BlueScope Steel earnings: FY2025 profit drops, outlook steady

BlueScope Steel's FY25 profit fell as conditions softened, but the business remains confident heading into FY26.

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The BlueScope Steel Ltd (ASX: BSL) share price is in focus today after the company reported FY2025 underlying EBIT of $738 million and a net profit after tax of $83.8 million, both well down on last year as market conditions remained challenging.

a female steel worker wearing a high visibility vest with her protective helmet tucked under her arm smiles as she carries a clipboard in a large warehouse of steel products.

Image source: Getty Images

What did BlueScope Steel report?

  • Underlying EBIT: $738 million, down $601 million from FY2024
  • Net profit after tax (NPAT): $83.8 million, down $721.9 million year-on-year
  • Underlying NPAT: $421 million
  • Final dividend: 30 cents per share, 50% franked
  • Operating cash flow: $180 million
  • Up to $240 million buy-back extension approved

What else happened in FY2025?

BlueScope faced softer profitability across all regions, with results impacted by lower steel spreads, higher costs, and delayed improvement in acquisitions. The North American business saw a $438.9 million impairment against BlueScope Coated Products due to slower-than-expected progress.

Australian operations delivered higher volumes in a strengthening construction market, while demand remained subdued for New Zealand and Pacific Islands. The company continued progress on sustainability with its second Climate Action Report and significant safety and inclusion initiatives.

What did BlueScope Steel management say?

Commenting on the result, BlueScope Managing Director and CEO Mark Vassella said:

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… We are delivering results today while building for tomorrow.

What's next for BlueScope Steel?

Looking ahead, BlueScope is aiming for further cost and productivity improvements in FY2026, targeting $200 million in net improvements compared to FY2024. The company remains focused on growing annual earnings and realising value from landholdings while investing in decarbonisation projects.

Management expects underlying EBIT for the first half of FY2026 between $550 million and $620 million, pointing to signs of recovery in Australian construction and improving conditions in the US.

BlueScope Steel share price snapshot

Over the past year, the BlueScope Steel share price has outperformed the S&P/ASX 200 Index (ASX: XJO), rising 22% compared to 12% for the ASX 200 Index.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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