Highlights

  • Underlying EBIT reached A$1,273.4 million in FY26, with underlying NPAT of A$851.2 million.
  • North Star contributed A$805.3 million of underlying EBIT, making North America the largest Earnings contributor.
  • BlueScope ended FY26 with A$600.0 million of net Debt and about A$2.8 billion of liquidity.
  • Major projects include the Port Kembla No. 6 blast furnace reline, a plate mill and North Star debottlenecking.
  • First-half FY27 underlying EBIT guidance was A$860 million to A$960 million.

BlueScope Steel Limited (ASX:BSL) is an international supplier of steel products and solutions with operations across Australia, North America, New Zealand, the Pacific Islands and Asia. The company is a global leader in metal coating and painting products for building and construction markets. In FY26, its earnings mix shifted further toward North America while BlueScope continued funding a large multi-region Investment program.

North America drives FY26 earnings

BlueScope reported FY26 underlying EBIT of A$1,273.4 million, underlying NPAT of A$851.2 million and underlying EBITDA of A$1,966.3 million. Return on invested Capital reached 10.7%, while Operating Cash Flow was A$1,725.6 million. External steel despatches were 8,491.2 thousand tonnes, showing that the earnings improvement was driven more by pricing and steel spreads than by higher shipment volumes.

Combined North American operations generated underlying EBIT of A$1,034.0 million. North Star contributed A$805.3 million, compared with A$188.2 million from Australian Steel Products. Coated Products Asia contributed A$177.2 million, while New Zealand and Pacific Islands recorded a small A$1.4 million underlying EBIT loss.

North Star becomes the central earnings driver

North Star benefited from more favourable US steel spreads. BlueScope also pointed to construction activity, automotive Demand and data-centre investment in the US. In Australia, residential activity improved and non-residential work remained elevated, but steel spreads were described as near cyclical lows. Asian coated-product margins also faced pricing pressure.

The earnings mix increases BlueScope’s sensitivity to US steel spreads. The company disclosed that a US$10 per tonne change in the hot-rolled coil spread can move North Star’s half-year EBIT by about US$21 million. Australian Steel Products also remains sensitive to exchange rates, iron ore and metallurgical coal prices.

Capital program and balance sheet

BlueScope ended FY26 with A$600.0 million of net debt and about A$2.8 billion of liquidity, including approximately A$1.17 billion of cash and A$1.67 billion of undrawn facilities. The company declared a final ordinary Dividend of 65 cents per share and also announced special distributions during the year.

Major projects total about A$2.5 billion. The largest is the Port Kembla No. 6 blast furnace reline at about A$1.3 billion. Other projects include the Port Kembla plate mill, a Western Sydney metal coating line, an electric arc furnace at New Zealand Steel and a North Star debottlenecking project. First steel from the New Zealand electric arc furnace was produced in July 2026.

FY27 outlook and risks

For the first half of FY27, BlueScope guided to underlying EBIT of A$860 million to A$960 million. Performance remains sensitive to steel spreads, Commodity prices, foreign exchange, energy costs and operational execution. Several large developments are also progressing at the same time, increasing the importance of disciplined capital delivery.

North Star remains the key near-term earnings driver, while Australian Steel Products continues to operate in a softer spread environment. The next reporting period will show whether North American margins remain elevated and whether BlueScope can progress its project pipeline without materially increasing balance-sheet pressure.

Key Insights

BlueScope’s FY26 result shows a Business with a more North American-weighted earnings base. North Star now contributes substantially more than Australian Steel Products, while the group continues to invest across Port Kembla, New Zealand and North America. FY27 performance will depend on steel spreads, project execution and balance-sheet discipline.