What caused BBU's earnings slump in Q3 2024?
4/11/2025 01:40pm
Brookfield Business Partners (BBU) experienced a decline in earnings in Q3 2024, which can be attributed to several factors:
1. **One-time Events Impact**: The earnings slump was partly due to "a couple of one-time events" occurring in the quarter, as mentioned by CEO Anuj Ranjan. These events had a significant impact on the financial results, causing a drop in net income per limited partnership unit from $0.23 in the previous quarter to -$0.10.
2. **Revenue Decline**: There was a decline in revenue from $9.23 billion in the previous quarter to $7.43 billion in Q4, which could indicate a reduction in business operations' profitability. This decrease in revenue, coupled with the one-time expenses, contributed to the net loss.
3. **Provisions and Expenses**: Provisions at its construction operation and a one-time non-cash expense at the private equity firm's healthcare services operation contributed to the declining revenues and net loss.
In summary, Brookfield Business Partners' Q3 2024 earnings slump was primarily caused by one-time events and provisions, leading to a significant drop in net income and revenue.