Macquarie: Humming Along but Taking Longer Than Expected to Sell Renewable Assets

Narrow-moat Macquarie posted first-quarter fiscal 2025 profit broadly in line with the previous corresponding period and is tracking with management’s expectations. The May outlook statement stands, adding profit from asset realizations will be weighted to the second half. Rising construction costs could result in lower returns on some renewable projects, but it appears Macquarie is happy to hold on to assets for longer to either add value in development or hold off for the right price. Asset management base fees are guided to be flat in fiscal 2025, but other income is to be significantly higher on asset sales. Macquarie Capital similarly is expected to report significantly higher income for fiscal 2025 as it makes returns on its own deployed capital. On this front, Macquarie deployed AUD 600 million across digital infrastructure and technology sectors in the quarter.