Looking to invest in Australia’s best shares to buy in 2025? With the ASX200 showing resilience and fresh opportunities emerging on the ASX 200 stock index, now’s the perfect time to uncover the year’s top picks. The Australian market is buzzing with activity—global economic shifts, renewed focus on renewable energy, and booming sectors like tech and healthcare are creating fertile ground for growth stocks and undervalued ASX stocks. If you’re wondering which Aussie shares to buy to make the most of these trends, this guide has everything you need to navigate the market and find success in 2025. Let’s dive in!

1. Lycopodium Limited (ASX: LYL)

Lycopodium Ltd. engages in the provision of engineering consulting services to the mining, metallurgical, and manufacturing industries. It operates its business through the following segments: Resources, Rail Infrastructure, Industrial Processes, and Other. The Resources segment consists of engineering and related services provided to the extractive mining industry. The Industrial Process segment refers to engineering and related services provided to manufacturing and renewable energy facilities throughout Australia and Southeast Asia. The Rail Infrastructure segment cater asset management, engineering, architectural and project delivery services to a wide range of public and private clients across Australia.

Historical Financial Snapshot:

Lycopodium has demonstrated substantial financial growth over the past five years, with its revenues increasing from $206 million in 2020 to $344 million in 2024. This impressive revenue expansion reflects the company’s strong market positioning and the successful execution of its strategic initiatives. In parallel, Lycopodium has achieved remarkable profitability improvements, driven by long-term revenue growth as well as significant net margin expansion. The company’s net profit surged from $11.8 million in 2020 to $50.7 million in 2024, marking a period of exceptional earnings growth.

Investment Rationale:

Lycopodium has established a strong expertise in engineering consulting services, primarily catering to the resources industry, along with other manufacturing sectors and rail infrastructure. The company has built a robust global operating presence, extending its reach from Australia and Asia to Africa and the Americas, offering vast market opportunities. Lycopodium currently has over 40 resource projects in delivery, with the value of capital projects in progress exceeding $4 billion. A significant portion of its revenue growth is driven by the mining segment, which remains the company’s largest contributor. Lycopodium’s involvement spans various resource sectors, including Gold, Lithium, Uranium, Mineral Sands, Copper, and Battery Materials. This diversification protects the company from commodity price volatility and provides substantial operational stability. These factors, coupled with a solid project pipeline, support Lycopodium’s ability to achieve significant sales growth and maintain a resilient market position.

2. Cleanaway Waste Management Limited (ASX: CWY)

Cleanaway Waste Management Ltd. engages in the provision of total waste management, industrial, and environmental services. It operates through the following segments: Solid Waste Services, Industrial and Waste Services, and Liquid Waste and Health Services. The Solid Waste Services segment includes the collection, recovery, and disposal of all types of solid waste, including putrescible waste, inert waste, household waste, and recovered waste. The Industrial and Waste Services segment consists of a variety of services provided to the infrastructure, industrial, and resources market, which include drain cleaning, non-destructive digging, vacuum loading, high pressure cleaning, pipeline maintenance, and CCTV. The Liquid Waste and Health Services segment is involved in the collection, treatment, processing, refining and recycling, and destruction of hazardous and non-hazardous liquids, hydrocarbons and chemical waste, specialised product destruction, hazardous waste and e-waste, provision of services to the health sector for the safe treatment and disposal of health related waste which includes sharps management, medical waste, pharmaceutical waste, healthcare hazardous waste, and quarantine waste. The company was founded by Terrence Elmore Peabody in August 1987 and is headquartered in Melbourne, Australia.

5-Year Financial Snapshot:

The financial year 2024 proved to be exceptionally successful for the company, achieving record-breaking financial results over the past seven years. The organization generated revenues amounting to $3.70 billion, a substantial increase from $2.30 billion in 2020 and $1.68 billion in 2018. Additionally, the company’s net income was robust at $156 million, a marked rise from the $21.6 million reported in 2023. The operating income also demonstrated remarkable growth, reaching $312 million, which represents an increase of over 100% year-on-year. This performance reflects a significant enhancement compared to the earnings of $112 million in 2020 and $103 million in 2018.

Growth Catalyst:

Cleanaway consistently demonstrates robust operational performance across its various segments, including Liquids Technical Services (LTS), Industrial & Waste Services, and Solid Waste Services. This trend suggests a solid foundation for operational stability in the foreseeable future. Additionally, the company’s commitment to expanding its facilities and capacities is particularly noteworthy, as it is driven by a well-established market demand for its services across all operational and market segments. Consequently, Cleanaway remains focused on enhancing its recovery capacity and has pursued several promising inorganic growth initiatives and joint ventures with leading global manufacturers to process their industrial waste, particularly within the Food & Beverage sector, which is expected to deliver a steady rise in sales over the long term.