Brookfield Corporation

Worth knowing

• Profitable, but burning cash. Reports a profit, but free cash flow is negative.

  Brookfield reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.

• Paying shareholders without free cash flow. Paid out $2.0B over the 3 fiscal years to 2025 with -$9.0B of free cash flow.

  Brookfield returned $2.0B in buybacks and dividends over three fiscal years while its free cash flow totalled -$9.0B. The money came from its cash pile or from borrowing.

• Investment surge. Capital spending 20% of revenue, up from 7.8% in 2022.

  Brookfield is spending 20% of revenue on facilities and equipment, up from 7.8% in 2022. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.

• Valuation signals disagree. Cheaper than 52% of peers on operating cash profit (EBITDA), but only 2% on free cash flow.Cheaper than 52% of peers on operating cash profit, but only 2% on free cash flow.

  Relative to its operating cash profit (EBITDA), Brookfield looks cheaper than 52% of peers; relative to its free cash flow, cheaper than only 2%. The valuation score blends the two, so look at which measure fits this business best.Relative to its operating cash profit, Brookfield looks cheaper than 52% of peers; relative to its free cash flow, cheaper than only 2%. The valuation score blends the two, so look at which measure fits this business best.