BlueScope Steel today reported 1H FY2025 net profit after tax (NPAT) of $179.1 million, a $260.2 million decrease on 1H FY2024. Speaking to the result, Managing Director and CEO, Mark Vassella said, “Underlying EBIT for the half was $308.8 million, a profitable result despite the depressed spread environment in which it was delivered, which highlights the need for business model resilience.

“While an 8.1% 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. Importantly, this shows the business is in a much stronger place than a decade ago, and with the actions being taken to bolster near-term performance, the Company is well positioned to benefit from a recovery in these key external earnings drivers,” he added.

Mr Vassella said BlueScope Steel continues to progress a range of initiatives and investments to both secure and grow its sustainable earnings. This includes the investments made to secure steelmaking in Australia and New Zealand through the No.6 blast furnace reline and upgrade and electric arc furnace (EAF) projects. It also includes the ongoing focus to shift towards higher margin value added products, such as COLORBOND® steel, which saw volume increase to historically high levels in 1H FY2025 in Australia.

“Operating cash flow for the half was a $21 million outflow, lower than 1H 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 Steel again finished the year with a robust balance sheet, with $88 million net cash,” said Mr Vassella.

In 1H FY2025, $162 million was returned to shareholders as part of BlueScope Steel’s ongoing objective to distribute at least 50% of free cash flow in the form of consistent dividends and on-market buy-backs. For 1H FY2025, the Board approved the payment of a fully franked interim dividend of 30.0 cents per share. In addition, the Board approved an extension of the buy-back program to allow it to be used over the next 12 months.

“The resilience of BlueScope’s business today exists because of the tough decisions and hard work that the entire 16,500+ strong BlueScope team have contributed to, not only in the last half, but over the last decade. I thank them for their tireless efforts in serving our customers, driving our success, and most importantly, keeping themselves and their colleagues safe,” Mr Vassella said.