BlueScope Steel (BSL) H1 2026 earnings summary

Executive summary

• Net profit after tax for 1H FY2026 was $391 million, up 118% year-over-year, with underlying EBIT of $558 million driven by stronger US spreads, higher volumes, and solid cost performance.

• Transitioned from a major investment phase to a focus on value delivery and higher shareholder returns, with a new CEO and a clear strategy for growth and simplification.

• Major projects progressed toward completion, including North Star debottlenecking, Metal Coating Line #7 in Western Sydney, and New Zealand EAF commissioning.

• Portfolio simplification advanced with the sale of the 50% interest in Tata BlueScope Steel and a 33ha land sale at West Dapto for $76 million.

• Safety remains a top priority, with a tragic contractor fatality in November 2025 and ongoing SafeWork NSW investigation.

Financial highlights

• Underlying EBIT for 1H FY2026 was $558 million, up $249 million year-over-year, with reported NPAT of $391 million.

• Underlying EBITDA rose 39% to $915 million; underlying NPAT increased 117% to $382 million.

• Group ROIC stable at 8.1%; North America ROIC at 13.6%, Asia at 17.5%.

• Net debt at $2 million, well below the $1.5 billion target; liquidity of approximately $3.2 billion at period end.

• Interim unfranked dividend of 65c per share declared, as part of a $3.00/share total return plan for CY2026.

Outlook and guidance

• 2H FY2026 underlying EBIT expected between $620 million and $700 million, driven by stronger US spreads and improved sales volumes.

• North America expected to deliver a 15% higher result in 2H FY2026; Australia and Asia to see lower results due to weaker spreads and seasonality.

• New Zealand & Pacific Islands expected to return to modest profit as EAF transition progresses.

• Guidance subject to volatility in steel spreads, foreign exchange rates, and market conditions.

• Shareholder returns to be at least 75% of free cash flow going forward.