Key Highlights

• Group underlying EBITDA was A$1,966.3 million (FY25: A$1,452.1 million) and underlying net profit after tax attributable to shareholders was A$851.2 million (FY25: A$420.8 million).

• Australian Steel Products, centred on Port Kembla, earned underlying EBIT of A$188.2 million (FY25: A$261.6 million).

• Net Debt was A$600.0 million at 30 June 2026, compared with A$28.4 million a year earlier.

• That was possible because of encouraging Operating Cash Flow of A$1,725.6 million, but it is also why net debt rose.

What turned BlueScope Steel's (ASX:BSL) FY26 into a year of sharply higher profit and a special dividend, and how durable is the improvement? The company's FY26 result, released on 17 August 2026 for the year ended 30 June 2026, shows underlying EBIT of A$1,273.4 million, up from A$738.2 million in FY25. The driver was one Business above all: North Star BlueScope Steel in the United States, whose underlying EBIT rose to A$805.3 million from A$267.2 million. Meanwhile, Australian Steel Products earned less than the year before. The figures below are in Australian dollars and come from the company's supplementary results materials.

The central development: North Star carries the group

Group underlying EBITDA was A$1,966.3 million (FY25: A$1,452.1 million) and underlying net profit after tax attributable to shareholders was A$851.2 million (FY25: A$420.8 million). Underlying Earnings Per Share were 194.2 cents, against 95.9 cents. Reported EBIT was A$1,201.6 million, compared with A$295.8 million, and reported net profit was A$802.0 million versus A$83.8 million, so the gap between underlying and reported narrowed substantially. Revenue was A$16,691.1 million and underlying return on invested Capital was 10.7 per cent.

That concentration is the main point for anyone assessing the sustainability of the result, because it depends on US steel prices and spreads, which can move quickly.

How BlueScope makes money

BlueScope operates in several segments. Australian Steel Products, centred on Port Kembla, earned underlying EBIT of A$188.2 million (FY25: A$261.6 million). Buildings and Coated Products North America earned A$229.6 million (A$249.3 million). Coated Products Asia earned A$177.2 million (A$138.8 million). New Zealand and Pacific Islands recorded a loss of A$1.4 million.

So in FY26 the more encouraging North Star and Asia results more than offset weaker Australian and North American building earnings.

Cash, debt and Shareholder returns

Net debt was A$600.0 million at 30 June 2026, compared with A$28.4 million a year earlier. That may seem surprising after an encouraging profit year, but the company paid large dividends and is spending on major projects. Cash was A$1,167.0 million and borrowings A$1,181.3 million. Committed facilities were A$2,840 million, of which A$1,172 million was drawn, and total Liquidity was A$2,835 million. Net operating cash flow was A$1,725.6 million.

Dividends were 65.0 cents interim, 65.0 cents final and a 170.0 cent special, a total of 300 cents for FY26, compared with 30.0 cents each for the interim and final in FY25. The Special Dividend explains how debt rose despite encouraging earnings. Buy-backs were small in FY26 at A$12.5 million, although cumulative repurchases stand at 153.1 million shares for A$2,467 million.

What the numbers imply

That was possible because of encouraging operating cash flow of A$1,725.6 million, but it is also why net debt rose. A special dividend is by nature not a recurring entitlement, and holders should not assume the 170 cent component will repeat.

Investment program

The company disclosed an indicative total of about A$2.5 billion across several major projects. These include the No. 6 Blast Furnace reline at Port Kembla, a sustaining project of about A$1.3 billion, of which A$736 million was spent to 31 December 2025, a Western Sydney metal coating line of about A$490 million, a Port Kembla plate mill upgrade of about A$300 million, an electric arc furnace at NZ Steel of about A$280 million that produced its first steel in July 2026, and North Star debottlenecking of A$200 million.

A pilot project for a direct reduced iron process, NeoSmelt, has a final Investment decision expected in mid-FY2027. The blast furnace reline is classed by the company as sustaining capital, meaning it maintains existing capacity rather than adding new output, so it supports earnings without necessarily growing them. Together these projects mean capital spending will stay high, which will limit free cash flow even when earnings are encouraging.

Sector and competitive position

BlueScope is a global flat-steel and coated products business with positions in Australia, North America and Asia. Its North American earnings benefit from US pricing of steel, and its Australian business competes with imports and faces energy and raw material costs.

Outlook and what to monitor

They did provide earnings sensitivities based on an Exchange Rate of US$0.70 to the Australian dollar for the six months ending 31 December 2026.

Risks cited in the forward-looking statements include economic and geopolitical conditions, Commodity prices, exchange rates, demand, competition, regulation, climate impacts, access to energy, raw materials, finance and carbon markets, and operational and project performance. Specific items to monitor are US steel spreads at North Star, Port Kembla reline execution, the pace of cost and capital spending, the Asian syndicated Loan established in July 2026, and the NeoSmelt decision.