Brookfield Infrastructure Q3 FFO rises 10% on data growth

Overview

• Global infrastructure operator's Q3 FFO grew 10% yr/yr, led by strong data segment performance

• Q3 net income declined yr/yr due to higher prior-year asset sale gains

• Company deployed $1.7 bln in new investments and secured $1.5 bln from asset sales

Outlook

• Brookfield Infrastructure expects to exceed $2 bln asset sales target for 2026

• Company targets average annual AI infrastructure investment of $500 mln, net to BIP

• Company expects over $1 bln incremental proceeds from asset sales before year end

Result Drivers

• DATA SEGMENT GROWTH - Co said data segment FFO rose 25% yr/yr, driven by organic growth and new investments

• SEGMENT CONTRIBUTIONS - Utilities, transport and midstream segments each delivered around 10% FFO growth, supported by inflation-linked pricing, higher volumes, and recent acquisitions

• ORGANIC GROWTH AND PROJECT COMMISSIONING - Co attributed FFO growth to inflation-linked price increases, strong asset utilization, and commissioning of $1.4 bln in capital projects

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer goods conglomerates peer group is "buy"

• Wall Street's median 12-month price target for Brookfield Infrastructure Partners L.P. is $44.00, about 16.4% above its November 5 closing price of $37.81

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 36 three months ago

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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.)