BlueScope Steel (BSL) H1 2026 earnings summary

Executive summary

• Achieved strong 1H FY2026 results with underlying EBIT of AUD 558 million, up AUD 249 million year-over-year, and reported NPAT of AUD 391 million, despite low Asian steel spreads.

• 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.

• Net debt reduced to AUD 2 million from AUD 28 million at June 2025, with net cash flow improving to AUD 54 million.

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

• Board rejected a $30/share takeover proposal, focusing on internal value creation and capital returns.

Financial highlights

• Underlying EBIT of AUD 558 million for 1H FY2026, up AUD 249 million year-over-year; reported NPAT of AUD 391 million, up AUD 212 million.

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

• Group ROIC stable at 8.1%; North America 13.6%, Asia 8.1%, Australia 5.5%, New Zealand -4.4%.

• Capital expenditure was AUD 681 million in the half, with CapEx peaking this year and set to decline.

• Liquidity of approximately AUD 3.2 billion at period end, with over AUD 2.8 billion in undrawn facilities and cash.

Outlook and guidance

• 2H FY2026 underlying EBIT expected in the range of AUD 620 million–AUD 700 million, driven by stronger U.S. 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.

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