Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 113

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 5
Chunk 113
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 structure primarily due to escalating wage inflation which continues to exceed reimbursement rates from private health insurers. Discussions with key stakeholders on a plan to support the longer-term recovery for the business are ongoing.

Infrastructure services

Industry fundamentals at our lottery services operation strengthened late last year as the business continues to pursue a strong pipeline of new commercial opportunities. We recently finalized a new contract with the Ohio state lottery operator in addition to several other commercial wins which together should contribute to improved performance. In parallel, plans to continue scaling the business’ digital lottery capabilities are progressing as it focuses on positioning for future U. S. and international opportunities.

Sales of value added products and services contributed to stable performance at modular building leasing services during the year. Given a more muted economic outlook in parts of Europe and the United Kingdom, the business continues to focus on growth opportunities in more resilient segments of the European market. Over time these initiatives should enhance the business’ growth trajectory and durability of its earnings and cash flows.

  74      Brookfield Business Partners  

Industrials

Our advanced energy storage operation generated record calendar year results in 2024. Results included $371 million of tax benefits, at our share. Business performance continues to improve driven by growing demand for higher margin advanced batteries, commercial actions and continued progress on optimization initiatives. In November 2023, the European Commission (“ EC”) announced an investigation into the starter automotive battery market. While the EC’s investigation is ongoing and its outcomes uncertain, our advanced energy storage operation does not currently foresee any material adverse exposures in its future earnings or net cash flows in relation to the matter, because, among other things, it has received conditional immunity from the EC and is indemnified against losses incurred in relation to the matter, if any.

Financial performance of our Brazilian water and wastewater operation improved over the prior year driven by ongoing commercial and cost optimization actions. We are continuing to review potential capital recycling opportunities for the business despite a broader macroeconomic slowdown in Brazil.

Market conditions and volumes at our engineered components manufacturing operation were depressed during the year. While performance is lower, ongoing cost reduction, commercial optimization and working capital efficiency initiatives are supporting profitability and cash flows in the current environment.

Along with our existing operations, we continue to grow our business to enhance our long-term cash flows. During the year, we completed the acquisition of Network, a leading digital payment processor in the Middle East and Africa. Following the acquisition, we combined the business with our existing payment processing services operation. We invested an incremental $156 million of equity for an 11% economic