BlueScope reports lower half-year profit amid challenging steel market

BlueScope reported a net profit after tax of $179.1 million for the first half of FY2025, representing a $260.2 million decrease from the same period last year, according to a statement released on Monday.

The Australian steel manufacturer delivered an underlying EBIT of $308.8 million, with Managing Director and CEO Mark Vassella describing it as a “profitable result despite the depressed spread environment.”

“While an 8.1 per cent return on invested capital is not at the level we would like to see, it is a solid result in this climate of soft steel spreads in Asia and the US and soft demand conditions for our operations outside the US,” Vassella said.

The company maintained a robust balance sheet with $88 million net cash, despite operating cash flow showing a $21 million outflow for the half. BlueScope announced a fully franked interim dividend of 30 cents per share and approved an extension of its buy-back programme of up to $240 million over the next 12 months.

Looking ahead, BlueScope expects underlying EBIT for the second half of FY2025 to improve to between $360 million and $430 million, driven by better spread outlook in the US, stronger domestic volumes in Australia, and benefits from the group-wide cost and productivity programme.

“BlueScope continues to progress a range of initiatives and investments to both secure and grow its sustainable earnings,” Vassella said, highlighting the company’s ongoing focus on higher margin value-added products.

Picture: credit BlueScope Steel’s Instagram