BlueScope Reports 4% Revenue Growth and $557.5M Underlying EBIT in 1H FY2026

Strong Financial Performance Amid Strategic Progress

BlueScope Steel Limited has delivered a commanding financial performance for the six months ended 31 December 2025, with sales revenue climbing 4% to $8.224 billion and underlying earnings before interest and tax (EBIT) soaring 81% to $557.5 million. The company’s underlying net profit after tax (NPAT) more than doubled, rising 117% to $382 million, underscoring the strength of its operational execution and market positioning.

The uplift was driven primarily by stronger steel spreads in the US, higher volumes, cost efficiencies, and favourable foreign exchange movements. Despite ongoing cost pressures, including labour and energy, BlueScope’s disciplined cost management and productivity initiatives delivered a $190 million net annualised earnings improvement in FY2026 to date.

Capital Projects and Sustainability Initiatives Near Completion

BlueScope’s major capital projects are progressing well, setting the stage for sustained growth and operational resilience. Key developments include the North Star debottlenecking project in Ohio, which is unlocking an additional 300,000 tonnes per annum of capacity, and the Western Sydney metal coating line expansion to support premium product volumes.

In New Zealand, the commissioning of an electric arc furnace (EAF) marks a significant step towards decarbonising steelmaking, while the NeoSmelt joint venture feasibility study continues to explore innovative low-emission ironmaking technologies. These initiatives align with BlueScope’s commitment to sustainability and its 2050 net zero emissions goal.

Shareholder Returns Rebased and Takeover Bid Rejected

Reflecting improved cash flow and earnings resilience, BlueScope announced a rebased shareholder return plan targeting $3.00 per share in calendar year 2026. This includes a $1.00 special dividend already declared, a $1.30 target annual ordinary dividend starting with a 65 cents per share interim dividend, and a $310 million on-market share buy-back program.

In a notable corporate development, BlueScope’s board unanimously rejected a $30 per share takeover proposal from a consortium comprising SGH Limited and Steel Dynamics, Inc., deeming the offer significantly undervalued. This follows the company’s prior rejection of three unsolicited approaches over the past two years.

Leadership Transition and Outlook

New Managing Director and CEO Tania Archibald commenced in February 2026, bringing a clear agenda to accelerate value delivery. Under her leadership, BlueScope aims to capitalise on its high-quality asset base and operational improvements to drive growth through FY2026 and beyond.

Looking ahead, BlueScope expects underlying EBIT in the second half of FY2026 to range between $620 million and $700 million. Regional performance is anticipated to be mixed, with North America poised for a 15% increase, Australia facing softer spreads, and Asia experiencing seasonal and market headwinds.

Safety and Sustainability Remain Priorities

BlueScope reported a total recordable injury frequency rate of 8.2 per million hours worked, a slight improvement from the prior year, though a fatal incident at the Port Kembla blast furnace project remains under investigation. The company continues to invest in safety initiatives and sustainability programs, including responsible sourcing and human rights monitoring across its global supply chain.