BlueScope Steel (BSL) H2 2025 earnings summary

Executive summary

• Underlying EBIT was AUD 738 million (or $738M) and ROIC 6.2%, achieved despite volatile U.S. spreads, trade policy shifts, and soft Asian conditions due to record Chinese steel exports.

• AUD 293 million ($293M) returned to shareholders; net debt at AUD 28 million ($28M), maintaining a robust balance sheet.

• 30 cps (AUD 0.30 per share) final dividend (50% franked) declared; buy-back program extended.

• AUD 130 million net cost improvement delivered in FY2025; progress on AUD 500 million incremental EBIT target by 2030.

• Continued focus on safety, decarbonization, and value realization from strategic land assets.

Financial highlights

• Underlying EBIT of AUD 738 million ($738M), down from FY 2024 due to lower steel spreads; ROIC 6.2%, down from 11.9% in FY2024.

• Net debt at year-end was AUD 28 million ($28M), below long-term target range.

• AUD 293 million returned to shareholders via dividends and buybacks; over $3.8Bn returned since FY2017.

• Board approved a 50% franked final dividend of AUD 0.30 per share (30 cps) and extended the buyback program for 12 months, up to $240M.

• Impairment of AUD 439 million ($438.9M) recorded for BlueScope Coated Products (BCP) due to delayed turnaround.

Outlook and guidance

• Entering FY 2026 with confidence; 1H FY 2026 underlying EBIT expected at AUD 550–620 million ($550M–$620M), higher than 2H FY 2025.

• Improved U.S. spreads, cost/productivity program benefits, and land sales are key drivers.

• Targeting AUD 200 million in cost and productivity improvements by FY 2026, with AUD 130 million achieved in FY 2025.

• Working capital reduction of AUD 200–300 million targeted by year-end, excluding inventory buildup for blast furnace reline.

• AUD 500 million incremental EBIT targeted by 2030 from growth initiatives across all regions.