BlueScope Steel (BSL) H2 2024 earnings summary

Executive summary

• Delivered underlying EBIT of AUD 1.34 billion and ROIC of 11.9% in FY24, with reported NPAT of AUD 806 million, both down year-over-year amid volatile macro conditions.

• Returned nearly AUD 550 million to shareholders, maintained a net cash balance of AUD 364 million at year-end, and announced a 30 cps dividend with a buyback extension up to AUD 270 million.

• Advanced strategic projects including North Star debottlenecking, US value chain integration, No.6 Blast Furnace reline, MCL7 in Australia, and EAF in New Zealand.

• Achieved a 12.2% reduction in steelmaking emissions intensity since FY18, aligned to 2030 targets.

• Safety performance below expectations; global Refocus on Safety program launched.

Financial highlights

• Underlying EBIT of AUD 1.34 billion for FY24; H2 EBIT of AUD 621 million at the low end of guidance.

• Revenue of AUD 17.1 billion, down from AUD 18.2 billion in FY2023; reported NPAT of AUD 806 million, down from AUD 1.01 billion.

• Free cash flow of AUD 434 million, down AUD 909 million year-over-year; net cash of AUD 364 million at June 2024.

• Fully franked final dividend of 30 cps; buyback program extended for up to AUD 270 million over the next 12 months.

• Underlying EBIT ROIC at 11.9%, down from 14.6% in FY2023.

Outlook and guidance

• FY25 H1 underlying EBIT expected between AUD 350 million and AUD 420 million.

• North America result guided to be about half of H2 FY24 due to lower spreads and easing margins; North Star to deliver about one-third of H2 FY24.

• Australia expected to see moderately softer results, with higher costs and similar domestic dispatches.

• Asia expected to improve by ~50% over prior half on seasonality, with China expected to triple; New Zealand and Pacific Islands to nearly double H2 FY24 earnings.