Brookfield Business Partners L P : Quarterly Report (English) (bbu q1 interim report 2025)

Brookfield Business Partners L.P.

Q1 INTERIM REPORT

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF BROOKFIELD BUSINESS PARTNERS L.P.

As at March 31, 2025 and December 31, 2024 and for the

three months ended March 31, 2025 and 2024

INDEX TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF BROOKFIELD BUSINESS PARTNERS L.P.

Unaudited Interim Condensed Consolidated Statements of Financial Position 3

Unaudited Interim Condensed Consolidated Statements of Operating Results 4

Unaudited Interim Condensed Consolidated Statements of Comprehensive Income (Loss) 5

Unaudited Interim Condensed Consolidated Statements of Changes in Equity 6

Unaudited Interim Condensed Consolidated Statements of Cash Flow 7

Notes to Unaudited Interim Condensed Consolidated Financial Statements 8

BROOKFIELD BUSINESS PARTNERS L.P. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(US$ MILLIONS)	Notes		March 31, 2025		December 31, 2024
Assets
Current Assets
Cash and cash equivalents	4	$	3,442	$	3,239
Financial assets	5		1,346		1,537
Accounts and other receivable, net	6		6,049		5,178
Inventory, net	7		2,740		2,416
Other assets	9		1,473		2,969
			15,050		15,339
Non-Current Assets
Financial assets	5		10,296		10,834
Accounts and other receivable, net	6		899		1,101
Other assets	9		850		343
Property, plant and equipment	10		12,529		13,232
Deferred income tax assets			1,767		1,744
Intangible assets	11		19,157		18,317
Equity accounted investments	13		2,307		2,325
Goodwill	12		13,032		12,239
		$	75,887	$	75,474
Liabilities and Equity
Current Liabilities
Accounts payable and other	14	$	8,748	$	10,550
Non-recourse borrowings in subsidiaries of the partnership	16		1,399		1,616
			10,147		12,166
Non-Current Liabilities
Accounts payable and other	14		6,337		6,141
Corporate borrowings	16		1,017		2,142
Non-recourse borrowings in subsidiaries of the partnership	16		40,917		35,104
Deferred income tax liabilities			2,614		2,613
		$	61,032	$	58,166
Equity
Limited partners	19	$	2,158	$	1,752
Non-controlling interests attributable to:
Redemption-exchange units	19		1,246		1,644
Special limited partner	19		-		-
BBUC exchangeable shares	19		1,732		1,721
Preferred securities	19		740		740
Interest of others in operating subsidiaries			8,979		11,451
			14,855		17,308
		$	75,887	$	75,474

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

BROOKFIELD BUSINESS PARTNERS L.P. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATING RESULTS Three Months Ended March 31,

(US$ MILLIONS, except per unit amounts)	Notes		2025			2024
Revenues	22	$		6,749	$		12,015
Direct operating costs	21			(5,402)			(10,878)
General and administrative expenses				(311)			(317)
Interest income (expense), net				(770)			(796)
Equity accounted income (loss)	13			(8)			23
Impairment reversal (expense), net	10, 12			-			10
Gain (loss) on acquisitions/dispositions, net	8			214			15
Other income (expense), net				(83)			116
Income (loss) before income tax				389			188
Income tax (expense) recovery
Current				(197)			(90)
Deferred				64			105
Net income (loss)		$		256	$		203
Attributable to:
Limited partners	19	$		30	$		17
Non-controlling interests attributable to:
Redemption-exchange units	19			23			15
Special limited partner	19			-			-
BBUC exchangeable shares	19			27			16
Preferred securities	19			13			13
Interest of others in operating subsidiaries				163			142
		$		256	$		203
Basic and diluted earnings (loss) per limited partner unit	19	$		0.38	$		0.23

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

BROOKFIELD BUSINESS PARTNERS L.P. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31,

(US$ MILLIONS)	Notes		2025			2024
Net income (loss)		$		256	$		203
Other comprehensive income (loss):
Items that may be reclassified subsequently to profit or loss:
Fair value through other comprehensive income				29			(9)
Insurance finance reserve				(12)			5
Foreign currency translation				275			(354)
Net investment and cash flow hedges	4			(129)			175
Equity accounted investments	13			5			(3)
Taxes on the above items				19			(19)
Reclassification to profit or loss				(6)			(57)
				181			(262)
Items that will not be reclassified subsequently to profit or loss:
Revaluation of pension obligations				(1)			(2)
Fair value through other comprehensive income				7			7
Taxes on the above items				(1)			(2)
				5			3
Total other comprehensive income (loss)				186			(259)
Comprehensive income (loss)		$		442	$		(56)
Attributable to:
Limited partners		$		49	$		(17)
Non-controlling interests attributable to:
Redemption-exchange units				39			(16)
Special limited partner				-			-
BBUC exchangeable shares				45			(17)
Preferred securities				13			13
Interest of others in operating subsidiaries				296			(19)
		$		442	$		(56)

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

BROOKFIELD BUSINESS PARTNERS L.P. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Limited partners Non-controlling interests Accumulated Interest of (US$ MILLIONS) Capital Retained earnings Ownership changes other comprehensive income (loss) (1) Total limited partners Redemption-exchange units Special limited partner units BBUC exchangeable shares Preferred securities others in operating subsidiaries Total equity

Balance as at January 1, 2025	$ 2,109	$ 491 $	(624) $	(224) $	1,752	$ 1,644	$ - $ 1,721	$ 740	$ 11,451	$ 17,308
Net income (loss)	-	30	-	-	30	23	- 27	13	163	256
Other comprehensive income (loss)	-	-	-	19	19	16	- 18	-	133	186
Total comprehensive income (loss)	-	30	-	19	49	39	- 45	13	296	442
Contributions	-	-	-	-	-	-	- -	-	130	130
Distributions and capital paid (2)	-	(5)	-	-	(5)	(4)	- (4)	(13)	(3,516)	(3,542)
Ownership changes and other (2)	-	-	430	-	430	(433)	- 3	-	-	-
Unit repurchases (2)	(68)	-	-	-	(68)	-	- (33)	-	-	(101)
Acquisition of interest (3)	-	-	-	-	-	-	- -	-	618	618
Balance as at March 31, 2025	$ 2,041	$ 516 $	(194) $	(205) $	2,158	$ 1,246	$ - $ 1,732	$ 740	$ 8,979	$ 14,855
Balance as at January 1, 2024	2,109	549	(619)	(130)	1,909	1,792	- 1,875	740	12,216	18,532
Net income (loss)	-	17	-	-	17	15	- 16	13	142	203
Other comprehensive income (loss)	-	-	-	(34)	(34)	(31)	- (33)	-	(161)	(259)
Total comprehensive income (loss)	-	17	-	(34)	(17)	(16)	- (17)	13	(19)	(56)
Contributions	-	-	-	-	-	-	- -	-	53	53
Distributions and capital paid (2)	-	(5)	-	-	(5)	(4)	- (5)	(13)	(101)	(128)
Ownership changes and other	-	-	-	-	-	(1)	- -	-	-	(1)
Balance as at March 31, 2024	$ 2,109	$ 561 $	(619) $	(164) $	1,887	$ 1,771	$ - $ 1,853	$ 740	$ 12,149	$ 18,400

1. See Note 20 for additional information.

2. See Note 19 for additional information on distributions, unit repurchases, and ownership changes and other.

3. See Note 3 for additional information.

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

6

BROOKFIELD BUSINESS PARTNERS L.P. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW Three Months Ended March 31,

(US$ MILLIONS)	Notes	2025		2024
Operating Activities
Net income (loss)		$	256	$	203
Adjusted for the following items:
Equity accounted earnings, net of distributions	13		39		37
Impairment expense (reversal), net			-		(10)
Depreciation and amortization expense	21		730		808
Gain on acquisitions/dispositions, net	8		(214)		(15)
Provisions and other items			16		(216)
Deferred income tax expense (recovery)			(64)		(105)
Changes in non-cash working capital, net	24		52		(358)
Cash from (used in) operating activities			815		344
Financing Activities
Proceeds from non-recourse subsidiary borrowings of the partnership			7,845		2,512
Repayment of non-recourse subsidiary borrowings of the partnership			(3,014)		(2,589)
Proceeds from corporate borrowings			270		495
Repayment of corporate borrowings			(1,400)		(65)
Proceeds from other financing			120		119
Repayment of other financing			(32)		(41)
Proceeds from (repayment of) other credit facilities, net			4		21
Lease liability repayment Capital provided by others who have interests in operating			(67)		(84)
subsidiaries	19	669		25
Repurchases of LP units and BBUC exchangeable shares	19	(101)		-
Distributions to limited partners, Redemption-Exchange unitholders and BBUC exchangeable shareholders	19	(13)		(14)
Distributions to preferred securities holders Distributions and capital paid to others who have interests in	19	(13)		(13)
operating subsidiaries	19	(3,511)		(165)
Cash from (used in) financing activities		757		201
Investing Activities
Acquisitions
Subsidiaries, net of cash acquired		(1,619)		(35)
Property, plant and equipment and intangible assets		(494)		(611)
Equity accounted investments		(15)		(9)
Financial assets and other		(792)		(715)
Dispositions
Subsidiaries, net of cash disposed	8		484		37
Property, plant and equipment and intangible assets			63		9
Financial assets and other			896		813
Net settlement of derivative assets and liabilities			(67)		6
Restricted cash and deposits			90		(76)
Cash from (used in) investing activities			(1,454)		(581)
Cash and cash equivalents
Change during the period			118		(36)
Impact of foreign exchange			88		(68)
Net change in cash classified within assets held for sale			(3)		-
Balance, beginning of year			3,239		3,252
Balance, end of period		$	3,442	$	3,148

Supplemental cash flow information is presented in Note 24.

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

NOTE 1. NATURE AND DESCRIPTION OF THE PARTNERSHIP

Brookfield Business Partners L.P. and its subsidiaries (collectively, the "partnership") is an owner and operator of business services and industrials operations on a global basis. Brookfield Business Partners L.P. was established as a limited partnership under the laws of Bermuda, and organized pursuant to a limited partnership agreement as amended on May 31, 2016, and as thereafter amended. Brookfield Corporation (together with its controlled subsidiaries, excluding the partnership, "Brookfield") is the ultimate parent of the partnership. "Brookfield Holders" refers to Brookfield, Brookfield Wealth Solutions Ltd. ("Brookfield Wealth Solutions") and their related parties. Brookfield Business Partners L.P.'s limited partnership units are listed on the New York Stock Exchange ("NYSE") and the Toronto Stock Exchange ("TSX") under the symbols "BBU" and "BBU.UN", respectively. The registered head office of Brookfield Business Partners L.P. is 73 Front Street, 5th Floor, Hamilton HM 12, Bermuda.

Brookfield Business Partners L.P.'s sole direct investment consists of the managing general partnership units ("Managing General Partner Units") of Brookfield Business L.P. (the "Holding LP"), which holds the partnership's interests in its operating businesses. The partnership's consolidated equity interests include the non-voting publicly traded limited partnership units ("LP Units") held by public unitholders and Brookfield Holders, general partner units held by Brookfield ("GP Units"), redemption-exchange partnership units ("Redemption-Exchange Units") in the Holding LP held by Brookfield, special limited partnership units ("Special LP Units") in the Holding LP held by Brookfield and class A exchangeable subordinate voting shares ("BBUC exchangeable shares") of Brookfield Business Corporation ("BBUC"), a consolidated subsidiary of the partnership, held by the public and Brookfield Holders. Holders of the LP Units, GP Units, Redemption-Exchange Units, Special LP Units and BBUC exchangeable shares will be collectively referred to throughout as "Unitholders", unless the context indicates or requires otherwise. LP Units, GP Units, Redemption-Exchange Units, Special LP Units and BBUC exchangeable shares will be collectively referred to throughout as "Units" unless the context indicates or requires otherwise.

The partnership's principal operations include business services operations such as a residential mortgage insurer, a dealer software and technology services operation, healthcare services and a construction operation. The partnership's industrials operations include an advanced energy storage operation and an engineered components manufacturing operation, among others. The partnership's infrastructure services operations include offshore oil services, a lottery services operation, modular building leasing services and work access services. The partnership's operations are primarily located in the United States, Europe, Australia, Brazil and Canada.

NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION

1. Basis of presentation

   These unaudited interim condensed consolidated financial statements of the partnership have been prepared in accordance with IAS 34, Interim Financial Reporting ("IAS 34"), as issued by the International Accounting Standards Board ("IASB") and using the accounting policies the partnership applied in its annual consolidated financial statements as at and for the year ended December 31, 2024. The accounting policies the partnership applied in its annual consolidated financial statements as at and for the year ended December 31, 2024 are disclosed in Note 2 of such consolidated financial statements, with which reference should be made in reading these unaudited interim condensed consolidated financial statements. All defined terms are also described in the annual consolidated financial statements. The unaudited interim condensed consolidated financial statements are prepared on a going concern basis and have been presented in U.S. dollars rounded to the nearest million unless otherwise indicated.

   These unaudited interim condensed consolidated financial statements were approved by the Board of Directors of the partnership's general partner, Brookfield Business Partners Limited (the "General Partner"), on behalf of the partnership, and authorized for issue on May 6, 2025.

   1. Revision of comparative period disclosure

      In preparing the unaudited interim condensed consolidated financial statements as of and for the three months ended March 31, 2025, the partnership corrected its comparative period related party transaction disclosures for the three months ended March 31, 2024 to include revenues earned by one of its subsidiaries from an associate accounted for under the equity method, which had previously been omitted. See Note 17 for further information. The partnership concluded that the related impacts were not material, and the revisions had no impact on the partnership's unaudited interim condensed consolidated statements of financial position, statements of operating results, statements of changes in equity and statements of cash flow for the year ended December 31, 2024 and three months ended March 31, 2024.

2. Critical accounting judgments and measurement uncertainty

   The preparation of financial statements in accordance with IAS 34 requires management to make critical judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period of the financial statements that are not readily apparent from other sources. The critical accounting estimates and judgments have been set out in Note 2 to the partnership's annual consolidated financial statements as at and for the year ended December 31, 2024. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. There have been no significant changes to the method of determining critical accounting estimates and judgments relative to those described in the annual consolidated financial statements as at and for the year ended December 31, 2024.

   1. Impact of tax legislation (i)(a) Global minimum top-up tax

      The partnership operates in countries, including Canada, which have enacted new legislation to implement the global minimum top-up tax, effective from January 1, 2024. The partnership has applied a temporary mandatory relief from recognizing and disclosing deferred taxes in connection with the global minimum top-up tax and will account for it as a current tax when it is incurred. There is no material current tax impact for the three months ended March 31, 2025. The global minimum top-up tax is not anticipated to have a material impact on the financial position of the partnership.

      (i)(b) U.S. legislation for domestic energy production and manufacturing

      On August 16, 2022, the United States enacted laws providing incentives for domestic energy production and manufacturing. In December 2023, the United States Department of the Treasury issued proposed regulations, which were subsequently finalized in October 2024, that provided guidance in determining eligibility to claim tax benefits. The tax benefits are available for qualifying activities from 2023 to 2032, subject to phase out beginning in 2030.

      The partnership's advanced energy storage operation is entitled to claim these tax benefits over the availability period. For qualified business activities for the period between October 1, 2022 and September 30, 2023, the tax benefits are a carryforward to offset future taxes and accounted for under IAS 12, Income Taxes ("IAS 12"). During the three months ended March 31, 2025 and March 31, 2024, the partnership did not record any carryforward amounts.

      For qualified business activities in the partnership's advanced energy storage operation beginning in its fiscal year 2024 subsequent to October 1, 2023, these tax benefits are eligible to be refundable or transferable, and therefore the benefits are accounted for in accordance with IAS 20, Accounting for Government Grants and Disclosure of Government Assistance ("IAS 20").

      IAS 20 permits a policy choice to present benefits of a similar nature as income or an offset to a related expense. The partnership has elected to present these benefits as a reduction to direct operating costs. For the three months ended March 31, 2025, the partnership recorded a benefit of $259 million (March 31, 2024: nil).

   2. Going concern

      In assessing whether the going concern assumption is appropriate and whether there are material uncertainties that cast significant doubt on the partnership's ability to continue as a going concern, management has made certain estimates and assumptions about future cash flows. These judgments considered various forward-looking factors, such as forecasted cash flows, access to financing and liquidity reserves, planned capital expenditures and debt repayment obligations. Management has also made specific estimates and judgments regarding future expected cash flows in assessing the going concern assumption at its healthcare services operation, considering currently ongoing strategic initiatives that include negotiations with lenders and landlords to amend debt and rent arrangements, negotiations with private health insurers to amend hospital funding agreements, deferral of uncommitted expenditures, and anticipated benefits from cost-saving measures. The assumptions underlying this assessment are based on actual operating results and the most relevant available information about the future, including the partnership's strategic initiatives and business plans and may be affected by market conditions, regulatory developments, and macroeconomic risks.

3. Future changes in accounting policies

   1. Amendments to IFRS 9, Financial Instruments ("IFRS 9") and IFRS 7, Financial Instruments: Disclosures ("IFRS 7")

      - Classification and Measurement of Financial Instruments

      In May 2024, the IASB issued amendments which clarify the requirements for the timing of recognition and derecognition of financial liabilities settled through an electronic cash transfer system, add further guidance for assessing the contractual cash flow characteristics of financial assets with contingent feature, and add new or amended disclosures relating to investments in equity instruments designated at FVOCI and financial instruments with contingent features. The amendments to IFRS 9 and IFRS 7 are effective for periods beginning on or after January 1, 2026, with early adoption permitted. The partnership is currently assessing the impact of these amendments.

   2. IFRS 18, Presentation and Disclosure of Financial Statements ("IFRS 18")

      In April 2024, the IASB issued IFRS 18 to replace IAS 1 Presentation of Financial Statements ("IAS 1"). IFRS 18 is effective for periods beginning on or after January 1, 2027, with early adoption permitted. IFRS 18 aims to improve financial reporting by requiring additional defined subtotals in the statement of profit or loss, requiring disclosures about management-defined performance measures, and adding new principles for the aggregation and disaggregation of items. The partnership is currently assessing the impact of these amendments.

      There are currently no other future changes to IFRS Accounting Standards with expected material impacts on the partnership.

      NOTE 3. ACQUISITION OF BUSINESSES

      When determining the basis of accounting for the partnership's investees, the partnership evaluates the degree of influence that the partnership exerts directly or through an arrangement over the investees' relevant activities. Control is obtained when the partnership has power over the acquired entities and an ability to use its power to affect the returns of these entities.

      The partnership accounts for business combinations using the acquisition method of accounting, pursuant to which identifiable tangible and intangible assets and liabilities are recognized and measured on the basis of their estimated fair values at the date of acquisition.

      1. Acquisitions completed in the three months ended March 31, 2025 Industrials Chemelex

         On January 30, 2025, the partnership, together with institutional partners, acquired a 100% economic interest in Chemelex, a manufacturer of electric heat tracing systems in the United States. Total consideration for the business was

         $1,654 million, funded with debt and equity. The partnership received 100% of the voting rights, which provided the partnership with control, and accordingly, the partnership has consolidated the business for financial reporting purposes. The partnership's economic ownership interest in the business is approximately 26%.

         Goodwill of $645 million was recognized and represents the growth the partnership expects to experience from the operations. The goodwill recognized was not deductible for income tax purposes. Intangible assets of $804 million were acquired as part of the transaction, comprising customer relationships of $498 million, brand and trademarks of $198 million, and developed technology and software of $108 million. Other items include $115 million of property, plant and equipment,

         $109 million of inventory, and $19 million of net other liabilities. Transaction costs of approximately $34 million were recorded as other expenses in the unaudited interim condensed consolidated statements of operating results.

         The partnership's results from operations for the period ended March 31, 2025 include revenues of $109 million and

         $11 million of net loss attributable to Unitholders from the acquisition. If the acquisition had been effective January 1, 2025, the partnership would have recorded revenues of $149 million and a net loss of $9 million attributable to Unitholders for the three months ended March 31, 2025.

      2. Acquisitions completed in 2024

         There were no significant acquisitions during the three months ended March 31, 2024.

         NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS

         The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are determined by reference to quoted bid or ask prices, as appropriate. Where bid and ask prices are unavailable, the closing price of the most recent transaction of that instrument is used. In the absence of an active market, fair values are determined based on prevailing market rates such as bid and ask prices, as appropriate, for instruments with similar characteristics and risk profiles or internal or external valuation models, such as option pricing models and discounted cash flow analysis, using observable market inputs when available.

         Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, the partnership looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates and price and rate volatility, as applicable.

         The following table provides the details of financial instruments and their associated financial instrument classifications as at March 31, 2025:

         (US$ MILLIONS) Amortized

         MEASUREMENT BASIS	FVTPL	FVOCI	cost	Total
         Financial assets
         Cash and cash equivalents	$ -	$ -	$ 3,442	$ 3,442
         Accounts and other receivable, net (current and non-current)	-	-	6,948	6,948
         Financial assets (current and non-current) (1)	894	4,641	6,107	11,642
         Total	$ 894	$ 4,641	$ 16,497	$ 22,032
         Financial liabilities
         Accounts payable and other (current and non-current) (1) (2)	$ 163	$ 171	$ 8,432	$ 8,766
         Borrowings (current and non-current)	-	-	43,333	43,333
         Total	$ 163	$ 171	$ 51,765	$ 52,099

         1. FVOCI and FVTPL include derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 4 (a) below.

         2. Includes derivative liabilities, and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenue, insurance contract liabilities, work in progress, post-employment benefits and other liabilities of $6,319 million.

            Included in cash and cash equivalents as at March 31, 2025 was $1,975 million of cash (December 31, 2024:

            $1,991 million) and $1,467 million of cash equivalents (December 31, 2024: $1,248 million).

            Included in financial assets (current and non-current) as at March 31, 2025 was $378 million (December 31, 2024:

            $466 million) of equity instruments and $3,944 million (December 31, 2024: $3,904 million) of debt instruments designated and measured at fair value through other comprehensive income.

            The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2024:

            (US$ MILLIONS)
            MEASUREMENT BASIS	FVTPL	FVOCI	Amortized cost	Total
            Financial assets
            Cash and cash equivalents	$ -	$ -	$ 3,239	$ 3,239
            Accounts and other receivable, net (current and non-current)	-	-	6,279	6,279
            Financial assets (current and non-current) (1)	937	4,767	6,667	12,371
            Total	$ 937	$ 4,767	$ 16,185	$ 21,889
            Financial liabilities
            Accounts payable and other (1)(2)	$ 170	$ 187	$ 8,194	$ 8,551
            Borrowings (current and non-current)	-	-	38,862	38,862
            Total	$ 170	$ 187	$ 47,056	$ 47,413

            1. FVOCI and FVTPL include derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 4(a) below.

            2. Includes derivative liabilities and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenues, insurance contract liabilities, work in progress, post-employment benefits and other liabilities of $8,140 million.

1. Hedging activities

   Derivative instruments not designated in a hedging relationship are classified as FVTPL, with changes in fair value recognized in the unaudited interim condensed consolidated statements of operating results.

   Net investment hedges

   The partnership uses foreign exchange derivative contracts, currency options and foreign currency denominated debt instruments to manage foreign currency exposures arising from net investments in foreign operations. For the three months ended March 31, 2025, a pre-tax net loss of $41 million (March 31, 2024: pre-tax net gain of $34 million) was recorded in other comprehensive income for the effective portion of hedges of net investments in foreign operations. As at March 31, 2025, there was a derivative asset balance of $199 million (December 31, 2024: $177 million) and a derivative liability balance of

   $109 million (December 31, 2024: $135 million) relating to derivative contracts designated as net investment hedges.

   Cash flow hedges

   The partnership uses commodity swap contracts to hedge the sale price of natural gas contracts, purchase price of lead, polypropylene, and tin, foreign exchange contracts and option contracts to hedge highly probable future transactions, and interest rate contracts to hedge the cash flows on its floating rate borrowings. A number of these contracts are designated as cash flow hedges. For the three months ended March 31, 2025, a pre-tax net loss of $88 million (March 31, 2024: pre-tax net gain of $141 million) was recorded in other comprehensive income for the effective portion of cash flow hedges. As at March 31, 2025, there was a derivative asset balance of $120 million (December 31, 2024: $220 million) and derivative liability balance of $62 million (December 31, 2024: $52 million) relating to the derivative contracts designated as cash flow hedges.

   Fair value hedges

   The partnership uses cross currency interest rate swap contracts to hedge its fair value exposure on certain foreign currency borrowings resulting from changes in foreign currency. As at March 31, 2025, there was a derivative asset balance of

   $72 million (December 31, 2024: $71 million) and derivative liability balance of $55 million (December 31, 2024: $28 million) relating to derivative contracts designated as fair value hedges.

2. Fair value hierarchical levels - financial instruments

   Level 3 assets and liabilities measured at fair value on a recurring basis include $978 million (December 31, 2024:

   $993 million) of financial assets and $25 million (December 31, 2024: $25 million) of financial liabilities, which are measured at fair value using valuation inputs based on management's best estimates.

   The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at March 31, 2025 and December 31, 2024:

   March 31, 2025 December 31, 2024
   (US$ MILLIONS)	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
   Financial assets
   Common shares	$ 67	$ -	$ -	$ 60	$ -	$ -
   Corporate and government bonds	37	2,992	273	21	3,033	249
   Derivative assets	-	443	-	-	522	-
   Other financial assets (1)	340	678	705	441	634	744
   	$ 444	$ 4,113	$ 978	$ 522	$ 4,189	$ 993
   Financial liabilities
   Derivative liabilities	$ - $ 309		$ -	$ - $ 332		$ -
   Other financial liabilities	- -		25	- -		25
   	$ - $ 309		$ 25	$ - $ 332		$ 25

   1. Other financial assets include secured debentures, asset-backed securities and preferred shares. Level 1 other financial assets are primarily publicly traded preferred shares and mutual funds. Level 2 other financial assets are primarily asset-backed securities and Level 3 financial assets are primarily convertible preferred securities in the partnership's audience measurement operation and secured debentures.

There were no transfers between levels during the three months ended March 31, 2025.

The following table presents the change in the balance of financial assets classified as Level 3 for the three-month period ended March 31, 2025 and the twelve-month period ended December 31, 2024:

(US$ MILLIONS)		March 31, 2025		December 31, 2024
Balance at beginning of period	$	993	$	828
Fair value change recorded in net income		6		14
Fair value change recorded in other comprehensive income		7		18
Additions		23		177
Dispositions		(52)		(48)
Foreign currency translation and other		1		4
Balance at end of period	$	978	$	993

The following table presents the change in the balance of financial liabilities classified as Level 3 for the three-month period ended March 31, 2025 and the twelve-month period ended December 31, 2024:

(US$ MILLIONS)		March 31, 2025			December 31, 2024
Balance at beginning of period	$		25	$	284
Fair value change recorded in net income			-		(151)
Fair value change recorded in other comprehensive income			-		(1)
Additions			-		12
Dispositions/settlements			-		(117)
Foreign currency translation and other			-		(2)
Balance at end of period	$		25	$	25

NOTE 5. FINANCIAL ASSETS
(US$ MILLIONS)		March 31, 2025		December 31, 2024
Current
Marketable securities	$	579	$	571
Restricted cash		71		165
Derivative assets		178		185
Loans and notes receivable		307		396
Other financial assets (1)		211		220
Total current	$	1,346	$	1,537
Non-current
Marketable securities	$	2,305	$	2,333
Restricted cash		75		63
Derivative assets		265		337
Loans and notes receivable (2)		5,308		5,734
Other financial assets (1)		2,343		2,367
Total non-current	$	10,296	$	10,834

1. Other financial assets primarily consist of asset-backed securities and high yield bonds at the partnership's residential mortgage insurer and convertible preferred shares held in the partnership's audience measurement operation.

2. Loans and notes receivable includes $4,577 million (December 31, 2024: $5,014 million) of mortgage receivables related to the partnership's Australian asset manager and lender.

NOTE 6. ACCOUNTS AND OTHER RECEIVABLE, NET
(US$ MILLIONS)		March 31, 2025		December 31, 2024
Current, net (1)	$	6,049	$	5,178
Non-current, net
Accounts receivable		192		449
Retainer on customer contract		55		55
Billing rights		652		597
Total non-current, net	$	899	$	1,101
Total	$	6,948	$	6,279

1. Includes a receivable of $1,600 million (December 31, 2024: $1,341 million) related to tax benefits at the partnership's advanced energy storage operation. Refer to Note 2(b)(i) for additional details.

Non-current billing rights represent unbilled rights from the partnership's water and wastewater operation in Brazil from revenues earned from the construction of public concession contracts classified as financial assets, which are recognized when there is an unconditional right to receive cash or other financial assets from the concession authority for the construction services.

The partnership's construction operation has a retention balance, which comprises amounts that have been earned but held back until the satisfaction of certain conditions specified in the contract. The retention balance included in the current accounts and other receivable, net as at March 31, 2025 was $60 million (December 31, 2024: $120 million).

NOTE 7. INVENTORY, NET
(US$ MILLIONS)		March 31, 2025		December 31, 2024
Raw materials and consumables	$	854	$	809
Work in progress		720		613
Finished goods and other (1)		1,166		994
Carrying amount of inventories	$	2,740	$	2,416

1. Finished goods and other primarily comprises finished goods inventory at the partnership's advanced energy storage operation and engineered components manufacturing operation.

NOTE 8. DISPOSITIONS

1. Dispositions completed in the three months ended March 31, 2025 Infrastructure services

   Offshore oil services

   On January 16, 2025, the partnership's offshore oil services completed the previously announced sale of its shuttle tanker operation for consideration of $484 million, resulting in a net gain of $214 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on acquisitions/dispositions, net.

2. Dispositions completed in the three months ended March 31, 2024 Business services

   Real estate services operation

   On March 31, 2024, the partnership completed the sale of its general partner interest and residential real estate brokerage portfolio to Bridgemarq, a publicly listed real estate services operation and brokerage business in which the partnership has an equity accounted investment. As consideration, the partnership received limited partnership units in the Bridgemarq public entity, increasing the partnership's ownership interest from 28% to approximately 42%. This resulted in a pre-tax gain of $15 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on acquisitions/dispositions, net.

   Infrastructure services

   Offshore oil services

   On February 29, 2024, the partnership's offshore oil services completed the sale of its non-core towage business. The proceeds realized from the sale were equal to the carrying value of the business disposed, resulting in no gain or loss.

   NOTE 9. OTHER ASSETS
   (US$ MILLIONS)		March 31, 2025		December 31, 2024
   Current
   Work in progress (1)	$	206	$	170
   Prepayments and other assets		795		757
   Assets held for sale (2)		472		2,042
   Total current	$	1,473	$	2,969
   Non-current
   Prepayments and other assets (3)	$	850	$	343
   Total non-current	$	850	$	343

   1. See Note 15 for additional information.

   2. Assets held for sale as at March 31, 2025 includes the non-core home finance lending business of the partnership's Indian non-bank financial services operation. Assets held for sale at December 31, 2024 included the partnership's offshore oil services' shuttle tanker operation which was sold in January 2025.

   3. Includes finance lease receivables related to vessels at the partnership's offshore oil services.

NOTE 10. PROPERTY, PLANT AND EQUIPMENT

The following table presents the change in the balance of property, plant and equipment for the three-month period ended March 31, 2025 and the twelve-month period ended December 31, 2024:

(US$ MILLIONS)		March 31, 2025		December 31, 2024
Gross carrying amount
Balance at beginning of period	$	19,118	$	22,392
Additions (cash and non-cash)		670		3,280
Dispositions (2)		(1,660)		(2,609)
Acquisitions through business combinations		115		10
Assets reclassified as held for sale		(7)		(2,681)
Foreign currency translation and other		380		(1,274)
Balance at end of period	$	18,616	$	19,118
Accumulated depreciation and impairment
Balance at beginning of period	$	(5,886)	$	(6,668)
Depreciation/depletion/impairment expense		(344)		(1,809)
Dispositions		231		1,152
Assets reclassified as held for sale		4		1,156
Foreign currency translation and other		(92)		283
Balance at end of period	$	(6,087)	$	(5,886)
Net book value (1)	$	12,529	$	13,232

1. Includes right-of-use assets of $931 million as at March 31, 2025 (December 31, 2024: $874 million).

2. Includes reclassification of $1,419 million from property, plant and equipment into finance lease receivables related to vessels at the partnership's offshore oil services.

   NOTE 11. INTANGIBLE ASSETS

   The following table presents the change in the balance of intangible assets for the three-month period ended March 31, 2025 and twelve-month period ended December 31, 2024:

   (US$ MILLIONS)		March 31, 2025		December 31, 2024
   Gross carrying amount
   Balance at beginning of period	$	23,749	$	25,242
   Additions		75		373
   Acquisitions through business combinations		804		21
   Dispositions		(5)		(596)
   Foreign currency translation		461		(1,291)
   Balance at end of period	$	25,084	$	23,749
   Accumulated amortization and impairment
   Balance at beginning of period	$	(5,432)	$	(4,396)
   Amortization and impairment expense		(386)		(1,590)
   Dispositions		1		289
   Foreign currency translation		(110)		265
   Balance at end of period	$	(5,927)	$	(5,432)
   Net book value	$	19,157	$	18,317

   NOTE 12. GOODWILL

   The following table presents the change in the balance of goodwill for the three-month period ended March 31, 2025 and the twelve-month period ended December 31, 2024:

   (US$ MILLIONS)		March 31, 2025		December 31, 2024
   Balance at beginning of period	$	12,239	$	14,129
   Acquisitions through business combinations (1)		646		50
   Impairment		-		(793)
   Dispositions		-		(638)
   Assets reclassified as held for sale		-		14
   Foreign currency translation		147		(523)
   Balance at end of period	$	13,032	$	12,239

   1. See Note 3 for additional information.

NOTE 13. EQUITY ACCOUNTED INVESTMENTS

The following table presents the change in the balance of equity accounted investments for the three-month period ended March 31, 2025 and twelve-month period ended December 31, 2024:

(US$ MILLIONS)		March 31, 2025		December 31, 2024
Balance at beginning of period	$	2,325	$	2,154
Additions		15		372
Dispositions		(6)		(29)
Share of net income (loss)		(8)		90
Share of other comprehensive income (loss)		5		(13)
Distributions received		(31)		(206)
Foreign currency translation		7		(43)
Balance at end of period	$	2,307	$	2,325
NOTE 14. ACCOUNTS PAYABLE AND OTHER (US$ MILLIONS)		March 31, 2025		December 31, 2024
Current
Accounts payable	$	3,358	$	3,250
Accrued and other liabilities (1) (2)		2,945		3,405
Lease liabilities		214		199
Financial liabilities (3)		317		371
Insurance liabilities		404		398
Work in progress (4)		392		382
Provisions and decommissioning liabilities		838		835
Liabilities associated with assets held for sale (5)		280		1,710
Total current	$	8,748	$	10,550
Non-current
Accounts payable	$	94	$	87
Accrued and other liabilities (2)		2,104		1,973
Lease liabilities		783		729
Financial liabilities (3)		1,348		1,321
Insurance liabilities		1,417		1,427
Work in progress (4)		33		36
Provisions and decommissioning liabilities		558		568
Total non-current	$	6,337	$	6,141

1. Includes bank overdrafts of $24 million as at March 31, 2025 (December 31, 2024: $19 million).

2. Includes post-employment benefits of $216 million ($8 million current and $208 million non-current) as at March 31, 2025 and $204 million ($6 million current and $198 million non-current) as at December 31, 2024.

3. Includes financial liabilities of $1,242 million ($38 million current and $1,204 million non-current) as at March 31, 2025 and $1,255 million ($42 million current and $1,213 million non-current) as at December 31, 2024 related to the failed sale and leaseback of hospitals.

4. See Note 15 for additional information.

5. In January 2025, the partnership's offshore oil services completed the disposition of its shuttle tanker operation. See Note 8 for additional information.

NOTE 15. CONTRACTS IN PROGRESS
(US$ MILLIONS)		March 31, 2025		December 31, 2024
Contract costs incurred to date	$	12,147	$	11,241
Profit recognized to date (less recognized losses)		250		203
	$	12,397	$	11,444
Less: progress billings		(12,616)		(11,692)
Contract work in progress (liability)	$	(219)	$	(248)
Comprising:
Amounts due from customers - work in progress	$	206	$	170
Amounts due to customers - creditors		(425)		(418)
Net work in progress	$	(219)	$	(248)
NOTE 16. BORROWINGS

1. Corporate borrowings

   The partnership has bilateral credit facilities backed by large global banks. The credit facilities are available in Euros, British pounds, Australian dollars, U.S. dollars and Canadian dollars. Advances under the credit facilities bear interest at the specified SOFR, SONIA, EURIBOR, CORRA or BBSY rate plus 2.50%, or the specified base rate or prime rate plus 1.50%. The credit facilities require the partnership to maintain a minimum tangible net worth and deconsolidated debt to capitalization ratio at the corporate level. The total capacity on the bilateral credit facilities is $2,350 million with a maturity date of June 29, 2029. The balance drawn on the bilateral credit facility, net of deferred financing costs, as at March 31, 2025 was

   $1,017 million (December 31, 2024: $2,142 million).

   The partnership had $1 billion available on its revolving credit facility with Brookfield (the "Brookfield Credit Agreement") as at March 31, 2025. The credit facility is guaranteed by the partnership, the Holding LP and certain of the partnership's subsidiaries. The credit facility is available in U.S. dollars or Canadian dollars and advances are made by way of SOFR, CORRA, base rate or prime rate loans. The credit facility bears interest at the specified SOFR or CORRA rate plus 3.45%, or the specified base rate or prime rate plus 2.45%. The credit facility requires the partnership to maintain a minimum deconsolidated net worth and contains restrictions on the ability of the borrowers and the guarantors to, among other things, incur certain liens or enter into speculative hedging arrangements. The maturity date of the credit facility is April 27, 2029, subject to automatic one year extensions occurring on April 27 of each year unless Brookfield provides written notice of its intention not to further extend their prevailing maturity date. The total available amount on the credit facility will decrease to

   $500 million on April 27, 2026. As at March 31, 2025, the credit facility remained undrawn.

   The partnership is currently in compliance with covenant requirements of its corporate borrowings and continues to monitor performance against such covenant requirements.

   As at March 31, 2025, there were no funds on deposit from Brookfield (December 31, 2024: $nil). Refer to Note 17 for further details on the Deposit Agreements (defined herein) with Brookfield.

2. Non-recourse subsidiary borrowings of the partnership

Current and non-current non-recourse subsidiary borrowings in subsidiaries of the partnership as at March 31, 2025, net of deferred financing costs, premiums and discounts, were $1,399 million and $40,917 million, respectively (December 31, 2024: $1,616 million and $35,104 million, respectively). Non-recourse borrowings in subsidiaries of the partnership include borrowings made under subscription facilities of Brookfield-sponsored private equity funds.

Some of the partnership's operations have credit facilities in which they borrow and repay on a short-term basis. This movement has been shown on a net basis in the partnership's unaudited interim condensed consolidated statements of cash flow.

The partnership has financing arrangements within its operating businesses that trade in public markets or are held at major financial institutions. The financing arrangements primarily comprise term loans, securitization programs, credit facilities and notes and debentures which are subject to fixed or floating interest rates. Most of these borrowings are not subject to financial maintenance covenants, however, some are subject to fixed charge coverage, leverage ratios and minimum equity or liquidity covenants.

The partnership principally finances assets at the subsidiary level with debt that is non-recourse to both the partnership and to its other subsidiaries and is generally secured against assets within the respective subsidiaries. Moreover, debt instruments at the partnership's subsidiaries do not cross-accelerate or cross-default to debt at other subsidiaries. As at March 31, 2025, the partnership's subsidiaries were in compliance with or had obtained waivers related to all material covenant requirements and the partnership continues to work with its businesses to monitor performance against such covenant requirements. Earlier this year, the partnership's healthcare services operation obtained forbearance from its lenders providing the business with temporary interest relief under its financing agreements. Operating performance continues to be under pressure and the current capital structure is unsustainable. The business is assessing options as it continues to negotiate with key stakeholders.

NOTE 17. RELATED PARTY TRANSACTIONS

In the normal course of operations, the partnership entered into the transactions below with related parties. These transactions have been measured at fair value and are recognized in the unaudited interim condensed consolidated financial statements. The ultimate parent of the partnership is Brookfield Corporation. Other related parties of the partnership include Brookfield Corporation's subsidiaries, affiliates, and operating entities.

1. Transactions with Brookfield

   The partnership had $1 billion available on its revolving credit facility with Brookfield as at March 31, 2025. As at March 31, 2025, $nil was drawn on the Brookfield Credit Agreement (December 31, 2024: $nil). Refer to Note 16 for further details.

   From time to time, each of Brookfield and the partnership may place funds on deposit with the other, on terms approved by the independent directors of the partnership's General Partner, pursuant to deposit agreements entered into between Brookfield and the partnership (the "Deposit Agreements"). Interest earned or incurred on such deposits is at market terms. As at March 31, 2025, the net deposit from Brookfield was $nil (December 31, 2024: $nil) and the partnership incurred interest income (expense) of $nil for the three months ended March 31, 2025 (March 31, 2024: $nil) on these deposits.

   Pursuant to the Master Services Agreement ("Master Services Agreement"), the partnership and other service recipients (the "Service Recipients" as defined in the Master Services Agreement) pay a base management fee, referred to as the Base Management Fee, to certain service providers (the "Service Providers" as defined in the Master Services Agreement) equal to 0.3125% per quarter (1.25% annually) of the total capitalization of the partnership, which is reflected within general and administrative expenses. For purposes of calculating the Base Management Fee, the total capitalization of the partnership is equal to the quarterly volume-weighted average trading price of LP Units on the principal stock exchange for the LP Units (based on trading volumes) multiplied by the number of LP Units outstanding at the end of the quarter (assuming full conversion of the Redemption-Exchange Units into LP Units of Brookfield Business Partners L.P.), plus the value of securities of the other Service Recipients (including the BBUC exchangeable shares) that are not held by the partnership, plus all outstanding debt with recourse to a Service Recipient, less all cash held by such entities. The Base Management Fee for the three months ended March 31, 2025 was $21 million (March 31, 2024: $23 million).

   In its capacity as the holder of the Special LP Units, Brookfield is entitled to incentive distribution rights. The incentive distribution for the three months ended March 31, 2025 was $nil (March 31, 2024: $nil). Refer to Note 19 for further details.

   An integral part of the partnership's strategy is to participate with institutional investors in Brookfield-sponsored private equity funds that target acquisitions that suit the partnership's investment mandate. In the normal course of business, the partnership and institutional investors have made commitments to Brookfield-sponsored private equity funds, and in connection therewith, the partnership, together with institutional investors, has access to short-term financing using the private equity funds' credit facilities to facilitate investments that Brookfield has determined to be in the partnership's best interests.

   In addition, at the time of spin-off of the partnership from Brookfield in 2016, the partnership entered into indemnity agreements with Brookfield that relate to certain contracts that were in place prior to the spin-off. Under these indemnity agreements, Brookfield has agreed to indemnify the partnership for payments relating to such contracts.

2. Other

   The following tables summarizes revenues the partnership has earned from transactions with related parties for the three month periods ended March 31, 2025 and 2024:

   Three Months Ended March 31,

   Transactions during the period

(US$ MILLIONS) 2025 2024

Revenues (1) $ 239 $ 252

1. Includes revenues earned by the partnership's advanced energy storage operation from an associate and revenue generated from construction services earned by the partnership from affiliates of Brookfield.

2. The partnership corrected its comparative period disclosure for 2024 to include revenues of $216 million earned by the partnership's advanced energy storage operation from an associate. See Note 2(a)(i) for further information.

The following table summarizes balances with related parties as at March 31, 2025 and December 31, 2024:

(US$ MILLIONS)		March 31, 2025		December 31, 2024
Balances at end of period
Accounts and other receivable, net	$	561	$	521
Accounts payable and other (1)		266		429
Non-recourse borrowings in subsidiaries of the partnership		121		143
Interest of others in operating subsidiaries		4		4

1. Includes $181 million related to a tax receivable agreement payable to related parties by the partnership's advanced energy storage operation (December 31, 2024: $268 million).

NOTE 18. DERIVATIVE FINANCIAL INSTRUMENTS

The partnership's activities expose it to a variety of financial risks, including market risk (currency risk, interest rate risk, commodity risk and other price risks), credit risk and liquidity risk. The partnership selectively uses derivative financial instruments principally to manage these risks.

The aggregate fair values of the partnership's derivative financial instrument positions as at March 31, 2025 and December 31, 2024 were as follows:

March 31, 2025 December 31, 2024

(US$ MILLIONS)	Financial Assets	Financial Liabilities	Financial Assets	Financial Liabilities
Foreign exchange contracts	$ 179	$ (160)	$ 223	$ (226)
Cross currency swaps	103	(79)	109	(55)
Interest rate derivatives	103	(51)	162	(39)
Commodities contracts	11	(19)	28	(12)
Currency option contracts	47	-	-	-
Total	$ 443	$ (309)	$ 522	$ (332)
Total current	$ 178	$ (214)	$ 185	$ (269)
Total non-current	$ 265	$ (95)	$ 337	$ (63)

NOTE 19. EQUITY

The partnership's consolidated equity interests include LP Units held by the public and Brookfield Holders, GP Units held by Brookfield, Redemption-Exchange Units held by Brookfield, Special LP Units held by Brookfield and BBUC exchangeable shares held by the public and Brookfield Holders, collectively, "Units" or "Unitholders" as described in Note 1, and $740 million of preferred securities held by Brookfield. As at March 31, 2025, Brookfield Holders owned approximately 67% of the partnership on a fully exchanged basis, assuming the exchange of all of the Redemption-Exchange Units and BBUC exchangeable shares. The partnership's sole direct investment consists of 89,376,700 Managing General Partner Units of Holding LP (December 31, 2024: 74,281,771), through which the partnership holds all of its interests in its operating businesses.

For the three months ended March 31, 2025, the partnership made distributions on the LP Units, GP Units, Redemption-Exchange Units and BBUC exchangeable shares of $13 million or $0.0625 per Unit (March 31, 2024: $14 million or $0.0625 per Unit). For the three months ended March 31, 2025, the partnership declared distributions on the perpetual preferred equity securities held by Brookfield of $13 million (March 31, 2024: $13 million). For the three months ended March 31, 2025, the partnership made distributions to others who have interests in operating subsidiaries of $3,516 million (March 31, 2024: $101 million), primarily related to the distribution to owners from the partnership's advanced energy storage operation.

1. GP Units and LP Units

   LP Units entitle the holder to their proportionate share of distributions. GP Units entitle the holder the right to govern the financial and operating policies of Brookfield Business Partners L.P. The GP Units are not quantitatively material to the financial statements and therefore have not been separately presented on the unaudited interim condensed consolidated statements of financial position.

   The following table provides a continuity of GP Units and LP Units outstanding for the three-month period ended March 31, 2025:

   UNITS	GP Units		LP Units (1)	Total
   Authorized and issued
   Opening balance		4	74,281,767	74,281,771
   Repurchased and canceled		-	(3,011,006)	(3,011,006)
   Conversion from BBUC exchangeable shares		-	154	154
   Conversion from Redemption-Exchange Units (2)		-	18,105,781	18,105,781
   Issued as at March 31, 2025		4	89,376,696	89,376,700

   1. Included in the LP Units that Brookfield Holders beneficially own as of March 31, 2025 are 43,333,752 LP units held by subsidiaries of Brookfield Wealth Solutions. Brookfield and Brookfield Wealth Solutions have agreed that all decisions to be made by subsidiaries of Brookfield Wealth Solutions with respect to the voting of the securities held by subsidiaries of Brookfield Wealth Solutions will be made jointly by mutual agreement of the applicable Brookfield Wealth Solutions subsidiary and Brookfield Corporation.

   2. In February 2025, Brookfield Wealth Solutions converted 18,105,781 Redemption-Exchange Units held with a carrying value of approximately

      $433 million into an equivalent amount of LP Units.

      The weighted average number of LP Units outstanding for the three months ended March 31, 2025 was 80.0 million (March 31, 2024: 74.3 million).

      During the three months ended March 31, 2025, the partnership repurchased 3,011,006 LP Units under the partnership's normal course issuer bid ("NCIB") (March 31, 2024: nil).

      Managing General Partner Units of the Holding LP are repurchased and canceled in connection with the repurchase and cancellation of LP Units. During the three months ended March 31, 2025, 3,011,006 Managing General Partner Units (March 31, 2024: nil) were repurchased and canceled as 3,011,006 LP Units were repurchased by the partnership.

      Net income (loss) attributable to limited partners for the three months ended March 31, 2025 was $30 million (March 31, 2024: net income of $17 million).

2. Redemption-Exchange Units held by Brookfield UNITS Redemption-Exchange Units

   Authorized and issued

Opening balance 69,705,497

Converted to LP Units (18,105,781)

Issued as at March 31, 2025 51,599,716

The weighted average number of Redemption-Exchange Units outstanding for the three months ended March 31, 2025 was 62.9 million (March 31, 2024: 69.7 million).

As at March 31, 2025, the Holding LP had issued 51.6 million Redemption-Exchange Units to Brookfield (March 31, 2024: 69.7 million). Both the LP Units and GP Units issued by Brookfield Business Partners L.P. and the Redemption-Exchange Units issued by the Holding LP have the same economic attributes in all respects, except as noted below.

The Redemption-Exchange Units may, at the request of Brookfield, be redeemed in whole or in part, for cash in an amount equal to the market value of one of the partnership's LP Units multiplied by the number of units to be redeemed (subject to certain customary adjustments). This right is subject to the partnership's right, at its sole discretion, to elect to acquire any unit presented for redemption in exchange for one of the partnership's LP Units (subject to certain customary adjustments). If the partnership elects not to exchange the Redemption-Exchange Units for LP Units, the Redemption-Exchange Units are required to be redeemed for cash. The Redemption-Exchange Units are presented as non-controlling interests since they relate to equity in a subsidiary that is not attributable, directly or indirectly, to Brookfield Business Partners L.P. Since this redemption right is subject to the partnership's right, at its sole discretion, to satisfy the redemption request with LP Units of Brookfield Business Partners L.P. on a one-for-one basis, the Redemption-Exchange Units are classified as equity instruments in accordance with IAS 32, Financial Instruments: Presentation ("IAS 32").

1. BBUC exchangeable shares

   The table below provides a continuity of BBUC exchangeable shares outstanding for the three-month period ended March 31, 2025:

   SHARES	shares (1)
   Balance as at January 1, 2025	72,954,446
   Repurchased and canceled	(1,260,225)
   Converted to LP Units	(154)
   Issued as at March 31, 2025	71,694,067

   BBUC exchangeable

   1. Included in the BBUC exchangeable shares that Brookfield Holders beneficially own as of March 31, 2025 are 10,317,747 BBUC exchangeable shares held by subsidiaries of Brookfield Wealth Solutions. Brookfield and Brookfield Wealth Solutions have agreed that all decisions to be made by subsidiaries of Brookfield Wealth Solutions with respect to the voting of the securities held by subsidiaries of Brookfield Wealth Solutions will be made jointly by mutual agreement of the applicable Brookfield Wealth Solutions subsidiary and Brookfield Corporation.

      During the three months ended March 31, 2025, 154 BBUC exchangeable shares were exchanged into LP Units (March 31, 2024: 1).

      An additional Managing General Partner Unit is issued to the partnership each time an LP Unit is issued, including when a BBUC exchangeable share is exchanged by the holder thereof for an LP Unit. During the three months ended March 31, 2025, 154 Managing General Partner Units (March 31, 2024: 1) were issued to the partnership in connection with the exchange of 154 BBUC exchangeable shares into LP Units (March 31, 2024: 1).

      During the three months ended March 31, 2025, BBUC repurchased 1,260,225 BBUC exchangeable shares under BBUC's NCIB (March 31, 2024: nil).

2. Special limited partner units held by Brookfield

   Authorized and issued

UNITS Special limited partner units held by Brookfield

Opening balance 4

Issued as at March 31, 2025 4

The weighted average number of special limited partner units outstanding for the three months ended March 31, 2025 was 4 (March 31, 2024: 4).

In its capacity as the holder of the Special LP Units, the special limited partner is entitled to incentive distributions which are calculated as 20% of the increase in the market value of the LP Units on a fully exchanged basis (assuming the exchange of all of the Redemption-Exchange Units and BBUC exchangeable shares) over an initial threshold based on the volume-weighted average price of the LP Units, subject to a high-water mark.

During the three months ended March 31, 2025, the volume-weighted average price was $22.90 per LP Unit, which was below the current incentive distribution threshold of $31.53 per LP Unit, resulting in no incentive distribution declared during the period (March 31, 2024: $nil).

1. Preferred securities held by Brookfield

   Authorized and issued

($US MILLIONS) Preferred securities held by Brookfield

Balance as at March 31, 2025 $ 740

Opening balance $ 740

Brookfield has subscribed for an aggregate of $15 million of preferred shares of three subsidiaries of the partnership. The preferred shares are entitled to receive a cumulative preferential cash dividend equal to 5% of their redemption value per annum as and when declared by the board of directors of the applicable entity and are redeemable at the option of the applicable entity at any time after the twentieth anniversary of their issuance. The partnership is not obligated to redeem the preferred shares and accordingly, the preferred shares have been determined to be equity instruments of the applicable entities in accordance with IAS 32 and are reflected as a component of non-controlling interests in the unaudited interim condensed consolidated statements of financial position.

Brookfield entered into a commitment agreement with the partnership in 2022 to subscribe for up to $1.5 billion of perpetual preferred equity securities of subsidiaries of the partnership. The preferred securities are redeemable at the option of Brookfield to the extent the partnership completes asset sales, financings or equity issuances. These perpetual preferred securities are presented as equity instruments in accordance with IAS 32, and accordingly the partnership has classified them as a component of non-controlling interests in the unaudited interim condensed consolidated statements of financial position and changes in equity. As of March 31, 2025, the amount subscribed from subsidiaries of the partnership was $725 million with an annual dividend of 7% (December 31, 2024: $725 million). The remaining capacity available on the commitment agreement with Brookfield is $25 million.

NOTE 20. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Attributable to Limited Partners

The following tables present the changes in accumulated other comprehensive income (loss) reserves attributable to limited partners for the three months ended March 31, 2025 and 2024:

Foreign currency Accumulated other comprehensive

(US$ MILLIONS)	translation		FVOCI		Other (1)	income (loss)
Balance as at January 1, 2025	$ (337)	$		21	$ 92	$ (224)
Other comprehensive income (loss)	34			5	(20)	19
Balance as at March 31, 2025	$ (303)	$		26	$ 72	$ (205)

1. Represents net investment hedges, cash flow hedges and other reserves.

Foreign currency Accumulated other comprehensive

(US$ MILLIONS)	translation		FVOCI			Other (1)		income (loss)
Balance as at January 1, 2024	$ (189)	$		5	$		54	$ (130)
Other comprehensive income (loss)	(43)			(2)			11	(34)
Balance as at March 31, 2024	$ (232)	$		3	$		65	$ (164)

1. Represents net investment hedges, cash flow hedges and other reserves.

NOTE 21. DIRECT OPERATING COSTS

The partnership has no key employees or directors and does not remunerate key management personnel. Key decision makers of the partnership are all employees of Brookfield or its subsidiaries, which provide management services under the Master Services Agreement with Brookfield. Refer to Note 17.

Direct operating costs are costs incurred to earn revenues and include all attributable expenses. The following table presents direct operating costs by nature for the three months ended March 31, 2025 and 2024.

Three Months Ended March 31,

(US$ MILLIONS)	2025		2024
Inventory costs	$	2,194	$	7,486
Subcontractor and consultant costs		735		672
Concession construction materials and labor costs		36		40
Depreciation and amortization expense		730		808
Compensation		944		976
Other direct costs		763		896
Total	$	5,402	$	10,878

Other direct costs include freight, cost of construction expensed and expected credit loss provisions on financial assets.

The partnership recorded a reduction in inventory costs of $259 million (March 31, 2024: $nil) related to tax benefits recognized during the three months ended March 31, 2025. Refer to Note 2(b)(i) for additional details.

The decrease in inventory costs for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 is primarily due to the disposition of the partnership's road fuels operation in the third quarter of 2024.

NOTE 22. REVENUES

1. Revenues by type

   The following tables summarize the partnership's segment revenues by type of revenue for the three months ended March 31, 2025 and 2024.

   Three Months Ended March 31, 2025

   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   Revenues by type
   Revenues from contracts with customers	$ 2,065	$ 470	$ 3,522	$ 6,057
   Other revenues	427	261	4	692
   Total revenues	$ 2,492	$ 731	$ 3,526	$ 6,749
   Three Months Ended March 31, 2024
   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   Revenues by type
   Revenues from contracts with customers	$ 7,023	$ 546	$ 3,663	$ 11,232
   Other revenues	439	340	4	783
   Total revenues	$ 7,462	$ 886	$ 3,667	$ 12,015

   The change in revenues in the partnership's business services segment for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 is primarily due to the disposition of the partnership's road fuels operation in the third quarter of 2024.

2. Timing of recognition of revenues from contracts with customers

   The following tables summarize the partnership's segment revenues by timing of revenue recognition for total revenues from contracts with customers for the three months ended March 31, 2025 and 2024:

   Three Months Ended March 31, 2025

   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   Timing of revenue recognition
   Goods and services provided at a point in time	$ 602	$ 163	$ 3,437	$ 4,202
   Services transferred over a period of time	1,463	307	85	1,855
   Total revenues from contracts with customers	$ 2,065	$ 470	$ 3,522	$ 6,057
   Three Months Ended March 31, 2024
   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   Timing of revenue recognition
   Goods and services provided at a point in time	$ 5,677	$ 156	$ 3,607	$ 9,440
   Services transferred over a period of time	1,346	390	56	1,792
   Total revenues from contracts with customers	$ 7,023	$ 546	$ 3,663	$ 11,232

3. Revenues by geography

   The following tables summarize the partnership's segment revenues by geography for the three months ended March 31, 2025 and 2024:

   Three Months Ended March 31, 2025
   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   United States of America	$ 411	$ 182	$ 1,485	$ 2,078
   Australia	1,045	41	27	1,113
   Europe	-	127	868	995
   Brazil	208	9	279	496
   United Kingdom	312	73	74	459
   Mexico	-	-	287	287
   Canada	79	12	139	230
   Other	10	26	363	399
   Total revenues from contracts with customers	$ 2,065	$ 470	$ 3,522	$ 6,057
   Other revenues	427	261	4	692
   Total revenues	$ 2,492	$ 731	$ 3,526	$ 6,749
   Three Months Ended March 31, 2024
   (US$ MILLIONS)	Business services	Infrastructure services	Industrials	Total
   United States of America	$ 453	$ 190	$ 1,468	$ 2,111
   Australia	982	40	31	1,053
   Europe	486	181	929	1,596
   Brazil	236	18	348	602
   United Kingdom	4,326	73	84	4,483
   Mexico	-	-	319	319
   Canada	273	25	116	414
   Other	267	19	368	654
   Total revenues from contracts with customers	$ 7,023	$ 546	$ 3,663	$ 11,232
   Other revenues	439	340	4	783
   Total revenues	$ 7,462	$ 886	$ 3,667	$ 12,015

   NOTE 23. SEGMENT INFORMATION

   The partnership's operations are organized into four operating segments which are regularly reviewed by the Chief Operating Decision Maker ("CODM") for the purpose of allocating resources to the segment and to assess its performance. The CODM uses adjusted earnings from operations ("Adjusted EFO") to assess performance and make resource allocation decisions. Adjusted EFO allows the CODM to evaluate the partnership's segments on the basis of return on invested capital generated by its operations and to evaluate the performance of its segments on a levered basis. Adjusted EFO is calculated as net income and equity accounted income at the partnership's economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of depreciation and amortization expense, deferred income taxes, transaction costs, restructuring charges, unrealized revaluation gains or losses, impairment expenses or reversals and other income or expense items that are not directly related to revenue generating activities. The partnership's economic ownership interest in consolidated subsidiaries excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its unaudited interim condensed consolidated statements of operating results. In order to provide additional insight regarding the partnership's operating performance over the lifecycle of an investment, Adjusted EFO includes the impact of preferred equity distributions and realized disposition gains or losses recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. Adjusted EFO does not include legal and other provisions that may occur from time to time in the partnership's operations and that are one-time or non-recurring and not directly tied to the partnership's operations, such as those for litigation or contingencies. Adjusted EFO includes expected credit losses and bad debt allowances recorded in the normal course of the partnership's operations.

   Other income (expense), net in the partnership's unaudited interim condensed consolidated statements of operating results includes amounts that are not related to revenue generating activities, and are not normal, recurring operating income and expenses necessary for business operations. These include revaluation gains and losses, transaction costs, restructuring charges, stand-up costs and business separation expenses, gains or losses on debt extinguishments or modifications, gains or losses on dispositions of property, plant and equipment, non-recurring and one-time provisions that may occur from time to time at one of the partnership's operations that are not reflective of normal operations, and other items. Other income (expense), net included within Adjusted EFO in the tables below corresponds to items of other income (expense), net at the partnership's economic ownership interest that are considered by the partnership when evaluating operating performance and returns on invested capital generated by its businesses and may include realized revaluation gains and losses, realized gains or losses on the disposition of property, plant and equipment, and other items. Refer to the footnotes to the tables below for additional details on items included therein.

   Gain (loss) on acquisitions/dispositions, net in Adjusted EFO reflects the partnership's economic ownership interest in the gains or losses on acquisitions/dispositions recognized during the period in unaudited interim condensed consolidated statements of operating results that are considered by the partnership when evaluating the performance and returns on invested capital generated by its businesses.

   Gain (loss) on acquisitions/dispositions, net recorded in equity in Adjusted EFO corresponds to the partnership's economic ownership interest in gains and losses recorded in the unaudited interim condensed consolidated statements of changes in equity that have been realized through a completed disposition, including material realized disposition gains or losses that may be recorded in equity on the partial disposition of a subsidiary where the partnership retains control and through the sale of an investment in securities accounted for as financial assets measured at fair value with changes in fair value recorded in other comprehensive income.

   The following tables provide each segment's results at the partnership's economic ownership interest, in the format that the CODM organizes reporting segments to make resource allocation decisions and assess performance. Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by non-controlling interests in consolidated subsidiaries. The tables below reconcile the partnership's economic ownership interest in its consolidated results to the partnership's unaudited interim condensed consolidated statements of operating results.

   Three Months Ended March 31, 2025 Total attributable to Unitholders Attributable to non- (US$ MILLIONS) Business services Infrastructure services Industrials Corporate and other Total (1) controlling interests As per Financials

   Revenues $ 1,401 $ 234 $ 983 $ - $ 2,618 $ 4,131 $ 6,749

Direct operating costs (2)	(1,181)	(142)	(662)	(3)	(1,988)	(2,684)	(4,672)
General and administrative expenses	(31)	(21)	(32)	(27)	(111)	(200)	(311)
Gain (loss) on acquisitions / dispositions, net (3)	-	114	-	-	114	100	214
Other income (expense), net (4)	2	20	(4)	-	18	1	19
Interest income (expense), net	(67)	(47)	(107)	(25)	(246)	(524)	(770)
Current income tax (expense)
recovery	(18)	(6)	(58)	-	(82)	(115)	(197)
Preferred equity distributions	-	-	-	(13)	(13)	13	-
Equity accounted Adjusted EFO (5)	11	14	10	-	35	38	73
Adjusted EFO	117	166	130	(68)	345
Depreciation and amortization
expense (2)(6)					(220)	(510)	(730)
Other income (expense), net (4)					(13)	(89)	(102)
Deferred income tax (expense)
recovery					22	42	64
Non-cash items attributable to
equity accounted investments(5)	(54)					(27)	(81)
Net income (loss) $ 80 $ 176 $ 256

1. Adjusted EFO and net income (loss) attributable to Unitholders include Adjusted EFO and net income (loss) attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders, special limited partnership unitholders and BBUC exchangeable shareholders.

2. The sum of these amounts equates to direct operating costs of $5,402 million as per the unaudited interim condensed consolidated statements of operating results.

3. Gain (loss) on acquisitions/dispositions, net recorded in Adjusted EFO of $114 million represents the partnership's economic ownership interest in net gain related to the disposition of the partnership's offshore oil services' shuttle tanker operation.

4. The sum of these amounts equates to other income (expense), net of $(83) million as per the unaudited interim condensed consolidated statements of operating results. Other income (expense), net at the partnership's economic ownership interest that is included in Adjusted EFO of $18 million includes

   $19 million of realized gain relating to upgrades completed for customers on certain vessels at the partnership's offshore oil services and $1 million of other expenses. Other income (expense), net at the partnership's economic ownership interest that is excluded from Adjusted EFO of $(13) million includes $48 million of unrealized gains recorded on reclassification of property, plant and equipment to finance leases at the partnership's offshore oil services, $22 million of business separation expenses, stand-up costs and restructuring charges, $20 million of net revaluation losses, $9 million of transaction costs and $10 million of other expenses.

5. The sum of these amounts equates to equity accounted income (loss) of $(8) million as per the unaudited interim condensed consolidated statements of

   operating results.

6. For the three months ended March 31, 2025, depreciation and amortization expense by segment is as follows: business services $222 million, infrastructure services $165 million, industrials $343 million, and corporate and other $nil.