BlueScope Steel (BSL) H2 2025 earnings summary

Executive summary

• FY2025 underlying EBIT was AUD 738 million (or $738M), with a 6.2% ROIC, achieved despite volatile global conditions, soft Asian markets, and record Chinese steel exports.

• $293 million was returned to shareholders via dividends and buy-backs; net debt at year-end was $28 million, maintaining a robust balance sheet.

• A 30 cents per share final dividend (50% franked) was declared, and the buy-back program was extended.

• $130 million net cost improvement delivered in FY2025, with progress toward a $500 million incremental EBIT target by 2030.

• Safety and decarbonization initiatives advanced, with emissions intensity down 14% since FY2018 and continued focus on value realization from strategic land assets.

Financial highlights

• Underlying EBIT was AUD 738 million ($738M), with ROIC at 6.2%, down from the prior year.

• Reported NPAT was $83.8 million, down $721.9 million year-over-year, impacted by a $439 million impairment.

• Net debt at year-end was $28 million, below the long-term target range.

• $293 million returned to shareholders via dividends and buybacks; 30 cps final dividend (50% franked) declared, buy-back program extended for up to $240 million.

• Operating cash flow was $180 million, lower due to softer earnings and higher capital expenditure.

Outlook and guidance

• 1H FY2026 underlying EBIT expected between $550 million and $620 million, higher than 2H FY2025.

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

• Targeting $200 million in cost and productivity improvements by FY2026, with $130 million achieved in FY2025.

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

• Performance in New Zealand & Pacific Islands expected to return to breakeven; Asia stable, China to improve on seasonality.