BlueScope Steel Profit Surges 857% as Whyalla Bid Decision Nears

Australia's biggest steelmaker, BlueScope Steel, reported an 857% jump in BlueScope Steel profit for the year ended June 30, delivering a net profit of $802 million, according to InDaily SA. The result comes as a final decision looms on who will purchase the embattled Whyalla Steelworks in South Australia.

The company, which owns the Port Kembla steelworks in southern New South Wales, said it was entering a position of "real strength." BlueScope noted the sharp rise in BlueScope Steel profit 2026 was partly skewed higher because an impairment charge booked the previous year had rolled off the books.

BlueScope is one of three companies vying to buy the Whyalla Steelworks, alongside Matt Latimore's M Resources and Indian steelmaker Jindal Steel International. While BlueScope is not one of the two preferred bidders, it holds the last right of refusal on any offer for the facility. The company has also been advising Whyalla Steelworks administrators KordaMentha on operations ahead of a final decision expected in September, according to InDaily SA.

BlueScope's underlying result before interest and tax came to $1.27 billion, up 73%, supported by strong performances in premium and pre-painted steel products. Earlier this year, the company rejected a $15 billion BlueScope takeover bid from Stokes family-controlled SGH and US partner Steel Dynamics, equating to $32.35 per share, saying it undervalued the company's assets.

"We rejected those approaches on the basis that they did not reflect fair value for BlueScope shareholders, and that remains our view," CEO Tania Archibald told reporters on a conference call. She said the results reflected the strength of the company's portfolio and balance sheet, adding that some of that value was starting to show in the share price, though there was "some way to go."

BlueScope shares rose almost 1% to $33.95 in Monday morning trading, InDaily SA reported. Most of the group's underlying earnings growth was driven by North America, where earnings doubled to $1 billion, aided by the company's North Star mill in Ohio. Archibald said US steel demand remained stable to strong, driven by data centre construction and the automotive sector.

BlueScope also reported record sales in South East Asia and record Australian sales of COLORBOND and TRUECORE steel products used in construction. Archibald said Australian construction activity remained resilient, supported by housing and infrastructure demand, though record steel product exports from China continued to pressure margins locally.

The company said it was targeting first-half underlying earnings of $860 million to $960 million for 2026/27, while flagging that Middle East conflict-related cost pressures on fuel, freight and materials remained a challenge. Archibald pointed to domestic gas market reform as critical to managing energy costs during the transition to lower-emission steelmaking.

BlueScope will pay a final BlueScope dividend of 65 cents per share, bringing the year's total to $1.30, in addition to a $1 special dividend paid in February and a further 70-cent special dividend due in September.

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