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Sun, 25 Oct 2026
BreakingEarnings

BlueScope lifts 1H underlying EBIT outlook to approaching A$1.1bn, mainly on US spreads

The steelmaker's new 1H FY2027 underlying EBIT guidance is above its earlier A$860m-A$960m range, and it names stronger US steel spreads at its North Star mill as the main driver.

By AI markets desk·Sources: BlueScope Steel Limited, 'BlueScope upgrades 1H FY2027 earnings guidance; underlying EBIT to be approaching $1.1 billion' (ASX release, price sensitive)·Published ·AI-generated·2 min read
Key facts
  • 1H FY2027 underlying EBIT guidance · Guidance issued 26 October 2026Approaching 1.1 A$bn Was A$860m-A$960m
  • Benchmark US mini-mill spread, current view for the half · 26 October 2026About 810 US$/t About US$750/t assumed before
  • North Star result vs 2H FY2026 · 1H FY2027 expectation, 26 October 2026Approaching three-quarters higher
  • Australian Steel Products earnings vs 2H FY2026 · 1H FY2027 expectation, 26 October 2026Approaching double

BlueScope Steel now expects underlying earnings before interest and tax (EBIT) for the first half of its 2027 financial year to be approaching A$1.1bn, above the A$860m-A$960m range it gave previously, according to an ASX release on 26 October 2026. At most, by Polstob's calculation, the new figure is just under 15% above the top of the old range and just under 21% above its A$910m midpoint, since the company says only that EBIT is approaching A$1.1bn. Chief executive Tania Archibald said the increase is "primarily driven by stronger than anticipated earnings from North Star on stronger US steel spreads", with Australian Steel Products and the Buildings and Coated Products North America unit also doing better.

“Conditions across the US steel industry and in our key North American end-use markets remain favourable, and the United States continues to demonstrate why it is such an attractive place to make and sell steel.”

North Star's result is expected to be approaching three-quarters higher than in 2H FY2026, mainly on stronger benchmark spreads, the release says. Previous guidance assumed benchmark US mini-mill spreads of about US$750 a tonne; the company now expects about US$810 for the half. It also cites solid operations at the mill, including extra volumes from a debottlenecking project. In Buildings and Coated Products North America, the gain comes mostly from the Steelscape business on the US West Coast, on despatch volumes and realised prices above prior guidance, while Buildings North America should do modestly better than earlier expected on improved operating margins.

Expected 1H FY2027 result against 2H FY2026, as BlueScope describes it
BusinessExpected change
North America regionAround two-thirds higher
North StarApproaching three-quarters higher
Buildings and Coated Products North AmericaAround 50% higher
Australian Steel ProductsApproaching double
Remaining businessesBroadly in line with August guidance, not compared with 2H FY2026

Source: BlueScope ASX release, 26 October 2026, Expectations issued 26 October 2026.

Australian Steel Products is expected to earn approaching double its 2H FY2026 level. BlueScope says stronger domestic despatch volumes and realised spreads should more than offset benchmark spreads that came in slightly below the assumptions in its earlier guidance. It will host its annual general meeting on 16 November in Wollongong and online, where it says it will give more detail on operating conditions, according to the release.