BlueScope Steel (BSL) H1 2025 earnings summary

Executive summary

• Underlying EBIT was $309 million in 1H FY25, with ROIC at 8.1%, and reported NPAT of $179 million, reflecting a significant year-over-year decline due to weaker steel spreads and macroeconomic headwinds.

• $162 million was returned to shareholders, a net cash position of $88 million was maintained, and a fully franked interim dividend of $0.30 per share was declared, with the buyback program extended for up to $240 million over 12 months.

• Advanced $200 million cost and productivity initiatives, targeting $500 million incremental annual EBIT by 2030, with a $200 million benefit expected by FY26.

• Strategic investments and property realisation initiatives progressed in North America, Australia, Asia, and New Zealand, with a focus on long-term growth and decarbonisation projects.

• Released second climate action report, advanced sustainability and diversity projects, and maintained a strong balance sheet.

Financial highlights

• Underlying EBIT was $309 million, down from $718 million in 1H FY24; reported NPAT was $179 million, down 59% year-over-year.

• Net cash position at $88 million as of 31 Dec, with group liquidity of $2.9–$3.1 billion.

• Underlying ROIC decreased to 8.1% from 13.4% in 1H FY24.

• Interim dividend of $0.30 per share, fully franked, and over 150 million shares bought back since 2017.

• Capex payments increased 25% to $583.6 million; net assets rose to $11,810.5 million.

Outlook and guidance

• 2H FY25 underlying EBIT is expected between $360 million and $430 million, driven by improved US spreads, stronger Australian volumes, and cost program benefits.

• North America: North Star EBIT expected to more than double; Australia: moderately stronger result; Asia: similar or slightly lower; New Zealand & Pacific Islands: modest improvement.

• Full-year benefit of $200 million cost and productivity improvements expected in FY26.