Key highlights

  • BlueScope reported FY2026 underlying EBIT of $1,273.4 million and NPAT of $802.0 million on 17 August 2026.
  • Final dividends of 65 cents and 70 cents per share, together $1.35 per share, are due to be paid in 1H FY2027.
  • The company expects 1H FY2027 underlying EBIT of $860 million to $960 million, subject to spreads, foreign exchange and market conditions.

BlueScope Steel Limited (ASX:BSL) reported its results for FY2026 on 17 August 2026. The release covered reported and underlying earnings, progress on a large Investment program, cost reductions and a revised Capital management framework, together with guidance for the first half of FY2027.

About BlueScope

BlueScope is a steel manufacturer with operations in Australia, New Zealand, North America and Southeast Asia. Its brands include COLORBOND and TRUECORE steel in Australia, and it holds a land portfolio of about 1,200 hectares.

FY2026 earnings

Reported net profit after tax was $802.0 million, an increase of 857% on FY2025. Underlying NPAT was $851.2 million and underlying EBIT was $1,273.4 million, with underlying EBIT return on invested capital of 10.7%. The company said underlying EBIT was materially higher than in FY2025, helped by higher US spreads, a record result in Southeast Asia and record despatches of COLORBOND and TRUECORE steel in Australia.

Despatches of COLORBOND steel were 654 kilotonnes and TRUECORE steel 155 kilotonnes in FY2026. The release noted that Asian steel spreads remained low, linked to record Chinese steel exports. Underlying figures exclude items including restructuring and redundancy costs of $79.8 million and Business development costs of $27.4 million, and include adjustments for gains on the sale of a joint venture interest of $57.0 million.

Investment program and cost reduction

The company said its $2.5 billion investment program is moving into its final phase. Its New Zealand electric arc furnace and the Western Sydney metal coating line are moving from construction into commissioning and ramp-up, while work continues on the North Star debottlenecking, the Port Kembla plate mill upgrade and the No. 6 blast furnace reline.

A $200 million cost and productivity program was fully delivered by the end of FY2026, and a reset of the operating model is expected to deliver a net benefit of at least $150 million in FY2027. The company also completed the sale of a 33-hectare portion of the West Dapto site.

Capital management and outlook

BlueScope raised its net Debt target to up to $1.5 billion and lifted its distribution target to at least 75% of free cash flow. It declared a 65 cent final ordinary Dividend and a 70 cent final dividend, completing a plan to return $3 per share in calendar 2026. A plan to deliver a total of $3 per share in Shareholder returns in FY2027 was also announced.

For 1H FY2027, the company expects underlying EBIT of $860 million to $960 million. The release described conditions as mixed, with continued strength in North America, a recovery under way in Australia and momentum in Southeast Asia, while Chinese overcapacity continues to weigh on Asian spreads. FY2027 is described as a transition year for one energy contract, with the next phase starting in December 2026.

Risks to consider

Steel spreads, foreign exchange rates and market conditions can move earnings, and the guidance is explicitly subject to them. Asian spreads remain low because of Chinese overcapacity.

The investment program still needs to be commissioned and ramped up, and delays or cost overruns could affect timing. The shareholder return targets depend on free Cash Flow and a higher net debt limit. The release also noted a CEO transition earlier in 2026 and responses to unsolicited Acquisition proposals, both of which are part of the year’s context.

Catalysts to watch

Items to watch include the 1H FY2027 underlying EBIT range of $860 million to $960 million, ramp-up of the New Zealand electric arc furnace and the Western Sydney coating line, the October payment of the final dividends, progress on at least $150 million of additional cost benefits, and land transactions across the 1,200 hectare portfolio.