Australia Corporate Profits Rise 1.8% in Q2

Corporate profits in Australia rose 1.8% quarter-on-quarter in the second quarter of 2026, rebounding from a revised 1.5% drop in the first quarter but falling short of market expectations for a 2% increase. The rise was driven mainly by a 6.8% jump in mining profits, which reversed a 9.4% decline in the previous quarter. Profits also went up in professional, scientific and technical services, rising 4.6% after a 4.2% gain. On the other hand, profit growth slowed in manufacturing (1.3% vs 3.3%), construction (1.7% vs 7.8%), and rental, hiring and real estate services (0.3% vs 1.8%), while profits declined in wholesale trade (-2.9% vs 4.3%), transport, postal and warehousing (-2.4% vs 1.2%), and retail trade (-5.2% vs -7.4%). On an annual basis, corporate profits climbed 7.4%, the strongest growth since the fourth quarter of 2022, following a 3.2% rise last quarter.

Corporate profits in Australia fell 1.3% quarter-on-quarter in the first quarter of 2026, reversing an upwardly revised 5.9% increase in the previous quarter and missing expectations of a 0.5% rise. The decline signals a broad cooling in business profitability momentum after a strong finish to the previous year, mainly due to a sharp drop in mining profits (-9.1% vs 8.0% in Q4). Lower profits were also recorded in accommodation and food services (-2.0% vs 5.7%) and financial and insurance services (-9.6% vs 3.1%). In addition, profit growth moderated in wholesale trade (4.5% vs 6.4%), transport, postal and warehousing (0.9% vs 8.1%), professional, scientific and technical services (3.1% vs 9.2%), and rental, hiring and real estate services (1.7% vs 3.0%). On the other hand, profits rose further in manufacturing (3.5% vs 2.7%) and construction (7.9% vs 4.3%), while rebounded in retail trade (5.9% vs -0.2%). Yearly, corporate profits were up 3.2%, slowing from a 4.2% growth previously.

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.