Team Veye October 26, 2026

BlueScope Steel has upgraded its 1H FY2027 EBIT guidance to nearly $1.1 billion

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BlueScope Steel Limited (ASX: BSL) announced on 26 October 2026 that its underlying earnings before interest and tax (EBIT) for the first half of FY2027 is now expected to approach $1.1 billion. It is a significant increase from the previous guidance range of $860 million to $960 million because several key businesses have performed better than expected.

The main reasons for the upgrade are higher earnings at North Star and better results from Buildings and Coated Products North America as well as resilient domestic demand for Australian Steel Products.

BlueScope expects its North American operations to record earnings approximately two-thirds higher than those in the second half of FY2026 due to favourable steel market conditions and improved operating performance.

North Star is also expected to perform particularly well because US benchmark steel spreads are forecast to reach around US$810 per tonne compared with the approximately US$750 per tonne assumed in the previous guidance.

The business will benefit from its debottlenecking project which helps raise production and supports steel despatch volumes above previous expectations.

Buildings and Coated Products North America is expected to achieve earnings around 50% higher than those in the second half of FY2026 because of higher despatch volumes and realised prices at Steelscape as well as improved operating margins in the buildings business.

The Australian Steel Products business is also expected to generate earnings that approach double the level achieved in the second half of FY2026.

Such an improvement is due to resilient domestic demand and higher steel despatch volumes as well as better realised spreads which should more than offset slightly weaker benchmark spread assumptions.

BlueScope expects its other businesses to perform broadly in line with the estimates outlined in its August guidance update.

Management stated that these results support its confidence in the company’s diversified portfolio and high-quality assets as well as its ability to generate lucrative shareholder returns while favourable conditions in North America provide further support for its outlook.

Investors can expect more details on operating conditions at BlueScope’s 2026 Annual General Meeting on 16 November 2026.

(Source: Company Announcements)

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