BlueScope Steel (BSL) H1 2025 earnings summary

Executive summary

• Underlying EBIT was $309 million in 1H FY2025, with ROIC of 8.1%, demonstrating resilience amid challenging steel spreads and macroeconomic conditions; reported NPAT was $179.1 million, down sharply year-over-year.

• $162 million returned to shareholders via dividends and buy-backs; net cash position at period end was $88 million.

• Interim fully franked dividend of 30.0 cps declared, with buy-back program extended for up to $240 million over 12 months.

• Group-wide $200 million cost and productivity program underway, targeting $500 million incremental annual EBIT by 2030.

• Sustainability focus advanced, including safety improvements, decarbonisation projects, and climate action reporting.

Financial highlights

• Underlying EBIT of $309 million, down from $718 million in 1H FY2024; reported NPAT of $179.1 million, down 59% year-over-year.

• Underlying ROIC at 8.1%, down from 13.4% in 1H FY2024.

• Net cash position at $88 million; group liquidity near $3 billion.

• Interim dividend of 30.0 cps (up 20%) declared; $30 million of shares bought back in 1H FY2025.

• Net assets increased by $525 million to $11,810.5 million, mainly due to FX translation and asset growth.

Outlook and guidance

• 2H FY2025 underlying EBIT expected between $360 million and $430 million, driven by improved US spreads, stronger Australian volumes, and cost/productivity gains.

• North America EBIT expected to be one-third higher in 2H, with North Star result more than doubling; Australia and Asia to see moderate improvements.

• Full $200 million cost and productivity benefit targeted for FY2026.

• West Dapto land sale excluded from 2H FY2025 guidance, targeted for FY2026.

• Guidance subject to volatility in spreads, FX, and market conditions.