BlueScope’s (ASX:BSL) FY2025 underlying EBIT for the year is $738.2 million, a $601 million decrease on FY2024. Net profit after tax (NPAT) is reported at $83.8 million, almost $722 million lower than FY2024.
Commenting on the results, CEO Mark Vassella says despite the “softer performance” than last year, the level of profitability in the face of the cyclically soft conditions and global uncertainty during the year “represents a resilient result, underpinned by our diversified portfolio of quality assets and multi-domestic strategy”.
Looking across BlueScope’s key geographical exposures, Vassella notes “disappointingly”, there has been a delay in achieving expectations of the BlueScope Coated Products business that was acquired in 2022, and an impairment of $439 million has been recorded.
“It remains core to our North American growth strategy and we continue to invest in the turnaround of the business,” the CEO says.
“Operating cash flow for the year was $180 million, lower than FY2024 due to softer earnings and higher capital expenditure, as we invest to secure long-term sustainable earnings and growth. Despite the lower operating cash flow, BlueScope again finished the year with a robust balance sheet, with $28 million net debt.”
Softer steel demand
Moody’s Ratings has published a fast quote on the BlueScope FY2025 results with analyst Liam Li noting the results are in line with the ratings firm’s expectations.
“The decline in earnings reflects weaker steel spreads in the US and Australia and softer overall steel demand. While Asian steel prices remain at low levels due to oversupply, US steel prices and spreads have improved to solid levels, supported by tariff protections,” says Li.
“We expect the company to be well positioned for earnings growth in fiscal 2026, benefiting from stronger steel spreads in the US, improved residential sector demand in Australia, and savings from its cost and productivity program.”
Li adds that despite the results headliner numbers, BlueScope maintained a strong balance sheet, reporting a net debt position of $28 million as of June 2025, well below its target range of $400 million to $800 million, providing a buffer against weaker market conditions.
“The company’s credit metrics remain strong, and we forecast it will retain significant headroom relative to our rating tolerance of debt/EBITDA below 2.25x over the next 12-18 months.”
Last week, long-standing non-executive director Ewen Crouch announced retiring from BlueScope with US-based Cheri Phyfer appointed in his place, as reported.
Crouch will retire from the close of the 2025 AGM in November.
Yasmine Gardner has also been appointed as a Company Secretary, effective 19 August.
The reshuffle comes days after BlueScope announced it will lead an international consortium with Japanese, Indian, and Korean steelmakers to participate in the Whyalla Steelworks sale process.
A collaboration agreement has been entered into with Nippon Steel Corporation (TYO:5401), JSW Steel (XNSE:JSWSTEEL), and POSCO (NYSE:PKX) to form the consortium, collectively representing market capitalisation of $115 billion, and total steelmaking capacity of 130 million tonnes.
The consortium has identified Whyalla as a prospective location for future production of lower emissions iron in Australia for both domestic and export markets.
It has submitted a non-binding and indicative expression of interest that outlines possible options for the Whyalla assets.
Write to Adam Orlando at Mining.com.au
Images: BlueScope, https://www.lgssolutions.com.au/projects/
