The BlueScope Steel Ltd (ASX: BSL) share price is down around 2% after the company reported its FY26 half-year result.
BlueScope is a large steel manufacturer in both Australia and the US.
BlueScope FY26 half-year result
Here are some of the main numbers from the first six months of FY26:
- Sales revenue from continuing operations grew 4% to $8.22 billion
- Underlying EBITDA (EBITDA explained) grew 39% to $915.3 million
- Underlying EBIT jumped 81% to $557.5 million
- Underlying net profit rose 117% to $382 million
- Statutory net profit surged 118% to $390.8 million
- Interim dividend per share hiked by 117% to $0.65
What happened with this result?
Management said that it delivered its growth on stronger US spreads, higher volumes across key markets and solid cost performance.
In Australia, it delivered underlying EBIT of $122 million, 7% lower than the second half of FY25. There were softer realised spreads on lower domestic and export pricing, with benchmark Asian steel spreads remained depressed during the half.
Australian domestic despatches increased, with Colorbond steel sales remaining “robust” at 322kt in the half. Cost escalation was offset by improvement initiatives.
The North American division saw underlying EBIT of $447 million, up 35% compared to the second half of FY25. North Star delivered a “significantly stronger result”, predominantly on materially stronger spreads. It operated at 100% of utilisation of available capacity and achieved a new daily production.
North American building and coated products North America delivered a “similar result” as the second half of FY25. BlueScope coated products improved during the half.
In Asia, underlying EBIT jumped 39% to $97 million, with an improved cost and revenue performance, combined with higher premium volumes across the region. Performance in China was stronger than typical seasonality. India saw a slightly improved performance.
New Zealand and Pacific Islands suffered an underlying loss before interest and tax of $18 million, an 11% improvement on the second half of FY25.
Outlook for the BlueScope Steel share price
The company said it expects underlying EBIT in the second half of FY26 to be in the range of between $620 million to $700 million.
This guidance is an improvement on the FY26 first half, driven by stronger US steel spreads and improved sales volumes, offsetting impacts from softer Asian spreads and higher foreign exchange rates.
The business is performing well in the face of the takeover approach and it’s delivering significant cash payments to shareholders.
I’m not sure if the business is a good buy today considering it has jumped significantly in recent times after the takeover bid. I think there are other ASX growth shares that could be much better buys.
