Bisalloy Warns of Softer FY26 Despite Strong FY25 Profit Gains
Bisalloy Steel Group reported steady revenue but strong profit growth and a significant dividend increase for FY25, while outlining ambitious expansion plans for FY26.
- Revenue steady at $152.8 million for FY25
- Operating EBITDA rose 19.5% to $31.9 million
- Net profit after tax increased 24.8% to $19.6 million
- Final dividend up 43.5% to 16.5 cents per share, fully franked
- Growth strategy focused on China, Southeast Asia, and new Armour & Protection steel segment
Steady Revenue Amid Challenging Conditions
Bisalloy Steel Group has delivered a resilient financial performance for the year ended June 30, 2025, reporting flat revenue of $152.8 million compared to the prior year. This stability masks a complex backdrop, including a decline in Australian production and sales of wear and structural steel, primarily due to reduced demand in Western Australia following BHP’s nickel suspension and softer global iron ore markets.
However, the company’s diversified exposure helped offset these headwinds. Strong activity in the gold sector, increased demand for protection plates, and deliveries linked to the AUKUS defence partnership contributed positively to the Australian business. Notably, Bisalloy’s introduction of a thermo-mechanically controlled process (TMCP) high-strength steel continues to gain traction, signaling ongoing innovation in its product portfolio.
Profit Growth and Dividend Upswing
Despite flat top-line growth, Bisalloy achieved a 19.5% increase in operating EBITDA to $31.9 million and a 24.8% rise in net profit after tax attributable to members, reaching $19.6 million. Earnings per share climbed 23.9% to 40.9 cents, reflecting improved operational efficiency and margin management.
The company rewarded shareholders with a fully franked final dividend of 16.5 cents per share, a substantial 43.5% increase over the previous year. This dividend boost underscores management’s confidence in the company’s financial health and future prospects.
Strategic Growth in Asia and Defence
Bisalloy’s Chinese Joint Venture remains a cornerstone of its growth strategy, delivering year-on-year improvements in sales volume, revenue, and profitability despite ongoing challenges in the Chinese market. Strengthened collaboration with joint venture partners and alignment on strategic priorities have been key to this progress.
Overseas distribution also gained momentum, particularly in Southeast Asia, with Thailand and Indonesia showing improved revenue and profit through favorable product mix and strong local execution. The appointment of a new Sales and Business Development Manager in Singapore aims to further capitalize on regional opportunities.
Looking ahead to FY26, Bisalloy plans to accelerate growth through three main initiatives, expanding its footprint in China and Southeast Asia via the joint venture, growing its Armour & Protection steel segment supported by new business development and internal process improvements, and commercializing its OptiWear digital sensor technology. The company acknowledges that while FY26 results may be softer than FY25, it remains optimistic about delivering solid performance backed by a strong safety culture and disciplined operations.
Bottom Line?
Bisalloy’s FY25 results set a robust foundation, but investors will watch closely how new growth initiatives and market conditions shape FY26 performance.
Questions in the middle?
- How will Bisalloy’s OptiWear digital sensor technology impact future revenue streams?
- What are the risks to growth from ongoing challenges in the Chinese steel market?
- Can the company sustain dividend growth if FY26 results soften as expected?
