Brookfield Business (NYSE:BBUC) just posted its FY 2025 third quarter numbers with revenue of US$1,678 million and a basic EPS loss of US$7.14, while trailing twelve month figures show revenue of US$7.7 billion and a cumulative EPS loss of US$15.34. Over recent quarters, revenue has moved from US$1,929 million in Q2 2024 to US$2,209 million in Q4 2024 and then to US$1,966 million and US$1,678 million in Q1 and Q3 2025, with EPS swinging from a profit of US$1.70 in Q2 2024 to losses of US$6.39, US$5.43, US$0.81, US$1.71 and US$7.14 across subsequent periods. For investors, the headline story this season is the tension between solid top line scale and compressed margins, which continue to translate into sizeable losses.
See our full analysis for Brookfield Business.With the numbers on the table, the next step is to see how this earnings profile lines up with the widely followed Brookfield Business story. This includes highlighting where the data supports the prevailing narratives and where it starts to push back.
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Losses Widen From US$58 Million To US$500 Million
- Net income moved from a loss of US$58 million in Q1 2025 to US$120 million in Q2 2025 and then to a much larger loss of US$500 million in Q3 2025, alongside trailing 12 month losses of US$1.1b.
- Bears point to the 51.9% annual decline in earnings over the past five years and the US$1.1b trailing 12 month loss as clear signs of profitability deterioration. This view is reinforced by the step up in quarterly losses from US$396 million in Q4 2024 to US$500 million in Q3 2025.
- Critics highlight that the trailing 12 month basic EPS loss of US$15.34 sits on top of earlier periods where EPS on this basis was already deeply negative, including very large losses cited for 2024.
- What stands out for cautious investors is that losses have expanded even while trailing 12 month revenue stayed high at US$7.7b, so the main concern is not scale but the earnings trend.
US$7.7b Sales Versus Growing Earnings Drag
- Over the last four reported quarters, total revenue added up to US$7.7b, but trailing 12 month net income over the same window was a loss of US$1.1b, so a large revenue base is not yet translating into profits.
- What is surprising for a more optimistic take is that some investors may view BBUC's diversified, essential style businesses as appealing. Yet the trailing 12 month loss of US$1.1b and basic EPS loss of US$15.34 challenge any bullish idea that scale alone is enough to pull earnings into positive territory soon.
- Supporters who like the platform nature of the company still have to reconcile that quarterly net income has been negative in five of the last six reported periods, with only Q2 2024 showing a profit of US$124 million.
- Any constructive story that leans on recurring or resilient revenue has to account for the fact that losses persisted even when quarterly revenue stayed high, from US$2.2b in Q3 2024 to US$1.7b in Q3 2025.
Low 0.3x P/S Versus DCF Fair Value Gap
- On valuation markers, BBUC trades on a P/S of 0.3x compared with 0.5x for peers and 0.9x for the wider Global Industrials group. Yet its DCF fair value of US$0.77 sits far below the current share price of US$35.66.
- Investors who like low multiples may see the 0.3x P/S as appealing, but the large gap between the share price of US$35.66 and the DCF fair value of US$0.77, combined with the US$1.1b trailing loss, means the bearish concern that valuation and cash flow do not line up is strongly supported by the numbers.
- Supporters of the low P/S argument have to weigh that this ratio is based on US$7.7b of trailing 12 month revenue that has not produced positive net income in aggregate.
- At the same time, the DCF output being far below the market price ties directly to the multi year 51.9% annual decline in earnings, which is exactly what skeptics emphasize when they question how much of a "cheap" multiple this really is.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Brookfield Business's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
Explore Alternatives
BBUC's sizeable US$7.7b revenue base sits alongside a trailing loss of US$1.1b and a DCF fair value far below the current share price, so profitability and pricing look out of sync.
If that mix of large losses and a stretched valuation makes you cautious, shift your focus to these 868 undervalued stocks based on cash flows to quickly spot companies where cash flows and price look better aligned.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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