Corporate profits in Australia unexpectedly dropped by 0.5% quarter-on-quarter (QoQ) in Q1 2025, missing market forecasts of 1.1% growth and reversing an upwardly revised 6.0% expansion in Q4 2024. The decline was driven by falls in the profits of financial and insurance services (-10.6% vs 38.3%), administrative and support services (-6.1% vs 8.5%), and professional, scientific, and technical services (-1.9% vs 1.5%). Through the year to March, corporate profits shrank by 5.0%, following a 6.2% decline in Q4.