Macquarie Group (ASX: MQG) reshuffles resources bets as it builds stakes in Service Stream and Monadelphous, exits Sandfire Resources

Published: 20 November 2025 – All figures in Australian dollars unless stated otherwise.

Macquarie Group Ltd (ASX: MQG) has quietly made a series of eye‑catching moves on the ASX this week, lifting its exposure to infrastructure and engineering services while stepping back from a major copper miner.

Late on Thursday, the diversified financial group lodged three substantial holding notices with the ASX, revealing:

A new substantial stake in Service Stream Limited (ASX: SSM)
A new substantial stake in Monadelphous Group Limited (ASX: MND)
A reduction of its holding in Sandfire Resources Limited (ASX: SFR) to below the 5% disclosure threshold ^[1]

The filings cap a volatile fortnight for Macquarie, which earlier this month reported softer‑than‑expected half‑year earnings and a weaker performance from its commodities division. ^[2]

Macquarie share price recovers after earnings wobble

On Thursday, Macquarie shares closed at $194.51 on the ASX, up 2.43% for the session, according to MarketWatch and other price data providers. ^[3]

Previous close: $189.90
Day range: roughly $191.50 – $194.51
52‑week range: about $160 – $242.90 ^[4]

The bounce continues a modest recovery after the stock slumped around 6–7% in the wake of its half‑year results earlier this month, when profits undershot analyst expectations and investors questioned whether the bank still deserves its historically rich valuation. ^[5]

Despite the recent volatility, Macquarie still trades at more than twice its forecast book value, a multiple some analysts argue is high given a current return on equity below 10%. ^[6]

What Macquarie bought: Service Stream and Monadelphous

Under Australian law, investors must lodge a substantial holding notice when their voting power in a listed company moves to 5% or more, or falls below that level. ^[7]

Service Stream (ASX: SSM) – 5.08% stake disclosed

A Form 603 “Notice of initial substantial holder” for Service Stream Limited shows that Macquarie Group Limited and a web of associated entities now control 31,409,326 fully paid ordinary shares, representing 5.08% of the company’s voting power. The notice states that Macquarie became a substantial holder on 17 November 2025 and that the document was signed by assistant company secretary Olivia Shepherd on 20 November. ^[8]

Service Stream is a key contractor to Australia’s infrastructure backbone, designing, building and maintaining networks across telecommunications, utilities and transport. ^[9]

For the 2025 financial year, the company generated more than $2.3 billion in revenue and employed about 5,300 staff, underscoring its role as an essential‑services player rather than a speculative small cap. ^[10]

Macquarie’s disclosure does not specify its investment thesis, but the combination of index‑tracking funds, active strategies and securities‑lending activity across its investment management arm suggests the position may span multiple Macquarie vehicles. ^[11]

Monadelphous Group (ASX: MND) – another new substantial holding

In a separate Form 603, Macquarie also reported it has become a substantial holder in Monadelphous Group, the Perth‑based engineering and maintenance contractor. The notice, lodged at 7:12pm AEDT and mirrored by a corresponding “Becoming a substantial holder from MQG” filing on Monadelphous’ page, confirms that Macquarie and its controlled entities have crossed the 5% voting power threshold. ^[12]

Monadelphous provides construction, maintenance and industrial services to the resources, energy and infrastructure sectors, making it a classic “picks and shovels” way to play mining and energy cycles. ^[13]

The detailed share count is contained in the 153‑page ASX filing, but the substantial holder status alone indicates Macquarie now owns at least 5% of Monadelphous’ issued capital, either directly or via associated funds.

Taken together, the Service Stream and Monadelphous moves tilt Macquarie’s Australian equities exposure further towards inflation‑linked, contract‑driven cash flows tied to long‑life infrastructure and resource assets.

What Macquarie sold: exit from Sandfire Resources (ASX: SFR)

The third filing of the evening, a Form 605 “Notice of ceasing to be a substantial holder”, shows Macquarie has reduced its interest in copper miner Sandfire Resources to below 5%. ^[14]

Key details from the notice:

Company: Sandfire Resources Limited (ASX: SFR)
Previous status: Macquarie and its controlled entities were previously substantial holders
Effective date of ceasing to be substantial: 17 November 2025
Lodgement date: 20 November 2025, signed by Olivia Shepherd, Assistant Company Secretary ^[15]

Sandfire is a copper‑focused miner with operations and projects in Western Australia, Spain, the United States and Botswana, and has ranked among Australia’s largest copper producers by market capitalisation in recent years. ^[16]

While Macquarie’s notice does not spell out its remaining holding, falling below 5% means the group is no longer required to provide ongoing detailed disclosure unless it again crosses a substantial holding threshold.

From a portfolio‑construction standpoint, the set of moves looks like a rotation from direct copper‑price exposure (Sandfire) towards fee‑based service and infrastructure names (Monadelphous and Service Stream). However, without a public statement from Macquarie, it is not possible to say whether the trades reflect a top‑down thematic call, client flows within its asset management platform, or routine adjustments to passive strategies.

Macquarie’s analysts stay bullish on select ASX names

Even as Macquarie’s own balance sheet and funds adjust their holdings, the group’s research department remains influential across the broader ASX.

On Thursday, analyst commentary from Macquarie featured prominently in Australian market coverage:

HMC Capital (ASX: HMC) – Macquarie analysts suggested the alternative asset manager could deliver up to 150% upside over the medium term, according to a summary on The Motley Fool Australia. ^[17]
GPT Group (ASX: GPT) – In a separate note, Macquarie reiterated a positive view on the real‑estate investment trust, expecting the high‑yield REIT to continue outperforming into 2026, with GPT shares trading higher on the day. ^[18]

These calls underscore Macquarie’s twin roles in the market: capital allocator through its own funds and balance sheet, and opinion leader through its broker research.

Earnings, dividend and valuation backdrop

Today’s portfolio reshuffle comes less than two weeks after Macquarie reported earnings for the first half of its 2026 financial year (six months to 30 September 2025).

Half‑year profit up, but below expectations

Macquarie posted net profit of about $1.655 billion, up roughly 3% on the same period a year earlier but well below the ~$1.86 billion expected by many analysts. ^[19]

Key drivers:

Commodities and Global Markets profit fell about 15%, reflecting softer trading conditions and lower volatility in key energy markets. ^[20]
Asset Management earnings jumped around 43%, helped by performance fees and realisation gains from data‑centre investments such as AirTrunk and Aligned. ^[21]
Banking and Financial Services profit grew roughly 22%, with Macquarie growing its Australian mortgage share to about 6.5% and expanding its deposit base. ^[22]
Macquarie Capital recorded a near‑doubling of profit, supported by stronger M&A and equity capital markets activity. ^[23]

The group announced an interim dividend of $2.80 per share and extended its $2 billion on‑market share buyback, signalling continued confidence in medium‑term earnings despite near‑term headwinds. ^[24]

Market scepticism about “old Macquarie”

Commentary from Reuters Breakingviews argued that “Macquarie shareholders are living in the past”, noting that the bank’s current return on equity, around 9–10%, is well below the mid‑teens returns that once justified a premium valuation. ^[25]

The 7% share price drop that followed the result reflected concerns that Macquarie may struggle to regain its historic profitability while simultaneously grappling with:

A weaker commodities trading environment
Rising capital costs for green energy investments, including a $152 million writedown on offshore wind projectsin the United States ^[26]
Ongoing regulatory and legal issues in multiple jurisdictions ^[27]

Governance, regulation and strategy: pressure still building

Beyond earnings, Macquarie remains under a cloud of regulatory scrutiny.

ASIC short‑selling case – The Australian Securities and Investments Commission has sued Macquarie over alleged failures to correctly report around $1.5 billion of short sales over 15 years, a case that could impact executive pay in future years. ^[28]
Superannuation scandal fallout – Macquarie and Netwealth recently moved to cut ties with InterPrac Financial Planning, following a $1 billion superannuation scandal linked to collapsed investment schemes and an ASIC lawsuit. Macquarie has already paid about $321 million in compensation to affected investors as part of a broader risk‑reduction push. ^[29]
Climate commitments and credibility – Earlier this year, Macquarie became the first Australian major bank to exit the UN‑backed Net Zero Banking Alliance, even as it maintains about $30 billion in green investments and a leading role in global renewables financing. The shift has drawn criticism from environmental groups and some investors who see a gap between branding and practice. ^[30]

Meanwhile, the bank is undergoing senior leadership change. Long‑time Chief Financial Officer Alex Harvey is set to step down at the end of 2025, with deputy CFO Frank Kwok slated to take over in 2026. ^[31]

All of this forms the backdrop against which today’s portfolio moves will be interpreted.

How today’s moves fit Macquarie’s long‑term story

Macquarie describes itself as a “diversified financial group” spanning asset management, retail and business banking, wealth management, and advisory and capital markets activities, operating in 31 markets with nearly 20,000 staff. ^[32]

In that context:

Building stakes in Service Stream and Monadelphous deepens its links to infrastructure, utilities and resources services, sectors that often generate more stable, contracted cash flows than pure commodity producers.
Stepping back from Sandfire Resources reduces direct exposure to copper prices at a time when Macquarie’s commodities trading unit is already under pressure. ^[33]
Active analyst coverage of stocks like HMC Capital and GPT Group reflects Macquarie’s continued push into asset‑light, fee‑earning businesses and real assets, even as it simplifies parts of its own asset management franchise and sells some public markets units to Nomura. ^[34]

Investors will be watching closely to see whether these incremental shifts add up to a clearer strategic tilt – away from volatile trading income and towards more annuity‑style earnings – or whether they are simply the by‑products of Macquarie’s sprawling investment platform rebalancing its many portfolios.

What to watch next for Macquarie investors

For shareholders and market watchers, several near‑term milestones now matter:

Dividend payment and DRP
- Interim dividend: $2.80 per share, payable 17 December 2025
- Dividend Reinvestment Plan (DRP) pricing period: 24 November – 3 December 2025 ^[35]
Further ASX substantial holding notices
- Today’s filings show Macquarie actively trading significant stakes in mid‑cap ASX names. Any additional disclosures over coming weeks could reveal whether the group is building a broader theme in infrastructure, engineering and utilities.
Commodities division performance
- With the commodities and global markets business still a key profit driver but currently underperforming, quarterly updates on trading conditions will be critical. ^[36]
Regulatory outcomes and governance changes
- Developments in the ASIC short‑selling case, ongoing tax investigations in Europe, and Macquarie’s internal compliance overhaul could all influence capital requirements, reputational risk and executive pay structures. ^[37]
Strategic deals and asset sales
- The planned sale of Macquarie’s US and European public asset‑management units to Nomura, announced earlier this year, is expected to close by late 2025 and will further pivot the group towards private markets and specialised strategies. ^[38]

Bottom line

Macquarie’s Thursday night filings may look technical, but they offer a useful glimpse into how one of Australia’s most closely watched financial groups is rebalancing its exposure to the real economy.

By trimming a position in copper producer Sandfire while ramping up stakes in Service Stream and Monadelphous, Macquarie is nudging its portfolio towards service‑based infrastructure plays at a time when its own commodities arm is under pressure and its valuation is being questioned.

Whether that proves to be a shrewd rerating trade or simply routine fund management, investors now have fresh signals to feed into their view of Macquarie Group Ltd (ASX: MQG) as it heads into the final weeks of 2025.

Disclaimer: This article is for general information only and does not constitute financial advice. Investors should seek professional advice before making investment decisions.

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