The BlueScope Steel Ltd (ASX: BSL) share price is up more than 3% after the company upgraded its HY27 guidance.
BlueScope is a major steel producer with operations in both Australia and the US.
FY27 profit upgrade
The company announced it has updated its HY27 guidance for underlying earnings before interest and tax (EBIT explained).
The ASX share said that it now expects HY27 underlying EBIT “to be approaching” $1.1 billion, which is above the previous guidance range of between $860 million to $960 million. In other words, it’s up to 14.5% better than the highest number of the previous range.
North America
For North America, the region is now expected to deliver a result that’s approximately two-thirds higher than the second half of FY26. There are the North Star operations and the buildings and coated products segment.
Impressively, North Star is expected to deliver a result that’s approximately three-quarters more than the second-half of FY26.
The increase in earnings primarily reflects stronger benchmark steel spreads. The previous guidance was based on an assumption of US mini-mill spreads of approximately US$750 per tonne, with the current view of spreads for the half now expected to be around US$810 per tonne.
The Star operations also benefited from solid operating performance, including delivery of volumes from its debottlenecking project. This is expected to deliver higher-than-anticipated despatch volumes.
The buildings and coated products North America segment is now expected to deliver earnings that’s 50% higher than the FY26 second half.
The increase is predominately driven by a higher stronger performance at the West Coast-based Steelscape business on stronger despatch volumes and higher realised prices compared to the previous guidance.
The buildings North America business is also expected to deliver a modestly stronger result compared to previous expectations because of improved operating margins.
Australia
The ASX share said that the Australian steel products business is now expected to deliver earnings that’s “approaching” double that of the second half of FY26.
The company said that this reflects the resilient demand environment for BlueScope’s products, stronger domestic despatch volumes and realised spread outcomes are expected to more than offset the slightly softer than expected benchmark spread assumptions in the previous guidance.
Other businesses.
The company said that the expected earnings from its remaining businesses are broadly in line with previous expectations.
Management comments
The BlueScope Managing Director and CEO Tania Archibald said:
The increase is primarily driven by stronger than anticipated earnings from North Star on stronger US steel spreads, along with improved performance at Buildings and Coated Products North America and Australian Steel Products.
Conditions across the US steel industry and in our key North American end-use markets remain favourable, and the United States continues to demonstrate why it is such an attractive place to make and sell steel. Our high-quality North American footprint remains well positioned to benefit from ongoing industrial investment and economic growth.
We have also seen a stronger then expected performance from Australian Steel Products, driven by resilient domestic demand and higher value-added sales.
While market conditions remain dynamic, the performance we’ve seen through the first half reinforces our confidence in the strength of BlueScope’s portfolio, the quality of our assets and our continued ability to deliver strong shareholder returns.
Final thoughts on the BlueScope share price
Clearly the business is doing well, particularly in the US. I’m not sure if this is the right time to buy because the market has already responded to the company’s positive update. But, I’d be happy if I were a shareholdre.
However, I’m personally looking at other ASX shares as opportunities.
