BlueScope Steel has raised its 1H FY2027 underlying EBIT guidance to approaching $1.1 billion, well above its previous $860 million to $960 million range. Stronger US steel spreads are driving the upgrade, with Australian demand also exceeding expectations.
- 1H FY2027 underlying EBIT upgraded to approaching $1.1 billion
- North America expected to deliver around two-thirds more than 2H FY2026
- Australian Steel Products earnings expected to approach double 2H FY2026
- Stronger US steel spreads and resilient domestic demand drive the upgrade
- Further operating detail due at the 16 November AGM
US steel spreads push BlueScope towards $1.1 billion EBIT
BlueScope Steel Limited (ASX:BSL) has lifted its 1H FY2027 underlying EBIT guidance to approaching $1.1 billion, moving decisively above its previous range of $860 million to $960 million. The upgrade points to a stronger-than-expected first half across the company’s key North American and Australian operations.
North Star is the main engine of the improvement, with stronger US steel spreads lifting earnings beyond BlueScope’s earlier expectations. The company also cited better performance from Buildings and Coated Products North America, alongside an improved contribution from Australian Steel Products.
North American earnings set for a sharp half-on-half rise
BlueScope expects its North America region to deliver a result around two-thirds higher than in 2H FY2026. Management said conditions across the US steel industry and its key North American end-use markets remain favourable, while describing the region as well positioned to benefit from industrial investment and economic growth.
The update builds on the company’s strong FY2026 earnings result, which was underpinned by strong US spreads and higher value-added steel products. The latest guidance does not provide a precise segment EBIT figure, so the scale of the North American contribution will only become clearer when BlueScope reports its half-year result.
Australian Steel Products approaches a doubling
Australian Steel Products is now expected to deliver earnings approaching double its 2H FY2026 result. BlueScope attributed the stronger performance to resilient domestic demand and higher value-added sales, rather than providing detailed volume, pricing or margin figures.
Earnings across the remaining businesses are broadly in line with the expectations contained in the company’s August guidance update. The upgrade therefore appears concentrated in the North American operations and Australian Steel Products, although the company cautioned that market conditions remain dynamic.
AGM to provide the next operating detail
Managing director and chief executive Tania Archibald said the first-half performance reinforced management’s confidence in the portfolio, its assets and its ability to deliver shareholder returns. That is a positive assessment, but the announcement stops short of offering a precise earnings target or detailed assumptions for spreads and demand.
BlueScope’s 2026 annual general meeting on 16 November is the next scheduled point for more detail on operating conditions. The key question will be how much of the upgraded outlook reflects sustained US steel spreads and demand, rather than a particularly strong period in the first half.
Bottom Line?
The guidance upgrade is substantial, but its durability will depend on US steel spreads and North American demand holding up through the rest of FY2027.
Questions in the middle?
- How much of the North American earnings uplift is being driven by steel spreads rather than underlying demand or volume growth?
- Can Australian Steel Products sustain earnings near double its 2H FY2026 level?
- Will the 16 November AGM provide a more precise EBIT outlook and clearer assumptions for the second half?