Sydney, June 24, 2026, 04:04 AEST
Macquarie Group shares rose 0.68% to A$249.61 on Tuesday, while the S&P/ASX 200 slipped 0.33%. The stock hit A$252.97 during the session, closing 1.8% off its all-time high from June 18 at A$254.31.
Southern Water picked up another £300 million in equity from a group led by Macquarie Asset Management and new backer Asterion Industrial Partners. Macquarie Asset Management senior managing director Martin Bradley said Asterion’s move in showed “growing confidence in Southern Water’s management team, its progress and its future plans.” Asterion CEO Jesús Olmos said it’s “primary capital to help fund a significant capex programme.” Capex refers to spending on assets that last a long time. Macquarie
Financials got a lift, climbing 0.64% as investors shifted into bigger banks during a tech rout. ANZ put on 1.4%, National Australia Bank was up 1.2%, and Westpac added 1%. That trade makes it hard to see Macquarie’s move as just a call on Southern Water.
Asterion-managed funds are set to supply most of the new funding and are expected to take about 20% of Southern Water, pending regulatory sign-off. The financing finalizes the £1.2 billion support package unveiled last year, bringing total equity put in by Macquarie-managed funds and their co-investors since 2021 to more than £2.8 billion.
Southern Water is still facing big execution risks. The company carries around £6.7 billion in debt and has dealt with pollution scandals and pressure from regulators. Getting another investor helps share the cost, but fixing operations, fixing its image, and moving ahead with its big infrastructure plans are all still on the table.
Macquarie is trading close to record highs, backed by solid earnings. The firm posted a fiscal 2026 net profit of A$4.85 billion, up 30%. Earnings per share also climbed 30% to A$12.77. Return on equity reached 14%. Asset management profit climbed 27%, and commodities and global markets jumped 49%.
Earnings quality and consistency are still in question. Macquarie’s strong second half relied on strong commodity markets during the Middle East conflict and a boost from selling its OnStream smart-meter unit. Quieter oil and gas trading or a slowdown in big asset sales could take away that support.
Valuation doesn’t leave much upside. The average 12-month target from 13 analysts tracked by MarketScreener sits at A$250.14, just 0.2% higher than Tuesday’s close. Targets run from A$205 to A$271, showing wide disagreement on how much of the past earnings strength will last.
Macquarie’s next test comes at its annual meeting on July 23. Last year, 25.4% of shareholders voted against the company’s remuneration report, giving it a first “strike.” If at least 25% oppose pay again, there will be a spill resolution. If that passes, Macquarie has to call another meeting within 90 days, putting non-executive directors up for re-election.
For Wednesday, the market is watching Tuesday’s A$252.97 high and the A$254.31 record. If shares slip under Monday’s A$247.05 low, the move would wipe out the recent bounce and bring back a sector-wide trade instead of the current company move.
