Brookfield Infrastructure Partners (TSX:BIP.UN) is one of the most exciting companies in the Brookfield ecosystem. Investing in infrastructure projects such as data centres and cellular towers, it is perhaps the most “high tech” of the Brookfield companies. In recent years, the company spent significant sums of money acquiring data centres in Texas. It bought one collection of data centres for $5 billion and snapped up another for a dirt cheap $750 million as its previous owner was going through financial problems. The big tech companies all require massive amounts of data centre space, as do conventional companies that are adopting AI to cut costs. So, Brookfield stands to gain from all these developments.
In this article, I will explore what Brookfield Infrastructure Partners has in store for shareholders in 2025.
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Recent results
Before getting into BIP.UN’s future prospects, we should take a look at its recent performance. This can help us determine some trends that will be helpful in coming up with a forecast.
Brookfield Infrastructure Partners’ most recent earnings release was pretty good, boasting metrics such as:
- 17.3% revenue growth.
- 16% earnings growth.
- 5.7% growth in funds from operations (FFO).
- 50% growth in the transportation segment.
- 21% growth in the data centre segment.
These were pretty solid growth figures. The company was also solidly profitable in the quarter. Were it to keep growing like it has been, Brookfield Infrastructure Partners would deliver results that would make shareholders happy.
Future prospects
Having looked at Brookfield Infrastructure Partners’ recent results, it’s time to gauge whether said results can continue.
Presently, many signs point to that being possible.
First, the company’s recent data centre acquisitions should gain from increasing AI adoption in corporate America. While the big tech AI story is old news at this point, there are still many brick-and-mortar companies that are just now starting to adopt AI to realize better operating efficiency. So, this will probably drive more earnings at Brookfield’s data centres. The same goes with the company’s cellular towers.
As far as the more traditional parts of BIP.UN’s business (utilities, transportation etc), they are mostly US-based, and the US economy is pretty strong right now. So we would expect growth in those parts of Brookfield’s business as well.
Lastly, BIP.UN is part of the Brookfield ecosystem, a group of companies centred around Brookfield Corp. The whole organization is quite respected, which should lead to opportunities for its subsidiary companies like BIP.UN.
Foolish takeaway
Taking into account everything just discussed, I would reckon that Brookfield Infrastructure Partners will have a good year in 2025. It is profitable, it’s growing, and it has valuable assets that have the potential to drive a lot of cash flow this year.
To be sure, there are risks here too. BIP.UN has significant amounts of debt and some think that the Federal Reserve will resume hiking interest rates due to elevated inflation. That’s certainly a possibility, but then again, higher rates produce lower asset prices, which helps the acquisitions side of BIP.UN’s business. So there are many reasons to be optimistic here.
