Services | Industrials | Corporate | Total | |||||||||||||||||||||||||||
| Net income (loss) | $ | 148 | $ | (155) | $ | 155 | $ | (55) | $ | 93 | ||||||||||||||||||||||
| Add back or deduct the following: | ||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 198 | 180 | 397 | — | 775 | |||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | (1) | — | — | — | (1) | |||||||||||||||||||||||||||
Other income (expense), net (1) | (81) | 40 | 208 | 3 | 170 | |||||||||||||||||||||||||||
| Income tax (expense) recovery | 28 | 1 | (43) | (9) | (23) | |||||||||||||||||||||||||||
| Equity accounted income (loss) | (3) | (2) | 11 | — | 6 | |||||||||||||||||||||||||||
| Interest income (expense), net | 214 | 152 | 348 | 25 | 739 | |||||||||||||||||||||||||||
Equity accounted Adjusted EBITDA (2) | 34 | 31 | 36 | — | 101 | |||||||||||||||||||||||||||
Amounts attributable to non-controlling interests (3) | (333) | (151) | (789) | — | (1,273) | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 204 | $ | 96 | $ | 323 | $ | (36) | $ | 587 | ||||||||||||||||||||||
____________________________________
(1)Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $77 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations, $75 million of net loss on debt modification and extinguishment, $60 million of net revaluation gains, $30 million of business separation expenses, stand-up costs and restructuring charges, $16 million of transaction costs and $32 million of other expenses.
(2)Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the Corporation that is generated by our investments in associates and joint ventures accounted for using the equity method.
(3)Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
26
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business Services | Infrastructure Services | Industrials | Corporate | Total | |||||||||||||||||||||||||||
| Net income (loss) | $ | 258 | $ | (286) | $ | 442 | $ | (105) | $ | 309 | ||||||||||||||||||||||
| Add back or deduct the following: | ||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 390 | 358 | 787 | — | 1,535 | |||||||||||||||||||||||||||
| Impairment reversal (expense), net | — | (5) | — | — | (5) | |||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | (1) | — | — | — | (1) | |||||||||||||||||||||||||||
Other income (expense), net (1) | (129) | 53 | 214 | 8 | 146 | |||||||||||||||||||||||||||
| Income tax (expense) recovery | 67 | 6 | — | (24) | 49 | |||||||||||||||||||||||||||
| Equity accounted income (loss) | (11) | (4) | 10 | — | (5) | |||||||||||||||||||||||||||
| Interest income (expense), net | 434 | 304 | 718 | 49 | 1,505 | |||||||||||||||||||||||||||
Equity accounted Adjusted EBITDA (2) | 67 | 59 | 62 | — | 188 | |||||||||||||||||||||||||||
Amounts attributable to non-controlling interests (3) | (663) | (299) | (1,590) | — | (2,552) | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 412 | $ | 186 | $ | 643 | $ | (72) | $ | 1,169 | ||||||||||||||||||||||
____________________________________
(1)Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $121 million of net revaluation gains, $81 million of business separation expenses, stand-up costs and restructuring charges, $79 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations, $20 million of transaction costs, $9 million of net gains on debt modification and extinguishment and $96 million of other expenses.
(2)Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the Corporation that is generated by our investments in associates and joint ventures accounted for using the equity method.
(3)Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
27
The following tables reconcile Adjusted EBITDA to net income (loss) for the three and six months ended June 30, 2025:
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business Services | Infrastructure Services | Industrials | Corporate | Total | |||||||||||||||||||||||||||
| Net income (loss) | $ | 253 | $ | (173) | $ | 95 | $ | (40) | $ | 135 | ||||||||||||||||||||||
| Add back or deduct the following: | ||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 208 | 175 | 384 | — | 767 | |||||||||||||||||||||||||||
| Impairment reversal (expense), net | — | — | 14 | — | 14 | |||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | (6) | — | — | — | (6) | |||||||||||||||||||||||||||
Other income (expense), net (1) | (200) | 76 | 229 | (2) | 103 | |||||||||||||||||||||||||||
| Income tax (expense) recovery | 9 | 10 | (76) | (8) | (65) | |||||||||||||||||||||||||||
| Equity accounted income (loss) | (5) | (4) | (14) | — | (23) | |||||||||||||||||||||||||||
| Interest income (expense), net | 238 | 142 | 401 | 20 | 801 | |||||||||||||||||||||||||||
Equity accounted Adjusted EBITDA (2) | 28 | 40 | 20 | — | 88 | |||||||||||||||||||||||||||
Amounts attributable to non-controlling interests (3) | (320) | (157) | (746) | — | (1,223) | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 205 | $ | 109 | $ | 307 | $ | (30) | $ | 591 | ||||||||||||||||||||||
____________________________________
(1)Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $236 million of net gain recognized upon deconsolidation of our healthcare services operation, $189 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations, $59 million of net revaluation losses, $57 million of business separation expenses, stand-up costs and restructuring charges, $19 million of net loss on debt modification and extinguishment, $3 million of transaction costs and $12 million of other expenses.
(2)Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the Corporation that is generated by our investments in associates and joint ventures accounted for using the equity method.
(3)Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
28
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Business Services | Infrastructure Services | Industrials | Corporate | Total | |||||||||||||||||||||||||||
| Net income (loss) | $ | 253 | $ | (17) | $ | 240 | $ | (85) | $ | 391 | ||||||||||||||||||||||
| Add back or deduct the following: | ||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 430 | 340 | 727 | — | 1,497 | |||||||||||||||||||||||||||
| Impairment reversal (expense), net | — | — | 14 | — | 14 | |||||||||||||||||||||||||||
| Gain (loss) on dispositions, net | (6) | (214) | — | — | (220) | |||||||||||||||||||||||||||
Other income (expense), net (1) | (132) | (3) | 322 | (1) | 186 | |||||||||||||||||||||||||||
| Income tax (expense) recovery | 27 | 35 | 25 | (19) | 68 | |||||||||||||||||||||||||||
| Equity accounted income (loss) | (8) | 22 | (29) | — | (15) | |||||||||||||||||||||||||||
| Interest income (expense), net | 468 | 291 | 767 | 45 | 1,571 | |||||||||||||||||||||||||||
Equity accounted Adjusted EBITDA (2) | 52 | 73 | 35 | — | 160 | |||||||||||||||||||||||||||
Amounts attributable to non-controlling interests (3) | (666) | (314) | (1,490) | — | (2,470) | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 418 | $ | 213 | $ | 611 | $ | (60) | $ | 1,182 | ||||||||||||||||||||||
____________________________________
(1)Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $236 million of net gain recognized upon deconsolidation of our healthcare services operation, $196 million of expenses related to employee incentive payments linked to the realization of value at the Corporation’s operations, $135 million of business separation expenses, stand-up costs and restructuring charges, $125 million of unrealized gains recorded on reclassification of property, plant and equipment to finance leases at our offshore oil services, $110 million of net revaluation losses, $38 million of transaction costs, $22 million of net loss on debt modification and extinguishment and $46 million of other expenses.
(2)Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the Corporation that is generated by our investments in associates and joint ventures accounted for using the equity method.
(3)Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
Discussion of Reconciling Items
Comparison of the three and six months ended June 30, 2026 and 2025
Depreciation and amortization expense includes depreciation of PP&E, amortization of intangible assets and depletion related to our energy assets. The depreciation and amortization expense in our infrastructure services segment is primarily related to the amortization of intangible assets at our modular building leasing services and our lottery services operation and the depreciation of vessels at our offshore oil services operation. Depreciation and amortization expense in our business services segment is primarily related to amortization of intangible assets at our dealer software and technology services operation and fleet management and car rental services. The depreciation and amortization expense in our industrials segment is primarily related to the depreciation of PP&E and amortization of intangible assets at our advanced energy storage operation and our engineered components manufacturing operation. Depreciation and amortization expense is generally consistent period-over-period with large changes typically attributable to the addition or disposal of depreciable assets and the impact of foreign exchange movements.
Depreciation and amortization expense increased by $8 million to $775 million for the three months ended June 30, 2026 compared to $767 million for the three months ended June 30, 2025. The increase was primarily due to higher depreciation expense at our advanced energy storage operation, partially offset by the impact of the deconsolidation of our healthcare services operation in May 2025 and the deconsolidation of our returnable plastic packaging operation in July 2025.
Depreciation and amortization expense increased by $38 million to $1,535 million for the six months ended June 30, 2026 compared to $1,497 million for the six months ended June 30, 2025. The increase was primarily due to the same factors described above.
29
Income tax (expense) recovery, net was a net income tax recovery of $23 million for the three months ended June 30, 2026 compared to $65 million for the three months ended June 30, 2025. The decrease was primarily due to a non-recurring prior period recovery related to a litigation payment settlement within our dealer software and technology services operation, and a lower recognition of tax attributes combined with foreign exchange movement on deferred tax balances within our advanced energy storage operation. The decrease was partially offset by lower taxable income within our residential mortgage insurer and our modular building leasing services, and the recognition of tax attributes within our engineered components manufacturing operation.
Income tax (expense) recovery, net was a net income tax expense of $49 million for the six months ended June 30, 2026 compared to $68 million for the six months ended June 30, 2025. The decrease was primarily due to lower taxable income within our residential mortgage insurer, non-recurring withholding taxes on a special distribution received from our advanced energy storage operation in the prior period, and the recognition of tax attributes within our engineered components manufacturing operation. The decrease was partially offset by a lower recognition of tax attributes combined with foreign exchange movement on deferred tax balances within our advanced energy storage operation.
Interest expense, net decreased by $62 million to $739 million for the three months ended June 30, 2026 compared to $801 million for the three months ended June 30, 2025. The decrease was primarily due to partial repayments of borrowings and the impact of debt refinancings which lowered the cost of debt at our advanced energy storage operation, combined with the impact of the deconsolidation of our healthcare services operation in May 2025.
Interest expense, net decreased by $66 million to $1,505 million for the six months ended June 30, 2026 compared to $1,571 million for the six months ended June 30, 2025. The decrease was primarily due to the same factors described above.
Amounts attributable to non-controlling interests increased by $50 million to $1,273 million for the three months ended June 30, 2026 compared to $1,223 million for the three months ended June 30, 2025. The increase was primarily due to stronger performance at our advanced energy storage operation, higher non-controlling interests following the sale of a partial interest in our dealer software and technology services operation and our engineered components manufacturing operation in July 2025 to a Brookfield-managed evergreen fund, and favorable foreign exchange impact at our water and wastewater operation.
Amounts attributable to non-controlling interests increased by $82 million to $2,552 million for the six months ended June 30, 2026 compared to $2,470 million for the six months ended June 30, 2025. The increase was primarily due to the same factors described above.
The following table reconciles equity attributable to Class A Shares, Class B Shares and Special Shares to equity attributable to Shareholders for the periods indicated:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
Class A shares (1) | $ | 5,431 | $ | 5,451 | ||||||||||
Class B shares (1) | — | — | ||||||||||||
| Non-controlling interests attributable to: | ||||||||||||||
Special shares (1) | — | — | ||||||||||||
| Equity attributable to Shareholders | $ | 5,431 | $ | 5,451 | ||||||||||
____________________________________
(1)For the periods prior to the completion of the Arrangement on March 27, 2026, reflects amounts previously attributable to LP Units, Redemption-Exchange Units and BBHC exchangeable shares, which were exchanged for Class A Shares on a one-for-one basis, amounts previously attributable to GP Units, which were exchanged for Class B Shares, and amounts previously attributable to Special LP Units, which were exchanged for Special Shares on a one-for-one basis.
30
The following table is a summary of our equity attributable to Shareholders by segment as at June 30, 2026 and December 31, 2025. This is determined based on the Corporation’s economic ownership interest in the equity within each operating company. The Corporation’s economic ownership interest in the equity within each operating company excludes amounts attributable to non-controlling interests consistent with how the Corporation determines the carrying value of equity in its unaudited interim condensed consolidated statements of financial position. Equity attributable to Shareholders reconciles to Class A Shares, Class B Shares and Special Shares in the unaudited interim condensed consolidated statements of financial position.
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Corporate | Total | |||||||||||||||||||||||||||
| June 30, 2026 | $ | 3,916 | $ | 2,908 | $ | 3,322 | $ | (4,715) | $ | 5,431 | ||||||||||||||||||||||
| December 31, 2025 | $ | 3,678 | $ | 3,024 | $ | 3,135 | $ | (4,386) | $ | 5,451 | ||||||||||||||||||||||
Liquidity and Capital Resources
Liquidity and capital requirements are managed through cash flows from operations, use of credit facilities, opportunistically monetizing mature operations and refinancing existing debt. We aim to maintain sufficient financial liquidity to meet our ongoing operating requirements and to fund debt service payments, recurring expenses, required capital expenditures, and acquisition opportunities as they arise. In addition, an integral part of our strategy is to pursue acquisitions through Brookfield-led consortium arrangements with institutional partners or strategic partners, and to form partnerships to pursue acquisitions on a specialized or global basis. Brookfield has an established track record of leading such consortiums and partnerships and actively managing underlying assets to improve performance. Overall, we believe that our liquidity profile is strong, positioning us and our businesses well to take advantage of accretive investment opportunities.
Our principal sources of liquidity are financial assets, undrawn credit facilities, cash flows from operations, monetizations of businesses, and access to public and private capital markets.
The following table presents non-recourse borrowings in subsidiaries of the Corporation by segment as at June 30, 2026 and December 31, 2025:
| (US$ MILLIONS) | Business services | Infrastructure services | Industrials | Total | ||||||||||||||||||||||||||||
| June 30, 2026 | $ | 16,787 | $ | 7,791 | $ | 18,615 | $ | 43,193 | ||||||||||||||||||||||||
| December 31, 2025 | $ | 14,959 | $ | 8,670 | $ | 18,795 | $ | 42,424 | ||||||||||||||||||||||||
As at June 30, 2026, the Corporation had non-recourse borrowings in subsidiaries of $43,193 million compared to $42,424 million as at December 31, 2025. Non-recourse borrowings in subsidiaries of the Corporation comprised the following:
| (US$ MILLIONS) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Term loans | $ | 21,020 | $ | 21,852 | ||||||||||
| Notes and debentures | 13,209 | 13,073 | ||||||||||||
Credit facilities (1) | 4,789 | 3,714 | ||||||||||||
Securitization program (2) | 3,289 | 2,528 | ||||||||||||
| Project financing | 886 | 1,257 | ||||||||||||
| Total non-recourse borrowings in subsidiaries of the Corporation | $ | 43,193 | $ | 42,424 | ||||||||||
____________________________________
(1)Includes borrowings made under subscription facilities of Brookfield-sponsored private equity funds.
(2)Our securitization program is related to the securitization of residential mortgages at our Australian asset manager and lender, and securitization at our Indian non-banking financial services operation.
The Corporation has financing arrangements within its operating businesses that trade in public markets or are held at major financial institutions. The financing arrangements of the Corporation’s operating businesses totaled $43,193 million as at June 30, 2026, compared to $42,424 million as at December 31, 2025. The increase of $769 million was primarily due to increased borrowings to fund growth in mortgage investments and financial asset securities at our Australian asset manager and lender.
31
We principally finance our assets at the operating company level with debt that is non-recourse to both the Corporation and to our other operations and is generally secured against assets within the respective operating companies. Moreover, debt instruments at the operating company level do not cross-accelerate or cross-default to debt at other operating companies. This debt has varying maturities ranging from less than one year to 55 years. The weighted average maturity of total borrowings as at June 30, 2026 was 5.9 years and the weighted average interest rate on debt outstanding was 7.4%, including the impact of hedges. Approximately 70% of our non-recourse borrowings are either fixed or hedged through derivatives or naturally hedged within our operations. As at June 30, 2026, we had $44,822 million in borrowings with an additional capacity of $8,730 million in undrawn credit facilities at the corporate and subsidiary level.
The use of credit facilities, term loans and debt securities is primarily related to ongoing operations, capital expenditures and to fund acquisitions. Interest rates charged on these facilities are based on market interest rates. The majority of borrowings drawn are not subject to financial maintenance covenants, however, some are subject to fixed charge coverage ratios, leverage ratios and minimum equity or liquidity covenants. As at June 30, 2026, the Corporation’s operations were in compliance with all material covenant requirements and we continue to work with our businesses to monitor performance against such covenant requirements.
The Corporation has bilateral credit facilities backed by large global banks that continue to be highly supportive of our business. The credit facilities are available in Euros, British pounds, Australian, U.S. and Canadian dollars. Advances under the credit facilities bear interest at the specified SOFR, SONIA, EURIBOR, CORRA or BBSY rate plus 2.25%, or the specified base rate or prime rate plus 1.50%. The credit facilities require us to maintain a minimum tangible net worth and deconsolidated debt-to-capitalization ratio at the corporate level. The total capacity on the bilateral credit facilities is $2,450 million with a maturity date of June 29, 2031, and the Corporation had $815 million available as at June 30, 2026.
The Corporation also has a revolving acquisition credit facility with Brookfield that permits borrowings of up to $1 billion. The credit facility is guaranteed by the Corporation. The credit facility is available in U.S. or Canadian dollars, and advances are made by way of SOFR, CORRA, base rate or prime rate loans. The credit facility bears interest at the specified SOFR or CORRA rate plus 3.45%, or the specified base rate or prime rate plus 2.45%. The credit facility requires us to maintain a minimum deconsolidated net worth and contains restrictions on the ability of the borrowers and the guarantors to, among other things, incur certain liens or enter into speculative hedging arrangements. The maturity date of the credit facility is April 27, 2031, subject to automatic one year extensions occurring on April 27 of each year unless Brookfield provides written notice of its intention not to further extend the prevailing maturity date. The total available amount on the credit facility will decrease to $500 million on May 7, 2027. As at June 30, 2026, the revolving acquisition credit facility remains undrawn.
The Corporation also has deposit agreements with Brookfield whereby we may place funds on deposit with Brookfield and whereby Brookfield may place funds on deposit with the Corporation. Any deposit balance due to the Corporation is due on demand and bears interest at SOFR plus 40 basis points. Any deposit balance due to Brookfield is due on demand and bears interest at SOFR plus 160 basis points, subject to the terms of such interest more particularly described in the deposit agreement. As at June 30, 2026, the amount of the deposit from Brookfield was $nil (December 31, 2025: $nil) and the amount on deposit with Brookfield was $nil (December 31, 2025: $nil).
Brookfield has a commitment agreement with the Corporation to subscribe for up to $1.5 billion of perpetual preferred equity securities of subsidiaries of the Corporation. The preferred securities are redeemable at the option of Brookfield to the extent the Corporation completes asset sales, financings or equity issuances. As at June 30, 2026, the amount subscribed from subsidiaries of the Corporation was $725 million (December 31, 2025: $725 million) with an annual dividend of 7%. The remaining capacity available on the commitment agreement with Brookfield is $25 million, expiring on December 31, 2026. For the three months ended June 30, 2026, distributions of $13 million have been declared on the perpetual preferred equity securities (June 30, 2025: $13 million).
The table below outlines the Corporation’s consolidated net debt-to-capital as at June 30, 2026 and December 31, 2025:
| (US$ MILLIONS, except as noted) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Corporate borrowings | $ | 1,629 | $ | 1,325 | ||||||||||
| Non-recourse borrowings in subsidiaries of the Corporation | 43,193 | 42,424 | ||||||||||||
| Cash and cash equivalents | (3,447) | (3,546) | ||||||||||||
| Net debt | $ | 41,375 | $ | 40,203 | ||||||||||
| Total equity | 15,439 | 15,311 | ||||||||||||
| Total capital and net debt | $ | 56,814 | $ | 55,514 | ||||||||||
| Net debt-to-capitalization ratio | 73 | % | 72 | % | ||||||||||
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The Corporation has implemented a dividend policy pursuant to which we intend to pay quarterly cash dividends in an initial amount currently anticipated to be approximately $0.25 per Class A Share on an annualized basis. On July 30, 2026, the Board of Directors declared a quarterly dividend in the amount of $0.0625 per Class A Share payable on September 29, 2026 to shareholders of record as at the close of business on August 31, 2026.
During the second quarter of 2026, the volume-weighted average price was $33.06 per Share, which was below the current incentive dividend threshold of $33.81 per Share, resulting in no incentive dividend for the quarter (June 30, 2025: $nil).
Cash Flow
We believe that we have sufficient liquidity and access to capital resources and will continue to use our available liquidity and capital resources to fund our operations and to finance anticipated acquisitions and other material cash requirements. Our future capital resources include cash flow from operations, borrowings, proceeds from asset monetizations and proceeds from potential future equity issuances, if any.
As at June 30, 2026, we had cash and cash equivalents of $3,447 million, compared to $3,546 million as at December 31, 2025. The net cash flows for the six months ended June 30, 2026 and June 30, 2025 were as follows:
| Six Months Ended June 30, | ||||||||||||||
| (US$ MILLIONS) | 2026 | 2025 | ||||||||||||
| Cash flows provided by (used in) operating activities | $ | 772 | $ | 1,298 | ||||||||||
| Cash flows provided by (used in) financing activities | 1,515 | 533 | ||||||||||||
| Cash flows provided by (used in) investing activities | (2,000) | (1,939) | ||||||||||||
| Impact of foreign exchange on cash | 56 | 213 | ||||||||||||
| Net change in cash classified within assets held for sale | (442) | (15) | ||||||||||||
| Change in cash and cash equivalents | $ | (99) | $ | 90 | ||||||||||
Cash flow provided by (used in) operating activities
Total cash flow provided by operating activities for the six months ended June 30, 2026 was $772 million compared to cash flow provided by operating activities of $1,298 million for the six months ended June 30, 2025. Net of non-cash working capital changes, cash flow provided by operating activities was $1,775 million for the six months ended June 30, 2026, primarily attributable to cash generated by our advanced energy storage operation, our residential mortgage insurer and dealer software and technology services operation.
Cash flow provided by (used in) financing activities
Total cash flow provided by financing activities was $1,515 million for the six months ended June 30, 2026, compared to total cash flow provided by financing activities of $533 million for the six months ended June 30, 2025. During the six months ended June 30, 2026, our financing activities included net proceeds from non-recourse subsidiary borrowings of the Corporation of $1,779 million, primarily attributable to our Australian asset manager and lender, combined with net proceeds from corporate borrowings of $305 million. This was partially offset by $467 million of distributions and capital paid to others who have interests in operating subsidiaries, primarily related to dividend distributions at our electric heat tracing systems manufacturer and Australian asset manager and lender, combined with a distribution to the Special shareholder of $95 million.
Cash flow provided by (used in) investing activities
Total cash flow used in investing activities was $2,000 million for the six months ended June 30, 2026, compared to total cash flow used in investing activities of $1,939 million for the six months ended June 30, 2025. Cash flows used in investing activities were primarily related to capital expenditures for property, plant and equipment and intangible assets of $1,211 million primarily at our offshore oil services operation, which is contractually reimbursed by our customer, as well as at our advanced energy storage operation. Investing activities also included $237 million of net acquisitions of equity accounted investments, primarily related to the investment in our advanced machinery and services provider in April 2026, and net acquisitions of financial assets of $238 million, primarily related to our investment in DeployCo in May 2026.
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Off-Balance Sheet Arrangements
In the normal course of operations, our operating subsidiaries have bank guarantees, insurance bonds and letters of credit outstanding to third parties. As at June 30, 2026, the total outstanding amount was approximately $1.8 billion. If these letters of credit or bonds are drawn upon, our operating subsidiaries will be obligated to reimburse the issuer of the letter of credit or bonds. The Corporation does not conduct its operations, other than those of equity accounted investments, through entities that are not consolidated in the consolidated financial statements and has not guaranteed or otherwise contractually committed to support any material financial obligations not reflected in the consolidated financial statements.
Our construction operation and other operations may be called upon to give, in the ordinary course of business, guarantees and indemnities in respect of the performance of controlled entities, associates and related parties of their contractual obligations. Any known losses have been brought to account.
In the normal course of operations, our operating subsidiaries will execute agreements that provide for indemnification and guarantees to third parties in transactions such as business dispositions and acquisitions, construction projects, capital projects, and sales and purchases of assets and services. We have also agreed to indemnify our directors and certain of our officers and employees. The nature of substantially all of the indemnification undertakings prevents us from making a reasonable estimate of the maximum potential amount that we could be required to pay third parties, as many of the agreements do not specify a maximum amount and the amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time. Historically, we have made no significant payments under such indemnification agreements. In addition, we have also entered into indemnity agreements with Brookfield that relate to certain construction projects in the Middle East region that have been in place for several years. Under these indemnity agreements, Brookfield has agreed to indemnify us or refund us, as appropriate, for the receipt of payments relating to such projects.
From time to time, we may be contingently liable with respect to litigation and claims that arise in the normal course of operations. For example, in our construction operation, this may include litigation and claims from clients or subcontractors, in addition to our associated counterclaims. In addition, our dealer software and technology services operation has become subject to several class action lawsuits in connection with a cybersecurity incident in 2024. We believe that the legal proceedings are without merit and intend to vigorously contest them. On an ongoing basis, we assess the potential impact of these events. Aside from the costs to defend against these claims, the potential loss amount from these claims cannot be measured and is not probable at this time.
Contractual Obligations
An integral part of the Corporation’s strategy is to participate with institutional investors in Brookfield-sponsored private equity funds that target acquisitions that suit the Corporation’s investment mandate. In the normal course of business, the Corporation has made commitments to Brookfield-sponsored private equity funds to participate in these target acquisitions in the future, if and when identified.
In the ordinary course of business, we enter into contractual arrangements that may require future cash payments. The table below outlines our undiscounted contractual obligations as at June 30, 2026:
Payments as at June 30, 2026 | ||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | Total | < 1 Year | 1-2 Years | 3-5 Years | 5+ Years | |||||||||||||||||||||||||||
| Borrowings | $ | 45,316 | $ | 1,984 | $ | 3,772 | $ | 21,810 | $ | 17,750 | ||||||||||||||||||||||
| Interest expense | 15,482 | 2,856 | 2,826 | 5,497 | 4,303 | |||||||||||||||||||||||||||
| Lease liabilities | 951 | 220 | 194 | 277 | 260 | |||||||||||||||||||||||||||
| Decommissioning liabilities | 761 | 5 | 6 | 24 | 726 | |||||||||||||||||||||||||||
| Pension obligations | 359 | 28 | 28 | 89 | 214 | |||||||||||||||||||||||||||
| Commitments for capital expenditure | 99 | 31 | 26 | 42 | — | |||||||||||||||||||||||||||
| Total | $ | 62,968 | $ | 5,124 | $ | 6,852 | $ | 27,739 | $ | 23,253 | ||||||||||||||||||||||
Financial instruments - foreign currency hedging strategy
To the extent that we believe it is economical to do so, our strategy is to hedge all or a portion of our equity investments and/or cash flows exposed to foreign currencies by the Corporation. The Corporation’s foreign currency hedging policy includes leveraging any natural hedges that may exist within our operations, utilizing local currency debt financing to the extent possible and utilizing derivative contracts to minimize any residual exposures to the extent natural hedges are insufficient.
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The following table presents a summary as at June 30, 2026 of our Shareholder equity positions by functional currency and our derivative contract net investment hedges:
| Net Shareholder Equity by Functional Currency | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (US$ MILLIONS) | CAD | AUD | BRL | GBP | EUR | INR | Other | |||||||||||||||||||||||||||||||||||||||||||
| Net Equity | $ | 814 | $ | 795 | $ | 625 | $ | 627 | $ | 1,061 | $ | 121 | $ | 1,388 | ||||||||||||||||||||||||||||||||||||
| FX Contracts – US$ | (602) | (331) | — | — | — | (56) | — | |||||||||||||||||||||||||||||||||||||||||||
As at June 30, 2026, approximately 21% of our Shareholder equity with foreign currency exposure was hedged using derivative contracts.
Related Party Transactions
We entered into a number of related party transactions with Brookfield as described in Note 18 of the unaudited interim condensed consolidated financial statements.
Critical Accounting Policies, Estimates and Judgments
The preparation of financial statements requires management to make critical judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses that are not readily apparent from other sources, during the reporting period. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
For further reference on accounting policies, critical judgments and estimates, see BBU’s material accounting policy information contained in Note 2 of BBU’s annual audited consolidated financial statements as at December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023.
Impact of tax legislation
(i)U.S. legislation for domestic energy production and manufacturing
On August 16, 2022, the United States enacted laws providing incentives for domestic energy production and manufacturing. In December 2023, the United States Department of the Treasury issued proposed regulations, which were subsequently finalized in October 2024, that provided guidance in determining eligibility to claim tax benefits. The tax benefits are available for qualifying activities from 2023 to 2032, subject to phase out beginning in 2030. For qualified business activities in the Corporation’s advanced energy storage operation beginning in its fiscal year 2024, these tax benefits are eligible to be refundable or transferable, and therefore the benefits are accounted for in accordance with IAS 20. IAS 20 permits a policy choice to present benefits of a similar nature as income or an offset to a related expense. The Corporation has elected to present these benefits as a reduction to direct operating costs. For the three and six months ended June 30, 2026, the Corporation recorded a benefit of $256 million and $497 million, respectively (June 30, 2025: $256 million and $515 million, respectively).
Controls and procedures
No change in our internal control over financial reporting occurred during the three and six months ended June 30, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
New accounting policies adopted
(i)Amendments to IFRS 9, Financial Instruments (“IFRS 9”) and IFRS 7, Financial Instruments: Disclosures (“IFRS 7”) - Classification and Measurement of Financial Instruments
The amendments clarify the requirements for the timing of recognition and derecognition of financial liabilities settled through an electronic cash transfer system, add further guidance for assessing the contractual cash flow characteristics of financial assets with contingent feature, and add new or amended disclosures relating to investments in equity instruments designated at FVOCI and financial instruments with contingent features. The Corporation adopted these amendments on January 1, 2026 and the adoption did not have a material impact on the Corporation’s unaudited interim condensed consolidated financial statements.
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Future change in accounting framework
(i)Adoption of U.S. Generally Accepted Accounting Principles (“U.S. GAAP”)
The Corporation intends to convert from IFRS to U.S. GAAP as its financial reporting framework for the period beginning January 1, 2027. The purpose of the conversion is to simplify the Corporation’s financial statements, enhance comparability with the Corporation’s peers and make the business easier for investors to understand. The Corporation is currently assessing the impact of the conversion on its consolidated financial statements and related disclosures. Additional information regarding the expected impact of the conversion on the Corporation’s financial statements will be provided in the Corporation’s annual report for the year ending December 31, 2026. The Corporation’s consolidated financial statements for the year ending December 31, 2026 will continue to be prepared in accordance with IFRS and the Corporation expects to report its consolidated financial statements in accordance with U.S. GAAP beginning with the first quarter of 2027.
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Exhibit 99.2
FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS — FULL CERTIFICATE
I, Anuj Ranjan, Chief Executive Officer of Brookfield Business Corporation, certify the following:
1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Brookfield Business Corporation (the “issuer”) for the interim period ended June 30, 2026.
2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
a.designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
i.material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
ii.information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
b.designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.
5.1 Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Internal Control-Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
5.2 ICFR — material weakness relating to design: N/A
5.3 Limitation on scope of design: N/A
6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2026 and ended on June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.
Date: August 5, 2026
| /s/ Anuj Ranjan | ||||||||
Anuj Ranjan Chief Executive Officer, Brookfield Business Corporation | ||||||||
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Exhibit 99.3
FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS — FULL CERTIFICATE
I, Jaspreet Dehl, Chief Financial Officer of Brookfield Business Corporation, certify the following:
1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Brookfield Business Corporation (the “issuer”) for the interim period ended June 30, 2026.
2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
a.designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
i.material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
ii.information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
b.designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.
5.1 Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Internal Control-Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
5.2 ICFR — material weakness relating to design: N/A
5.3 Limitation on scope of design: N/A
6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2026 and ended on June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.
Date: August 5, 2026
| /s/ Jaspreet Dehl | |||||
Jaspreet Dehl Chief Financial Officer, Brookfield Business Corporation | |||||