BlueScope Steel has reported a more than $700 million drop in profits in the past financial year. Photo: BlueScope.
BlueScope’s managing director Mark Vassella has described the company’s fall in profits in the last financial year as a “resilient” result.
Mr Vasella reported on Monday (18 August) that BlueScope’s net profit after tax was $83.8 million, a drop of $721.9 million from the previous year.
The company’s underlying earnings before interest and taxes (EBIT) of $738.2 million was a $601 million decrease on the 2024 financial year.
“Whilst a softer performance than last year, this 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,” Mr Vasella said.
“Further, with work underway to reduce cost and grow through-cycle earnings, combined with the expected recovery in macroeconomic conditions in the coming years, BlueScope is leveraged to the upside.”
He noted that BlueScope’s Australian operations delivered solid results, supported by stronger domestic volumes and continued demand for Colorbond and Truecore steel.
“Asia delivered a steady performance, whilst New Zealand was impacted by continued soft domestic demand conditions and challenging energy pricing, prior to converting to the new Electric Arc Furnace model.
“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.”
Mr Vasella is confident about the year ahead. In its financial report to the Australian Stock Exchange, the company said it was looking at opportunities for more than 100 ha of its surplus West Dapto land.
Thirty-three hectares are zoned residential with the potential for 350 to 400 housing lots, and another 80 hectares is zoned industrial with access to utilities and logistics infrastructure.
“Despite the lower operating cash flow, BlueScope again finished the year with a robust balance sheet, with $28 million net debt,” Mr Vasella said.
“BlueScope is a very different type of steel company, defined by a spread of strategic assets, operational excellence, and financial discipline. As evidenced by the performance of the business in FY2025, we are delivering results today while building for tomorrow.
“We are entering FY2026 with confidence. While macroeconomic conditions remain mixed, our multi-domestic strategy of prioritising in-market production for in-market consumption sets us up strongly to manage the current environment.
“We are seeing signs of recovery in Australian construction and improving spreads in the US.”
