The Q1 2024 earnings call for Brookfield Business Partners (BBU) was a symphony of upbeat pronouncements. Clarios, the advanced battery giant, continued its relentless march towards $2 billion EBITDA. CDK, the revitalized dealer software powerhouse, boasted a staggering 47% EBITDA margin. Even amidst geopolitical tensions and market volatility, BBU presented a picture of operational resilience and financial strength.

Yet, hidden within the transcript lies a detail so subtle, so seemingly insignificant that it might have slipped past even the most astute analyst. This overlooked detail, however, could be a harbinger of a quiet revolution brewing within BBU - a revolution fueled by lithium-ion.

The telltale sign? A seemingly innocuous statement by Adrian Letts, Managing Partner on BBU's business operations team, during his discussion of DexKo, the engineered components manufacturer. Letts highlighted DexKo's international success, noting that "performance in the growing tow bar, hydraulics and **electronics** business is also contributing to results."

Electronics? In the context of a company primarily known for axles, chassis, and tow bars? This seemingly out-of-place mention points to a much larger strategic play unfolding within DexKo - the integration of lithium-ion battery technology into its product portfolio.

The evidence, while circumstantial, is compelling. Recall Denis Turcotte's earlier pronouncements on Clarios' foray into lithium-ion low-voltage batteries for electric vehicles during the <a href="https://seekingalpha.com/symbol/BBU/transcripts" alt="Q4 2023 Earnings Call Transcript"> Q4 2023 Earnings Call</a>. He noted the company's "15-plus years of lithium-ion software and systems expertise" and its dedication to "work with OEMs to help meet their future requirements."

Here's the hypothesis: BBU is leveraging Clarios' lithium-ion expertise and established OEM relationships to propel DexKo into the burgeoning market for electrified trailers and towable equipment. This strategic move would be a masterstroke, allowing BBU to tap into two powerful megatrends - the electrification of transportation and the rise of recreational vehicles and outdoor leisure.

By integrating Clarios' lithium-ion technology into DexKo's trailers and towable equipment, BBU would gain a first-mover advantage in these rapidly expanding markets. This move would not only unlock significant organic growth for DexKo, but also create a powerful synergy between two of BBU's "Fabulous 5" - Clarios and CDK.

Imagine a scenario where DexKo's electrified trailers, powered by Clarios batteries, are seamlessly integrated with CDK's dealer software platform, offering real-time monitoring, performance optimization, and predictive maintenance. This integrated ecosystem would be a game-changer, providing BBU with a competitive edge and establishing it as a leader in the future of electrified transportation.

The Q1 2024 earnings transcript, with its subtle hint of "electronics" within DexKo's portfolio, might be the first public glimpse of this quiet lithium-ion revolution. While the evidence remains circumstantial, the potential for synergistic growth and value creation is undeniable. As BBU continues its relentless pursuit of operational excellence and strategic acquisitions, keep a close watch on DexKo - the engineered components manufacturer may soon become a pivotal player in the electrification of the trailer and towable equipment market.

EBITDA Margin Performance of BBU's "Fabulous 5"

The chart below shows the impressive EBITDA margin growth of BBU's top 5 performing businesses based on information from the <a href="https://seekingalpha.com/symbol/BBU/transcripts" alt="Q1 2024 Earnings Call Transcript"> Q1 2024 Earnings Call</a> and <a href="https://seekingalpha.com/symbol/BBU/transcripts" alt="Q4 2023 Earnings Call Transcript"> Q4 2023 Earnings Call</a> transcripts.

Brookfield Business Partners (BBU) Key Data

"Fun Fact: Brookfield Business Partners has a unique approach to using Artificial Intelligence (AI). They have created an "AI Value Creation Office" to leverage the best ideas and scale of the Brookfield ecosystem to build real value in its businesses. Reference: Q1 2024 Earnings Call Transcript [https://seekingalpha.com/symbol/BBU/transcripts]"