Brookfield Business Corporation Q1 FY2026 earnings call

Anuj Ranjan mentioned Clarios received $1 billion of cash tax credits, sold a 27% interest in La Trobe Financial at an implied 3x multiple, committed to lead a $500 million investment with OpenAI, and completed corporate simplification with daily trading volumes up 40%. Stuart Levings talked about Sagen's resilient business model, Canadian housing market context, and Sagen's performance including borrower demographics, loan quality, and risk mitigation. Jaspreet Dehl discussed adjusted EBITDA, adjusted EFO, segment performance, balance sheet, and capital allocation including $250 million buyback program

Industrial segment: First - quarter adjusted EBITDA of $320 million compared to $304 million last year. Excluding acquisitions, dispositions, and tax benefits, segment performance increased by 7% year - over - year. Advanced energy storage operations had mix shift toward higher - margin advanced batteries partially offset by lower overall volume. Engineered component manufacturer had more than 10% same - store increase. Business Services segment: First - quarter adjusted EBITDA of $208 million compared to $213 million last year. Same - store adjusted EBITDA increased by 7% year - over - year. Residential mortgage insurer had solid performance and realized gains. Dealer software and technology services operation had contractual annual price increases. Infrastructure Services segment: First - quarter adjusted EBITDA of $90 million compared to $104 million last year. Lottery services operations had ramp - up of recently secured contracts and growing share. Modular building leasing services operation benefited from increased sales of value - add products and services

Expected losses at Sagen to remain within long - term expectations. Clarios expected to double in value over next five years through cash flow generation, investment, and deleveraging. DeployCo investment with $500 million total, $150 million from Brookfield Business Corporation, with preferred instrument and upside potential. BRK's new concession in Brazil expected to grow substantially once ramped up. Monetization of BRK still aiming for IPO when market window is right

Loss ratio increase at Sagen due to decline in home prices and impact on loss given default. Unemployment could affect delinquency frequency. Market conditions in Brazil could impact IPO timing. Situations with CDK - like investments may not go as expected and require value preservation efforts. Tax credit processing for 2024 still pending with uncertainty

Q: Asked about Sagen's loss ratio increase and long - term target loss ratios.

A: Stuart Levings said loss ratio increase due to higher loss given default from declining home prices, frequency not materially up, long - term target 15% - 20%.

Q: Asked about Clarios' value levers and holding period.

A: Anuj Ranjan said shift to advanced batteries, tax credits, confident in holding for cash flow, but open to options. Jaspreet Dehl discussed bridge to value creation.

Q: Asked about DeployCo's role, influence, and investment nature.

A: Anuj Ranjan said it's an opportunity to deploy AI at scale, preferred instrument with downside protection and upside, minority governance.

Q: Asked about BRK's new concession and monetization.

A: Jaspreet Dehl said new concession will grow, still aiming for IPO.

Q: Asked about CDK situation and approach.

A: Jaspreet Dehl said general approach is value preservation, putting best people on it.

Q: Asked about 2024 tax credits.

A: Jaspreet Dehl said 2024 credits still under processing at IRS with confidence in eligibility