BlueScope Steel (BSL) H2 2026 earnings summary

Executive summary

• FY2026 marked a defining year with accelerated value delivery, major project completions, and a reset for higher shareholder returns, including a CEO succession and renewed focus on operational efficiency and land value realisation.

• Major projects, such as the Western Sydney Metal Coating Line and New Zealand Electric Arc Furnace, moved into commissioning and ramp-up phases.

• The company fully delivered its AUD 200 million cost-out program and exceeded an additional AUD 150 million cost reduction, resulting in a leaner operating model.

• Shareholder returns increased significantly, with a total of AUD 3 per share in distributions for calendar year 2026, and a plan to repeat this in 2027.

• Surplus land portfolio monetisation advanced, including a $76 million profit from the West Dapto sale.

Financial highlights

• Underlying EBIT reached AUD 1.27 billion, up $535 million year-over-year, with second-half EBIT of AUD 716 million exceeding guidance.

• Underlying net profit after tax was just over AUD 800 million, an 857% increase year-over-year.

• Underlying EBIT ROIC improved to 10.7% from 6.2% in FY2025.

• Net debt at year-end was AUD 600 million, maintaining a robust balance sheet and well below the $1.5 billion target.

• Free cash flow for FY2026 was AUD 240 million, impacted by peak CapEx.

Outlook and guidance

• FY2027 first-half underlying EBIT is expected in the range of AUD 860–960 million, driven by continued North American strength, solid Australian demand, and early recovery in New Zealand.

• Major capital investment is ramping down, supporting higher cash generation and sustained shareholder returns.

• Guidance assumes ongoing cost discipline, project transitions, and market conditions, with regional details provided.