If 2025 has taught us anything so far, it’s that nothing is certain but uncertainty, with tariff threats that change by the day, and interest rate decisions that defy market predictions. It’s a precarious backdrop for the biannual company profit reporting season, where ASX-listed companies open their books and provide investors with an update on their bottom lines. Analysts expect company earnings to be soft this year, with US tariffs, interest rates and inflation among factors expected to dampen results. The outlook for the next financial year is more positive, with economic conditions expected to pick up, financial analysts say. NAB”s director of SMSF and investor behaviour Gemma Dale said market watchers were looking for earnings growth to catch up to share prices. As usual, particular focus will be cast on Australia’s biggest company, the Commonwealth Bank. Rio Tinto’s already revealed its profits were hit by weak Iron ore prices, oversupply and slowing demand from Australia’s biggest trading partner, China. The same pressures will weigh on the earnings of BHP and Fortescue.
Analysts expect cost-of-living pressures and the surprise rate decision by the RBA to leave interest rates on hold in July to dampened sentiment, particularly for firm exposed to household spending.
The tariff uncertainty will impact those sectors and companies with exposure to the US, which includes parts of the healthcare, building and leisure industries, UBS equity strategist Richard Schellbach said.
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