BlueScope Steel (ASX: BSL) – FY2026 Results Supplementary Materials Appendix

BlueScope Steel delivered a substantially stronger FY2026 financial result, with underlying EBITDA surging 35% to $1,966.3 million from $1,452.1 million the prior year, while underlying net profit after tax nearly doubled to $851.2 million from $420.8 million. The improvement was predominantly driven by North Star BlueScope Steel’s exceptional performance, where a net spread increase of $605 million offset weaker contributions from the company’s other segments, particularly its Australian Steel Products division where spreads contracted significantly.

The company’s return on invested capital expanded to 10.7% from 6.2%, reflecting improved capital productivity across the cycle. North America steelmaking benefited from strong US domestic demand, a resilient labour market, and favourable commodity dynamics, with the segment generating underlying EBITDA of $942.5 million for the year. By contrast, Australian Steel Products faced headwinds from compressed spreads and lower export pricing, producing underlying EBITDA of $728.9 million despite broadly stable domestic construction activity. Buildings and Coated Products North America faced margin pressure from pricing dynamics, while Coated Products Asia and the New Zealand and Pacific Islands segments both experienced spread contraction reflecting softer Asian market conditions and export price weakness.

The company is committing substantial capital to infrastructure modernisation and emissions reduction. BlueScope outlined approximately $2.5 billion in total capital spending, with major projects including a No.6 Blast Furnace Reline at Port Kembla that is 58% complete, a Western Sydney metal coating line addition that is 81% complete, and an electric arc furnace at NZ Steel to halve site emissions. The company achieved a 16% reduction in steelmaking emissions intensity since FY2018, progressing toward its 2030 and 2050 targets. These investments position BlueScope for future growth and improved environmental performance, though execution risk and capital requirements remain material considerations.

BlueScope returned significant capital to shareholders through an interim dividend of 30.0 cents per share, a final dividend of 65.0 cents per share, and a special dividend of 170.0 cents per share, reflecting the strength of underlying earnings and cash generation. Net operating cash flow reached $1,725.6 million, supporting both the capital program and shareholder distributions. The company maintained a prudent debt maturity profile with committed facilities of $2,840 million, providing financial flexibility for the capital investment program ahead.

Looking forward, the sustainability of North Star’s earnings momentum in a potentially softening US manufacturing environment warrants attention, as does the trajectory of spreads in Australian and Asian markets given the compressed margin environment reflected in these results. Investors should monitor the impact of the company’s major capital projects on both supply and margin dynamics, particularly the Western Sydney coating line expansion and North Star debottlenecking opportunities.

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About BlueScope Steel Limited (ASX: BSL)

BlueScope Steel Limited is an Australian flat product steel manufacturer producing painted and coated steel products for construction, buildings, automotive applications, and other industries. The company operates across North America, Australia, New Zealand, the Pacific Islands, and Asia, serving thousands of customers globally. With approximately 14,000 employees and operations spanning multiple countries, BlueScope is a leading manufacturer of steel materials and systems.

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