BlueScope Steel (ASX:BSL) has posted a 90% drop in statutory profit for the 2025 financial year (FY25), reporting earnings of A$83.8 million compared with A$805.7 million in FY24. The decline was largely driven by a A$438.9 million writedown on the company’s BlueScope Coated Products (BCP) business in North America, which delivered a loss amid lower volumes and operational inefficiencies.
Despite the setback, BlueScope said BCP “remains core to our North American growth strategy” and pledged continued investment in its turnaround.
Underlying profit fell 51% to A$420.8 million from A$860.7 million a year earlier. Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 28% to A$1.45 billion, while sales fell 4% to A$16.25 billion. Underlying earnings before interest and tax (EBIT) came in at A$738 million.
The group has guided to a stronger first half of FY26, forecasting underlying EBIT between A$550 million and A$620 million, well above the A$309 million recorded in the prior corresponding period.
Outlook and recovery signs
Chief executive Mark Vassella described the FY25 outcome as a “resilient result”, pointing to cost reduction efforts and improving economic conditions.
“Further with work underway to reduce cost and grow through-cycle earnings, combined with the expected recovery in macroeconomic conditions in coming years, BlueScope is leveraged to the upside,” he said.
The company added that its multi-domestic strategy, which prioritises in-market production for in-market consumption, leaves it well placed to manage current challenges. It noted early signs of recovery in Australian construction and improving spreads in the United States.
Dividends and buy-back
BlueScope declared a final dividend of 30 cents per share, payable on 14 October, taking the total FY25 payout to 60 cents. This compares with 55 cents in FY24. The company has also extended its share buy-back program, allowing up to A$240 million of stock to be repurchased over the next 12 months.
Executive pay impact
The writedown on BCP also affected executive remuneration. Vassella’s short-term bonus was reduced by more than A$800,000, with the chief executive receiving A$518,552 – equal to 26% of his fixed pay – against a maximum available incentive of A$1.34 million.
The board said it used its discretion to lower the award “considering the impairment of BCP”. Vassella will take the bonus in share rights, while his fixed pay remains unchanged at A$2.02 million.
BlueScope purchased the Coil Coatings business, now part of BCP, from Cornerstone Building Brands in 2022 for US$500 million.
Domestic gas concerns
Separately, Vassella warned that Abu Dhabi’s proposed US$30 billion takeover of Santos could harm Australia’s domestic gas market if exports were prioritised over local supply.
“I’m very concerned about how we treat those domestic resources and ensure that we get some benefit as the domestic owners and users of those resources,” he said.
He pointed to Queensland’s Gladstone liquefied natural gas exports since 2015 as “a really bad outcome” for local manufacturers and urged that competitive gas supplies be secured for Australian industry.