MQG –5.74%: The diversified financial group’s first-half net profit of $1.66bn (+2.7% YoY) missed consensus estimates by ~11%. The miss was largely due to weaker commodities group (CGM) income and impairments in green assets, slightly offset by strength in Macquarie Asset Management (MAM).
- Net Income: $1.66bn (+2.7% YoY) vs $1.79bn estimate
- Earnings per share (EPS) of $4.35 vs $4.80 consensus
- Interim Dividend of $2.80 per share vs $3.03 estimate.
As we noted earlier this month, Macquarie’s valuation (trading near 18x forward earnings) reflects its premium franchise and strong capital base, but the stock now needs a strong second half to justify that multiple. With FY26 shaping up as a back-end loaded year, delivery risk has risen.
We’ve owned MQG in the past for its diversification and quality of assets, though for now we’d need to see signs of an earnings recovery in CGM and green projects before we take another look.
MM is neutral toward MQG
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