BROOKFIELD, News,
“We delivered solid financial results during the quarter, underpinned by our strong balance sheet and growing cash flow that is highly contracted and indexed to inflation,” said
| For the three months ended | |||||
| US$ millions (except per unit amounts), unaudited1 | 2025 | 2024 | |||
| Net income2 | $ | 125 | $ | 170 | |
| – per unit3 | $ | 0.04 | $ | 0.10 | |
| FFO4 | $ | 646 | $ | 615 | |
| – per unit5 | $ | 0.82 | $ | 0.78 | |
Funds from operations (FFO) for the first quarter was
Segment Performance
The following table presents FFO by segment:
| For the three months ended | |||||||
| US$ millions, unaudited1 | 2025 | 2024 | |||||
| FFO by segment | |||||||
| Utilities | $ | 192 | $ | 190 | |||
| Transport | 288 | 302 | |||||
| Midstream | 169 | 170 | |||||
| Data | 102 | 68 | |||||
| Corporate | (105 | ) | (115 | ) | |||
| FFO4 | $ | 646 | $ | 615 | |||
The utilities segment generated FFO of
FFO for the transport segment was
Our midstream segment generated FFO of
The data segment generated FFO of
Update on Strategic Initiatives
Market conditions to start the year were highly supportive of transaction activity. We secured
This month we signed an agreement to exit our Australian container terminal operation, which will result in proceeds of
Also during the quarter, we completed the sale of a minority stake in a portfolio of fully contracted containers within our global intermodal logistics operation to a financial investor for
We remain on track to close the remaining three asset sales later this year, which includes:
- The final 25% interest in a
U.S. gas pipeline generating net proceeds of$400 million to BIP. When combined with the previous financing, total proceeds from the sale were over$900 million and crystallized an attractive 18% IRR and a 3x multiple of capital on our investment since 2015. This transaction is expected to close in May. - A non-core data center site is on track to close in the second half of 2025, generating approximately
$400 million in net proceeds (over$60 million net to BIP). - The initial 30% interest in a 244-megawatt portfolio of operating sites at our European hyperscale data center platform. We expect to generate over
$90 million of net to BIP proceeds, with closing in Q3 2025. We are also progressing the sale of up to a 60% stake in the portfolio, which we hope to sign in the coming months and would add up to$190 million of proceeds at our share.
We are encouraged by the early results of our capital recycling program. Following the additional data center stake sale, we will have secured approximately
At the same time, our new investments pipeline remains robust and we expect it will continue to grow, particularly if market uncertainty persists, unlocking greater investment opportunities for well-capitalized and value-based investors like ourselves. Most recently we secured the
- Strong utilization with a competitive market position: Colonial represents a rare opportunity to invest in a high-quality energy infrastructure asset that forms part of the backbone of the
U.S. economy. The pipeline system has maintained consistently high utilization of almost 90% for the past 25 years and serves a diverse customer base of over 200 primarily investment-grade customers along theU.S. East Coast . - Acquire for value, generally well below replacement cost: We acquired Colonial at a transaction multiple of approximately 9x EBITDA. Simultaneously, we exited our
U.S. natural gas pipeline at several turns higher. - Highly cash generative to provide a quick return of capital: Colonial has a mid-teen going-in cash yield that is expected to increase over time, resulting in a seven-year payback period for our invested capital.
- Minimal value paid for growth or opportunity to transition the asset: The value we paid is largely for the in-place assets, with conservative assumptions around terminal value and utilization profile over time. The cash flow profile for this business is highly stable and resilient, supported by a transparent regulatory framework and direct inflation-linkage.
We believe we were successful in acquiring the business due to the large scale of the transaction, sellers’ confidence in our ability to close, and proven track record of operating critical energy infrastructure assets safely and reliably. BIP’s equity investment is expected to be
Distribution and Dividend Declaration
The Board of Directors of BIP declared a quarterly distribution in the amount of
Conference Call and Quarterly Earnings Details
Investors, analysts and other interested parties can access Brookfield Infrastructure’s First Quarter 2025 Results, as well as Letter to Unitholders and Supplemental Information, under the Investor Relations section at https://bip.brookfield.com.
To participate in the Conference Call today at
Additional Information
The Board has reviewed and approved this news release, including the summarized unaudited financial information contained herein.
About
Contact Information
| Media: | Investors: |
| Director | Senior Vice President |
| Communications | Corporate Development & Investor Relations |
| Tel: +44 204 557 4334 | Tel: +1 416 956 5129 |
| Email: [email protected] | Email: [email protected] |
Cautionary Statement Regarding Forward-looking Statements
This news release may contain forward-looking information within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable securities laws. The words “will”, “target”, “future”, “growth”, “expect”, “believe”, “may”, derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release may include statements regarding expansion of Brookfield Infrastructure’s business, the likelihood and timing of successfully completing the transactions referred to in this news release, statements with respect to our assets tending to appreciate in value over time, the future performance of acquired businesses and growth initiatives, the commissioning of our capital backlog, the pursuit of projects in our pipeline, the level of distribution growth over the next several years and our expectations regarding returns to our unitholders as a result of such growth. Although
Any statements contained herein with respect to tax consequences are of a general nature only and are not intended to be, nor should they be construed to be, legal or tax advice to any person, and no representation with respect to tax consequences is made. Unitholders and shareholders are urged to consult their tax advisors with respect to their particular circumstances.
References to
References to the Partnership are to
- Please refer to page 11 for results of
Brookfield Infrastructure Corporation . - Includes net income attributable to limited partners, the general partner, and non-controlling interests ‒ Redeemable Partnership Units held by Brookfield,
Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares and class A.2 exchangeable shares. - Average number of limited partnership units outstanding on a time weighted average basis for the three-month period ended
March 31, 2025 was 461.9 million (2024: 461.4 million). - We define FFO as net income excluding the impact of depreciation and amortization, deferred income taxes, mark-to-market gains (losses) and other income (expenses) that are not related to the revenue earning activities and are not normal, recurring cash operating expenses necessary for business operations. FFO includes balances attributable to the Partnership generated by investments in associates and joint ventures accounted for using the equity method and excludes amounts attributable to non-controlling interests based on the economic interests held by non-controlling interests in consolidated subsidiaries. We believe that FFO, when viewed in conjunction with our IFRS results, provides a more complete understanding of factors and trends affecting our underlying operations. FFO is a measure of operating performance that is not calculated in accordance with, and does not have any standardized meaning prescribed by IFRS as issued by the
International Accounting Standards Board . FFO is therefore unlikely to be comparable to similar measures presented by other issuers. A reconciliation of net income to FFO is available on page 9 of this release. Readers are encouraged to consider both measures in assessing our company’s results. - Average number of partnership units outstanding on a fully diluted time weighted average basis for the three-month period ended
March 31, 2025 was 792.3 million (2024: 792.0 million).
| Consolidated Statements of Financial Position | |||||
| As of | |||||
| US$ millions, unaudited | 2025 | 2024 | |||
| Assets | |||||
| Cash and cash equivalents | $ | 1,463 | $ | 2,071 | |
| Financial assets | 117 | 255 | |||
| Property, plant and equipment and investment properties | 56,550 | 55,910 | |||
| Intangible assets and goodwill | 28,967 | 28,622 | |||
| Investments in associates and joint ventures | 5,517 | 5,672 | |||
| Assets held for sale | 743 | 1,958 | |||
| Deferred income taxes and other | 10,298 | 10,102 | |||
| Total assets | $ | 103,655 | $ | 104,590 | |
| Liabilities and partnership capital | |||||
| Corporate borrowings | $ | 4,727 | $ | 4,542 | |
| Non-recourse borrowings | 46,027 | 46,552 | |||
| Financial liabilities | 2,870 | 2,780 | |||
| Liabilities held for sale | 519 | 1,209 | |||
| Deferred income taxes and other | 19,737 | 19,654 | |||
| Partnership capital | |||||
| Limited partners | 4,585 | 4,704 | |||
| General partner | 26 | 27 | |||
| Non-controlling interest attributable to: | |||||
| Redeemable partnership units held by Brookfield | 1,876 | 1,926 | |||
| Exchangeable units/shares1 | 1,378 | 1,417 | |||
| Perpetual subordinated notes | 293 | 293 | |||
| Interest of others in operating subsidiaries | 20,699 | 20,568 | |||
| Preferred unitholders | 918 | 918 | |||
| Total partnership capital | 29,775 | 29,853 | |||
| Total liabilities and partnership capital | $ | 103,655 | $ | 104,590 | |
1. Includes non-controlling interest attributable to BIPC exchangeable shares and class A.2 exchangeable shares, BIPC exchangeable LP units and
| Consolidated Statements of Operating Results | |||||||
| For the three months ended | |||||||
| US$ millions, except per unit information, unaudited | 2025 | 2024 | |||||
| Revenues | $ | 5,392 | $ | 5,187 | |||
| Direct operating costs | (3,964 | ) | (3,913 | ) | |||
| General and administrative expense | (97 | ) | (97 | ) | |||
| 1,331 | 1,177 | ||||||
| Interest expense | (899 | ) | (794 | ) | |||
| Share of earnings from associates and joint ventures | 123 | 41 | |||||
| Mark-to-market (losses) gains | (126 | ) | 4 | ||||
| Other income | 249 | 398 | |||||
| Income before income tax | 678 | 826 | |||||
| Income tax (expense) recovery | |||||||
| Current | (190 | ) | (162 | ) | |||
| Deferred | 38 | 150 | |||||
| Net income | 526 | 814 | |||||
| Non-controlling interest of others in operating subsidiaries | (401 | ) | (644 | ) | |||
| Net income attributable to partnership | $ | 125 | $ | 170 | |||
| Attributable to: | |||||||
| Limited partners | $ | 26 | $ | 56 | |||
| General partner | 80 | 74 | |||||
| Non-controlling interest | |||||||
| Redeemable partnership units held by Brookfield | 12 | 23 | |||||
| Exchangeable units/shares1 | 7 | 17 | |||||
| Basic and diluted gains per unit attributable to: | |||||||
| Limited partners2 | $ | 0.04 | $ | 0.10 | |||
- Includes non-controlling interest attributable to BIPC exchangeable shares and class A.2 exchangeable shares, BIPC exchangeable LP units and
Exchange LP units. - Average number of limited partnership units outstanding on a time weighted average basis for the three-month period ended
March 31, 2025 was 461.9 million (2024: 461.4 million).
| Consolidated Statements of Cash Flows | |||||||
| For the three months ended | |||||||
| US$ millions, unaudited | 2025 | 2024 | |||||
| Operating activities | |||||||
| Net income | $ | 526 | $ | 814 | |||
| Adjusted for the following items: | |||||||
| Earnings from investments in associates and joint ventures, net of distributions received | 141 | 13 | |||||
| Depreciation and amortization expense | 960 | 936 | |||||
| Mark-to-market, provisions and other | (148 | ) | (353 | ) | |||
| Deferred income tax recovery | (38 | ) | (150 | ) | |||
| Change in non-cash working capital, net | (573 | ) | (419 | ) | |||
| Cash from operating activities | 868 | 841 | |||||
| Investing activities | |||||||
| Net proceeds (investments in) from: | |||||||
| Operating assets | 431 | (658 | ) | ||||
| Long-lived assets | (798 | ) | (1,483 | ) | |||
| Financial assets | 235 | 23 | |||||
| Net settlements of foreign exchange contracts | (2 | ) | 5 | ||||
| Other investing activities | 30 | (46 | ) | ||||
| Cash used by investing activities | (104 | ) | (2,159 | ) | |||
| Financing activities | |||||||
| Distributions to limited and general partners | (437 | ) | (411 | ) | |||
| Net borrowings (repayments): | |||||||
| Corporate | 186 | 86 | |||||
| Subsidiary | (563 | ) | 3,529 | ||||
| Partnership units issued | 2 | 3 | |||||
| Net capital provided to non-controlling interest | (415 | ) | (1,637 | ) | |||
| Lease liability repaid and other | (175 | ) | (513 | ) | |||
| Cash (used by) from financing activities | (1,402 | ) | 1,057 | ||||
| Cash and cash equivalents | |||||||
| Change during the period | $ | (638 | ) | $ | (261 | ) | |
| Cash reclassified as held for sale | (39 | ) | — | ||||
| Impact of foreign exchange and other on cash | 69 | (16 | ) | ||||
| Balance, beginning of period | 2,071 | 1,857 | |||||
| Balance, end of period | $ | 1,463 | $ | 1,580 | |||
| Reconciliation of Net Income to Funds from Operations | |||||||
| For the three months ended | |||||||
| US$ millions, unaudited | 2025 | 2024 | |||||
| Net income | $ | 526 | $ | 814 | |||
| Add back or deduct the following: | |||||||
| Depreciation and amortization | 960 | 936 | |||||
| Share of earnings from investments in associates and joint ventures | (123 | ) | (41 | ) | |||
| FFO contribution from investments in associates and joint ventures1 | 234 | 225 | |||||
| Deferred tax recovery | (38 | ) | (150 | ) | |||
| Mark-to-market losses (gains) | 126 | (4 | ) | ||||
| Other income2 | (132 | ) | (309 | ) | |||
| Consolidated Funds from Operations | $ | 1,553 | $ | 1,471 | |||
| FFO attributable to non-controlling interests3 | (907 | ) | (856 | ) | |||
| FFO | $ | 646 | $ | 615 | |||
- FFO contribution from investments in associates and joint ventures correspond to the FFO attributable to the partnership that are generated by its investments in associates and joint ventures accounted for using the equity method.
- Other income corresponds to amounts that are not related to the revenue earning activities and are not normal, recurring cash operating expenses necessary for business operations. Other income/expenses excluded from FFO primarily includes gains on acquisitions and dispositions of subsidiaries, associates and joint ventures, gains or losses relating to foreign currency translation reclassified from accumulated comprehensive income to other expense, acquisition costs, gains/losses on remeasurement of borrowings, amortization of deferred financing costs, fair value remeasurement gains/losses, accretion expenses on deferred consideration or asset retirement obligations, impairment losses, and gains or losses on debt extinguishment.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by non-controlling interests in consolidated subsidiaries. By adjusting FFO attributable to non-controlling interests, our partnership is able to remove the portion of FFO earned at non-wholly owned subsidiaries that are not attributable to our partnership.
| Statements of Funds from Operations per Unit | |||||
| For the three months ended | |||||
| US$, unaudited | 2025 | 2024 | |||
| Earnings per limited partnership unit1 | $ | 0.04 | $ | 0.10 | |
| Add back or deduct the following: | |||||
| Depreciation and amortization | 0.54 | 0.54 | |||
| Deferred taxes and other items | 0.24 | 0.14 | |||
| FFO per unit2 | $ | 0.82 | $ | 0.78 | |
- Average number of limited partnership units outstanding on a time weighted average basis for the three-month period ended
March 31, 2025 was 461.9 million (2024: 461.4 million). - Average number of partnership units outstanding on a fully diluted time weighted average basis for the three-month period ended
March 31, 2025 was 792.3 million (2024: 792.0 million).
Notes:
The Statements of Funds from Operations per unit above are prepared on a basis that is consistent with the Partnership’s Supplemental Information and differs from net income per limited partnership unit as presented in Brookfield Infrastructure’s Consolidated Statements of Operating Results on page 7 of this release, which is prepared in accordance with IFRS. Management uses FFO per unit as a key measure to evaluate operating performance. Readers are encouraged to consider both measures in assessing Brookfield Infrastructure’s results.
Brookfield Infrastructure Corporation Reports First Quarter 2025 Results
The Board of Directors of
The Shares of BIPC are structured with the intention of being economically equivalent to the non-voting limited partnership units of
Results
The net income of BIPC is captured in the Partnership’s financial statements and results.
BIPC reported net income of $762 million for the three-month period ended
Cautionary Statement Regarding Forward-looking Statements
This news release may contain forward-looking information within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of Section 27A of the
| Consolidated Statements of Financial Position | |||||||
| As of | |||||||
| US$ millions, unaudited | 2025 | 2024 | |||||
| Assets | |||||||
| Cash and cash equivalents | $ | 274 | $ | 674 | |||
| Due from | 1,712 | 1,278 | |||||
| Property, plant and equipment | 12,718 | 12,572 | |||||
| Intangible assets | 3,046 | 2,892 | |||||
| Investments in associates | 605 | — | |||||
| 1,644 | 1,609 | ||||||
| Assets held for sale | — | 1,958 | |||||
| Deferred tax asset and other | 2,571 | 2,604 | |||||
| Total assets | $ | 22,570 | $ | 23,587 | |||
| Liabilities and equity | |||||||
| Accounts payable and other | $ | 956 | $ | 994 | |||
| Loans payable to | 102 | 102 | |||||
| Shares classified as financial liability | 4,337 | 4,644 | |||||
| Non-recourse borrowings | 12,056 | 12,178 | |||||
| Liabilities held for sale | — | 1,209 | |||||
| Deferred tax liabilities and other | 2,297 | 2,238 | |||||
| Equity | |||||||
| Equity in net assets attributable to the Partnership | (840 | ) | (1,253 | ) | |||
| Non-controlling interest | 3,662 | 3,475 | |||||
| Total equity | 2,822 | 2,222 | |||||
| Total liabilities and equity | $ | 22,570 | $ | 23,587 | |||
| Consolidated Statements of Operating Results | |||||||
| For the three months ended | |||||||
| US$ millions, unaudited | 2025 | 2024 | |||||
| Revenues | $ | 929 | $ | 902 | |||
| Direct operating costs | (355 | ) | (339 | ) | |||
| General and administrative expenses | (19 | ) | (18 | ) | |||
| 555 | 545 | ||||||
| Interest expense | (273 | ) | (239 | ) | |||
| Remeasurement of shares classified as financial liability | 307 | 37 | |||||
| Mark-to-market and other | 268 | (47 | ) | ||||
| Income before income tax | 857 | 296 | |||||
| Income tax (expense) recovery | |||||||
| Current | (117 | ) | (101 | ) | |||
| Deferred | 22 | 2 | |||||
| Net income | $ | 762 | $ | 197 | |||
| Attributable to: | |||||||
| Partnership | $ | 389 | $ | 28 | |||
| Non-controlling interest | 373 | 169 | |||||
| Consolidated Statements of Cash Flows | |||||||
| For the three months ended | |||||||
| US$ millions, unaudited | 2025 | 2024 | |||||
| Operating activities | |||||||
| Net income | $ | 762 | $ | 197 | |||
| Adjusted for the following items: | |||||||
| Depreciation and amortization expense | 195 | 195 | |||||
| Mark-to-market and other | (259 | ) | 45 | ||||
| Remeasurement of shares classified as financial liability | (307 | ) | (37 | ) | |||
| Deferred income tax expense | (22 | ) | (2 | ) | |||
| Change in non-cash working capital, net | (126 | ) | (120 | ) | |||
| Cash from operating activities | 243 | 278 | |||||
| Investing activities | |||||||
| Disposal of subsidiaries, net of cash disposed | 431 | — | |||||
| Purchase of long-lived assets, net of disposals | (74 | ) | (97 | ) | |||
| Other investing activities | (389 | ) | 31 | ||||
| Cash used by investing activities | (32 | ) | (66 | ) | |||
| Financing activities | |||||||
| Net capital provided to non-controlling interest | (151 | ) | (1,363 | ) | |||
| Net (repayments) borrowings | (470 | ) | 957 | ||||
| Other financing activities | (36 | ) | 18 | ||||
| Cash used by financing activities | (657 | ) | (388 | ) | |||
| Cash and cash equivalents | |||||||
| Change during the period | $ | (446 | ) | $ | (176 | ) | |
| Impact of foreign exchange on cash | 46 | (8 | ) | ||||
| Balance, beginning of period | 674 | 539 | |||||
| Balance, end of period | $ | 274 | $ | 355 | |||
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