Highlights

• Underlying EBIT rose $535 million to $1.27 billion, with North Star BlueScope contributing $805.3 million.

• Management guided first-half FY2027 underlying EBIT to between $860 million and $960 million, led by North America and Australia.

• BlueScope set calendar 2026 shareholder returns at $3 per share, about $1.3 billion, and planned the same amount for 2027.

• Western Sydney's new coating line achieved metal on strip on 4 August, ahead of a ramp-up toward 240ktpa capacity.

North America is doing the heavy lifting at BlueScope Steel Limited (ASX:BSL). North Star BlueScope Steel generated $805.3 million of underlying EBIT in FY2026, just over three times the $267.2 million of a year earlier, and it anchored the group result. Shares were trading at A$32.36 on 23 October 2026, up 0.28%.

The group reported underlying EBIT of $1.27 billion on 17 August, up $535 million, with $558 million earned in the first half and $716 million in the second. Underlying net profit after tax doubled to $851.2 million, and reported net profit after tax reached $802 million, compared with $83.8 million in FY2025. Underlying return on invested capital improved to 10.7% from 6.2%.

Uneven Earnings Across the Regions

Not every division shared in the lift. Australian Steel Products EBIT fell to $188.2 million from $261.6 million, hurt by weaker export and domestic prices and higher coal costs. Buildings and Coated Products North America slipped to $229.6 million, while Coated Products Asia rose to $177.2 million. New Zealand and Pacific Islands moved close to break-even.

Operating cash flow was $1,725.6 million, and net cash flow after capital spending was $240 million. Net debt ended June at $600 million, with liquidity of $2,835 million.

Cash Returns Take Centre Stage

BlueScope set shareholder returns of $3 per share for calendar 2026, about $1.3 billion. That includes $1.65 per share paid in the first half and $1.35 per share to follow, made up of an unfranked 65 cent final dividend and a 70 cent special dividend. The special dividend replaces a $310 million buy-back that could not be executed in the second half.

For calendar 2027, the company plans another $3 per share: a $1.30 ordinary dividend and $1.70, or about $750 million, through buy-backs, special dividends or other methods. These returns remain subject to financial performance, business conditions, capital spending and Board determination. The framework commits to distribute at least 75% of free cash flow.

Projects Move Towards the Finish Line

Several large investments are close to operation. The Western Sydney metal coating line, costing about $490 million, achieved metal on strip on 4 August. The electric arc furnace at New Zealand Steel is in commissioning and is expected to roughly halve the site's Scope 1 and 2 emissions. The No.6 Blast Furnace reline at Port Kembla, with a final cost of about $1.3 billion, targets start-up in early calendar 2027.

North Star debottlenecking, which would add about 300ktpa of capacity, has completed three of nine components.

First-Half Outlook and Key Dates

For the first half of FY2027, BlueScope guides to underlying EBIT of $860 million to $960 million. Against the second half of FY2026, it expects North America to be more than one-third higher and Australia around two-thirds higher, with New Zealand and Pacific Islands about one-third lower and Asia similar. The guidance assumes an Australian dollar of about 0.70 against the US dollar.

Longer term, the company targets about $500 million of EBIT uplift by FY2030 versus FY2025, supported by macro normalisation. Shareholders meet on 16 November 2026 in Wollongong and online.