BlueScope FY26 Underlying EBIT $1.27bn, Reported NPAT $802m

BlueScope (ASX:BSL) Steel reported FY2026 reported net profit after tax of $802.0 million, which the company said was an 857 per cent increase on FY2025, a comparison the release does not otherwise quantify, and underlying NPAT of $851.2 million. Underlying EBIT was $1,273.4 million at an underlying EBIT return on invested capital of 10.7%. Underlying results exclude, on a pre-tax basis, restructuring and redundancy costs of $79.8 million, business development costs of $27.4 million, earnings from a business to be discontinued of $18.5 million, costs relating to climate related investments of $7.4 million and operating disruptions of $0.2 million, together with a $57.0 million gain on the sale of a joint venture interest and a $4.4 million gain on discontinued operations. Managing Director and Chief Executive Tania Archibald said underlying EBIT was materially higher than FY2025 on stronger US spreads, record Southeast Asia performance, solid cost performance and record despatches of COLORBOND and TRUECORE steel in Australia, despite sustained low Asian steel spreads off the back of record Chinese steel exports. BlueScope said its initial $200 million cost and productivity program was fully delivered at the end of FY2026 and that a reset of its functional operating model is expected to deliver a net benefit of at least $150 million in FY2027.

By segment, North America delivered underlying EBIT of $1,034 million, 101 per cent higher than FY2025, with North Star contributing $805 million and Buildings and Coated Products North America $230 million. Asia delivered $177 million, 28 per cent higher, including a record Southeast Asia full year EBIT of $157 million and a $16 million contribution from China; BlueScope sold its 50 per cent interest in Tata BlueScope Steel to Tata Steel on 31 December 2025 and the business made no contribution in the second half. Australia delivered $188 million, 28 per cent lower than FY2025, with 2H FY2026 underlying EBIT of $66 million, 45 per cent lower than 1H FY2026; BlueScope attributed the softer second half to sustained low Asian steel spreads, partly offset by stronger volumes, and separately noted the non-repeat of a one-off retrospective GST credit of $22 million booked in 1H FY2026. New Zealand and Pacific Islands recorded underlying EBIT of negative $1 million, which the release describes as 92 per cent higher than FY2025. The Board declared an unfranked final ordinary dividend of 65 cents per share and an unfranked special dividend of 70 cents per share, together $1.35 per share payable in 1H FY2027; the special dividend reflects the conversion of a previously announced $310 million buy-back program that the company was unable to transact during 2H FY2026. On payment in October this completes a plan to deliver $3.00 per share of shareholder returns across the 2026 calendar year, and BlueScope said it plans to again deliver $3.00 per share, approximately $1.3 billion, during the 2027 calendar year through a $1.30 per share annual ordinary dividend and $1.70 per share via a combination of on-market buy-backs, special dividends or other methods, subject to the Board's determination at the relevant time. The company lifted its net debt target to up to $1.5 billion, with the ability to move above that level when needed, and its distribution target to at least 75 per cent of free cash flow, and expects underlying EBIT in 1H FY2027 in the range of $860 million to $960 million, subject to spread, foreign exchange and market conditions.