BlueScope Steel Limited, the Australia-based coated sheet and pre-painted building products maker, reported a sharp increase in profitability for the financial year ended June 30, 2026, with its net profit after tax (NPAT) soaring 857% on year to A$802 million ($567.34 million).
The Melbourne-headquartered maker mainly attributed its robust results to significantly stronger steel spreads in the US market, a record performance from its Southeast Asian operations, and higher domestic dispatches in Australia, according to the company's annual report released on August 17.
By segment, BlueScope's Australian Steel Products business posted underlying earnings before interest and tax (EBIT) of A$188 million, down 28% from A$262 million a year earlier, mainly due to lower selling prices, the report said.
In contrast, underlying EBIT from its North American operations increased 101% on year to A$1.03 billion, a result it primarily contributed to the performance of its subsidiary North Star BlueScope Steel (North Star) in the US.
Established in 1996 in Ohio state, North Star has around 3 million tonnes/year of steelmaking capacity and operates three EAFs. Its major products are hot-rolled coil for the automotive, non-residential construction, manufacturing and agricultural segments, Mysteel Global learned.
During BlueScope's FY2026 year, North Star operated at full production, driven by strong local demand from data-center infrastructure projects and the automotive sector, the report stated.
Meanwhile, another BlueScope subsidiary in the US, BlueScope Coated Products (BCP), also realized a turnaround in profits through lower costs and improved inventory management, while the implementation of tariffs and trade measures by US government reduced painted steel imports, the report indicated.
BCP is reportedly the country's second largest metal painting firm, serving the commercial and industrial construction industry with total capacity of around 900,000 t/y across seven facilities (five light gauge and two heavy gauge coil painting lines), Mysteel Global learned.
Besides the healthy result achieved by its North American businesses, the underlying EBIT from BlueScope's Asian operations also increased 28% on year to A$177 million during FY26, supported by a record result for its Southeast Asian operations, the report said.
The Southeast Asia segment delivered an underlying EBIT of A$156.7 million in FY2026, up 38% compared to A$113.2 million in FY2025.
However, the report observed a weaker result in FY2026 delivered by China as domestic market conditions remained challenging, with a subdued economic recovery, ongoing structural pressures in construction and manufacturing, and weak private sector confidence. In China the company has pre-engineered building systems plants located in Shanghai, Tianjin, Guangzhou and Xi'an. Underlying EBIT from China registered A$16 million in FY2026, down 40% from the previous fiscal's $26.5 million.
Looking ahead, BlueScope expects underlying EBIT for the first half of FY2027 (July-December 2026) to be in the range of A$860 million-A$960 million. The guidance assumes significantly stronger benchmark steel spreads in both the US and Asia, with US mini-mill spreads expected to average around US$750/t and Asian benchmark spreads around US$245/t, according to the report.
Source:Mysteel Global
