BlueScope Steel Limited (ASX:BSL) Reports FY2025 Earnings
Financial Performance
BlueScope Steel Limited reported an underlying EBIT of $738.2 million for FY2025, a decrease of $601.0 million compared to FY2024. Net profit after tax was $83.8 million, which is $721.9 million lower than the previous fiscal year. Operating cash flow stood at $180 million, down due to softer earnings and higher capital expenditure. Despite this, the company maintained a robust balance sheet with a net debt of $28 million.
Shareholder Returns
In FY2025, BlueScope returned $293 million to shareholders through consistent dividends and on-market buybacks. The Board approved a final dividend of 30 cents per share, partially franked, and extended the buy-back program to allow up to $240 million to be repurchased over the next 12 months.
Strategy and Growth
BlueScope outlined its program to achieve earnings growth by 2030. In the near-term, the company aims to deliver a $200 million net improvement in costs by FY2026, having already achieved a $130 million improvement in FY2025. Medium-term initiatives target an additional $500 million in annual earnings by 2030, alongside leveraging its 1,200ha portfolio of landholdings to support growth.
Sustainability Update
The company continued to advance its sustainability goals with the global “Refocus on Safety” program, improving its TRIFR to 8.5. BlueScope also made progress on decarbonisation projects, including the Electric Arc Furnace at New Zealand Steel and the NeoSmelt project in Australia. Additionally, 336 suppliers were assessed through the responsible sourcing program to strengthen supply chain oversight.
Results by Region
– **Australia:** Underlying EBIT was $261.6 million, a 31% decrease. Strong domestic demand supported COLORBOND® and TRUECORE® steel sales, despite lower selling prices and higher electricity costs.
– **North America:** Achieved an underlying EBIT of $514.4 million, down 45%. The BlueScope Coated Products business recorded a $438.9 million impairment.
– **Asia:** Reported an underlying EBIT of $138.8 million, a 13% decline. Southeast Asia showed strength, while China and India faced softer performance.
– **New Zealand and Pacific Islands:** Reported an underlying EBIT of $(16.5) million, a 138% decrease due to reduced domestic demand and higher energy costs.
Executive Comments
Managing Director and CEO Mark Vassella stated, “Whilst a softer performance than last year, this level of profitability in the face of the cyclically soft conditions and global uncertainty during the year represents a resilient result, underpinned by our diversified portfolio of quality assets and multi-domestic strategy. Further, with work underway to reduce cost and grow through-cycle earnings, combined with the expected recovery in macroeconomic conditions in coming years, BlueScope is leveraged to the upside.”
Outlook for 1H FY2026
BlueScope is entering FY2026 with confidence, anticipating underlying EBIT between $550 million and $620 million. The company expects continued recovery in Australian construction and improving spreads in the US, supported by its multi-domestic strategy.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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