BlueScope Steel (BSL) H1 2026 earnings summary

Executive summary

• Underlying EBIT for 1H FY2026 was $558 million, up $249 million year-over-year, with net profit after tax at $391 million, driven by strong US spreads, higher volumes, and cost performance.

• Major projects nearing completion include North Star debottlenecking, Metal Coating Line #7 in Western Sydney, Port Kembla upgrades, and the New Zealand EAF, positioning for future growth.

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

• Safety remains a top priority following a fatal incident, with ongoing investigations and renewed safety programs.

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

Financial highlights

• Underlying EBIT for 1H FY2026: $558 million, up $249 million year-over-year; reported NPAT: $391 million; net debt: $2 million.

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

• Interim dividend of 65c per share declared, with a plan for $3.00 per share in total returns for CY2026, including a $1.00 special dividend and a $310 million buy-back.

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

• Net assets increased to $11.4 billion; liquidity over $2.8 billion.

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; 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 based on AUD/USD FX rate of 0.70; subject to market, spread, and FX conditions.