Brookfield Business Partners LP Q3 FY2024 earnings call

Anuj Ranjan noted strong adjusted EBITDA of $844 million, including Inflation Reduction Act benefits for Clarios. Closed acquisition of Network International and sale of part of Altera. Adrian Letts discussed acquisition of Network International (market-leading digital payments in MEA) and sale of Altera's shuttle tanker operations (proceeds $265 million for BBU). Jaspreet Dehl reviewed financials, segment performances, and balance sheet with $1.6 billion liquidity, focusing on reducing borrowings and strategic investments.

Industrial segment generated $500 million of third quarter adjusted EBITDA, supported by Brazilian water and wastewater services and advanced energy operations. Business Services segment had $228 million adjusted EBITDA; residential mortgage insurer performing well but dealer software and technology services had higher costs. Infrastructure Services segment had $146 million adjusted EBITDA, benefited from offshore oil services but lottery services faced softness due to terminal delivery pushouts and lower jackpots.

Cash flows expected to grow as rates come down, transaction activity to return, shares to resume value based on fundamentals. Monetization environment positive with robust M&A and stabilizing IPO markets. Altera sale and other monetizations expected to continue generating proceeds.

Softness in engineered components sales and healthcare services in Australia due to wage inflation. Lottery services impacted by terminal delivery delays and lower jackpots. Potential changes in regulations or market conditions affecting monetization and business performance.

Q: Thoughts on sustainability of Inflation Reduction Act benefit and Clarios IPO potential?

A: Anuj said Clarios benefits expected to continue based on regulations, and they're encouraged by Clarios conversations.

Q: Monetization environment and Scientific Games headwinds?

A: Jaspreet noted M&A market robust, Scientific Games facing softness but operational improvements and new contracts expected to drive growth.

Q: New investments and business quality?

A: Anuj said they target high-quality businesses where value creation is unique, like Network International.

Q: Road fuel EBITDA, proceeds breakdown, and Altera equity?

A: Jaspreet said road fuel EBITDA not meaningful, proceeds include Altera sale and distributions, and Altera sale gives back less than half of invested capital with remaining business having potential.