BlueScope Steel (BSL) H1 2025 earnings summary

Executive summary

• Underlying EBIT was $309 million in 1H FY2025, with ROIC of 8.1%, and reported NPAT of $179.1 million, reflecting resilience despite challenging steel spreads and demand.

• Returned $162 million to shareholders, maintained a net cash position of $88 million, and declared a fully franked interim dividend of $0.30 per share with a buy-back extension up to $240 million over 12 months.

• Advanced $200 million cost and productivity program, targeting $500 million incremental annual EBIT by 2030 and $200 million+ improvement by FY2026.

• Strategic focus on value-added products, operational efficiency, and property realisation, with investments across North America, Australia, Asia, and New Zealand.

• Released second climate action report, progressed decarbonisation and sustainability projects, and advanced safety and diversity initiatives.

Financial highlights

• Underlying EBIT of $309 million, down from $718 million in 1H FY2024; reported NPAT of $179.1 million, down $409 million year-over-year.

• Net cash position of $88 million at period end, with group liquidity of $2.9–$3.1 billion.

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

• Interim dividend of $0.30 per share, fully franked; $162 million returned to shareholders in the half.

• 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: North Star EBIT expected to more than double sequentially; BCP slightly lower.

• Australia: Moderately stronger result expected, with higher domestic volumes and cost program benefits.

• Asia: Similar or slightly lower results on seasonality; China expected to soften.

• New Zealand & Pacific Islands: Modest improvement anticipated, supported by cost initiatives.