BlueScope Steel, Australia’s largest steel manufacturer, has announced a significant increase to its interim dividend, more than doubling the payout to shareholders. The company also signalled the potential for higher payouts throughout the remainder of the year. BlueScope lifted its first-half dividend to 65 Australian cents per share, a substantial increase from the 30 cents paid out a year prior.
The company reported a net profit after tax of $391 million for the half-year ending in December, marking a 118 per cent increase. Revenue also saw a boost, rising 4 per cent to reach $8.22 billion. BlueScope manufactures steel products and solutions for a range of industries. Its operations span Australia, New Zealand, Asia, and North America.
New chief executive Tania Archibald stated that BlueScope is targeting a return to shareholders of $3 per share in calendar year 2026. In mid-January, the company had already announced a $1 special dividend, scheduled to be paid to shareholders on February 24, which accounts for $438 million in funds. Archibald attributed the strong results to the company’s diversified business operations across various geographic locations. She noted that the results highlighted the strength and diversity of BlueScope’s portfolio amid sustained low Asian steel spreads.
BlueScope recently rejected a $13.2 billion buyout proposal from the Stokes family’s SGH and US-based Steel Dynamics, a Nasdaq-listed steelmaker. Steel Dynamics had previously approached the Australian company with three individual takeover offers, all of which were turned down.
