Highlights:

• Underlying EBIT reached AU$1.27 billion, while reported NPAT climbed 857% year-on-year to AU$802 million.
• BlueScope completed its AU$200 million cost and productivity program and expects at least AU$150 million in further benefits in FY2027.
• The company is targeting AU$3.00 per share in total shareholder returns for the 2027 calendar year.

BlueScope Steel Limited (ASX: BSL) delivered a strong FY2026 financial performance, supported by robust North American earnings, record Southeast Asian results and disciplined cost management. The company announced its results on 17 August 2026, reporting underlying EBIT of AU$1.273 billion and net profit after tax of AU$802 million, representing an 857% increase compared with FY2025.

North America Drives Earnings Growth

North America emerged as BlueScope's largest earnings contributor, delivering underlying EBIT of AU$1.034 billion, up 101% from the previous financial year. Stronger steel spreads and continued full utilisation at North Star supported the result. Meanwhile, the Asia segment generated underlying EBIT of AU$177 million, up 28% year-on-year. Southeast Asia recorded its strongest full-year EBIT performance, while China's contribution remained constrained by weak domestic demand and challenging market conditions. Australia delivered underlying EBIT of AU$188 million, down 28% from FY2025, although stronger domestic volumes and record sales of COLORBOND® and TRUECORE® steel provided support.

Investment Program Moves Towards Delivery

BlueScope said its AU$2.5 billion investment program is approaching its final phase, with capital expenditure expected to decline as major projects move into commissioning and ramp-up. BlueScope’s New Zealand Electric Arc Furnace and Western Sydney Metal Coating Line are progressing from construction into the commissioning and ramp-up stages. The company also completed its initial AU$200 million cost and productivity program and expects its revised operating model to generate at least AU$150 million in additional net benefits during FY2027.

Higher Returns for Shareholders

BlueScope significantly increased its shareholder return ambitions, declaring a 65 cents per share final ordinary dividend and a 70 cents per share special dividend for FY2026.The company said these payments would complete its plan to deliver AU$3.00 per share in shareholder returns during calendar year 2026. It also plans to target another AU$3.00 per share, or approximately AU$1.3 billion, in shareholder returns during calendar year 2027.

FY2027 Outlook Remains Positive

Looking ahead, BlueScope expects underlying EBIT for the first half of FY2027 to range between AU$860 million and AU$960 million, although market, foreign exchange and steel spread conditions remain key variables.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.