The BlueScope Steel Ltd (ASX: BSL) share price is in focus today after the steelmaker confirmed at its AGM that 1H FY2026 underlying EBIT is now expected at the bottom end of its previously announced $550 million to $620 million range. Australian construction is showing improvement, while North American operations are set for stronger earnings growth.
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What did BlueScope report?
- Underlying EBIT for 1H FY2026 expected at the lower end of $550–$620 million guidance
- Australian Steel Products to post a moderately better 1H FY2026 result versus 2H FY2025
- North American EBIT to be about one-third higher than 2H FY2025; North Star up nearly 50%
- Coated Products Asia tracking slightly above 2H FY2025, with India maintaining steady profits
- Partial gain from West Dapto land sale and one-off GST credit in Australia
- New Zealand and Pacific Islands segment expected roughly flat compared to the previous half
What else do investors need to know?
BlueScope continues to navigate mixed macro conditions. While domestic demand in Australia is recovering, cost escalation and softer pricing are weighing on exports and profitability. The improvement in the US comes as North Star benefits from higher realised spreads, despite recent benchmark softness.
In Asia, the company is seeing resilience in Southeast Asia and seasonal gains in China, while the planned sale of its 50% stake in the Tata BlueScope Steel joint venture is still expected to finalise in the second half of FY2026. The EAF project in New Zealand is on track, aiming to lift future performance despite short-term challenges.
What did BlueScope management say?
BlueScope Managing Director and CEO Mark Vassella said:
While macroeconomic conditions remain mixed, there are positive signs in Australian construction markets and spreads have improved in the US. Our focus remains on the levers we control – cost, capital and capability – while positioning the business for longer-term growth. These actions demonstrate BlueScope's ability to deliver today while building for tomorrow. Supported by a robust balance sheet, a resilient business model and the commitment of our 16,500-strong team, we are confident in our future.
What's next for BlueScope?
Looking ahead, BlueScope is prioritising near-term cost and productivity improvements, while advancing strategic initiatives to deliver an added $500 million in annual earnings by 2030. The business is also unlocking value from its significant surplus land holdings.
Management remains confident in BlueScope's resilience, citing opportunities to further enhance earnings through ongoing investments and operational improvements across its global network.
BlueScope share price snapshot
Over the past 12 months, BlueScope shares have listed 5%, running slightly ahead of the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
