07/08/2025 - Brookfield Corporation: Quarterly Report (English) (bbu q2 interim report 2025)

Brookfield Business Partners L.P.

Q2 INTERIM REPORT

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF

BROOKFIELD BUSINESS PARTNERS L.P.

As at June 30, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and 2024

INDEX TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF BROOKFIELD BUSINESS PARTNERS L.P.

Unaudited Interim Condensed Consolidated Statements of Financial Position 3

Unaudited Interim Condensed Consolidated Statements of Operating Results 4

Unaudited Interim Condensed Consolidated Statements of Comprehensive Income (Loss) 5

Unaudited Interim Condensed Consolidated Statements of Changes in Equity 6

Unaudited Interim Condensed Consolidated Statements of Cash Flow 7

Notes to Unaudited Interim Condensed Consolidated Financial Statements 8

‌BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(US$ MILLIONS)	Notes		June 30, 2025		December 31, 2024
Assets
Current Assets
Cash and cash equivalents	4	$	3,329	$	3,239
Financial assets	5		1,409		1,537
Accounts and other receivable, net	6		6,191		5,178
Inventory, net	7		2,870		2,416
Other assets	9		2,094		2,969
			15,893		15,339
Non-Current Assets
Financial assets	5		10,249		10,834
Accounts and other receivable, net	6		957		1,101
Other assets	9		844		343
Property, plant and equipment	10		10,591		13,232
Deferred income tax assets			1,959		1,744
Intangible assets	11		19,158		18,317
Equity accounted investments	13		2,397		2,325
Goodwill	12		13,287		12,239
		$	75,335	$	75,474
Liabilities and Equity
Current Liabilities
Accounts payable and other	14	$	8,185	$	10,550
Non-recourse borrowings in subsidiaries of the partnership	16		1,360		1,616
			9,545		12,166
Non-Current Liabilities
Accounts payable and other	14		5,581		6,141
Corporate borrowings	16		1,116		2,142
Non-recourse borrowings in subsidiaries of the partnership	16		41,133		35,104
Deferred income tax liabilities			2,639		2,613
		$	60,014	$	58,166
Equity
Limited partners	19	$	2,291	$	1,752
Non-controlling interests attributable to:
Redemption-exchange units	19		1,330		1,644
Special limited partner	19		-		-
BBUC exchangeable shares	19		1,805		1,721
Preferred securities	19		740		740
Interest of others in operating subsidiaries			9,155		11,451
			15,321		17,308
		$	75,335	$	75,474

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

‌BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATING RESULTS

Three Months Ended June 30,

Six Months Ended June 30,

(US$ MILLIONS, except per unit amounts)	Notes	2025	2024	2025	2024
Revenues	22	$ 6,695	$ 11,946	$ 13,444	$ 23,961
Direct operating costs	21	(5,465)	(10,928)	(10,867)	(21,806)
General and administrative expenses		(271)	(307)	(582)	(624)
Interest income (expense), net		(801)	(778)	(1,571)	(1,574)
Equity accounted income (loss)	13	23	31	15	54
Impairment reversal (expense), net	10, 12	(14)	-	(14)	10
Gain (loss) on dispositions, net	8	6	84	220	99
Other income (expense), net		(103)	(100)	(186)	16
Income (loss) before income tax		70	(52)	459	136
Income tax (expense) recovery
Current		(119)	(122)	(316)	(212)
Deferred		184	239	248	344
Net income (loss)		$ 135	$ 65	$ 391	$ 268
Attributable to:
Limited partners	19	$ 11	$ (7)	$ 41	$ 10
Non-controlling interests attributable to:
Redemption-exchange units	19	6	(6)	29	9
Special limited partner	19	-	-	-	-
BBUC exchangeable shares	19	9	(7)	36	9
Preferred securities	19	13	13	26	26
Interest of others in operating subsidiaries		96	72	259	214
		$ 135	$ 65	$ 391	$ 268
Basic and diluted earnings (loss) per limited partner unit	19	$ 0.12	$ (0.10)	$ 0.49	$ 0.13

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

‌BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended June 30,

Six Months Ended June 30,

(US$ MILLIONS)	Notes	2025	2024	2025	2024
Net income (loss)		$ 135	$ 65	$ 391	$ 268
Other comprehensive income (loss):
Items that may be reclassified subsequently to profit or loss:
Fair value through other comprehensive income		14	40	43	31
Insurance finance reserve		3	(10)	(9)	(5)
Foreign currency translation		607	(258)	882	(612)
Net investment and cash flow hedges	4	(153)	211	(282)	386
Equity accounted investments	13	11	(5)	16	(8)
Taxes on the above items		15	(25)	34	(44)
Reclassification to profit or loss		(53)	(82)	(59)	(139)
		444	(129)	625	(391)
Items that will not be reclassified subsequently to profit or loss:
Revaluation of pension obligations		1	(1)	-	(3)
Fair value through other comprehensive income		206	2	213	9
Taxes on the above items		1	2	-	-
		208	3	213	6
Total other comprehensive income (loss)		652	(126)	838	(385)
Comprehensive income (loss)		$ 787	$ (61)	$ 1,229	$ (117)
Attributable to:
Limited partners		$ 164	$ (14)	$ 213	$ (31)
Non-controlling interests attributable to:
Redemption-exchange units		95	(14)	134	(30)
Special limited partner		-	-	-	-
BBUC exchangeable shares		130	(15)	175	(32)
Preferred securities		13	13	26	26
Interest of others in operating subsidiaries		385	(31)	681	(50)
		$ 787	$ (61)	$ 1,229	$ (117)

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

‌BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Limited partners Non-controlling interests

Accumulated

Interest of

(US$ MILLIONS) Capital

Retained earnings

Ownership changes

other comprehensive income (loss) (1)

Total limited partners

Redemption-exchange units

Special limited partner units

BBUC

exchangeable shares

Preferred securities

others in operating subsidiaries

Total equity

Balance as at January 1, 2025	$ 2,109	$ 491	$ (624) $	(224) $	1,752	$ 1,644	$ - $ 1,721	$ 740	$ 11,451	$ 17,308
Net income (loss)	-	41	-	-	41	29	- 36	26	259	391
Other comprehensive income (loss)	-	-	-	172	172	105	- 139	-	422	838
Total comprehensive income (loss)	-	41	-	172	213	134	- 175	26	681	1,229
Contributions	-	-	-	-	-	-	- -	-	136	136
Distributions and capital paid (2)	-	(11)	-	-	(11)	(7)	- (9)	(26)	(3,592)	(3,645)
Ownership changes and other (2)	-	(12)	429	-	417	(441)	- (5)	-	(139)	(168)
Unit repurchases (2)	(80)	-	-	-	(80)	-	- (77)	-	-	(157)
Acquisition of interest (3)	-	-	-	-	-	-	- -	-	618	618
Balance as at June 30, 2025	$ 2,029	$ 509	$ (195) $	(52) $	2,291	$ 1,330	$ - $ 1,805	$ 740	$ 9,155	$ 15,321
Balance as at January 1, 2024	2,109	549		(619)	(130)	1,909	1,792	- 1,875	740	12,216	18,532
Net income (loss)	-	10		-	-	10	9	- 9	26	214	268
Other comprehensive income (loss)	-	-		-	(41)	(41)	(39)	- (41)	-	(264)	(385)
Total comprehensive income (loss)	-	10		-	(41)	(31)	(30)	- (32)	26	(50)	(117)
Contributions	-	-		-	-	-	-	- -	-	124	124
Distributions and capital paid (2)	-	(10)		-	-	(10)	(8)	- (9)	(26)	(282)	(335)
Ownership changes and other	-	-		-	-	-	(2)	- -	-	2	-
Balance as at June 30, 2024	$ 2,109	$ 549 $		(619) $	(171) $	1,868	$ 1,752	$ - $ 1,834	$ 740	$ 12,010	$ 18,204

1. See Note 20 for additional information.

2. See Note 19 for additional information on distributions, unit repurchases, and ownership changes and other.

3. See Note 3 for additional information.

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

6

‌BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

Six Months Ended June 30,

(US$ MILLIONS)	Notes	2025		2024
Operating Activities
Net income (loss)		$	391	$	268
Adjusted for the following items:
Equity accounted earnings, net of distributions	13		216		71
Impairment expense (reversal), net			14		(10)
Depreciation and amortization expense	21		1,497		1,617
(Gain) loss on dispositions, net	8		(220)		(99)
Provisions and other items			(444)		(231)
Deferred income tax expense (recovery)			(248)		(344)
Changes in non-cash working capital, net	24		92		(849)
Cash from (used in) operating activities			1,298		423
Financing Activities
Proceeds from non-recourse subsidiary borrowings of the partnership			11,955		5,057
Repayment of non-recourse subsidiary borrowings of the partnership			(7,007)		(4,561)
Proceeds from corporate borrowings			410		665
Repayment of corporate borrowings			(1,440)		(215)
Proceeds from other financing			130		155
Repayment of other financing			(70)		(71)
Proceeds from (repayment of) other credit facilities, net			17		(50)
Lease liability repayment Capital provided by others who have interests in operating			(130)		(166)
subsidiaries	19	675		96
Repurchases of LP units and BBUC exchangeable shares	19	(157)		-
Distributions to limited partners, Redemption-Exchange unitholders and BBUC exchangeable shareholders	19	(27)		(27)
Distributions to preferred securities holders Distributions and capital paid to others who have interests in	19	(26)		(26)
operating subsidiaries	19	(3,797)		(327)
Cash from (used in) financing activities		533		530
Investing Activities
Acquisitions
Subsidiaries, net of cash acquired	3	(1,619)		(84)
Property, plant and equipment and intangible assets		(969)		(1,257)
Equity accounted investments		(191)		(21)
Financial assets and other		(1,372)		(1,548)
Dispositions
Subsidiaries, net of cash disposed	8		508		168
Property, plant and equipment and intangible assets			89		13
Financial assets and other			1,570		1,631
Net settlement of derivative assets and liabilities			(59)		7
Restricted cash and deposits			104		7
Cash from (used in) investing activities			(1,939)		(1,084)
Cash and cash equivalents
Change during the period			(108)		(131)
Impact of foreign exchange			213		(162)
Net change in cash classified within assets held for sale			(15)		-
Balance, beginning of year			3,239		3,252
Balance, end of period		$	3,329	$	2,959

Supplemental cash flow information is presented in Note 24.

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

‌NOTE 1. NATURE AND DESCRIPTION OF THE PARTNERSHIP

Brookfield Business Partners L.P. and its subsidiaries (collectively, the "partnership") is an owner and operator of business services and industrials operations on a global basis. Brookfield Business Partners L.P. was established as a limited partnership under the laws of Bermuda, and organized pursuant to a limited partnership agreement as amended on May 31, 2016, and as thereafter amended. Brookfield Corporation (together with its controlled subsidiaries, excluding the partnership, "Brookfield") is the ultimate parent of the partnership. "Brookfield Holders" refers to Brookfield, Brookfield Wealth Solutions Ltd. ("Brookfield Wealth Solutions") and their related parties. Brookfield Business Partners L.P.'s limited partnership units are listed on the New York Stock Exchange ("NYSE") and the Toronto Stock Exchange ("TSX") under the symbols "BBU" and "BBU.UN", respectively. The registered head office of Brookfield Business Partners L.P. is 73 Front Street, 5th Floor, Hamilton HM 12, Bermuda.

Brookfield Business Partners L.P.'s sole direct investment consists of the managing general partnership units ("Managing General Partner Units") of Brookfield Business L.P. (the "Holding LP"), which holds the partnership's interests in its operating businesses. The partnership's consolidated equity interests include the non-voting publicly traded limited partnership units ("LP Units") held by public unitholders and Brookfield Holders, general partner units held by Brookfield ("GP Units"), redemption-exchange partnership units ("Redemption-Exchange Units") in the Holding LP held by Brookfield, special limited partnership units ("Special LP Units") in the Holding LP held by Brookfield and class A exchangeable subordinate voting shares ("BBUC exchangeable shares") of Brookfield Business Corporation ("BBUC"), a consolidated subsidiary of the partnership, held by the public and Brookfield Holders. Holders of the LP Units, GP Units, Redemption-Exchange Units, Special LP Units and BBUC exchangeable shares will be collectively referred to throughout as "Unitholders", unless the context indicates or requires otherwise. LP Units, GP Units, Redemption-Exchange Units, Special LP Units and BBUC exchangeable shares will be collectively referred to throughout as "Units" unless the context indicates or requires otherwise.

The partnership's principal operations include business services operations such as a dealer software and technology services operation, non-bank financial services, a residential mortgage insurer and fleet management and car rental services. The partnership's industrials operations include an advanced energy storage operation and an engineered components manufacturing operation, among others. The partnership's infrastructure services operations include modular building leasing services, a lottery services operation, offshore oil services and work access services. The partnership's operations are primarily located in the United States, Europe, Australia, Brazil and Canada.

NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION

1. Basis of presentation

   These unaudited interim condensed consolidated financial statements of the partnership 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 the partnership applied in its annual consolidated financial statements as at and for the year ended December 31, 2024. The accounting policies the partnership applied in its annual consolidated financial statements as at and for the year ended December 31, 2024 are disclosed in Note 2 of such 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 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.

   These unaudited interim condensed consolidated financial statements were approved by the Board of Directors of the partnership's general partner, Brookfield Business Partners Limited (the "General Partner"), on behalf of the partnership, and authorized for issue on August 7, 2025.

   1. Revision of comparative period disclosure

      In preparing the unaudited interim condensed consolidated financial statements as at and for the three and six months ended June 30, 2025, the partnership corrected its comparative period related party transaction disclosures for the three and six months ended June 30, 2024 to include revenues earned by one of its subsidiaries from an associate accounted for under the equity method, which had previously been omitted. See Note 17 for further information. The partnership concluded that the related impacts were not material, and the revisions had no impact on the partnership's unaudited interim condensed consolidated statements of financial position, statements of operating results, statements of changes in equity and statements of cash flow for the year ended December 31, 2024 and three and six months ended June 30, 2024.

2. 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 the partnership's annual consolidated financial statements as at and for the year ended December 31, 2024. 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 the annual consolidated financial statements as at and for the year ended December 31, 2024.

   1. Impact of tax legislation (i)(a) Global minimum top-up tax

      The partnership operates in countries, including Canada, which have enacted legislation to implement the global minimum top-up tax, effective from January 1, 2024. The partnership has applied a temporary mandatory relief from recognizing and disclosing deferred taxes in connection with the global minimum top-up tax and will account for it as a current tax when it is incurred. There are no material current tax impacts for the three and six months ended June 30, 2025. The global minimum top-up tax is not anticipated to have a material impact on the financial position of the partnership.

      (i)(b) 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 partnership's advanced energy storage operation beginning in its fiscal year 2024 subsequent to October 1, 2023, 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 partnership has elected to present these benefits as a reduction to direct operating costs. For the three and six months ended June 30, 2025, the partnership recorded a benefit of $256 million and $515 million, respectively (June 30, 2024: $nil and $nil, respectively).

   2. Going concern

      In assessing whether the going concern assumption is appropriate and whether there are material uncertainties that cast significant doubt on the partnership'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 partnership's strategic initiatives and business plans and may be affected by market conditions, regulatory developments and macroeconomic risks.

3. Future changes in accounting policies

   1. Amendments to IFRS 9, Financial Instruments ("IFRS 9") and IFRS 7, Financial Instruments: Disclosures ("IFRS 7")

      - Classification and Measurement of Financial Instruments

      In May 2024, the IASB issued amendments which 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 amendments to IFRS 9 and IFRS 7 are effective for periods beginning on or after January 1, 2026, with early adoption permitted. The partnership is currently assessing the impact of these amendments.

   2. 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 partnership 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 partnership.

      NOTE 3. ACQUISITION OF BUSINESSES

      When determining the basis of accounting for the partnership's investees, the partnership evaluates the degree of influence that the partnership exerts directly or through an arrangement over the investees' relevant activities. Control is obtained when the partnership has power over the acquired entities and an ability to use its power to affect the returns of these entities.

      The partnership 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.

      1. Acquisitions completed in the six months ended June 30, 2025 Industrials

         Chemelex

         On January 30, 2025, the partnership, 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 $1,654 million, funded with debt and equity. The partnership received 100% of the voting rights, which provided the partnership with control, and accordingly, the partnership has consolidated the business for financial reporting purposes. The partnership's economic ownership interest in the business is approximately 26%.

         Goodwill of $654 million was recognized and represents the growth the partnership 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 $28 million of net other liabilities. Transaction costs of approximately $34 million were recorded as other expenses in the unaudited interim condensed consolidated statements of operating results.

         The partnership's results from operations for the six months ended June 30, 2025 include revenues of $261 million and

         $15 million of net loss attributable to Unitholders from the acquisition. If the acquisition had been effective January 1, 2025, the partnership would have recorded revenues of $302 million and a net loss of $13 million attributable to Unitholders for the six months ended June 30, 2025.

      2. Acquisitions completed in 2024

         There were no significant acquisitions during the year ended December 31, 2024.

         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 partnership looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates and price and rate volatility, as applicable.

         The following table provides the details of financial instruments and their associated financial instrument classifications as at June 30, 2025:

         (US$ MILLIONS)

         Amortized

         MEASUREMENT BASIS	FVTPL	FVOCI	cost	Total
         Financial assets
         Cash and cash equivalents	$ -	$ -	$ 3,329	$ 3,329
         Accounts and other receivable, net (current and non-current)	-	-	7,148	7,148
         Financial assets (current and non-current) (1)	878	4,572	6,208	11,658
         Total	$ 878	$ 4,572	$ 16,685	$ 22,135
         Financial liabilities
         Accounts payable and other (current and non-current) (1) (2)	$ 191	$ 167	$ 6,652	$ 7,010
         Borrowings (current and non-current)	-	-	43,609	43,609
         Total	$ 191	$ 167	$ 50,261	$ 50,619

         1. FVOCI and FVTPL include derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging activities in Note 4(a) below.

         2. Includes derivative liabilities, and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenue, insurance contract liabilities, work in progress, post-employment benefits and other liabilities of $6,756 million.

            Included in cash and cash equivalents as at June 30, 2025 was $2,199 million of cash (December 31, 2024:

            $1,991 million) and $1,130 million of cash equivalents (December 31, 2024: $1,248 million).

            Included in financial assets (current and non-current) as at June 30, 2025 was $608 million (December 31, 2024:

            $466 million) of equity instruments and $3,778 million (December 31, 2024: $3,904 million) of debt instruments designated and measured at fair value through other comprehensive income.

            The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2024:

            (US$ MILLIONS)
            MEASUREMENT BASIS	FVTPL	FVOCI	Amortized cost	Total
            Financial assets
            Cash and cash equivalents	$ -	$ -	$ 3,239	$ 3,239
            Accounts and other receivable, net (current and non-current)	-	-	6,279	6,279
            Financial assets (current and non-current) (1)	937	4,767	6,667	12,371
            Total	$ 937	$ 4,767	$ 16,185	$ 21,889
            Financial liabilities
            Accounts payable and other (1) (2)	$ 170	$ 187	$ 8,194	$ 8,551
            Borrowings (current and non-current)	-	-	38,862	38,862
            Total	$ 170	$ 187	$ 47,056	$ 47,413

            1. FVOCI and FVTPL include derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 4(a) below.

            2. 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 $8,140 million.

1. 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 partnership 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, 2025, a pre-tax net loss of $147 million and $188 million, respectively (June 30, 2024: pre-tax net gain of $110 million and $145 million, respectively) was recorded in other comprehensive income for the effective portion of hedges of net investments in foreign operations. As at June 30, 2025, there was a derivative asset balance of $90 million (December 31, 2024: $177 million) and a derivative liability balance of $98 million (December 31, 2024: $135 million) relating to derivative contracts designated as net investment hedges.

   Cash flow hedges

   The partnership 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. A number of these contracts are designated as cash flow hedges. For the three and six months ended June 30, 2025, a pre-tax net loss of $6 million and $94 million, respectively (June 30, 2024: pre-tax net gain of $101 million and $241 million, respectively) was recorded in other comprehensive income for the effective portion of cash flow hedges. As at June 30, 2025, there was a derivative asset balance of $97 million (December 31, 2024: $220 million) and derivative liability balance of $69 million (December 31, 2024:

   $52 million) relating to the derivative contracts designated as cash flow hedges.

   Fair value hedges

   The partnership 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, 2025, there was a derivative asset balance of

   $72 million (December 31, 2024: $71 million) and derivative liability balance of $66 million (December 31, 2024: $28 million) relating to derivative contracts designated as fair value hedges.

2. Fair value hierarchical levels - financial instruments

   Level 3 assets and liabilities measured at fair value on a recurring basis include $935 million (December 31, 2024:

   $993 million) of financial assets and $26 million (December 31, 2024: $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, 2025 and December 31, 2024:

   June 30, 2025 December 31, 2024
   (US$ MILLIONS)	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
   Financial assets
   Common shares	$ 27	$ -	$ -	$ 60	$ -	$ -
   Corporate and government bonds	30	3,133	-	21	3,033	249
   Derivative assets	-	369	-	-	522	-
   Other financial assets (1)	305	651	935	441	634	744
   	$ 362	$ 4,153	$ 935	$ 522	$ 4,189	$ 993
   Financial liabilities
   Derivative liabilities	$ - $ 332		$ -	$ - $ 332		$ -
   Other financial liabilities	- -		26	- -		25
   	$ - $ 332		$ 26	$ - $ 332		$ 25

   1. Other financial assets include secured debentures, asset-backed securities and preferred shares. Level 1 other financial assets are primarily publicly traded preferred shares and mutual funds. Level 2 other financial assets are primarily asset-backed securities and Level 3 financial assets are primarily convertible preferred securities in the partnership's audience measurement operation and secured debentures.

There were no transfers between levels during the six months ended June 30, 2025.

The following table presents the change in the balance of financial assets classified as Level 3 for the six-month period ended June 30, 2025 and the twelve-month period ended December 31, 2024:

(US$ MILLIONS)		June 30, 2025		December 31, 2024
Balance at beginning of period	$	993	$	828
Fair value change recorded in net income		8		14
Fair value change recorded in other comprehensive income		216		18
Additions		29		177
Dispositions		(332)		(48)
Foreign currency translation and other		21		4
Balance at end of period	$	935	$	993

The following table presents the change in the balance of financial liabilities classified as Level 3 for the six-month period ended June 30, 2025 and the twelve-month period ended December 31, 2024:

(US$ MILLIONS)		June 30, 2025			December 31, 2024
Balance at beginning of period	$		25	$	284
Fair value change recorded in net income			-		(151)
Fair value change recorded in other comprehensive income			-		(1)
Additions			-		12
Dispositions/settlements			-		(117)
Foreign currency translation and other			1		(2)
Balance at end of period	$		26	$	25

NOTE 5. FINANCIAL ASSETS
(US$ MILLIONS)		June 30, 2025		December 31, 2024
Current
Marketable securities	$	573	$	571
Restricted cash		75		165
Derivative assets		190		185
Loans and notes receivable		306		396
Other financial assets (1)		265		220
Total current	$	1,409	$	1,537
Non-current
Marketable securities	$	2,396	$	2,333
Restricted cash		65		63
Derivative assets		179		337
Loans and notes receivable (2)		5,402		5,734
Other financial assets (1)		2,207		2,367
Total non-current	$	10,249	$	10,834

1. Other financial assets primarily consist of asset-backed securities and high yield bonds at the partnership's residential mortgage insurer and convertible preferred shares held in the partnership's audience measurement operation.

2. Loans and notes receivable includes $4,678 million (December 31, 2024: $5,014 million) of mortgage receivables related to the partnership's Australian asset manager and lender.

NOTE 6. ACCOUNTS AND OTHER RECEIVABLE, NET
(US$ MILLIONS)		June 30, 2025		December 31, 2024
Current, net	$	6,191	$	5,178
Non-current, net
Accounts receivable		191		449
Retainer on customer contract		69		55
Billing rights		697		597
Total non-current, net	$	957	$	1,101
Total (1)	$	7,148	$	6,279

1. Includes a receivable of $1,856 million (December 31, 2024: $1,341 million) related to tax benefits at the partnership's advanced energy storage operation. Refer to Note 2(b)(i) for additional information.

Non-current billing rights represent unbilled rights from the partnership'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 partnership'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, 2025 was $36 million (December 31, 2024: $120 million).

NOTE 7. INVENTORY, NET
(US$ MILLIONS)		June 30, 2025		December 31, 2024
Raw materials and consumables	$	785	$	809
Work in progress		831		613
Finished goods and other (1)		1,254		994
Carrying amount of inventories	$	2,870	$	2,416

1. Finished goods and other primarily comprises finished goods inventory at the partnership's advanced energy storage operation and engineered components manufacturing operation.

NOTE 8. DISPOSITIONS

1. Dispositions completed in the six months ended June 30, 2025 Infrastructure services

   Offshore oil services' shuttle tanker operation

   On January 16, 2025, the partnership'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.

2. Dispositions completed in the six months ended June 30, 2024 Industrials

   Canadian aggregates production operation

   On June 11, 2024, the partnership completed the sale of its Canadian aggregates production operation for total consideration of $140 million, resulting in a pre-tax net gain of $84 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on dispositions, net.

   Business services

   Real estate services operation

   On March 31, 2024, the partnership completed the sale of its general partner interest and residential real estate brokerage portfolio to Bridgemarq, a publicly listed real estate services operation and brokerage business in which the partnership has an equity accounted investment. As consideration, the partnership received limited partnership units in the Bridgemarq public entity, increasing the partnership's ownership interest from 28% to approximately 42%. This resulted in a pre-tax gain of $15 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on dispositions, net.

   Infrastructure services

   Offshore oil services' towage business

   On February 29, 2024, the partnership's offshore oil services completed the sale of its non-core towage business. The proceeds realized from the sale were equal to the carrying value of the business disposed, resulting in no gain or loss.

   NOTE 9. OTHER ASSETS
   (US$ MILLIONS)		June 30, 2025		December 31, 2024
   Current
   Work in progress (1)	$	109	$	170
   Prepayments and other assets		835		757
   Assets held for sale (2)		1,150		2,042
   Total current	$	2,094	$	2,969
   Non-current
   Prepayments and other assets (3)	$	844	$	343
   Total non-current	$	844	$	343

   1. See Note 15 for additional information.

   2. Assets held for sale as at June 30, 2025 includes the partnership's returnable plastic packaging operation and the non-core home finance lending business of the partnership's Indian non-bank financial services operation. Assets held for sale at December 31, 2024 included the partnership's offshore oil services' shuttle tanker operation which was sold in January 2025.

   3. Includes finance lease receivables related to vessels at the partnership's offshore oil services.

NOTE 10. 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, 2025 and the twelve-month period ended December 31, 2024:

(US$ MILLIONS)		June 30, 2025		December 31, 2024
Gross carrying amount
Balance at beginning of period	$	19,118	$	22,392
Additions (cash and non-cash)		1,355		3,280
Dispositions (1) (2)		(4,931)		(2,609)
Acquisitions through business combinations		115		10
Assets reclassified as held for sale		(333)		(2,681)
Foreign currency translation and other		1,065		(1,274)
Balance at end of period	$	16,389	$	19,118
Accumulated depreciation and impairment
Balance at beginning of period	$	(5,886)	$	(6,668)
Depreciation/depletion/impairment expense		(718)		(1,809)
Dispositions (2)		983		1,152
Assets reclassified as held for sale		142		1,156
Foreign currency translation and other		(319)		283
Balance at end of period	$	(5,798)	$	(5,886)
Net book value (3)	$	10,591	$	13,232

1. Includes reclassification of $1,419 million from property, plant and equipment into finance lease receivables related to vessels at the partnership's offshore oil services.

2. Includes the deconsolidation of the partnership's healthcare services operation. See Note 16(b)(i) for additional information.

3. Includes right-of-use assets of $772 million as at June 30, 2025 (December 31, 2024: $874 million).

   NOTE 11. INTANGIBLE ASSETS

   The following table presents the change in the balance of intangible assets for the six-month period ended June 30, 2025 and twelve-month period ended December 31, 2024:

   (US$ MILLIONS)		June 30, 2025		December 31, 2024
   Gross carrying amount
   Balance at beginning of period	$	23,749	$	25,242
   Additions		163		373
   Acquisitions through business combinations		804		21
   Dispositions (1)		(190)		(596)
   Assets reclassified as held for sale		(248)		-
   Foreign currency translation		1,175		(1,291)
   Balance at end of period	$	25,453	$	23,749
   Accumulated amortization and impairment
   Balance at beginning of period	$	(5,432)	$	(4,396)
   Amortization and impairment expense		(792)		(1,590)
   Dispositions (1)		104		289
   Assets reclassified as held for sale		102		-
   Foreign currency translation		(277)		265
   Balance at end of period	$	(6,295)	$	(5,432)
   Net book value	$	19,158	$	18,317

   1. Reflects the deconsolidation of the partnership's healthcare services operation. See Note 16(b)(i) for additional information.

      NOTE 12. GOODWILL

      The following table presents the change in the balance of goodwill for the six-month period ended June 30, 2025 and the twelve-month period ended December 31, 2024:

      (US$ MILLIONS)		June 30, 2025		December 31, 2024
      Balance at beginning of period	$	12,239	$	14,129
      Acquisitions through business combinations (1)		654		50
      Impairment		(14)		(793)
      Dispositions		-		(638)
      Assets reclassified as held for sale		(157)		14
      Foreign currency translation		565		(523)
      Balance at end of period	$	13,287	$	12,239

      1. See Note 3 for additional information.

NOTE 13. EQUITY ACCOUNTED INVESTMENTS

The following table presents the change in the balance of equity accounted investments for the six-month period ended June 30, 2025 and twelve-month period ended December 31, 2024:

(US$ MILLIONS)		June 30, 2025		December 31, 2024
Balance at beginning of period	$	2,325	$	2,154
Additions (cash and non-cash)		261		372
Dispositions		(18)		(29)
Share of net income (loss)		15		90
Share of other comprehensive income (loss)		16		(13)
Distributions received		(231)		(206)
Foreign currency translation and other		29		(43)
Balance at end of period	$	2,397	$	2,325
On May 27, 2025, the partnership invested $168 million of equity in Antylia Scientific, a leading specialty
consumables and equipment manufacturer, for a 26% economic interest.
NOTE 14. ACCOUNTS PAYABLE AND OTHER
(US$ MILLIONS)		June 30, 2025		December 31, 2024
Current
Accounts payable	$	3,380	$	3,250
Accrued and other liabilities (1) (2)		2,578		3,405
Lease liabilities		209		199
Financial liabilities		264		371
Insurance liabilities		411		398
Work in progress (3)		368		382
Provisions and decommissioning liabilities		212		835
Liabilities associated with assets held for sale (4)		763		1,710
Total current (5)	$	8,185	$	10,550
Non-current
Accounts payable	$	111	$	87
Accrued and other liabilities (2)		2,592		1,973
Lease liabilities		611		729
Financial liabilities		172		1,321
Insurance liabilities		1,589		1,427
Work in progress (3)		42		36
Provisions and decommissioning liabilities		464		568
Total non-current (5)	$	5,581	$	6,141

1. Includes bank overdrafts of $2 million as at June 30, 2025 (December 31, 2024: $19 million).

2. Includes post-employment benefits of $220 million ($7 million current and $213 million non-current) as at June 30, 2025 and $204 million ($6 million current and $198 million non-current) as at December 31, 2024.

3. See Note 15 for additional information.

4. Liabilities associated with assets held for sale as at June 30, 2025 includes the partnership's returnable plastic packaging operation and the non-core home finance lending business of the partnership's Indian non-bank financial services operation. Liabilities associated with assets held for sale as at December 31, 2024 included the partnership's offshore oil services' shuttle tanker operation, which was disposed in January 2025. See Note 8 for additional information.

5. Reflects the deconsolidation of the partnership's healthcare services operation. See Note 16(b)(i) for additional information.

NOTE 15. CONTRACTS IN PROGRESS
(US$ MILLIONS)		June 30, 2025		December 31, 2024
Contract costs incurred to date	$	12,052	$	11,241
Profit recognized to date		191		203
	$	12,243	$	11,444
Less: progress billings		(12,544)		(11,692)
Contract work in progress (liability)	$	(301)	$	(248)
Comprising:
Amounts due from customers - work in progress	$	109	$	170
Amounts due to customers - creditors		(410)		(418)
Net work in progress	$	(301)	$	(248)
NOTE 16. BORROWINGS

1. Corporate borrowings

   The partnership 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 2.50%, or the specified base rate or prime rate plus 1.50%. The credit facilities require the partnership 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 $2,350 million with a maturity date of June 29, 2030. The balance drawn on the bilateral credit facility, net of deferred financing costs, as at June 30, 2025 was $1,116 million (December 31, 2024: $2,142 million).

   The partnership had $1 billion available on its revolving credit facility with Brookfield (the "Brookfield Credit Agreement") as at June 30, 2025. The credit facility is guaranteed by the partnership, the Holding LP and certain of the partnership's subsidiaries. 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 partnership 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, 2030, 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 their prevailing maturity date. The total available amount on the credit facility will decrease to

   $500 million on April 27, 2026. As at June 30, 2025, the credit facility remained undrawn.

   The partnership is currently in compliance with covenant requirements of its corporate borrowings and continues to monitor performance against such covenant requirements.

   As at June 30, 2025, there were no funds on deposit from Brookfield (December 31, 2024: $nil). Refer to Note 17 for further details on the Deposit Agreements (defined herein) with Brookfield.

2. Non-recourse subsidiary borrowings of the partnership

   Current and non-current non-recourse subsidiary borrowings in subsidiaries of the partnership as at June 30, 2025, net of deferred financing costs and other accounting adjustments, were $1,360 million and $41,133 million, respectively (December 31, 2024: $1,616 million and $35,104 million, respectively). Non-recourse borrowings in subsidiaries of the partnership include borrowings made under subscription facilities of Brookfield-sponsored private equity funds.

   Some of the partnership'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 partnership's unaudited interim condensed consolidated statements of cash flow.

   The partnership 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, leverage ratios and minimum equity or liquidity covenants.

   The partnership principally finances assets at the subsidiary level with debt that is non-recourse to both the partnership and to its other subsidiaries and is generally secured against assets within the respective subsidiaries. Moreover, debt instruments at the partnership's subsidiaries do not cross-accelerate or cross-default to debt at other subsidiaries. As at June 30, 2025, the partnership's subsidiaries were in compliance with or had obtained waivers related to all material covenant requirements and the partnership continues to work with its businesses to monitor performance against such covenant requirements.

   1. Healthcare services operation

      On May 26, 2025, the partnership's healthcare services operation entered receivership due to an event of default under its credit agreement after unsuccessful efforts to negotiate with key stakeholders on a sustainable long-term solution for the business. Following the appointment of a receiver and transition of oversight of the operations, the partnership ceased to have control of the business and therefore, deconsolidated the net liabilities of the business, and recorded a pre-tax net gain of

      $236 million in the unaudited interim condensed consolidated statements of operating results, included in other income (expense). Upon deconsolidation, the partnership derecognized property, plant and equipment of $2,361 million, accounts payable and other liabilities of $2,008 million, non-recourse borrowings of $950 million, accounts receivable of $171 million and other net assets of $237 million related to its healthcare services operation. The results of the healthcare services operation are included in the partnership's unaudited interim condensed consolidated statement of operating results up until the partnership lost control of the business on May 26, 2025.

      NOTE 17. RELATED PARTY TRANSACTIONS

      In the normal course of operations, the partnership 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 partnership is Brookfield Corporation. Other related parties of the partnership include Brookfield Corporation's subsidiaries, affiliates, and operating entities.

      1. Transactions with Brookfield

         The partnership had $1 billion available on its revolving credit facility with Brookfield as at June 30, 2025. As at June 30, 2025, $nil was drawn on the Brookfield Credit Agreement (December 31, 2024: $nil). Refer to Note 16 for further details.

         From time to time, each of Brookfield and the partnership may place funds on deposit with the other, on terms approved by the independent directors of the partnership's General Partner, pursuant to deposit agreements entered into between Brookfield and the partnership (the "Deposit Agreements"). Interest earned or incurred on such deposits is at market terms. As at June 30, 2025, the net deposit from Brookfield was $nil (December 31, 2024: $nil) and the partnership incurred interest income (expense) of $nil for the three and six months ended June 30, 2025 (June 30, 2024: $nil) on these deposits.

         Pursuant to the Master Services Agreement ("Master Services Agreement"), the partnership 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) equal to 0.3125% per quarter (1.25% annually) of the total capitalization of the partnership, which is reflected within general and administrative expenses. For purposes of calculating the Base Management Fee, the total capitalization of the partnership is equal to the quarterly volume-weighted average trading price of LP Units on the principal stock exchange for the LP Units (based on trading volumes) multiplied by the number of LP Units outstanding at the end of the quarter (assuming full conversion of the Redemption-Exchange Units into LP Units of Brookfield Business Partners L.P.), plus the value of securities of the other Service Recipients (including the BBUC exchangeable shares) that are not held by the partnership, 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, 2025 was $22 million and $43 million, respectively (June 30, 2024: $21 million and

         $44 million, respectively).

         In its capacity as the holder of the Special LP Units, Brookfield is entitled to incentive distribution rights. The incentive distribution for the three and six months ended June 30, 2025 was $nil (June 30, 2024: $nil). Refer to Note 19 for further details.

         An integral part of the partnership's strategy is to participate with institutional investors in Brookfield-sponsored private equity funds that target acquisitions that suit the partnership's investment mandate. In the normal course of business, the partnership and institutional investors have made commitments to Brookfield-sponsored private equity funds, and in connection therewith, the partnership, 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 partnership's best interests.

         In addition, at the time of spin-off of the partnership from Brookfield in 2016, the partnership 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 the partnership for payments relating to such contracts.

      2. Other

         The following tables summarizes revenues the partnership has earned from transactions with related parties for the three and six month periods ended June 30, 2025 and 2024:

         Three Months Ended June 30,

         Six Months Ended June 30,

         (US$ MILLIONS)	2025	2024	2025	2024
         Revenues (1)(2)	$ 237 $	278	$ 476 $	530

         1. Includes revenues earned by the partnership's advanced energy storage operation from an associate and revenue generated from construction services earned by the partnership from affiliates of Brookfield.

         2. The partnership corrected its comparative period disclosure for three and six months ended June 30, 2024 to include revenues of $204 million and

$420 million, respectively earned by the partnership's advanced energy storage operation from an associate. See Note 2(a)(i) for further information.

The following table summarizes balances with related parties as at June 30, 2025 and December 31, 2024:

(US$ MILLIONS) June 30, 2025 December 31, 2024

Accounts payable and other (1) 213 429

Interest of others in operating subsidiaries 4 4

1. Includes $186 million related to a tax receivable agreement payable to related parties by the partnership's advanced energy storage operation (December 31, 2024: $268 million).

NOTE 18. DERIVATIVE FINANCIAL INSTRUMENTS

The partnership'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 partnership selectively uses derivative financial instruments principally to manage these risks.

The aggregate fair values of the partnership's derivative financial instrument positions as at June 30, 2025 and December 31, 2024 were as follows:

June 30, 2025 December 31, 2024

(US$ MILLIONS)	Financial Assets	Financial Liabilities	Financial Assets	Financial Liabilities
Foreign exchange contracts	$ 167	$ (183)	$ 223	$ (226)
Cross currency swaps	92	(85)	109	(55)
Interest rate derivatives	75	(57)	162	(39)
Commodities contracts	21	(7)	28	(12)
Currency option contracts	14	-	-	-
Total	$ 369	$ (332)	$ 522	$ (332)
Total current	$ 190	$ (209)	$ 185	$ (269)
Total non-current	$ 179	$ (123)	$ 337	$ (63)

NOTE 19. EQUITY

The partnership's consolidated equity interests include LP Units held by the public and Brookfield Holders, GP Units held by Brookfield, Redemption-Exchange Units held by Brookfield, Special LP Units held by Brookfield and BBUC exchangeable shares held by the public and Brookfield Holders, collectively, "Units" or "Unitholders" as described in Note 1, and $740 million of preferred securities held by Brookfield. As at June 30, 2025, Brookfield Holders owned approximately 68% of the partnership on a fully exchanged basis, assuming the exchange of all of the Redemption-Exchange Units and BBUC exchangeable shares. The partnership's sole direct investment consists of 88,828,515 Managing General Partner Units of Holding LP (December 31, 2024: 74,281,771), through which the partnership holds all of its interests in its operating businesses.

For the three and six months ended June 30, 2025, the partnership made distributions on the LP Units, GP Units, Redemption-Exchange Units and BBUC exchangeable shares of $14 million and $27 million, respectively or $0.0625 per Unit (June 30, 2024: $13 million and $27 million, respectively or $0.0625 per Unit). For the three and six months ended June 30, 2025, the partnership declared distributions on the perpetual preferred equity securities held by Brookfield of $13 million and

$26 million, respectively (June 30, 2024: $13 million and $26 million, respectively). For the three and six months ended June 30, 2025, the partnership made distributions to others who have interests in operating subsidiaries of $76 million and

$3,592 million, respectively (June 30, 2024: $181 million and $282 million, respectively), primarily related to a distribution to owners from the partnership's advanced energy storage operation.

1. GP Units and LP Units

   LP Units entitle the holder to their proportionate share of distributions. GP Units entitle the holder the right to govern the financial and operating policies of Brookfield Business Partners L.P. The GP Units are not quantitatively material to the financial statements and therefore have not been separately presented on the unaudited interim condensed consolidated statements of financial position.

   The following table provides a continuity of GP Units and LP Units outstanding for the six-month period ended June 30, 2025:

   UNITS	GP Units		LP Units (1)	Total
   Authorized and issued
   Opening balance		4	74,281,767	74,281,771
   Repurchased and canceled		-	(3,559,221)	(3,559,221)
   Conversion from BBUC exchangeable shares		-	184	184
   Conversion from Redemption-Exchange Units (2)		-	18,105,781	18,105,781
   Issued as at June 30, 2025		4	88,828,511	88,828,515

   1. Included in the LP Units that Brookfield Holders beneficially own as of June 30, 2025 are 43,333,752 LP units (December 31, 2024: 25,227,971 LP units) held by subsidiaries of Brookfield Wealth Solutions.

   2. In February 2025, Brookfield Wealth Solutions converted 18,105,781 Redemption-Exchange Units held with a carrying value of approximately

      $433 million into an equivalent amount of LP Units.

      The weighted average number of LP Units outstanding for the three and six months ended June 30, 2025 were

      88.9 million and 84.5 million, respectively (June 30, 2024: 74.3 million).

      During the six months ended June 30, 2025, the partnership repurchased 3,559,221 LP Units under the partnership's normal course issuer bid ("NCIB") (June 30, 2024: nil).

      During the six months ended June 30, 2025, Brookfield Corporation did not purchase any LP Units under the partnership's NCIB (June 30, 2024: 15,211 LP Units).

      Managing General Partner Units of the Holding LP are repurchased and canceled in connection with the repurchase and cancellation of LP Units. During the six months ended June 30, 2025, 3,559,221 Managing General Partner Units (June 30, 2024: nil) were repurchased and canceled as 3,559,221 LP Units were repurchased by the partnership.

      Net income (loss) attributable to limited partners for the three and six months ended June 30, 2025 was $11 million and $41 million, respectively (June 30, 2024: net income (loss) of $(7) million and $10 million, respectively).

2. Redemption-Exchange Units held by Brookfield

   UNITS

   Redemption-Exchange Units

   Authorized and issued

Opening balance 69,705,497

Issued as at June 30, 2025 51,599,716

The weighted average number of Redemption-Exchange Units outstanding for the three and six months ended June 30, 2025 were 51.6 million and 57.2 million, respectively (June 30, 2024: 69.7 million).

As at June 30, 2025, the Holding LP had issued 51.6 million Redemption-Exchange Units to Brookfield Holders (December 31, 2024: 69.7 million). Both the LP Units and GP Units issued by Brookfield Business Partners L.P. and the Redemption-Exchange Units issued by the Holding LP have the same economic attributes in all respects, except as noted below.

The Redemption-Exchange Units may, at the request of Brookfield, be redeemed in whole or in part, for cash in an amount equal to the market value of one of the partnership's LP Units multiplied by the number of units to be redeemed (subject to certain customary adjustments). This right is subject to the partnership's right, at its sole discretion, to elect to acquire any unit presented for redemption in exchange for one of the partnership's LP Units (subject to certain customary adjustments). If the partnership elects not to exchange the Redemption-Exchange Units for LP Units, the Redemption-Exchange Units are required to be redeemed for cash. The Redemption-Exchange Units are presented as non-controlling interests since they relate to equity in a subsidiary that is not attributable, directly or indirectly, to Brookfield Business Partners L.P. Since this redemption right is subject to the partnership's right, at its sole discretion, to satisfy the redemption request with LP Units of Brookfield Business Partners L.P. on a one-for-one basis, the Redemption-Exchange Units are classified as equity instruments in accordance with IAS 32, Financial Instruments: Presentation ("IAS 32").

1. BBUC exchangeable shares

   The table below provides a continuity of BBUC exchangeable shares outstanding for the six-month period ended June 30, 2025:

   SHARES	shares (1)
   Balance as at January 1, 2025	72,954,446
   Repurchased and canceled	(2,957,523)
   Converted to LP Units	(184)
   Issued as at June 30, 2025	69,996,739

   BBUC exchangeable

   1. Included in the BBUC exchangeable shares that Brookfield Holders beneficially own as of June 30, 2025 are 10,317,747 BBUC exchangeable 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.

      During the six months ended June 30, 2025, 184 BBUC exchangeable shares were exchanged into LP Units (June 30, 2024: 3).

      An additional Managing General Partner Unit is issued to the partnership each time an LP Unit is issued, including when a BBUC exchangeable share is exchanged by the holder thereof for an LP Unit. During the six months ended June 30, 2025, 184 Managing General Partner Units (June 30, 2024: 3) were issued to the partnership in connection with the exchange of 184 BBUC exchangeable shares into LP Units (June 30, 2024: 3).

      During the six months ended June 30, 2025, BBUC repurchased 2,957,523 BBUC exchangeable shares under BBUC's NCIB (June 30, 2024: nil).

2. Special limited partner units held by Brookfield

   Authorized and issued

UNITS

Special limited partner units held by Brookfield

Opening balance 4

The weighted average number of special limited partner units outstanding for the three and six months ended June 30, 2025 was 4 (June 30, 2024: 4).

In its capacity as the holder of the Special LP Units, the special limited partner is entitled to incentive distributions which are calculated as 20% of the increase in the market value of the LP Units on a fully exchanged basis (assuming the exchange of all of the Redemption-Exchange Units and BBUC exchangeable shares) over an initial threshold based on the volume-weighted average price of the LP Units, subject to a high-water mark.

During the three months ended June 30, 2025, the volume-weighted average price was $23.77 per LP Unit, which was below the current incentive distribution threshold of $31.53 per LP Unit, resulting in no incentive distribution declared during the period (June 30, 2024: $nil).

1. Preferred securities held by Brookfield

   Authorized and issued

($US MILLIONS)

Preferred securities held by Brookfield

Opening balance $ 740

Brookfield has subscribed for an aggregate of $15 million of preferred shares of three subsidiaries of the partnership. 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 partnership 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 and are reflected as a component of non-controlling interests in the unaudited interim condensed consolidated statements of financial position.

Brookfield entered into a commitment agreement with the partnership in 2022 to subscribe for up to $1.5 billion of perpetual preferred equity securities of subsidiaries of the partnership. The preferred securities are redeemable at the option of Brookfield to the extent the partnership completes asset sales, financings or equity issuances. These perpetual preferred securities are presented as equity instruments in accordance with IAS 32, and accordingly the partnership 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, 2025, the amount subscribed from subsidiaries of the partnership was $725 million with an annual dividend of 7% (December 31, 2024: $725 million). The remaining capacity available on the commitment agreement with Brookfield is $25 million.

NOTE 20. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Attributable to Limited Partners

The following tables present the changes in accumulated other comprehensive income (loss) reserves attributable to limited partners for the six months ended June 30, 2025 and 2024:

Foreign currency

Accumulated other comprehensive

(US$ MILLIONS)	translation	FVOCI	Other (1)	income (loss)
Balance as at January 1, 2025	$ (337)	$ 21	$ 92	$ (224)
Other comprehensive income (loss)	138	93	(59)	172
Balance as at June 30, 2025	$ (199)	$ 114	$ 33	$ (52)

Foreign currency

Accumulated other comprehensive

(US$ MILLIONS)	translation		FVOCI			Other (1)		income (loss)
Balance as at January 1, 2024	$ (189)	$		5	$		54	$ (130)
Other comprehensive income (loss)	(74)			4			29	(41)
Balance as at June 30, 2024	$ (263)	$		9	$		83	$ (171)

1. Represents net investment hedges, cash flow hedges and other reserves.

NOTE 21. DIRECT OPERATING COSTS

The partnership has no key employees or directors and does not remunerate key management personnel. Key decision makers of the partnership are all employees of Brookfield or its subsidiaries, which provide management services under the Master Services Agreement with Brookfield. Refer to Note 17.

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, 2025 and 2024.

Three Months Ended June 30,

Six Months Ended June 30,

(US$ MILLIONS)	2025	2024	2025	2024
Inventory costs	$ 2,150	$ 7,283	$ 4,344	$ 14,769
Subcontractor and consultant costs	754	861	1,489	1,533
Concession construction materials and labor costs	43	38	79	78
Depreciation and amortization expense	767	809	1,497	1,617
Compensation	942	985	1,886	1,961
Other direct costs	809	952	1,572	1,848
Total	$ 5,465 $ 10,928 $ 10,867 $ 21,806

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, 2025, the partnership recorded a reduction in inventory costs of

$256 million and $515 million, respectively (June 30, 2024: $nil and $nil, respectively) related to tax benefits recognized. Refer to Note 2(b)(i) for additional details.

The decrease in inventory costs for the three and six months ended June 30, 2025 compared to the prior year period was primarily due to the disposition of the partnership's road fuels operation in the third quarter of 2024.

NOTE 22. REVENUES

1. Revenues by type

   The tables below summarize the partnership's segment revenues by type of revenue for the three and six months ended June 30, 2025:

   Three Months Ended June 30, 2025

   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   Revenues by type
   Revenues from contracts with customers	$ 1,974	$ 485	$ 3,548	$ 6,007
   Other revenues	405	279	4	688
   Total revenues	$ 2,379	$ 764	$ 3,552	$ 6,695
   Six Months Ended June 30, 2025
   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   Revenues by type
   Revenues from contracts with customers	$ 4,039	$ 955	$ 7,070	$ 12,064
   Other revenues	832	540	8	1,380
   Total revenues	$ 4,871	$ 1,495	$ 7,078	$ 13,444

   The tables below summarize the partnership's segment revenues by type of revenue for the three and six months ended June 30, 2024:

   Three Months Ended June 30, 2024

   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   Revenues by type
   Revenues from contracts with customers	$ 7,141	$ 592	$ 3,416	$ 11,149
   Other revenues	444	350	3	797
   Total revenues	$ 7,585	$ 942	$ 3,419	$ 11,946
   Six Months Ended June 30, 2024
   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   Revenues by type
   Revenues from contracts with customers	$ 14,164	$ 1,138	$ 7,079	$ 22,381
   Other revenues	883	690	7	1,580
   Total revenues	$ 15,047	$ 1,828	$ 7,086	$ 23,961

   The change in revenues in the partnership's business services segment for the three and six months ended June 30, 2025 compared to the prior year period was primarily due to the disposition of the partnership's road fuels operation in the third quarter of 2024.

2. Timing of recognition of revenues from contracts with customers

   The tables below summarize the partnership's segment revenues by timing of revenue recognition for the total revenues from contracts with customers for the three and six months ended June 30, 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	$ 487	$ 169	$ 3,436	$ 4,092
   Services transferred over a period of time	1,487	316	112	1,915
   Total revenues from contracts with customers	$ 1,974	$ 485	$ 3,548	$ 6,007
   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	$ 1,089	$ 332	$ 6,873	$ 8,294
   Services transferred over a period of time	2,950	623	197	3,770
   Total revenues from contracts with customers	$ 4,039	$ 955	$ 7,070	$ 12,064

   The tables below summarize the partnership's segment revenues by timing of revenue recognition for the total revenues from contracts with customers for the three and six months ended June 30, 2024:

   Three Months Ended June 30, 2024

   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   Timing of revenue recognition
   Goods and services provided at a point in time	$ 5,713	$ 221	$ 3,361	$ 9,295
   Services transferred over a period of time	1,428	371	55	1,854
   Total revenues from contracts with customers	$ 7,141	$ 592	$ 3,416	$ 11,149

   Timing of revenue recognition
   Goods and services provided at a point in time	$ 11,390	$ 377	$ 6,968	$ 18,735
   Services transferred over a period of time	2,774	761	111	3,646
   Total revenues from contracts with customers	$ 14,164	$ 1,138	$ 7,079	$ 22,381

3. Revenues by geography

The tables below summarize the partnership's segment revenues by geography for the three and six months ended June 30, 2025:

Business

Three Months Ended June 30, 2025 Infrastructure

(US$ MILLIONS)	services	services	Industrials	Total
United States	$ 398	$ 184	$ 1,526	$ 2,108
Australia	962	53	31	1,046
Europe	-	129	838	967
Brazil	225	3	303	531
United Kingdom	299	77	77	453
Mexico	-	-	299	299
Canada	87	11	129	227
Other	3	28	345	376
Total revenues from contracts with customers	$ 1,974	$ 485	$ 3,548	$ 6,007
Other revenues	405	279	4	688
Total revenues	$ 2,379	$ 764	$ 3,552	$ 6,695
Six Months Ended June 30, 2025
(US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
United States	$ 809	$ 366	$ 3,011	$ 4,186
Australia	2,007	94	58	2,159
Europe	-	256	1,706	1,962
Brazil	433	12	582	1,027
United Kingdom	611	150	151	912
Mexico	-	-	586	586
Canada	166	23	268	457
Other	13	54	708	775
Total revenues from contracts with customers	$ 4,039	$ 955	$ 7,070	$ 12,064
Other revenues	832	540	8	1,380
Total revenues	$ 4,871	$ 1,495	$ 7,078	$ 13,444

The tables below summarize the partnership's segment revenues by geography for the three and six months ended June 30, 2024:

United States	$ 300	$ 233	$ 1,367	$ 1,900
Australia	1,182	40	35	1,257
Europe	452	181	827	1,460
Brazil	247	22	327	596
United Kingdom	4,403	72	70	4,545
Mexico	-	-	322	322
Canada	309	18	128	455
Other	248	26	340	614
Total revenues from contracts with customers	$ 7,141	$ 592	$ 3,416	$ 11,149
Other revenues	444	350	3	797
Total revenues	$ 7,585	$ 942	$ 3,419	$ 11,946
Six Months Ended June 30, 2024
(US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
United States	$ 753	$ 423	$ 2,835	$ 4,011
Australia	2,164	80	66	2,310
Europe	938	362	1,756	3,056
Brazil	483	40	675	1,198
United Kingdom	8,729	145	154	9,028
Mexico	-	-	641	641
Canada	582	43	244	869
Other	515	45	708	1,268
Total revenues from contracts with customers	$ 14,164	$ 1,138	$ 7,079	$ 22,381
Other revenues	883	690	7	1,580
Total revenues	$ 15,047	$ 1,828	$ 7,086	$ 23,961

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Brookfield Business Partners LP published this content on August 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 07, 2025 at 23:54 UTC.