The Company in a Nutshell
- BIP is a mixed bag of various utility businesses; it’s almost a utility ETF!
- BIP can count on projects worldwide with rock-solid contracts that perpetuate its growth.
- BIP is one of the largest owners and operators of critical infrastructure networks.
| Date Reviewed | 02/01/2026 |
| Company Name | Brookfield Infrastructure Corp |
| Symbol | BIPC |
| Sector | Utilities |
| Industry | Utilities - Regulated Gas |
| Beta | 1.33 |
| PRO Rating | 4 |
| Dividend Safety | 4 |
Business Model
Brookfield Infrastructure Corporation is a global infrastructure company. It owns and operates assets in the utilities, transport, midstream and data sectors across the Americas, Asia Pacific and Europe. Its operations include a United Kingdom-regulated distribution operation, a Brazilian regulated gas transmission operation and a global intermodal logistics operation. Its regulated gas transmission operation in Brazil operates over 2,000 kilometers of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo and Minas Gerais. Its regulated distribution operation is the independent last-mile, multi-utility connection provider, with approximately 4.5 million connections. Its global intermodal logistics operation is the lessor of intermodal containers with a fleet of four million containers representing seven million twenty-foot equivalent units. Operations include the acquisition, leasing, re-leasing, and subsequent sale of multiple types of intermodal containers.
| Current price | 49.56 |
| ROE | 0.00 % |
| ROIC | 15.20 % |
| Shareholder Yield | 1.95 % |
| 5-Yr Total Return | 51.95 % |
| 1-Yr Total Return | 24.25 % |
| Next Earnings Date | 04-28-26 |
Latest Quarter Information
What the CEO said:
“In 2025 we exceeded our ambitious $3 billion capital recycling target and funded five new investments, showcasing our self-funding strategy.” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. “We expect FFO to inflect higher in 2026 as these investments fully contribute to results and we expand our growth pipeline to include AI infrastructure.”
2026-01-31 Brookfield Infrastructure ended 2025 on a strong note. For the full year, it reported revenue up 10%, FFO per share up 6.4% and management just announced a 5.8% dividend increase for 2026. The net increase was driven primarily by Utilities (+11%) and Data (+26%) (inflation indexation/regulated rate base growth and incremental commissioned capacity plus new data investments like bulk fiber), and Midstream (+12%) (higher activity and contributions from newer assets), partly offset by Transport (-10%) where portfolio changes and asset sales weighed on reported segment revenue despite healthy underlying rail/toll dynamics discussed by management.
Investment Thesis
Brookfield Infrastructure Partners (BIP) offers investors a diversified portfolio of global infrastructure assets, providing stable and inflation-protected cash flows. The company's operations span four main segments: Utilities (25% of FFO), Transport (37%), Midstream (23%), and Data (15%) . This diversification allows BIP to capitalize on various growth opportunities while mitigating sector-specific risks.
Playbook
BIP's business model revolves around owning and operating high-quality, long-life assets that generate predictable cash flows. The company's strategy includes acquiring undervalued assets, enhancing their operations, and recycling capital into new opportunities. This approach has enabled BIP to maintain a robust and growing portfolio across multiple infrastructure sectors.
Growth Vectors
At the begining of 2026, the company reiterated its long-standing targets of 6%–9% organic growth in FFO per unit and 5%–9% annual distribution growth. Management’s near-term outlook commentary was constructive: they expect FFO to “inflect higher” in 2026 as the 2025 investments more fully contribute, and they expressed confidence in sustaining elevated capital recycling with an expectation of realizing $3 billion of asset sale proceeds during 2026, which supports both balance-sheet flexibility and redeployment into higher-return opportunities.
Strategically, Brookfield Infrastructure is leaning harder into data, power, and “AI infrastructure” as a multi-year growth vector, while still recycling mature assets to fund higher-growth platforms. The company emphasized expanding its growth pipeline to include AI infrastructure, highlighted the Bloom Energy framework for behind-the-meter power at data centers (about 230 MW identified with 15+ year contract terms and approximately $50 million of expected BIP equity), and pointed to continued scaling across data centers and fiber, including using partner capital to help fund the build-out of a powered land bank.
Economic Moat
BIP's moat is built on its diversified asset base, long-term contracts, and inflation-indexed revenues. Approximately 90% of its FFO is either contracted or regulated, providing a stable income stream . The company's global presence and operational expertise further strengthen its competitive advantage in the infrastructure sector.
Dividend Triangle
| 5-Yr Rev. Growth | 20.50 % |
| 5-Yr EPS Growth | -32.00 % |
| 5-Yr Div Growth | 5.75 % |
Potential Risks
While BIP's diversified portfolio offers stability, several risks could impact its performance.
Business Vulnerabilities
BIP's capital-intensive operations have led to a significant increase in debt, rising from $10 billion in 2018 to over $53 billion in 2025 . This high leverage could pose challenges, especially in a rising interest rate environment.
Additionally, the complexity of BIP's financial structure may obscure transparency, making it difficult for investors to assess individual business performance accurately. This is by far the biggest risk in our opinion.
Industry & Market Threats
The infrastructure sector is subject to regulatory changes and geopolitical risks. For instance, BIP's operations in various countries expose it to currency fluctuations and differing regulatory environments. Moreover, the push for increased competition in certain markets could pressure margins and affect profitability.
Competitive Landscape
BIP faces competition from other infrastructure investment firms and institutional investors seeking similar assets. The increasing interest in infrastructure investments could drive up asset prices, potentially impacting BIP's ability to acquire assets at attractive valuations.
| Debt/Equity | 0.00 |
| Financial Debt to EBITDA (TTM) | 4.55 |
| Current Ratio (Quarterly) | 0.10 |
| Credit Score | 62 |
Dividend Growth Perspective
Brookfield has exhibited a strong dividend history over the past decade. Management is confident it will maintain a 5-9% distribution increase policy in the coming years. We also appreciate their FFO payout ratio target of 60-70%, leaving lots of room for business growth on top of dividend growth. If we analyze the company’s cash payout ratios, we won’t understand how this is possible. We must look at BIP’s latest quarter press release because it features calculations for funds from operations per unit (FFO per unit).
The company has been offering a mid-single-digit dividend growth rate policy for many years now. The latest increase (2026) was of 5.8%.
| Dividend ($) | 1.82 |
| Dividend Yield Fwd | 3.65 % |
| Dividend Frequency | Quarterly |
| Average 5-Yr Yield | 3.95 % |
| Payout Ratio (%) | 0.00 |
| Cash Payout Ratio (%) | 0.00 |
| DGR 1-Yr (TTM) | 3.60 |
| DGR 3-Yr (TTM) | 5.60 |
| DGR 5-Yr (TTM) | 5.75 |
| DGR Streak | 18 |
| Chowder Score | 9.40 |
| Next DVD PMT | 03-31-26 |
Valuation
| Recent Annual Dividend Payment | $ 1.82 |
| Expected Dividend Growth Rate Years 1-10 | 5.00% |
| Expected Terminal Dividend Growth Rate | 5.00% |
| Discount Rate | 10.00% |
| Discount Rate (Horizontal) | |||
| Margin of Safety | 9.00% | 10.00% | 11.00% |
| 20% Premium | $ 57.33 | $ 45.86 | $ 38.22 |
| 10% Premium | $ 52.55 | $ 42.04 | $ 35.04 |
| Intrinsic Value | $ 47.78 | $ 38.22 | $ 31.85 |
| 10% Discount | $ 43.00 | $ 34.40 | $ 28.67 |
| 20% Discount | $ 38.22 | $ 30.58 | $ 25.48 |
| Market Cap | 7 B |
| PE Ratio | 0.00 |
| Fwd PE | 4.65 |
| Price to Book Ratio | -5.10 |
| DDM Valuation | 38.22 |
| Average 5-Yr PE | 201.41 |
| Value Score | 93 |