Highlights

  • Active portfolio management, including exits and reallocations, is positioning Barramundi for potential growth in 2026.
  • Technology and classified advertising companies led Q4 declines, despite growth in earnings and operational metrics.
  • Industrial and resources holdings, including BHP, Rio Tinto, Maas Group, and Reece, contributed to portfolio gains in Q4.

Barramundi Limited (NZX:BRM) concluded 2025 with a fourth-quarter gross performance return of -7.6% and an adjusted NAV return of -7.8%, both falling behind the benchmark index, which declined -0.7% over the same period. The portfolio faced headwinds from technology and classified advertising shares, while the industrial and resources sectors provided support. The company is taking active steps to manage underperforming holdings and is looking to 2026 with a strategic focus on growth sectors and portfolio rebalancing.

Technology and Classified Advertising Under Pressure

Key technology holdings including Xero (-28% in A$), Wisetech (-24%), and data centre operator NextDC (-26%) experienced sharp declines in Q4. Market concerns over the impact of artificial intelligence on traditional software and advertising platforms contributed to the weak share prices, despite operational performance and growth in earnings. NextDC, for instance, increased contracted utilisation from 245MW in June 2025 to 412MW by December, indicating potential future revenue growth. Xero and Wisetech are embedding AI into their offerings while retaining access to critical customer data, limiting potential disruption from third-party AI applications.

Industrial and Resources Sectors Gain Momentum

Industrial and resources companies finished the year positively. Materials (+13% in Q4) and Energy (+1%) sectors led the ASX, driven by gold and lithium price increases. Barramundi’s recent additions of BHP (+5%) and Rio Tinto (+11%) benefited from the commodity rally. Industrial companies also performed well: Maas Group (+23%) secured a A$200m contract for electrical infrastructure at a new data centre facility in Tasmania, while Reece (+20%) showed improving Australian division trends and implemented share buybacks totaling A$450m. Gloves manufacturer Ansell (+10%) increased profit guidance by 3% for the year, supported by favourable currency effects.

Portfolio Adjustments and Outlook

Barramundi addressed underperforming positions during the year by exiting Domino’s and James Hardie, while reducing exposure to CSL. Wisetech has strengthened governance and succession planning and remains a core holding. The company continues to monitor AI developments across sectors as a key research focus for 2026. Barramundi ended the year with a share price of NZD 0.67, a warrant price of NZD 0.63 NZD, and a premium to NAV of 6.3%.

Looking Ahead

Barramundi will maintain focus on technology, industrial, and resources sectors while monitoring AI developments and operational performance. Despite Q4 setbacks, the company expects selected holdings to drive earnings growth in the upcoming year.

BRM shares closed 3.05% lower at NZD 0.64 per share on 28 January 2026.