Australian infrastructure M&A deals hit US$4.6b in Q2

Investors remain resilient amidst global geopolitical uncertainties.

In a recent report, Dexus Research revealed that the value of infrastructure M&A deals in Australia lifted significantly in Q2 2025 after a quiet first quarter to reach US$4.6 billion. The ongoing level of deal flow shows a degree of resilience among investors amid evolving geopolitical tensions and policy recalibrations by the US administration. 

“There were significant transactions across the transport, energy and social infrastructure sectors. The growing emphasis on renewable energy is channelling significant capital into the energy sector including Battery Energy Storage Systems (BESS),” the report added.

Here’s more from Dexus Research:

Domestically, infrastructure investment remains robust. Headline engineering construction activity rose 4.7% year-on-year, driven by strong growth in utilities and mining. The sector is buoyed by decarbonisation efforts and a rebound in resource investment, although labour shortages and wage pressures persist.

The re-election of the Albanese Government in May 2025 has reinforced policy continuity in Australia’s infrastructure agenda. With a strong parliamentary majority, the Government is positioned to accelerate delivery of its $60.7 billion infrastructure pipeline over the next four years, including major investments in transport corridors, renewable energy transmission and housing supply.

State-led initiatives are expected to underpin infrastructure originations in FY26. NSW continues to progress its rail upgrades to support the rollout of the Mariyung and regional rail fleets as well as work on the Metro rail lines. In Queensland, preparations for the 2032 Brisbane Olympics are accelerating major projects such as Cross River Rail, Brisbane Metro, and the CopperString 2032 transmission line. Victoria is maintaining elevated capital expenditure, with a focus on transport and health precincts.

Unlisted infrastructure returns have improved significantly over the past year, helped by rising valuations. Unlisted infrastructure returned a healthy 11.7% in the year to March 2025 (pre fees) with domestic investments mildly out-performing offshore investments.