[Management View]
Brookfield Business (BBU) management emphasized the execution of over $2 billion in capital recycling, disciplined growth acquisitions, and share repurchases. The company is initiating an organizational simplification expected to be completed early next year, which has already catalyzed substantial market cap appreciation. Strategic operational advances include Chemilex’s transformation plan, enhanced AI deployment in manufacturing, and a robust acquisition pipeline supported by $2.9 billion of available liquidity.

[Outlook]
Management remains cautiously optimistic heading into the fourth quarter, supported by resilient global economic conditions and strong transaction activity in public and private markets. The company is prepared for potential market exits, including ongoing BRK monetization discussions, and is addressing regulatory matters at Latrobe as non-fundamental.

[Financial Performance]
BBU reported $575 million in adjusted EBITDA for Q3 FY2025, down from $844 million in the prior period, reflecting lower ownership in three businesses and reduced tax benefits. Core adjusted EBITDA improved to $512 million from $501 million in the previous period. Adjusted EFO was $284 million, supported by lower tax expense and reduced interest expense.

[Q&A Highlights]
Question 1: I wanted to start with a question on BRK. They had a regulatory filing last week about potentially pursuing an IPO. Just wondering if an IPO is still the most likely path for an exit? And is the IPO market open in Brazil even with interest rates remaining quite high?

Answer: Hi, Devin. It's Jaspreet. I'd say, you know, we've talked about BRK in the past. It is one of our more mature investments, and it is one that we're actively looking to monetize. IPO is one option that is available to us, and, you know, we always make sure that we keep all optionality. The capital markets environment in Brazil is still difficult. Interest rates are high, but they seem to have peaked. But you're so you're starting to see some green shoots. We think BRK is an excellent business, and it would make a great public company. We're keeping that optionality open and having some early discussions to gauge interest, but it doesn't mean that, you know, there are no other options that we would look at.

Question 2: Just because you do BRK, it's been relatively quiet on investing in new concessions recently. Just do you expect the business to be more active going forward? Or is financial leverage, you know, a bit too much of a constraint currently?

Answer: The focus has been kinda twofold in the business. One is operational initiatives to continue to increase margins and EBITDA, which the team has done a great job. EBITDA is up in the double digits year over year. The second piece has been around the concessions that we do have; continuing to appropriately allocate capital to the development of the underlying concessions, get our inflation, and other increases allowed under these concessions. There has been significant focus on that side as opposed to going out and looking for inorganic growth. So the organic growth within the business, we're quite happy with. And look, we'll be opportunistic. But right now, our focus, given everything we've executed on within BRK, we have created an incredible platform, which we think is really valuable. There continues to be a great need in the country around water treatment and sewage services, and BRK and the platform we've created can play a very important role there. So we think there's lots of opportunities for growth. But our focus right now is more on monetizing the asset.

Question 3: Okay. Makes sense. And then just last question here for me on Latrobe. There has been lots of media coverage related to some actions taken by the regulator. Just can you provide a bit of context for the issue, kind of where it stands now, and if this has had much of an impact on the underlying fundamentals of the business, including redemptions?

Answer: Yeah. Hi. It's Anuj here. I'll take that one. So, I'd say this issue is more of a disclosure issue that the regulators raised. The regulator does this quite often in Australia. It has happened, I think, 90 times in the last year or two to other fund managers. It's something that our team is working through, and they are going to implement some changes probably over the next little while in some of the disclosures. It hasn't had any real impact on the underlying fundamentals of the business, which remain very strong. The business is performing great. It's doing really well. We're still very confident in its future growth prospects. Many interested parties are interested in Latrobe and continue to see it the same way.

Question 4: Thanks. Good morning. Thanks for taking my question. Maybe start off with Anuj here, just at a very high level. Seeing the success of Nuclear and Westinghouse today makes me think about what could have been if BBU kept that asset today. Just curious, do the development of those assets make you consider keeping assets longer for the fullness of time to reap the full potential? Just wanna pick your brain on that.

Answer: Yeah, look. It's a great question. Westinghouse is an amazing business. It's done incredibly well after we sold it, as you've all seen. Many of the reasons it's doing incredibly well are things that would not have been knowable at the time that we sold it, and we had a very good outcome for the time that we owned it. I think our role, as we see it, is to buy and truly operationally transform these vital businesses to the global economy, and that's exactly what we did at Westinghouse. So it's a great playbook, and it's a great outcome that we are all still really proud of. Our goal is to make businesses so good that others find value in them, and they should all, frankly, continue to do well after we exit. When others should continue to see benefits in the businesses that we exit, it means we've done our job right. So we don't have any regrets in that sense. In terms of our strategy, the nice thing about BBU is that it always presents us a bit of that optionality of some businesses that we thought could be longer-term holders that we could find that makes sense. I'd say, we've not changed our strategy from the beginning. We have co-invested alongside Brookfield's broader private equity business, and we have sometimes, occasionally, considered owning businesses on a longer-term duration. I think that sort of optionality that we have continues to exist. We do, of course, look at many companies in our portfolio today, and some of them are exceptional. If there was an opportunity to own them longer, we could always consider it. But I'd say our focus still is on wanting to compound value over the long-term, and much of the compounding that we do is by improving those margins dramatically in the early years. If we do our job right and we get paid the right value on exit, we still find that sometimes recycling that capital into new opportunities, where we can deploy that same playbook, will allow us to generate the kind of exceptional returns that we've done over the past 25 years.

Question 5: Yep. That makes sense. And while I have you, can you maybe just talk about the new Evergreen Fund, the Brookfield Private Equity Fund? Are there other opportunities to further monetize parts of maybe BBU into these vehicles over time? Maybe talk about how you pick and choose these assets to sell.

Answer: Sure. Maybe just to start with, you know, we recently launched the BP fund, as I think some of you saw a press release in Canada. What I can say is that it's been going very well. We're very pleased with the results so far, and by next quarter, I assume that we will have some redemptions of that pref and be able to share more information in terms of the cash inflows to BBU as a result of that sale, which we think is going to be very successful. In terms of future opportunities, it's a function of two things. One is whether it is accretive for BBU and shareholders and the share price. Obviously, the share price since we did the first one is better today, but it still reflects a material discount we feel to NAV. So part of it depends on how things go over the next little while. And, of course, it depends on the inflows that BPE may continue to have in the market. If that natural opportunity exists in the future, we could explore opportunities. I would say it's not something that we're actively advancing at this moment. But it's an option that we always have in the future if it makes sense for both sets of investors.

Question 6: Okay. And then if I can sneak one more in just on CDK here. Results dipped year over year. I know part of that was due to some ongoing strategic investments made and product enhancements. Wondering if you can provide a bit more details on these initiatives. Maybe quantify the impact in the quarter and also future spend in the next 12 to 18 months?

Answer: So it's Adrian here. You know, the current quarter reflects continued investments, as you said, in modernizing the technology. I think it's important to step back first. Margins are ahead of where we bought the business, and we continue to see the enhancement of operations and the improvements we've done across the business. Churn has stabilized, and we've started to roll out some of the new features and products that we've been investing in. Customer response has been overwhelmingly positive. We will continue to invest, and it's something that we had always planned to do. We think now is the right time. But we're expecting to see the benefits come through next year.

Question 7: Are you able to quantify the amount in the quarter?

Answer: I don't think, Gary, it's Jaspreet. I don't think we've kind of broken that out specifically to say, you know, what the contributions are from each piece. But I'd say, the bulk of the decrease that you're seeing is related to the technology spend. There's, you know, positive kinds of commercial actions, there's some churn, but the bulk of the year-over-year decrease is related to the technology spend.

Question 8: Okay. Got it. Thank you. Those are my questions.

Question 9: Yeah. First one, just I might have missed it. Did is the tax credits have you received cash for that at this stage yet?

Answer: Hi, Jaeme. It's Jaspreet. We have not. So we're still awaiting the you know, we've we were told that it's being processed, and think with the government shutdown in The US now, they're we're expecting that there's delays and slowdowns just in the processing. But our expectation is still that we will receive the credit, and it's more just a matter of timing.

Question 10: Yep. Understood. And then, I mean, pro forma liquidity. In, probably the best, it's been in some time. Should we expect a ramp-up here in deployments, or is that still somewhat contingent on recycling some of the other assets?

Answer: Look. I'd say our capital allocation priorities are still, you know, around funding the growth of the business, and maintaining leverage at a good level, so kinda maintaining that. And then the $250 million buyback program. I'll let Anuj provide additional commentary, but the pipeline is very robust. We're very opportunistic and selective in terms of where we want to deploy our capital. So, you know, if we find the right opportunities, we have the available to fund growth. So far this year, you know, we've deployed $525 million into three, what we think are really great businesses. And if there are opportunities to continue to deploy capital, we'll do that.

Question 11: Yeah. I'd just say that I think everything Jaspreet said is right. And I just said that generally speaking, the investment environment is looking very good right now. Obviously, the financing markets are very strong, and very enabling for private equity-style transactions. But more importantly, we're just finding great businesses that we really like many who we have been following for many years. That are possibly coming available at great prices. And some of those are deals that we've done so far this year that BBU has participated in. So the pipeline's very strong. There's some incredible opportunities that we're working on. You know, it's it's sort of I don't know if they'll go through or not, but if they did, I think maybe you would look to participate in them. This is sort of a great time to be putting money to work.

Question 12: And we're really excited about the overall landscape.

Question 13: K. Great. And then last one, just on Dexco. Co. Volumes are up year over year. EBITDA looks like it's up little double digits. Has this turned the corner? Are you feeling more confident in your term outlook for Dexco? Maybe an update on that business and what we should expect in the coming year.

Answer: Yeah. So it's Adrian here. I'll give you some color. So look, we are pleased with the performance. The business continues to do well in what is an improving, but still somewhat challenging market. You know, market demand remains below normal cycle levels, but, you know, we're seeing some signs of an early recovery in both North America and Europe, and, you know, we're hopeful that as we start to go through 2026, we'll see some further green shoots.

Question 14: Great. Thank you. Good morning. Just wanted to ask around AI, and you highlighted AI benefits across Clarios and Sajan at the Investor Day, and I was wondering you could highlight some of the AI benefits you might be seeing across the other large investments. So I'm thinking CDK, Dexco, and Scientific Games.

Answer: Yes. Look. It's Adrian here. I just some comments on CDK Scientific Games and DexCo. We talked in the past about the benefits that we're seeing in Clarios. We've installed sensors across the business, started to measure and understand quantums of data to really help operationalize and improve the throughput of manufacturing. And manage inventory level.

[Sentiment Analysis]
The tone of the analysts was inquisitive and focused on understanding the strategic direction and operational details of BBU's investments. Management's responses were confident and detailed, emphasizing the company's strong liquidity position, strategic investments, and operational improvements.

[Quarterly Comparison]
| Metric | Q3 FY2025 | Q2 FY2025 | Q3 FY2024 |
|---------------------------------|-----------|-----------|-----------|
| Adjusted EBITDA | $575M | $844M | $844M |
| Core Adjusted EBITDA | $512M | $501M | $501M |
| Adjusted EFO | $284M | N/A | N/A |
| Industrial Segment EBITDA | $316M | N/A | $500M |
| Business Services Segment EBITDA| $188M | N/A | $228M |
| Infrastructure Services EBITDA | $104M | N/A | $146M |

[Risks and Concerns]
- Regulatory issues in Australia affecting Latrobe, though described as non-fundamental.
- High interest rates in Brazil impacting BRK's IPO potential.
- Economic uncertainty in Canada affecting revenue recognition under IFRS 17.

[Final Takeaway]
Brookfield Business (BBU) demonstrated strong strategic execution in Q3 FY2025, with significant capital recycling, disciplined acquisitions, and share repurchases. Despite a decrease in adjusted EBITDA due to lower ownership and reduced tax benefits, core adjusted EBITDA showed improvement. The company is well-positioned with substantial liquidity to support future growth and opportunistic investments. Management remains optimistic about the investment environment and the potential for further narrowing of the trading discount as NAV continues to grow. The ongoing transformation of acquired businesses like Chemilex and Antilia Scientific, along with enhanced AI deployment, underscores BBU's commitment to operational excellence and long-term value creation.