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Bluescope Steel
(Sydney:BSL)
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Rating:68Neutral
Price Target:
AU$36.00
â–²(16.02% Upside)
Action:Reiterated
Date:08/20/26
The score is led by solid fundamentals anchored by low leverage and constructive earnings-call signals (higher EBIT guidance, ongoing shareholder returns, and cost-out delivery), offset by cyclicality in margins and only moderate free-cash-flow conversion. Technicals are a secondary drag due to near-term weakness (below 20D/50D averages and low RSI), while valuation is supportive thanks to the high dividend yield alongside a mid-range P/E.
Positive Factors
Conservative balance sheet
Low leverage gives BlueScope resilience through steel-market downturns and preserves financial flexibility for capital investment, dividends, and operational needs. The substantial equity base relative to debt also reduces balance-sheet pressure when industry earnings and spreads weaken.
Negative Factors
Steel-market cyclicality
Persistent overcapacity and export pressure can weaken regional selling prices and spreads, making earnings less predictable even when volumes remain healthy. This structural exposure limits margin sustainability because BlueScope operates in markets tied to global steel supply and demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage gives BlueScope resilience through steel-market downturns and preserves financial flexibility for capital investment, dividends, and operational needs. The substantial equity base relative to debt also reduces balance-sheet pressure when industry earnings and spreads weaken.
Read all positive factors
Bluescope Steel (BSL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$14.56B
Dividend Yield5.5%
Average Volume (3M)1.26M
Price to Earnings (P/E)18.4
Beta (1Y)1.15
Revenue Growth2.39%
EPS Growth860.73%
CountryAU
Employees15,800
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)1.83
Shares Outstanding438,077,420
10 Day Avg. Volume1,459,631
30 Day Avg. Volume1,261,415
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.35
Price to Sales (P/S)0.84
P/FCF Ratio54.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$36.30Price Target Upside16.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)3.27
Revenue Forecast (FY)AU$18.27B
Bluescope Steel Business Overview & Revenue Model
Company Description
BlueScope Steel Limited, an Australian enterprise founded in 1885 and headquartered in Melbourne, specializes in the global production and distribution of metal-coated and painted steel goods designed for various construction and manufacturing app...
How the Company Makes Money
BlueScope makes money primarily by manufacturing and selling steel products and by converting steel into higher-value coated, painted, and formed building products.
Key revenue streams include:
- Steelmaking and sale of flat steel products: BlueS...
Bluescope Steel Earnings Call Summary
Earnings Call Date:Aug 16, 2026
(Q4-2026)
| Next Earnings Date:Feb 15, 2027
Earnings Call Sentiment Positive
The call highlights substantial progress against strategic priorities: strong FY '26 earnings (underlying EBIT $1.27B), material shareholder returns ($3 per share in CY2026 and planned repeat in CY2027), completion and outperformance of cost-out programs, and important project milestones (MCL7, Glenbrook EAF, North Star debottleneck). Regional strengths — notably North Star/North America and record Southeast Asia performance — underpin improved profitability and a stronger balance sheet (net debt $600M). Headwinds remain: safety concerns following a fatality, subdued Asian spreads driven by China overcapacity, transitional impacts and cost escalation on major projects, near-term NZ earnings pressure from EAF commissioning, and the drag of peak CapEx on free cash flow. Overall the positive operational and financial achievements (profit, cash generation trajectory, cost savings and shareholder returns) outweigh the challenges and transitional risks.Positive Updates
Strong Group Profitability
Underlying EBIT of $1.27 billion for FY '26 and underlying NPAT just over $800 million, with second-half EBIT of $716 million (above guidance range).
Negative Updates
Serious Safety Incident
Tragic loss of a contractor at Port Kembla in November; safety performance acknowledged as 'not yet where it needs to be' and incident under regulatory investigation.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Group Profitability
Underlying EBIT of $1.27 billion for FY '26 and underlying NPAT just over $800 million, with second-half EBIT of $716 million (above guidance range).
Read all positive updates
Company Guidance
BlueScope guided 1H FY27 underlying EBIT of $860–$960 million (subject to spreads, FX and market conditions), saying North America should be >1/3 higher than 2H FY26, Australia ~2/3 higher, New Zealand & Pacific ~1/3 lower, Asia broadly in line and corporate approaching ~3x 2H FY26 (reflecting the non‑repeat of a $76 million land profit). Management reiterated a plan to deliver at least $3.00 per share in calendar 2027 (having delivered $3.00 in CY26), flagged a year‑end net debt of ~$600 million and FY26 free cash flow of $240 million, confirmed a minimum 75% payout policy of operating cash flow less sustaining CapEx, and said FY27 CapEx remains elevated as the major program finishes (management indicated just over $1.0 billion of CapEx for FY27 with ~ $600m+ in 1H).Bluescope Steel Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
55
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.66B | 16.25B | 17.06B | 18.17B | 18.99B |
| Gross Profit | 2.26B | 6.01B | 6.68B | 2.64B | 4.71B |
| EBITDA | 1.70B | 994.50M | 1.99B | 2.18B | 4.38B |
| Net Income | 802.00M | 83.80M | 805.70M | 1.01B | 2.81B |
Balance Sheet | |||||
| Total Assets | 16.40B | 15.78B | 15.68B | 15.94B | 16.61B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 857.60M | 1.09B | 1.49B | 1.68B |
| Total Debt | 1.77B | 886.00M | 721.50M | 786.50M | 1.32B |
| Total Liabilities | 5.50B | 4.51B | 4.39B | 4.90B | 6.16B |
| Stockholders Equity | 10.31B | 10.67B | 10.72B | 10.47B | 9.78B |
Cash Flow | |||||
| Free Cash Flow | 258.40M | 179.50M | 433.70M | 1.34B | 1.71B |
| Operating Cash Flow | 1.73B | 1.41B | 1.41B | 2.15B | 2.47B |
| Investing Cash Flow | -1.23B | -1.23B | -967.00M | -979.10M | -1.76B |
| Financing Cash Flow | -163.00M | -423.70M | -849.20M | -1.36B | -1.05B |
Bluescope Steel Technical Analysis
Positive
31.03
Price Trends
30.67
Positive
31.08
Positive
29.37
Positive
Market Momentum
0.66
Negative
67.12
Neutral
73.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BSL, the sentiment is Positive. The current price of 31.03 is below the 20-day moving average (MA) of 31.46, above the 50-day MA of 30.67, and above the 200-day MA of 29.37, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 67.12 is Neutral, neither overbought nor oversold. The STOCH value of 73.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BSL.
Bluescope Steel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$202.90M | 12.00 | 22.20% | 8.90% | -10.61% | -14.62% | |
68 Neutral | AU$14.56B | 18.43 | 7.60% | 5.50% | 2.39% | 860.73% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | AU$3.85B | 16.01 | 9.52% | 1.70% | 6.60% | ― | |
56 Neutral | AU$342.32M | -11.67 | -7.06% | 3.51% | -42.65% | 62.24% | |
53 Neutral | AU$1.25B | 11.53 | 6.80% | 5.85% | 9.88% | 22.36% | |
49 Neutral | AU$833.76M | 47.23 | 7.30% | 1.21% | 15.32% | 13.54% |
* Basic Materials Sector Average
AU:BSL
Bluescope Steel
33.25
12.94
63.74%
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2.23
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0.29
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-14.71%
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19.99
5.64
39.33%
AU:BIS
Bisalloy Steel Group Ltd
4.20
-0.62
-12.81%
AU:VSL
Vulcan Steel Ltd.
5.69
-1.62
-22.19%
Bluescope Steel Corporate Events
BlueScope lifts 1H FY2027 earnings guidance on stronger U.S. and Australian steel performance
Oct 25, 2026
BlueScope Steel has upgraded its guidance for first-half FY2027 underlying EBIT to be approaching $1.1 billion, above its prior forecast of $860 million to $960 million. The uplift is driven mainly by stronger-than-expected earnings at its North S...
BlueScope Steel Announces Leadership Transition in Key North American Business
Oct 20, 2026
BlueScope Steel announced that Kristie Keast, Chief Executive North America, will leave the company at the end of October 2026 after a 25-year tenure, with management crediting her significant contribution and long-standing leadership. The company...
BlueScope Steel reports lapse of conditional rights to securities
Oct 6, 2026
BlueScope Steel has reported the lapse of 34,441 conditional rights to securities, identified under the ASX code BSLAB, after the conditions attached to these rights were not met by the end of September 2026. The cessation of these rights marginal...
BlueScope Steel Sets Hybrid Format for 2026 Annual General Meeting
Oct 1, 2026
BlueScope Steel has scheduled its 2026 Annual General Meeting as a hybrid event on 16 November 2026 at 10:00am AEDT, allowing shareholders to attend either in person or online. The company has prepared a notice of meeting, proxy form and virtual m...
BlueScope Steel Grants Share Rights to Director Under Fee Sacrifice Plan
Sep 16, 2026
BlueScope Steel has disclosed a change in director interests following the grant of 2,801 share rights to non-executive director Cheri Marie Phyfer under the company’s FY2027 Non-Executive Director Fee Sacrifice Plan. The share rights, funde...
BlueScope Steel Updates Market on Director Fee Sacrifice Share Rights
Sep 16, 2026
BlueScope Steel Limited has disclosed a change in director Alistair Field’s interests, reflecting the use of its Non-Executive Director Fee Sacrifice Plan for non-executive board remuneration. The plan grants share rights that convert sacrif...
BlueScope details director fee sacrifice and grant of new share rights
Sep 16, 2026
BlueScope Steel has disclosed a change in director K’Lynne Johnson’s interests following the grant of 584 share rights under the FY2027 Non-Executive Director Fee Sacrifice Plan. The new share rights result from Ms Johnson agreeing to ...
BlueScope Steel Director Lambert Boosts Equity via Fee Sacrifice Plan
Sep 16, 2026
BlueScope Steel has disclosed a change in director Jennifer Lambert’s interests, reflecting an equity-based component to her remuneration under the FY2027 Non‑Executive Director Fee Sacrifice Plan. Lambert already holds 23,419 fully pa...
BlueScope Steel Details Equity Grant Under Director Fee Sacrifice Plan
Sep 16, 2026
BlueScope Steel has updated the market on a change in director Jane McAloon’s interests, following the grant of 1,664 share rights under the company’s FY2027 Non-Executive Director Fee Sacrifice Plan. The share rights reflect director ...
BlueScope Steel Issues New Unquoted Employee Rights
Sep 16, 2026
BlueScope Steel Limited has notified the market of the issue of 9,474 unquoted rights securities under its employee incentive scheme. The rights, designated with the ASX security code BSLAB, were issued on September 11, 2026 and are not intended t...
BlueScope Director Tania Archibald Increases Shareholding Through Incentive Vesting
Sep 7, 2026
BlueScope Steel has disclosed changes in the shareholdings of director Tania Jillian Archibald, reflecting movements tied to the vesting of incentive-based rights and subsequent trading. Archibald acquired 50,724 fully paid ordinary shares at no c...
BlueScope Steel Director Adjusts Equity Holdings After Incentive Rights Vesting
Sep 7, 2026
BlueScope Steel has disclosed changes in the shareholdings of director John Stanley Nowlan, reflecting the vesting and exercise of performance‑based Alignment Rights under the company’s FY24 incentive plan. Following the vesting of 24,...
Bluescope Steel Reports Lapse of 288,812 Conditional Rights
Sep 7, 2026
Bluescope Steel Limited, an ASX-listed steel manufacturer, participates in the broader metals industry and utilises conditional rights and other equity instruments as part of its capital management and incentive structures. Its registered details,...
BlueScope Steel Issues Over 1.1 Million New Ordinary Shares
Sep 6, 2026
BlueScope Steel Limited has notified the market of the issue of 1,112,242 ordinary fully paid shares, following the conversion or exercise of previously unquoted securities. The new shares, dated 2 September 2026, modestly expand the company’...
BlueScope Steel Files FY2026 Governance Disclosure Key with ASX
Aug 16, 2026
BlueScope Steel has lodged its FY2026 Appendix 4G with the ASX, providing a detailed key to the company’s corporate governance disclosures for the year ended 30 June 2026. The filing confirms that its Corporate Governance Statement, containe...
BlueScope Extends On-Market Share Buy-Back and Consolidates Broker Role
Aug 16, 2026
BlueScope Steel Limited has extended its existing on-market buy-back program for ordinary fully paid shares, reinforcing its ongoing capital management approach using share repurchases. The buy-back, first notified in August 2021 and previously up...
BlueScope Steel Releases Detailed FY2026 Sustainability Data Supplement
Aug 16, 2026
BlueScope Steel has released its FY2026 Sustainability Data Supplement, providing detailed data that underpins the sustainability disclosures contained in its FY2026 Annual Report. The supplement is intended to be read alongside the annual report,...
BlueScope Steel Details FY2026 Metrics and Warns on Forward-Looking Risks
Aug 16, 2026
BlueScope Steel has released supplementary materials to accompany its FY2026 financial results, outlining the use of non-IFRS financial measures that management relies on for assessing performance and allocating resources. The company emphasises t...
BlueScope Steel Details FY2026 Results and Use of Non-IFRS Metrics
Aug 16, 2026
BlueScope Steel has released its FY2026 financial results presentation, outlining performance metrics and management’s assessment of the year’s trading conditions. The document indicates that management uses both IFRS and non-IFRS meas...
BlueScope shifts from investment to payout as FY2026 profit surges
Aug 16, 2026
BlueScope Steel reported a sharp turnaround in FY2026 performance, posting net profit after tax of $802 million, an 857 percent increase on FY2025, and underlying EBIT of $1.27 billion driven by stronger U.S. spreads, a record Southeast Asia resul...
BlueScope Steel Declares AUD 1.35 Interim Dividend
Aug 16, 2026
BlueScope Steel Limited has declared a dividend of AUD 1.35 per ordinary fully paid share, relating to the six-month period ended 30 June 2026. The stock will trade ex-dividend on 8 September 2026, with a record date of 9 September 2026 and paymen...
BlueScope Steel Delivers Earnings Surge and Boosts Shareholder Returns in FY2026
Aug 16, 2026
BlueScope Steel has reported a strong financial performance for the year ended 30 June 2026, with sales revenue rising 2% to $16.6 billion on higher selling prices. The company also released its audited annual report, including climate-related sus...
BlueScope Steel Corrects Director Interest Disclosure for John Nowlan
Aug 10, 2026
BlueScope Steel has corrected an earlier Initial Director’s Interest Notice for board member John Stanley Nowlan, replacing the Appendix 3X lodged in November 2025 with an updated filing. The new disclosure adds 39,530 share rights granted a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.