Australia Q3 Corporate Profits Unexpectedly Flat

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.