The BlueScope Steel Ltd (ASX: BSL) share price is down around 2% after the trading update for the first half of FY26 at its annual general meeting (AGM) today.
BlueScope is a major steel producer with operations in multiple countries including Australia and the USA.
BlueScope HY26 trading update
The company held its annual general meeting today and confirmed its earning guidance for the first half of FY26. However, it expects that underlying earnings before interest and tax (EBIT) to be at the bottom end of the $550 to $620 million guidance range.
Australia
Taking a closer look at the trading update by region, it said that the Australian steel products division is expected to deliver a moderately better first half FY26 result compared to the second half of FY25.
BlueScope noted that it continues to face “cost escalation pressures” and “softer realised pricing in both domestic and export markets” which has been offset by a one-off retrospective GST credit.
The company confirmed that domestic demand in building markets is growing as expected.
North America
For North America the company is now expected to deliver a HY26 result close to a third higher than the second half of FY25.
It said that its North Star operations are expected to deliver a result close to 50% higher than the second half of FY25 and noted that the debottlenecking project is progressing well.
BlueScope expects a result in line with the second half of FY25 for its buildings and coated products division in North America. A softer US steel pricing environment is expected to weaken performance at Steelscape.
Asia
The projected HY26 result for BlueScope’s coated products Asia segment is expected to be slightly higher than the second half of FY25.
BlueScope said that performance in the Southeast Asian business continues to be strong and is seeing improved performance in China due to typical seasonality.
The India business is expected to maintain profit levels for the half year. The company also noted that the sale of 50% of its Tata BlueScope Steel joint venture is expected to be completed in the second half of FY26.
New Zealand and Pacific Islands
BlueScope is expecting a HY26 result in line with the second half of FY25, noting that the operating environment remains challenged with continued cost pressures, operational disruptions and pricing pressures hampering performance.
Its EAF project is on track and the company expects the operating model will improve performance in the current low-cycle environment.
Final thoughts on the BlueScope share price
BlueScope is continuing to experience mixed macroeconomic conditions, with some positive signs in the Australian construction markets and improved spreads in the USA.
The BlueScope share price is down around 2% today, which is around 13% lower than its peak so far for 2025. However, it has also experienced multiple lower points than this through 2025.
The USA tariffs have added complexity to the steel industry in the USA but BlueScope’s North Star is well placed to benefit from local production in the medium-term.
Cyclical businesses can provide decent returns when buying at a low point in the cycle, in my view BlueScope isn’t quite there at the moment. However, there are other ASX growth shares that I have my sights set on.
