UBS is predicting a 3.5% drop in earnings for ASX 200 companies in FY24.
This follows a 2.9% decrease during the previous year, marking an end to the "sugar rush" period of abnormally high profits during the pandemic.
The consecutive years of earnings decline underscore the challenges facing Australian businesses and the broader economy.
So which companies and sectors are thriving, and which are struggling?
WiseTech Global shines
One standout performer was WiseTech Global (ASX:WTC), the ASX's largest software company.
The company reported a 28% increase in total revenue to $1.04 billion, driven by strong growth in its recurring revenue stream.
Underlying net profit after tax rose 15% to $283.5 million, and underlying earnings per share increased 13% to 85.7 cents.
WiseTech's stellar performance has enriched its founder, Richard White, by $2.1 billion.
Insignia Financial struggles
In contrast, Insignia Financial announced a pause in dividend payments as it seeks to strengthen its balance sheet.
The company reported a statutory net loss after tax of $185.3 million, compared to a net profit of $51.2 million in the previous year.
Construction sector faces challenges
The construction sector has experienced mixed fortunes.
Fletcher Building (ASX:FBU) reported a decline in revenue and a net loss for the year.
Real estate developer Lendlease (ASX:LLC) suffered a major setback, reporting a loss of more than $1.5 billion.
The company is undergoing a turnaround, exiting underperforming businesses and focusing on its Australian market.
In contrast, engineering and construction company Monadelphous (ASX:MND) saw a 16% increase in annual net profit, driven by strong project activity in Western Australia.
However it does predict a $75-$85 million dollar drop in forecast revenue in 2025 as a result of the Kemerton lithium project loss in WA.
Retailers weather the storm
The retail sector has shown resilience, with Super Retail Group (ASX:SUL), the owner of Rebel Sport and Supercheap Auto, reporting record sales for the 2024 financial year.
Meanwhile, Beacon Lighting (ASX:BLX) reported a 10.5% decline in FY24 profit.
Overall, the 2024 ASX earnings season has highlighted the diverse fortunes of Australian companies.
The ability of companies to adapt to changing market conditions, especially amidst a falling iron ore price - one of our key economic drivers - will be crucial.