Brookfield Infrastructure Q2 FFO per unit rises 10%

Overview

• Global infrastructure operator's Q2 FFO per unit rose 10% yr/yr, driven by data and midstream segments

• Q2 net income fell from prior year due to higher depreciation and borrowing costs

• Company raised quarterly distribution by 6% yr/yr

Outlook

• Company expects to achieve its capital recycling objective for 2026

• Brookfield Infrastructure sees strong pipeline of investment opportunities in AI infrastructure

• Company expects to complete corporate structure simplification in Q4 2026

Result Drivers

• DATA AND MIDSTREAM SEGMENTS - FFO growth was led by a 36% increase in the data segment and a 17% rise in midstream, driven by new projects and acquisitions

• ORGANIC GROWTH AND UTILIZATION - Inflation-linked rate increases in utilities and higher volumes and utilization across transport and midstream supported organic growth

• ASSET SALES AND CAPITAL RECYCLING - Asset sales moderated reported growth, particularly in transport and midstream, but proceeds funded new investments generating higher returns

Company press release: ID:nGNX8vhkXx

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "sell"

• Wall Street's median 12-month price target for Brookfield Infrastructure Corp is $48.00, about 11% above its July 29 closing price of $43.23

Reuters Recommended Reads

• July 29 - NextEra, Brookfield plan $100 billion data center at US uranium site in Kentucky

• July 28 - Brookfield sees 6.5 GW of AI data-centre capacity coming online in India

• July 30 - Canada's TC Energy Q2 profit beats; EBITDA up 12%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)