Brookfield Business Partners L.P. (BBU): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the core engine of Brookfield Business Partners L.P., and honestly, after twenty years analyzing these structures, I can tell you it boils down to disciplined operational improvement on massive scale. This firm isn't just holding assets; they are actively driving margins in essential services, targeting those long-term investor returns of 15%-20% while managing a huge balance sheet, evidenced by the $58.17 billion in total liabilities reported in 2024. With trailing twelve-month revenue hitting $27.79 billion as of Q3 2025, the real question is how they connect their key partnerships to that value creation-the detailed Business Model Canvas below maps out that entire system for you, so you can see exactly where the value is captured.

Brookfield Business Partners L.P. (BBU) - Canvas Business Model: Key Partnerships

You're looking at the relationships that fuel Brookfield Business Partners L.P.'s deal flow and transaction execution. These aren't just casual acquaintances; they are deep, capital-intensive alliances.

Brookfield Asset Management (BAM) for global platform access

Brookfield Asset Management Ltd. is the ultimate anchor, with over $1 trillion of assets under management across its various platforms. Brookfield Business Partners L.P. itself functions as the flagship listed vehicle for Brookfield Asset Management's Private Equity Group. BAM is targeting compound earnings growth of up to 20% annually, leveraging this global scale for deployment opportunities.

Co-investors and institutional partners for large-scale acquisitions

Brookfield Business Partners L.P. actively partners with institutional capital for its acquisitions. For instance, DayOne Data Centers secured a mezzanine financing facility of €500 million, expandable up to €1 billion, from Brookfield and a global sovereign investor. In its own investment activity, Brookfield Business Partners contributed $212 million for a 25% equity stake in an electric heat tracing systems manufacturer acquired in January 2025. Furthermore, the company invested $525 million across 3 strategic growth acquisitions in the first three quarters of 2025.

New evergreen private equity fund for capital recycling transactions

Capital recycling is a core function, often involving Brookfield Asset Management's new vehicles. In July 2025, Brookfield Business Partners L.P. sold a partial interest in three businesses to a new evergreen private equity fund managed by Brookfield Asset Management, receiving units with an initial redemption value of approximately $690 million, representing an aggregate 8.6% discount to the net asset value (NAV) of the interests sold. Year-to-date through May 2025, the company generated over $2 billion from capital recycling initiatives, which enabled $1 billion in corporate borrowing repayments in the first quarter of 2025.

Strategic partners like Microsoft for AI-era infrastructure projects

The broader Brookfield ecosystem has major strategic alliances supporting AI-era infrastructure demand. An agreement exists with Microsoft Corp. to deliver over 10.5 gigawatts (GW) of new renewable energy capacity between 2026 and 2030 in the U.S. and Europe. The potential cost to build this new capacity could reach as much as $11.5 billion. This supports Microsoft's goal of matching 100% of its electricity consumption with zero-carbon energy purchases by 2030.

Independent financial advisors for transaction fairness opinions

For related-party transactions, independent oversight is formalized. For the July 2025 partial interest sale transaction, valued at approximately $690 million, a joint independent committee retained Origin Merchant Partners as its independent financial advisor and subsequently received a fairness opinion from them.

Here's a quick look at the scale of recent capital deployment and recycling activity:

The total capital raised across credit funds for Brookfield Asset Management in Q3 2025 was $16 billion.

Brookfield Business Partners L.P. (BBU) - Canvas Business Model: Key Activities

You're focused on the core engine of value creation at Brookfield Business Partners L.P., which centers on hands-on ownership and operational transformation. Here are the hard numbers reflecting those key activities as of late 2025.

Acquiring high-quality, market-leading businesses

Brookfield Business Partners L.P. targets market-leading businesses where their ecosystem provides a competitive edge. The deployment of capital into new platforms is a constant. For example, over the past few months leading up to the Q2 2025 update, the firm invested $300 million to acquire two market-leading businesses. One specific example of a recent acquisition contributing to performance was the electric heat tracing systems manufacturer acquired in January 2025.

Implementing operational improvement plans to enhance EBITDA

The strategy relies on executing operational value creation plans to improve performance and enhance cash flows. The results of these efforts are visible in the segment performance data. For the three months ended September 30, 2025, the Industrials segment Adjusted EBITDA was $316 million, which represents an increase of 17% compared to the prior period when excluding the impact of tax recoveries. The overall Adjusted EBITDA margin for Q3 2025 was 21% compared to 28% in the prior period, though excluding tax benefits, the margin improved to 19% from 18% year-over-year. On a quarterly basis, the Q2 2025 Adjusted EBITDA reached $591 million, up from $524 million in the prior period. Internally, the deployment of technology, like AI-powered bots in the residential infrastructure platform, has reduced average call times by 15-20% and boosted customer satisfaction by 25%.

Here's a snapshot of recent segment performance metrics:

Disciplined capital recycling via asset sales and distributions

Brookfield Business Partners L.P. actively monetizes assets to recycle capital. Over the past few months (leading up to the Q2 2025 call), the firm realized more than $800 million from asset sales and distributions. A key recent transaction was the sale of a partial interest in three businesses (DexKo, CDK Global, and BrandSafway) completed in July 2025. This generated an initial redemption value of approximately $690 million in New Fund units, representing an aggregate 8.6% discount to NAV of the interests sold. Furthermore, the offshore oil services shuttle tanker operation was disposed of in January 2025. The company also returned nearly $160 million to owners through its repurchase program since February 2025, including $56 million in Q2 2025 alone.

Securing non-recourse borrowings to finance new acquisitions

Liquidity management is critical to funding growth. Corporate liquidity at the corporate level stood at $2,333 million as of June 30, 2025, with $2,230 million available on credit facilities, resulting in pro forma liquidity of approximately $2.9 billion. The firm has also managed its cost of capital; for instance, the Adjusted EFO for Q2 2025 benefited from lower interest expense due to a reduction in corporate borrowings compared to the prior period.

Executing corporate structure simplification and conversion

On September 25, 2025, Brookfield Business Partners L.P. announced plans to simplify its structure by converting the dual-entity setup (BBU LP and BBUC) into a single publicly traded Canadian corporation, BBU Inc.. This move is designed to broaden the investor base and increase index demand. The exchange ratio for all BBU limited partnership units and BBUC class A exchangeable shares is one-for-one. Prior to this, BBUC shares traded at an approximate 25% premium to BBU limited partnership units. The new entity, BBU Inc., is expected to maintain an annual dividend of $0.25 per share, which represents a 0.7% yield. The transaction is targeted for completion in the first quarter of 2026. The company's market capitalization at the time of the announcement was $2.52 billion.

The exchange mechanics are straightforward:

• All BBU limited partnership units exchanged for new class A shares of BBU Inc. on a one-for-one basis.
• BBUC class A exchangeable shares exchanged for new class A shares of BBU Inc. on a one-for-one basis.
• The new BBU Inc. shares are expected to list on both the NYSE and TSX.

Brookfield Business Partners L.P. (BBU) - Canvas Business Model: Key Resources

You're looking at the core assets that back Brookfield Business Partners L.P.'s operations as of late 2025. These aren't just line items; they are the engines driving the business.

Global investment and operational expertise team

The team brings a deep history of value creation to the table. The experienced leadership team has a track record spanning over 20+ years generating strong returns for Brookfield's Private Equity investors. The stated investment objective for Brookfield Business Partners L.P. is to generate long-term returns of 15%-20% on its investments. This expertise is applied across the portfolio to enhance profitability and sustainable cash flows.

Portfolio of diversified, essential service businesses

Brookfield Business Partners L.P. owns and operates high-quality providers of essential products and services across several sectors. The operations are diversified across the industrial, infrastructure services, and business services sectors. For the three months ended September 30, 2025, the Industrials segment generated an Adjusted EBITDA of $316 million, marking an increase of 17% compared to the prior period when excluding the impact of tax recoveries. The residential mortgage insurer contributed $55 million in Adjusted EBITDA for Q3 2025, while the dealer software and technology services operation generated $31 million of Adjusted EBITDA in the same period.

The total assets for Brookfield Business Partners L.P. stood at $75,403 million as of September 30, 2025, a slight decrease from $75,474 million at the end of 2024.

The firm actively manages its portfolio, as seen in the July 2025 agreement to monetize partial interests in three businesses, receiving units of a new fund with an initial redemption value of approximately $690 million.

Corporate liquidity of approximately $2.9 billion pro forma

Corporate liquidity remains a key resource for funding growth and managing capital allocation. As reported with the Third Quarter 2025 results, corporate liquidity was approximately $2.9 billion pro forma for announced and recently closed transactions. At the corporate level as of September 30, 2025, the actual liquidity was approximately $2.3 billion, which included $2.2 billion of availability on its credit facilities.

Access to the broader Brookfield platform's capital and network

Brookfield Business Partners L.P. benefits from its connection to the larger Brookfield platform. The company generated $2 billion from its capital recycling program during the year leading up to Q3 2025. This access supports strategic flexibility.

Significant balance sheet capacity and financial risk management

Financial risk management is supported by the available liquidity and balance sheet structure. The company renewed its normal course to share bid, which allows for the buyback of an additional 8 million units in shares. The firm utilizes appropriate non-recourse borrowings to finance acquisitions, complementing the significant available corporate liquidity.

• Investment objective target return: 15%-20%
• Q3 2025 Industrials Segment Adjusted EBITDA: $316 million
• Q3 2025 Residential Mortgage Insurer Adjusted EBITDA: $55 million
• Pro forma corporate liquidity: $2.9 billion
• Share buyback capacity increase: 8 million units

Finance: draft 13-week cash view by Friday.

Brookfield Business Partners L.P. (BBU) - Canvas Business Model: Value Propositions

You're looking at the core promises Brookfield Business Partners L.P. makes to its investors and the businesses it acquires. It's about delivering private equity-style results through a public vehicle, which is a key part of its appeal.

Generating long-term returns of 15%-20% for investors is the stated goal. Brookfield Business Partners L.P. is the flagship listed vehicle of Brookfield's private equity group, explicitly focused on continuing a long-term track record of compounding strong returns for investors. This target is central to their proposition. To give you a recent snapshot of market perception against this goal, the total shareholder return for the year leading up to November 2025 was a robust 25.3%.

The firm delivers on this by providing operational expertise to improve acquired businesses' margins. This is where the hands-on management comes in. For example, in Q1 2025, the Adjusted EBITDA margin reached 23%, up from 21% in the prior period, showing tangible operational uplift. Furthermore, the Industrials segment saw strong performance at its advanced energy storage operation, driven by a positive mix shift toward higher margin advanced batteries combined with ongoing operational and commercial improvements in Q3 2025. The firm is executing its plan to 'Acquire high-quality businesses, execute our operational plans to increase earnings and cash flows, and recycle capital to continue compounding long-term growth.'

Brookfield Business Partners L.P. is committed to delivering essential products and services across diverse sectors. This diversification is a risk mitigator and a source of stable cash flow. The key sectors include Industrials, Business Services, and Infrastructure Services. Specific examples of these essential businesses include an advanced energy storage operation, a manufacturer of specialized electric heat management systems, dealer software and technology services, and a water and wastewater services operation.

The structure itself is a value proposition: offering a public vehicle for private equity-style value creation. This allows investors access to a strategy typically reserved for private funds. The firm actively recycles capital to maintain this compounding growth. In Q2 2025, for instance, Brookfield Business Partners L.P. secured $690 million from the sale of a partial interest in three businesses to a new Brookfield managed evergreen private equity fund. The commitment to capital efficiency is also shown by the $157 million returned to investors through share buybacks since January 2025, including spending $56 million to repurchase 2.2 million units in Q2 2025.

Finally, the focus is on enhancing customer value proposition in portfolio companies. This is a direct result of operational improvements. For example, one operation achieved an AI-powered operational efficiency gain resulting in a 25% customer satisfaction boost. Another business, the modular building leasing service, benefited from increased sales of value added products and services despite weak end market conditions in Q3 2025.

Here's a quick look at some key financial and operational metrics from the 2025 reporting periods:

The portfolio companies are actively managed to drive performance. You can see the focus on specific operational levers:

• Optimize distribution network, go-to-market and pricing strategy for electric heat management.
• Scale and expand into adjacent product offerings for electric heat management.
• Higher volumes and positive mix shift in advanced energy storage.
• Developing Returnship Program for talent support in dealer software.
• Founding the BRK Institute for socioeconomic development by water/wastewater services.

Finance: review the impact of the $77 million in tax recoveries included in Q3 2025 Adjusted EBITDA on the run-rate operating performance by next Tuesday.

Brookfield Business Partners L.P. (BBU) - Canvas Business Model: Customer Relationships

Active management and operational oversight of portfolio companies involves deep involvement to drive performance across the portfolio.

The firm's strategy centers on owning high-quality businesses that provide essential products and services and benefit from a strong competitive position.

For example, in the nine months ended September 30, 2025, the consolidated Adjusted EBITDA for Brookfield Business Partners L.P. was $1,757 million.

The operational focus is reflected in segment performance, such as the Industrials segment generating Adjusted EBITDA of $316 million for the three months ended September 30, 2025.

Long-term, partnership-focused engagement with institutional investors is underpinned by the scale of the broader Brookfield ecosystem, where Brookfield Asset Management is a leading global alternative asset manager with over $1 trillion of assets under management.

This relationship structure supports the mandate to compound long-term value for owners.

Investor relations team for unitholder communication and reporting provides regular updates on performance and capital allocation.

Brookfield Business Partners L.P. released its third quarter 2025 results on November 6, 2025, including the Letter to Unitholders and Supplemental Information.

Capital return to owners is a key communication point, with the company repurchasing approximately 6.5 million units and shares year-to-date as of the Q2 2025 report, returning nearly $160 million to owners in the months leading up to that report.

The following table summarizes key financial metrics reported to unitholders for recent periods:

Transaction-based and advisory relationship with co-investors is evident in capital recycling activities.

In July 2025, Brookfield Business Partners L.P. reached an agreement to sell a portion of its interest in three businesses to a new evergreen private equity strategy managed by Brookfield Asset Management.

The specific interests sold were:

• Approximate 12% interest in DexKo.
• Approximate 7% interest in CDK Global.
• Approximate 5% interest in BrandSafway.

Brookfield Business Partners L.P. received units of the New Fund with an initial redemption value of approximately $690 million, representing an aggregate 8.6% discount to the net asset value of the interests sold.

This transaction was reviewed by independent committees, which received a fairness opinion from Origin Merchant Partners.

The company also reported investing $300 million to acquire two market-leading businesses in the quarter leading up to the Q2 2025 report.

Finance: draft 13-week cash view by Friday.

Brookfield Business Partners L.P. (BBU) - Canvas Business Model: Channels

You're looking at how Brookfield Business Partners L.P. (BBU) gets its services and investments to the market and to you, the investor. It's a multi-layered approach, blending direct control with public market access and the massive reach of its parent, Brookfield Asset Management.

Direct ownership and operation of portfolio companies is the core delivery mechanism. BBU owns and operates businesses that provide essential products and services globally. For instance, the Industrials segment includes an electric heat tracing systems manufacturer acquired in January 2025. The Infrastructure Services segment utilizes a modular building leasing services operation. These businesses sell directly to their end-markets.

The scale of these operations is reflected in their segment performance metrics for 2025:

Publicly listed units (BBU) and shares (BBUC) for investor access provide the primary channel for capital formation and liquidity for BBU itself. Investors access the business through BBU limited partnership units (NYSE: BBU; TSX: BBU.UN) or Brookfield Business Corp (NYSE, TSX: BBUC) shares. As of September 25, 2025, plans were approved to simplify this into one publicly traded Canadian corporation, BBU Inc., which is expected to list on the NYSE and TSX. BBUC had a market capitalization of approximately C$4.81B in early November 2025. The average number of BBU limited partnership units outstanding for the third quarter of 2025 was 88.8 million. BBU Inc. is expected to adopt an annual dividend of $0.25 per share. Corporate liquidity at the BBU level as at June 30, 2025, stood at $2,333 million.

The connection to Brookfield Asset Management's global private equity funds network is a crucial channel for capital recycling and growth. Brookfield Asset Management (BAM) is a leading global alternative asset manager with over $1 trillion of assets under management. BAM's private equity platform has $150 billion in assets under management. This network facilitates capital movement; for example, BBU reflected the impact of a partial sale of interests in three businesses to a new Brookfield managed evergreen private equity fund in its Q3 2025 Adjusted EBITDA. BAM is actively expanding this channel to individual investors, launching a private equity fund strategy targeting private wealth globally, starting with a Canadian vehicle.

Direct sales channels within each operating business are how the portfolio companies generate revenue. These are the business-to-business (B2B) or business-to-consumer (B2C) interactions that drive segment results. The Business Services segment, for example, includes:

• Cloud-based software as a service and technology solutions to dealerships.
• A residential mortgage insurer.
• Private sanitation services, including water and wastewater treatment for residential and governmental customers.

The performance of these direct sales channels is aggregated into segment Adjusted EBITDA figures, such as the $205 million reported for the Business Services segment for the three months ended June 30, 2025.

Brookfield Business Partners L.P. (BBU) - Canvas Business Model: Customer Segments

You're looking at the core groups that Brookfield Business Partners L.P. (BBU) serves, both as an investment vehicle and as an owner of operating businesses. The customer base is split between the capital providers-the investors-and the end-market customers of the businesses BBU owns.

Institutional investors and pension funds seeking long-term capital growth

This is the primary customer segment for Brookfield Business Partners L.P. units themselves. These are sophisticated capital allocators looking for compounding returns, not just dividends. As of late 2025, this group is dominant in the ownership structure.

• Institutional investors hold approximately 85.04% of the company's stock.
• Brookfield Corp., the parent, holds a foundational stake of 43.71 million shares, representing 58.84% ownership.
• Other major institutional holders include Omers Administration Corp. with a 16.21% stake (12.04 million shares) and Royal Bank Of Canada owning 9.95% (7.39 million shares).
• The stock traded around $31.80 in mid-November 2025, against a consensus target price of $36.50, indicating a bet on future value realization.
• The company maintained approximately $2.9 billion in Pro Forma Corporate Liquidity as of the third quarter of 2025 to support growth and capital allocation.

Businesses in the Industrials sector (e.g., advanced energy storage)

BBU targets high-quality industrial businesses where its operational expertise can drive significant value enhancement. The performance of this segment is a key driver of returns for the institutional investors.

Here's a look at the recent financial contribution from the Industrials segment:

The advanced energy storage operation specifically benefited from higher volumes and a positive mix shift toward higher margin advanced batteries.

Businesses in the Infrastructure Services sector (e.g., modular building leasing)

This segment focuses on essential services where BBU can improve operations and capitalize on stable, recurring revenue bases. The segment's financial results reflect recent capital recycling activities.

The financial snapshot for Infrastructure Services as of the third quarter of 2025 shows:

Businesses in the Business Services sector (e.g., dealer software, mortgage lending)

The Business Services segment includes technology-enabled services and financial services, often characterized by high market share or resilient demand.

The segment's performance and strategic activity in mid-2025 highlight the customer base:

• Adjusted EBITDA for the three months ended September 30, 2025, was $188 million.
• The residential mortgage insurer benefits from resilient demand, particularly from first-time homebuyers.
• The dealer software and technology services operation supported stable bookings due to continued renewal activity, despite ongoing technology upgrade costs.
• In July 2025, BBU entered a partnership to privatize a leading Canadian residential and multi-family mortgage lender for $2.7 billion, with BBU's expected equity share being approximately $145 million for an 11% interest.

Finance: draft 13-week cash view by Friday.

Brookfield Business Partners L.P. (BBU) - Canvas Business Model: Cost Structure

When you look at the cost side of Brookfield Business Partners L.P.'s (BBU) business, you see a structure heavily influenced by managing a large, diverse portfolio of operating companies. The costs aren't just the day-to-day running of BBU itself; a huge chunk comes from the expenses incurred within those underlying businesses.

The management of the portfolio companies drives substantial costs. For the full year 2024, the Total Operating Expenses across the portfolio were reported at $2.82 billion. This figure captures the direct costs of running the businesses BBU owns, which is the primary expense driver. To give you a sense of scale, the Direct Operating Costs alone for 2024 were $34,883 million (or $34.883 billion) on revenues of $40,620 million.

Financing is another major cost center, reflecting the capital-intensive nature of their acquisitions. As of the end of 2024, Brookfield Business Partners L.P.'s Total Liabilities stood at $58.17 billion. A significant portion of this is the non-recourse debt held at the subsidiary level, which was $36,720 million (or $36.72 billion) at December 31, 2024. The resulting financing cost, represented by the Interest income (expense), net for the year ended December 31, 2024, was an expense of $3,104 million (or $3.104 billion).

Corporate oversight costs are necessary for the central management function. General and Administrative Expenses for the full year 2024 totaled $1,267 million. Looking at the more recent data, for the nine months ended September 30, 2025, these expenses were $860 million. These G&A costs cover corporate oversight, management fees, and other essential administrative functions.

Costs associated with growth and portfolio transformation are also material. These include expenses tied to buying and selling assets, as well as restructuring efforts to improve performance. For the nine months ended September 30, 2025, the company recorded $11 million in transaction costs related to acquisitions and dispositions. Furthermore, costs related to operational improvement and restructuring were evident, with Business separation expenses, stand-up costs and restructuring charges totaling $53 million over the same nine-month period in 2025.

Here is a breakdown of key cost components for the latest reported periods:

You can see that the cost profile is dynamic, shifting between the fixed-like G&A and the variable financing costs tied to debt levels, plus the lumpy, deal-related costs like transaction fees and restructuring charges. The ability to manage the portfolio companies efficiently directly impacts the largest expense line item.

• High operating expenses for portfolio company management ($2.82 billion in 2024).
• Significant financing costs: Interest expense of $3.104 billion in 2024.
• Total Liabilities at year-end 2024 were $58.17 billion.
• General and administrative expenses for corporate oversight were $1,267 million in 2024.
• Nine-month transaction costs through Q3 2025 totaled $11 million.
• Nine-month restructuring and separation charges through Q3 2025 were $53 million.

Finance: draft 13-week cash view by Friday.

Brookfield Business Partners L.P. (BBU) - Canvas Business Model: Revenue Streams

You're looking at how Brookfield Business Partners L.P. (BBU) brings in the money, which is a mix of running its businesses day-to-day and selling assets strategically. It's not just one thing; it's a portfolio approach.

The top-line number shows the scale of the operations. Revenue from diversified operations for the trailing 12 months ending September 30, 2025, was $27.79 billion. This revenue base comes from the collection of high-quality businesses Brookfield Business Partners owns across various sectors.

Drilling down into the core operating performance for the third quarter of 2025 gives you a clearer picture of the underlying earnings power from the two main segments:

The Industrials segment showed resilience, with its Q3 2025 Adjusted EBITDA of $316 million, which was an increase of 17% compared to the prior period when excluding tax recoveries. The Business Services segment posted an Adjusted EBITDA of $188 million for the same quarter.

A significant part of the cash flow generation strategy involves capital recycling, which is essentially selling down parts of businesses or assets to realize gains and reinvest the capital. Brookfield Business Partners L.P. reported proceeds from capital recycling initiatives exceeding $2 billion realized in 2025 as of the Q3 report. The CEO noted generating $180 million from these initiatives in the months leading up to the Q3 announcement. This activity helps fund acquisitions and pay down debt.

The final component of revenue streams comes from the investments where Brookfield Business Partners L.P. does not have a controlling interest but accounts for them using the equity method. While the exact distributions figure isn't explicitly listed as requested, the related metric, Equity Accounted Adjusted EBITDA, for the nine months ended September 30, 2025, was $83 million. This shows a contribution from these passive or minority stakes.

You can see the sources of cash flow generation broken down by the period ending September 30, 2025:

• Revenue (TTM): $27.79 billion
• Industrials Adjusted EBITDA (Q3): $316 million
• Business Services Adjusted EBITDA (Q3): $188 million
• Capital Recycling Proceeds (2025 YTD): Over $2 billion
• Equity Accounted Adjusted EBITDA (9 Months): $83 million

The company also declared a quarterly distribution of $0.0625 per unit, payable on December 31, 2025. That's what flows back to the unitholders.