Nation’s biggest steelmaker rolls out big profit lift
Australia’s biggest steelmaker has reported a big jump in interim profits, weeks after rejecting a takeover offer.
BlueScope Steel’s net profit in the first half of 2025/26 reached $390.8 million, an increase of 118% compared to $179.1 million in the previous period.
The result was a 4 per cent increase in sales revenue to $8.2 billion, with the group reporting an 81 per cent increase in underlying earnings before interest and tax to $557.5 million.
Announcing its first results on Monday, new CEO Tania Archibald said BlueScope was seeing high volumes in its core markets.
“This result is a clear indication of the strength and diversification of our portfolio at a time when Asian steel spreads are persistently low,” he said in a statement.
“BlueScope is approaching a turning point.
“The current $2 billion investment program is entering its final phase and the company is poised to deliver materially stronger cash flow. As the investment phase decreases, the delivery phase increases.”
BlueScope owns the major Port Kembla steelworks in southern NSW and the North Star operation in the US, which uses scrap to produce hot-rolled steel at low cost and has assets in New Zealand and Asia.
In January the company rejected a $13.2 billion approach from SGH, controlled by the Stokes family, and US Steel Dynamics, at what was then the equivalent of $30 per share.
After BlueScope announced it would return $438 million to shareholders, potential predators later signaled that their offer had dropped to $29 per share.
SGH CEO Ryan Stokes recently said the offer was complete and fair, but he was comfortable moving forward if BlueScope shareholders didn’t see it that way.
BlueScope estimates second-half underlying earnings before interest and taxes will be between $620 million and $700 million; This is an improvement over the first half.
It announced a dividend of 65 cents per share for the six-month period ending December 31.
BlueScope shares closed at $29.16 on Friday.
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