Australia Q4 Corporate Profits Grow the Most in 3 Years

Corporate profits in Australia rose 5.8% qoq in Q4 2025, beating market forecasts of 3.6% and accelerating from an upwardly revised 1.5% gain in Q3. It marked a second straight quarterly increase and the strongest pace since Q4 2022, suggesting improved operating conditions toward year-end. Profit growth picked up in mining (8.1% vs 2.7%), wholesale trade (6.5% vs 2.6%), and accommodation and food services (6.1% vs 2.8%), likely supported by firmer commodity prices and resilient consumer spending. Profits also rebounded in manufacturing (2.5% vs -1.1%) and professional, scientific and technical services (8.8% vs -4.8%). Retail trade was flat (vs -0.1%), while administrative and support services stalled (vs 4.7%). Meanwhile, gains eased in utilities (0.3% vs 6.0%), financial and insurance services (4.0% vs 5.8%), and rental and hiring services (3.2% vs 3.5%). On a yearly basis, profits rose 3.8%, up from 1.0% in Q3, marking the strongest annual growth since Q1 2023.

Corporate profits in Australia were unexpectedly flat quarter-on-quarter in Q3 2025, missing market forecasts of a 1.7% increase andfollowing an upwardly revised 2.6% contraction in Q2. Profit increases were observed in financial and insurance services (5.0% vs -7.2% in Q2), administrative and support services (4.2% vs -11.3%), mining (0.2% vs -0.9%), wholesale trade (0.8% vs -4.9%), electricity, gas, water, and waste services (4.7% vs -0.6%), rental and hiring services (2.5% vs -3.9%), arts and recreation services (5.8% vs -2.7%), and accommodation and food services (1.5% vs 3.5%). These gains were partly offset by declines in manufacturing (-2.2% vs -10.7%), retail trade (-1.0% vs -5.0%), and professional, scientific, and technical services (-5.4% vs 0.8%), while transport and warehousing remained flat (0.0% vs 1.2%).On an annual basis, profits rose 1.1% through the year to September, after an upwardly revised 3.9% drop in Q2, marking the first annual increase since Q1 2023.

Corporate profits in Australia unexpectedly fell by 2.4% quarter-on-quarter in Q2 2025, missing market forecasts of a 1.2% increase, following an upwardly revised 1.0% contraction in Q1. The decline was driven by profit falls in financial and insurance services (-7.5% vs -11.9% in Q1), administrative and support services (-11.4% vs -7.2%), mining (-0.5% vs -6.3%), wholesale trade (-4.6% vs 3.7%), transport and warehousing (-1.6% vs 4.2%), rental and hiring services (-3.6% vs 0.8%), electricity, gas, water and waste services (-1.3% vs -3.0%), manufacturing (-9.3% vs 9.5%), arts and recreation services (-3.1% vs 0.5%), and retail trade (-5.8% vs 5.0%). By contrast, profits rose more strongly in accommodation and food services (3.5% vs 0.7%) and rebounded in professional, scientific, and technical services (1.8% vs - 1.9%). On an annual basis, profits declined by 3.3% through the year to June, after an upwardly revised 5.2% drop in Q1, marking the smallest yearly decline in a year.