Revenue surged 318% in 2025Q4 to $7.1B and stabilized at $6.5B in 2026Q2, but net income remains razor-thin at $50M (net margin 0.09%), with provisions consuming over 70% of revenue ($5.2B in 2026Q2).
Brookfield Business Corporation (BBUC) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Net Interest Income | -1.15B | -835.37M | 0 | -878M | 0 | 0 | 0 | 0 |
| NII Growth % | -138.29% | - | 100% | - | - | - | - | - |
| Net Interest Margin % | -1.45% | -5.09% | 0% | -4.15% | 0% | 0% | 0% | 0% |
| Interest Income | 0 | 0 | 0 | 16.1M | 0 | 0 | 0 | 0 |
| Interest Expense | 1.15B | 835.37M | 0 | 894.1M | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 16.29B | 21.32B | 7.57B | 5.9B | 6.16B | 5.98B | 8.85B | 9.06B |
| Non-Interest Income | 21.62B | 27.46B | 8.21B | 7.67B | 6.8B | 6.38B | 9.61B | 9.9B |
| Non-Interest Income % | 105.6% | 103.14% | 100% | 112.93% | 100% | 100% | 100% | 100% |
| Total Net Revenue | 20.47B | 26.62B | 8.21B | 6.79B | 6.8B | 6.38B | 9.61B | 9.9B |
| Revenue Growth % | 169.45% | 224.34% | 20.9% | -0.21% | 6.71% | -33.64% | -3% | - |
| Non-Interest Expense | 930.9M | 1.15B | 577M | 268M | 203M | 167M | 313M | 336M |
| Efficiency Ratio | 4.55% | 4.32% | 7.03% | 3.95% | 2.98% | 2.62% | 3.26% | 3.39% |
| Operating Income | 3.25B | 4.16B | 63M | 621M | 437M | 225M | 440M | 509M |
| Operating Margin % | 15.88% | 15.61% | 0.77% | 9.15% | 6.42% | 3.53% | 4.58% | 5.14% |
| Operating Income Growth % | - | 6495.24% | -89.86% | 42.11% | 94.22% | -48.86% | -13.56% | - |
| Pretax Income | -56.99M | 480M | -2.08B | -911M | 662M | 17M | -141M | -125M |
| Pretax Margin % | -0.28% | 1.8% | -25.28% | -13.42% | 9.73% | 0.27% | -1.47% | -1.26% |
| Income Tax | 97M | 93M | -148M | 72M | -34M | 5M | -14M | 9M |
| Effective Tax Rate % | -170.21% | 19.38% | 7.13% | -7.9% | -5.14% | 29.41% | 9.93% | -7.2% |
| Net Income | -439.55M | 26M | -888M | 519M | 911M | 36M | -164M | -128M |
| Net Margin % | -2.15% | 0.1% | -10.82% | 7.64% | 13.39% | 0.56% | -1.71% | -1.29% |
| Net Income Growth % | 57.74% | 102.93% | -271.1% | -43.03% | 2430.56% | 121.95% | -28.13% | - |
| Net Income (Continuing) | -153.99M | 387M | -1.93B | -983M | 696M | 12M | -127M | -134M |
| EPS (Diluted) | -2.12 | -0.30 | -12.17 | 5.25 | 8.85 | 0.49 | -1.75 | -1.35 |
| EPS Growth % | 38.18% | 97.53% | -331.81% | -40.68% | 1706.12% | 128% | -29.63% | - |
| EPS (Basic) | - | -0.30 | -12.17 | 5.25 | 8.85 | 0.49 | -1.75 | -1.35 |
| Diluted Shares Outstanding | 207.05M | 70M | 72.95M | 98.89M | 98.89M | 73.5M | 98.94M | 98.94M |
Quick answers to the most common questions about buying BBUC stock.
For fiscal year 2025, Brookfield Business Corporation (BBUC) reported total revenue of $26.62B. This represents a 168.8% increase compared to $9.90B in 2019.
Brookfield Business Corporation (BBUC) is profitable, generating $26.0M in net income for the fiscal year ending 2025 with a net profit margin of 0.1%.
Brookfield Business Corporation (BBUC) reported an operating income of $4.16B, resulting in an operating profit margin of 15.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Brookfield Business Corporation (BBUC) generated $5.31B in gross profit for the year, representing a gross profit margin of 19.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High leverage and thin margins
Negative NII Reflects Funding Costs
BBUC's net interest income has been consistently negative, with 2026Q1 at -$755.4M, indicating that interest expenses exceed interest income, a trend that appears to be driven by high debt levels.
The negative NII across all reported quarters suggests that the company's cost of debt is significantly higher than the yield on its interest-earning assets. This is atypical for a financial institution and points to a capital structure heavily reliant on expensive financing. The magnitude of the negative NII, particularly in 2026Q1, may indicate that the company is funding its operations through debt at rates that are not being offset by income from cash or investments. Investors should monitor whether this trend is a result of temporary acquisition-related debt or a structural issue.
NIM Negative, Efficiency Ratio Misleading
BBUC's net interest margin is negative, at -1.0% in 2026Q1, while the efficiency ratio of 4.4% appears artificially low due to the high proportion of non-interest income, which is not a true measure of operational efficiency.
The negative NIM indicates that the cost of funding exceeds the yield on interest-earning assets, which is a red flag for a financial institution. However, the efficiency ratio, which is calculated as non-interest expense divided by total revenue, is misleadingly low because the revenue base is dominated by non-interest income, and the expense base may not fully capture the cost of debt. The reported efficiency ratio of 4.4% in 2026Q2 is not comparable to traditional banks, and investors should focus on pre-provision net revenue (PPNR) as a more accurate measure of earnings power. The thin net margin of 0.09% underscores the lack of profitability.
Provisions Outpace Revenue
Provision expenses have consistently exceeded 70% of total revenue, with 2026Q2 provisions at $5.2B against $6.5B revenue, suggesting significant credit losses or impairments that are eroding earnings.
The provision for loan losses, which in BBUC's case likely represents impairments on its investments, is a major drag on profitability. In every quarter, provisions are a substantial portion of revenue, indicating that the company is setting aside large amounts for potential credit losses. This may reflect the riskiness of its portfolio companies or the impact of high interest rates on its borrowers. The fact that net income is often negative or minimal after provisions suggests that the company's core operations are not generating enough profit to absorb these credit costs. Investors should monitor the trend in provisions to assess whether credit quality is deteriorating.
Fee Income Dominates Revenue Mix
Non-interest income constitutes 100% of total revenue in all reported quarters, indicating that BBUC's revenue is entirely fee-based, with no net interest income, which may suggest a reliance on transaction-driven or management fees.
The complete absence of net interest income in the revenue mix is unusual for a financial institution and suggests that BBUC operates more like a fee-based asset manager or holding company. The reliance on non-interest income, which includes fees from its subsidiaries, may provide more stable revenue than interest income, but it also exposes the company to the performance of its portfolio companies. The high fee percentage (100%) indicates that the company does not generate income from lending or deposit-taking activities, which is consistent with its structure as a corporation rather than a traditional bank. Investors should assess the sustainability of these fees, particularly if they are tied to asset values or transaction volumes.
2025Q4 Marks Revenue Inflection
Revenue surged to $7.1B in 2025Q4 from $1.7B in 2025Q3, a 318% increase, likely reflecting the consolidation of a major acquisition, which has since stabilized at around $6.5B in 2026.
The dramatic revenue jump in 2025Q4 appears to be the result of a significant acquisition being consolidated onto the balance sheet, as indicated by the 234.5% YoY growth in the latest quarter. This inflection point is critical because it changes the scale of the company's operations and its cost structure. However, the subsequent quarters show revenue stabilizing around $6.5B, suggesting that the acquisition is now fully integrated. The lack of forward guidance in the latest earnings event may indicate that management is uncertain about the sustainability of this new revenue level, especially given the thin margins and high leverage.
Earnings Quality Under Scrutiny
BBUC's GAAP net income is distorted by non-cash charges and consolidation, with net margin at 0.09%, suggesting that reported earnings may not reflect the company's true cash-generating ability.
The reported net income is minimal or negative in most quarters, yet the company's operational income (before provisions) is positive, indicating that the gap is due to provisions and other charges. The high debt-to-equity ratio of 21.25, as reported in the latest quarter, raises concerns about solvency and the ability to service debt. The company's reliance on non-recourse subsidiary debt may not be fully captured in the balance sheet, and the sharp increase in the debt-to-equity ratio from 3.79% to 21.25% warrants investigation. Investors should focus on distributable earnings (DE) rather than GAAP net income to assess the company's ability to generate cash for shareholders.