BlueScope Steel, Orica and SGH: Financial Performance Across ASX Industrials

Sonal Goyal

14 September 2026 06:48 PM AEST

BlueScope Steel, Orica and SGH: Financial Performance Across ASX Industrials

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BlueScope Steel (ASX:BSL), Orica (ASX:ORI) and SGH (ASX:SGH) entered the latter part of 2026 with different financial profiles across steelmaking, Mining services and diversified industrial operations. BlueScope recorded a substantial FY26 Earnings rebound, Orica delivered elevated first-half operating earnings, while SGH generated sizeable Operating Cash Flow and maintained relatively stable underlying profit.

BlueScope Steel

BlueScope reported FY26 net profit after tax of approximately AUD 802.0 million.

Underlying NPAT reached AUD 851.2 million, while underlying EBIT was approximately AUD 1.27 billion.

Underlying EBIT return on invested Capital reached 10.7%.

North America contributed approximately AUD 1.03 billion of underlying EBIT, including AUD 805 million from North Star. Australian operations generated underlying EBIT of approximately AUD 188 million, while Asia contributed AUD 177 million.

The earnings mix highlights the importance of North American profitability to BlueScope's overall financial performance.

BlueScope declared total FY26 dividends of AUD 1.35 per share, comprising a AUD 0.65 final ordinary Dividend and a AUD 0.70 special dividend.

For the first half of FY27, underlying EBIT is expected to range from approximately AUD 860 million to AUD 960 million.

Potential Catalysts

Delivery toward the upper end of first-half FY27 EBIT guidance could support the earnings outlook.

Sustained margins in North America could continue to underpin group-level profitability and cash generation.

Further capital returns may also remain supported if earnings and balance-sheet capacity remain favourable.

Potential Risks

BlueScope's earnings are sensitive to changes in steel margins, particularly within its North American operations.

A narrowing of steel spreads could reduce underlying EBIT and cash generation.

Currency movements can also influence the translation of international earnings, while weaker Australian Demand could constrain profitability in the domestic business.

Orica

Orica reported first-half FY26 EBIT of approximately AUD 512.0 million.

Net profit after tax before significant items reached AUD 283.1 million, while Earnings Per Share before significant items were AUD 0.607.

At the statutory level, Orica recorded a small net loss of approximately AUD 0.6 million after significant items of around AUD 283.7 million after tax.

Return on net Assets reached 14.7%.

Net operating cash flow was approximately AUD 230.6 million, while Leverage excluding leases stood at 1.53 times.

The Leverage Ratio remained within the company's stated target range of 1.25 to 2.00 times.

Orica declared an Interim Dividend of AUD 0.285 per share, representing a Payout Ratio of approximately 47%.

The company is also targeting more than AUD 100 million in cost benefits, with most expected to be realised during 2027.

For FY26, underlying EBIT is expected to increase across all operating segments and regions, subject to operating conditions.

Potential Catalysts

Delivery of higher full-year underlying EBIT could improve earnings and cash generation.

Cost reductions exceeding AUD 100 million could support future operating margins if the benefits are realised without offsetting expenditure.

Improved cash conversion alongside stable leverage could also provide greater flexibility for dividends and balance-sheet management.

Potential Risks

Large significant items can create a considerable gap between underlying and statutory profitability.

Lower operating margins or weaker mining-related activity could constrain EBIT growth.

Higher input costs, financing expenses or weaker cash conversion could also affect profitability and balance-sheet flexibility.

SGH

SGH reported FY26 Revenue of approximately AUD 10.6 billion.

Underlying EBIT reached approximately AUD 1.55 billion, with the EBIT Margin at around 14.7%.

Underlying NPAT was approximately AUD 920 million, while statutory NPAT reached AUD 655 million.

Operating cash flow was approximately AUD 2.1 billion.

Adjusted net Debt to EBITDA stood at approximately 1.8 times, providing an important measure of the group's leverage relative to operating earnings.

Within the group, Boral generated EBIT of approximately AUD 535 million, while WesTrac contributed around AUD 647 million.

SGH declared total FY26 dividends of AUD 0.64 per share, fully franked, including a final dividend of AUD 0.32 per share.

The company also announced an on-market share buyback of up to AUD 500 million.

For FY27, SGH expects EBIT growth to range from broadly flat to low single digits.

Potential Catalysts

Further margin improvement could allow EBIT to increase even if revenue growth remains moderate.

Continued operating cash generation could support the announced buyback, dividends and balance-sheet flexibility.

Higher earnings from major divisions could also support group-level profit and cash flow.

Potential Risks

Slower revenue growth across major operating divisions could constrain overall EBIT expansion.

Higher debt or weaker operating cash flow could reduce flexibility for capital returns.

A deterioration in margins within Boral or WesTrac could also weigh on group earnings given their significant contribution to overall EBIT.

Financial Outlook

BlueScope enters FY27 with elevated underlying earnings and a defined first-half EBIT guidance range. The conversion of operating profit into cash and Shareholder returns will remain important financial measures.

Orica's first-half results showed sizeable underlying earnings and positive operating cash flow, while its statutory result was affected by significant items. Full-year EBIT and the financial benefit of planned cost reductions remain relevant.

SGH combines substantial operating cash generation with moderate leverage, dividends and an announced share buyback. Its FY27 outlook points to a more measured rate of EBIT growth.

What Investors May Monitor Through the Rest of 2026

For BlueScope, underlying EBIT, NPAT, return on invested capital and delivery against first-half FY27 guidance remain central financial indicators.

For Orica, full-year EBIT, statutory NPAT, operating cash flow, leverage and progress on cost savings will provide further indications of financial performance.

For SGH, EBIT margins, NPAT, operating cash flow, leverage and capital returns remain important measures as the company moves through FY27.

FAQs

Q: What underlying EBIT did BlueScope report for FY26?

A:BlueScope reported underlying EBIT of approximately AUD 1.27 billion.

Q: What EBIT did Orica report for H1 FY26?

A:Orica reported first-half FY26 EBIT of approximately AUD 512.0 million.

Q: How much operating cash flow did SGH generate in FY26?

A:SGH generated approximately AUD 2.1 billion in operating cash flow during FY26.

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