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Highlights
- DOW up over 20% in 2025, driven by infrastructure strength
- MQG maintains long-term profitability with global asset exposure
- Both firms offer consistent dividend yields for income-focused portfolios
Investors keeping an eye on the ASX in 2025 may find compelling developments in two notable companies: Downer EDI Ltd and Macquarie Group Ltd. With DOW shares rising 20.5% since the beginning of the year and MQG trading close to its 52-week high, both companies stand out for their resilience and strategic positioning across critical sectors.
Downer EDI Ltd (ASX:DOW): Infrastructure Backbone of Australia
DOW is a leading player in infrastructure services across Australia and New Zealand. While its brand may fly under the radar, its work is visible in everyday life—operating Melbourne’s Yarra Trams and manufacturing trains used throughout the country.
The company segments its operations into Transport, Utilities, and Facilities. The Transport division generates over half of the firm’s revenue, while Utilities and Facilities contribute approximately 20% and 30%, respectively. This diversification supports stable cash flow and business sustainability.
For FY24, Downer reported a debt/equity ratio of 81.1%, indicating a relatively healthy balance between liabilities and equity. Over the last five years, DOW delivered an average dividend yield of 3.7% annually, appealing to investors who value steady income. However, with a return on equity (ROE) of 3.6% in FY24, the company’s profitability metrics may not yet match those of higher-return mature businesses.
Macquarie Group Ltd (ASX:MQG): Global Exposure and Financial Prowess
MQG, with over five decades of uninterrupted profitability, operates with a different model compared to traditional banks. Alongside its banking services, MQG has deep involvement in asset management and investment markets—including infrastructure, commodities, agriculture, and real estate—giving it broad global reach.
In FY24, Macquarie reported a debt/equity ratio of 258.5%, reflecting higher leverage, which is typical for firms in the financial sector with expansive investment portfolios. MQG’s dividend yield averaged 3.2% annually since 2019, and it posted a solid 10.4% ROE for FY24—signaling efficient capital use and shareholder value creation.
Both (DOW) and (MQG) offer strategic appeal for ASX-focused portfolios. One leverages infrastructure dominance and service consistency, while the other brings diversified global exposure and financial expertise. Together, they present a balance of stability and opportunity worth monitoring closely.
