BlueScope posts 118 percent increase in net profit

Australia-based steel company BlueScope has reported underlying earnings before interest and taxes of AU$557.5 million ($394.4 million) for the first half of its 2026 fiscal year, while net profit after tax (NPAT) was AU$391 million ($276.6 million), a 118 percent increase compared with the first half of its 2025 fiscal year.

Regional results

BlueScope’s North American operations delivered a significantly stronger result in the recently completed half compared with the first half of 2025, predominantly on materially stronger realized spreads, the company says. Underlying EBIT of AU$447 million ($316.3 million) was 35 percent higher than a year ago, as well.

The company’s electric arc furnace (EAF) steel mill, North Star BlueScope, based in Delta, Ohio, operated at 100 percent of available capacity, achieving a daily production record during the half.

Its Buildings and Coated Products (BCP) North America business segment delivered a similar result to the second half of its 2025 fiscal year with a stronger contribution from BlueScope Buildings, which experienced higher volumes.

While still softer than in the second half of fiscal 2024, BlueScope Coated Products’ performance improved in the half as turnaround efforts continued, the company says, adding that BCP remains a key platform for growth in North America, with a compelling strategic rationale and the long-term value of its assets.

The performance of Steelscape, the West Coast-based manufacturer of coated and painted metal for the construction industry, contracted in the first half of fiscal 2026 on softer volumes as tariffs negatively affected steel feed costs and market demand, according to the company.

The BlueScope Properties Group completed the sale of one project as the wind-down of the business progressed, enabling BlueScope to release AU$200 million ($141.5 million) in working capital over its 2025 and 2026 fiscal years.

Its Australian operations delivered underlying EBIT of AU$122 million ($86.3 million), 7 percent lower than in the second half of fiscal year 2025. The company notes softer realized spreads on lower domestic and export pricing as benchmark Asian steel spreads remained depressed in the half.

Domestic sales increased, with Colorbond steel sales remaining robust at 322,000 metric tons in the half, BlueScope says.

In Asia, the company delivered underlying EBIT of AU$97 million ($68.6 million), which was 39 percent higher year over year, driven by improved earnings across Southeast Asia, with typical seasonality driving performance in China.

BlueScope benefitted from improved cost and revenue performance, combined with higher premium volumes across Southeast Asia, while performance in China was stronger than the prior half on typical seasonality. However, performance was softer than the prior corresponding period given softer economic conditions in China.

India delivered a slightly improved performance in the half, with the company’s sale of its 50 percent interest in Tata BlueScope Steel to Tata Steel Ltd. of Mumbai, India, delivering AU$57 million ($40.3 million) net in pre-ax gains.

BlueScope’s operations in New Zealand and the Pacific Islands delivered an underlying loss before interest and tax of AU$18 million ($12.7 million), an 11 percent improvement compared with the second half of 2025. Its recent performance was affected by the EAF transition at New Zealand Steel’s Glenbrook steelworks, including increased raw material consumption arising from an inventory build to cover the commissioning time frame.

Domestic sales remained stable in the first half as macroeconomic conditions and construction activity remained soft, with support from robust levels of value-added product sales, including Colorsteel.

CEO’s comments

Managing Director and CEO Tania Archibald says the company’s first half results demonstrate “the strength and diversity of our portfolio during a period of sustained low Asian steel spreads.”

She adds, “In the half, all major projects have progressed towards completion, including the EAF at New Zealand Steel, the new metal coating line in western Sydney, the No.6 blast furnace reline and plate mill upgrade at Port Kembla, the North Star debottlenecking project, all of which underpin BlueScope's operational resilience and growth.”

BlueScope’s portfolio simplification, which involved the sale of its interest in Tata BlueScope Steel and the acceleration of its surplus land value realization, has provided a platform for increased shareholder returns, Archibald says, noting the AU$1 per share special dividend announced in January.

"As I noted in my address when I stepped into the CEO role two weeks ago, BlueScope is approaching an inflection point,” she says, adding that the company’s AU$2 billion ($1.42 billion) investment program is entering the final phase, positioning BlueScope to deliver materially stronger cash flows.

"The 2026 calendar year will see BlueScope take important steps to accelerate value delivery. This includes:

• Focusing on the execution of existing cost and productivity, and growth initiatives;
• Delivering a simpler, leaner, more agile BlueScope;
• Accelerating land value realisation; and
• Putting our balance sheet to work and rebasing shareholder returns higher.

"These initiatives are consistent with our intent to optimize value for shareholders, and we will continue to regularly assess all options to accelerate realization of this value.”

Second-half outlook

BlueScope says it expects underlying EBIT in the second half of fiscal 2026 to be in the range of AU$620-AU$700 million. ($438.7-$495.3 million), driven by stronger U.S. steel spreads and improved sales volumes, offsetting impacts from softer Asian spreads and higher foreign exchange rates.