BlueScope annual profit more than doubles on US steel strength
BlueScope's annual profit more than doubled, beating estimates, driven by strong US steel spreads and Southeast Asian momentum.
Australia's largest steelmaker, BlueScope, has reported a more than doubling of its annual underlying net profit, reaching A$851.2 million. This result, for the year ended June 30, surpassed the Visible Alpha consensus estimate of A$844.7 million and compares with A$420.8 million in the prior year.
The company attributed the strong performance to higher steel spreads in the United States and improved results from its Southeast Asian operations. While conditions remain mixed, BlueScope noted continued strength in North America, a recovery underway in Australia, and strong momentum across Southeast Asia. The company also flagged that Chinese overcapacity continues to weigh on Asian spreads.
Looking ahead, BlueScope expects underlying earnings before interest and taxes for the first half of 2027 to be in the range of A$860 million to A$960 million. This guidance is ahead of the Visible Alpha consensus estimate of A$819.5 million, a positive signal that analysts at Jefferies noted reflects ongoing cost discipline and the realisation of better US spreads.
In a move to reward shareholders, the company declared a final ordinary dividend of 65 Australian cents per share and a special dividend of 70 Australian cents per share. This brings total capital returns for the 2026 financial year to A$3 per share. BlueScope also announced plans to return a further A$3 per share to shareholders in the 2027 financial year.