Bisalloy Steel Group Limited reported a 24.4% rise in profit after tax to $19.6 million for FY25, driven by strong Armour & Protection steel sales and international growth. The company declared a 16.5 cents per share fully franked final dividend, up 43.5% from last year, while advancing key growth initiatives in Asia and sensor technology.
- 24.4% increase in profit after tax to $19.6 million
- Final dividend raised 43.5% to 16.5 cents per share, fully franked
- Decline in Western Australia offset by defence and gold sector demand
- International subsidiaries and Chinese joint venture contribute positively
- Strategic focus on Armour & Protection steel and OptiWear sensor commercialisation
Strong Financial Performance Despite Regional Challenges
Bisalloy Steel Group Limited (ASX, BIS) has delivered a robust financial performance for the year ended 30 June 2025, with profit after tax attributable to members rising 24.4% to $19.6 million. This growth was achieved despite a decline in Australian production and sales, primarily due to reduced demand in Western Australia following BHP’s nickel operations suspension and subdued global iron ore markets.
Offsetting these headwinds, the company benefited from higher gold prices and increased demand for Armour & Protection steel, particularly linked to defence-related projects. The AUKUS Hull Steel qualification contract notably contributed to the uplift, reflecting the company’s growing footprint in strategic defence sectors.
Dividend Boost Reflects Confidence and Shareholder Commitment
In recognition of its strong results, the Board declared a fully franked final dividend of 16.5 cents per share, marking a 43.5% increase over the prior year’s final dividend. This follows an 8.0 cents interim dividend paid earlier in the year. The dividend reinvestment plan remains suspended, underscoring the company’s focus on delivering direct cash returns to shareholders.
International Growth and Joint Venture Success
Bisalloy’s international subsidiaries in Indonesia and Thailand continued to operate profitably, contributing positively to the Group’s overall results. The company’s 50% stake in the Chinese joint venture (Bisalloy Shangang (Shandong) Steel Plate Co. Limited) generated a profit after tax contribution of $2.8 million, despite challenging domestic market conditions in China. Enhanced collaboration and strategic alignment with the joint venture management have positioned the Group well for further expansion in China and Southeast Asia.
Strategic Initiatives Driving Future Growth
Looking ahead, Bisalloy is focused on three core growth pillars, expanding its presence in China and Southeast Asia through the joint venture, scaling its Armour & Protection steel segment globally, and commercialising its innovative OptiWear sensor technology. The latter, designed to create “smarter steel” applications, has shown promising trial results and is expected to be profit-generating within two years.
The company also maintains a strong balance sheet with net cash of $4.0 million and zero gearing, supported by robust operating cash flows and disciplined capital management. Safety remains a top priority, with significant improvements in safety metrics and a commitment to zero harm across all operations.
Sustainability and Risk Management
Bisalloy continues to advance its environmental agenda, targeting carbon neutrality by 2030 through initiatives focused on reducing its environmental footprint. The Board actively manages risks related to market volatility, regulatory compliance, and operational safety, ensuring the Group’s resilience in a complex global environment.
Bottom Line?
Bisalloy’s FY25 results set a strong foundation, but market uncertainties and execution of growth initiatives will be key to watch in FY26.
Questions in the middle?
- How will Bisalloy navigate ongoing softness in Western Australian demand?
- What is the commercialisation timeline and market potential for the OptiWear sensor technology?
- How might geopolitical tensions influence global demand for Armour & Protection steel?