The BlueScope Steel Ltd (ASX: BSL) share price was in focus on Thursday after the company posted a 4% lift in sales revenue to $8,224 million and a 118% jump in reported net profit after tax (NPAT) to $390.8 million for the six months ended 31 December 2025.
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What did BlueScope Steel report?
- Sales revenue rose 4% to $8,224 million (1H FY2025: $7,914 million), mainly driven by higher benchmark prices and volumes in the US.
- Reported NPAT increased 118% to $390.8 million; underlying NPAT up 117% to $382.0 million.
- Underlying EBIT lifted 81% to $557.5 million; underlying EBITDA up 39% to $915.3 million.
- Reported earnings per share rose 119% to 89.1 cents.
- The interim ordinary dividend declared at 65.0 cents per share (unfranked), up from 30.0 cents last year.
- Net debt reduced to $2.2 million compared to $28.4 million at 30 June 2025; group gearing effectively nil.
What else do investors need to know?
BlueScope confirmed several significant developments post-period. In January, the board announced an unfranked special dividend of $1.00 per share, returning $438 million of surplus cash to shareholders. The company also outlined a buy-back program of up to $310 million and raised its annual target ordinary dividend to $1.30 per share for calendar 2026.
Additionally, BlueScope's board rejected an unsolicited $30 per share takeover offer from an Australian-US consortium, citing significant undervaluation. Tania Archibald took on the role of Managing Director and CEO in February 2026, signalling a focus on accelerating value delivery.
What's next for BlueScope Steel?
BlueScope expects underlying EBIT for the second half of FY2026 to be in a range of $620–700 million, reflecting forecast higher steel spreads in North America but softer conditions in Australia and Asia. Major growth projects like North Star's capacity expansion and the New Zealand electric arc furnace are progressing, aimed at boosting efficiency and supporting decarbonisation goals.
The company's new capital management policy targets the distribution of at least 75% of free cash flow to shareholders. Management will remain focused on unlocking further operational savings and land value realisation, while progressing low-emissions steelmaking initiatives.
BlueScope Steel share price snapshot
Over the past 12 months, BlueScope Steel shares have risen 15%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
