BlueScope Steel, Australia’s largest steel manufacturer, reported a significant drop in full-year profits for 2024-25. The downturn reflects weaker cyclical market conditions, tariff uncertainties, and a substantial writedown in its US operations. Despite the profit slump, the company has decided to maintain its final dividend payout at 30¢ per share.
Revenue for the period decreased by 4 per cent, reaching $16.3 billion. Net profit after tax (NPAT) experienced a sharp decline, falling to $83.8 million compared to $806 million in the previous year. A key factor contributing to this decrease was a $439 million impairment charge related to BlueScope Coated Products in the United States, an acquisition made in 2022.
Chief Executive Officer Mark Vassella acknowledged the disappointing performance of BlueScope Coated Products, which operated at a loss and failed to meet expectations. However, he affirmed the company’s commitment to the business, emphasising its importance to their North American growth strategy and ongoing investments in its turnaround. BlueScope produces a wide range of steel products and solutions, serving various industries including building and construction, infrastructure, and manufacturing. The company has operations in Australia, New Zealand, Asia, North America, and the Pacific Islands.
Earnings before interest and tax (EBIT) in the Australian operations decreased by 31 per cent to $262 million. Similarly, the North American division experienced a 45 per cent drop in EBIT, falling to $514 million. BlueScope’s North Star steel mill in Ohio, which supplies steel to sectors like automotive, whitegoods, and agriculture, faced lower margins. Vassella noted some improvement towards the end of the financial year, driven by tariff-related increases in hot-rolled coil prices.
