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Bluescope Steel Limited (AU:BSL)
ASX:BSL
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Bluescope Steel (BSL) AI Stock Analysis

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AU:BSL

Bluescope Steel

(Sydney:BSL)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
AU$22.50
▼(-2.13% Downside)
Bluescope Steel's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability. The technical analysis suggests a neutral trend with potential bearish momentum. Valuation concerns arise from a high P/E ratio, despite a moderate dividend yield. The lack of earnings call and corporate events data limits further insights.
Positive Factors
Strong Brand Recognition
Bluescope's strong brand recognition in its core products supports long-term customer loyalty and pricing power, which can enhance market position and revenue stability.
Strategic Partnerships
Strategic partnerships, like with Nippon Steel, enhance Bluescope's competitive edge and operational capabilities, providing access to new markets and technologies.
Low Leverage
A low debt-to-equity ratio provides Bluescope with financial flexibility and reduces risk, allowing for potential investment in growth opportunities without significant financial strain.
Negative Factors
Declining Revenue
Declining revenue indicates challenges in market demand or competitive pressures, which can impact long-term growth prospects and profitability if not addressed.
Reduced Profitability
A significant drop in net profit margin suggests operational inefficiencies and cost management issues, which could hinder long-term financial performance if not improved.
Decreased Free Cash Flow
Reduced free cash flow limits Bluescope's ability to invest in growth initiatives and return capital to shareholders, potentially impacting future expansion and shareholder value.

Bluescope Steel (BSL) vs. iShares MSCI Australia ETF (EWA)

Bluescope Steel Business Overview & Revenue Model

Company DescriptionBluescope Steel (BSL) is a leading Australian steel producer with a significant presence in the Asia-Pacific region. The company operates in various sectors, including building and construction, manufacturing, and automotive industries. Bluescope is known for its core products, which include flat steel products, coated steels, and metallic coated products, as well as integrated manufacturing solutions tailored to meet customer needs.
How the Company Makes MoneyBluescope Steel generates revenue primarily through the production and sale of steel products. Its key revenue streams include the sale of flat steel products, coated steels, and value-added services to various industries, particularly in construction and manufacturing. The company's revenue is bolstered by strong demand in key markets, strategic partnerships with distributors and manufacturers, and a focus on innovation in product development. Additionally, Bluescope benefits from its operational efficiencies and cost management practices, which help maintain profitability in a competitive market.

Bluescope Steel Earnings Call Summary

Earnings Call Date:Aug 17, 2025
(Q2-2025)
|
Next Earnings Date:Feb 16, 2026
Earnings Call Sentiment Neutral
BlueScope demonstrated resilience and strategic foresight amidst significant macroeconomic challenges. While there were notable achievements in shareholder returns and strategic growth initiatives, performance in certain regions and segments, such as New Zealand and North American Coated Products, faced headwinds. The company's future outlook remains promising with targeted cost savings and strategic investments.
Q2-2025 Updates
Positive Updates
Resilient Performance Amid Challenging Conditions
BlueScope delivered an underlying EBIT of $309 million and a return on invested capital of 8.1% during the first half of FY '25, despite a challenging macroeconomic environment.
Shareholder Returns and Strong Balance Sheet
The company returned $162 million to shareholders and maintained an $88 million net cash balance sheet. A fully franked interim dividend of $0.30 per share was also declared.
Cost and Productivity Program
BlueScope is underway with a $200 million cost and productivity program, aiming to deliver $500 million in incremental annual EBIT by 2030.
Growth Initiatives in North America
Targeting an annual EBIT improvement of over $200 million in North America through various projects, including the debottlenecking project at North Star.
Domestic Market Strength in Australia
Solid domestic market performance with COLORBOND steel sales increasing by 9% compared to the second half of '24.
Future Earnings Growth
BlueScope expects earnings growth in excess of $700 million over the next five years, driven by strategic investments and market improvements.
Negative Updates
Underperformance in New Zealand
New Zealand operations faced significant macroeconomic challenges, resulting in a near breakeven EBIT of $3 million.
Weaker U.S. Segment Performance
North American businesses reported a softer result with an underlying EBIT of $182 million, impacted by weaker spreads and margin normalization.
Mixed Safety Performance
While TRIFR reduced to 8.0%, it remains above the long-term range, and the potential severity measure increased slightly.
Challenges in Coated Products North America
The BlueScope Coated Products division continued to underperform, making a loss due to lower sales volumes.
Company Guidance
During the call, BlueScope's management provided guidance and discussed various metrics, highlighting the company's resilience amidst challenging macroeconomic conditions in the first half of FY '25. BlueScope achieved an underlying EBIT of $309 million and a return on invested capital of 8.1%. Shareholder returns totaled $162 million, with the company ending the period with an $88 million net cash balance. For the second half of FY '25, BlueScope expects underlying EBIT to be between $360 million and $430 million, driven by improved U.S. spreads, stronger domestic volumes in Australia, and benefits from a cost and productivity program. The company aims for $200 million in annual cost improvements by FY '26 and targets an incremental $500 million annual EBIT by 2030. Additionally, BlueScope announced a fully franked interim dividend of $0.30 per share and extended its buyback program, reflecting confidence in its strategic initiatives and growth opportunities.

Bluescope Steel Financial Statement Overview

Summary
Bluescope Steel faces challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet remains strong with low leverage, but the return on equity has decreased. Cash flow generation is mixed, with strong operating cash flow but reduced free cash flow.
Income Statement
45
Neutral
Bluescope Steel's income statement reveals a challenging environment with declining revenue and profitability. The gross profit margin has decreased from 39.15% in 2024 to 36.95% in 2025, indicating pressure on cost management. Net profit margin has also significantly dropped from 4.72% to 0.52%, reflecting reduced profitability. The revenue growth rate is negative, showing a contraction in sales. EBIT and EBITDA margins have also declined, suggesting operational inefficiencies.
Balance Sheet
65
Positive
The balance sheet of Bluescope Steel shows a relatively stable financial position. The debt-to-equity ratio is low at 0.08, indicating conservative leverage. However, return on equity has decreased to 0.79% from 7.51% in the previous year, reflecting reduced profitability. The equity ratio remains healthy, suggesting a strong capital structure.
Cash Flow
55
Neutral
Bluescope Steel's cash flow statement shows mixed results. Operating cash flow remains strong, but free cash flow has decreased significantly. The free cash flow to net income ratio has dropped to 0.13, indicating less cash generation relative to net income. However, the operating cash flow to net income ratio is stable, suggesting consistent cash flow generation from operations.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue16.29B16.25B17.06B18.17B18.99B12.87B
Gross Profit8.85B6.01B6.68B2.64B4.71B2.38B
EBITDA1.01B994.50M2.02B2.15B4.38B2.22B
Net Income83.80M83.80M805.70M1.01B2.81B1.19B
Balance Sheet
Total Assets15.78B15.78B15.68B15.94B16.61B13.15B
Cash, Cash Equivalents and Short-Term Investments857.60M857.60M1.09B1.49B1.68B1.96B
Total Debt886.00M886.00M721.50M786.50M1.32B1.16B
Total Liabilities4.51B4.51B4.39B4.90B6.16B4.99B
Stockholders Equity10.67B10.67B10.72B10.47B9.78B7.63B
Cash Flow
Free Cash Flow196.60M179.50M433.70M1.34B1.71B897.80M
Operating Cash Flow1.41B1.41B1.41B2.15B2.47B1.66B
Investing Cash Flow-1.24B-1.23B-967.00M-979.10M-1.76B-757.40M
Financing Cash Flow-412.10M-423.70M-849.20M-1.36B-1.05B-295.90M

Bluescope Steel Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.99
Price Trends
50DMA
22.19
Positive
100DMA
22.81
Positive
200DMA
22.54
Positive
Market Momentum
MACD
0.09
Negative
RSI
64.70
Neutral
STOCH
81.57
Negative
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 22.99 is above the 20-day moving average (MA) of 21.66, above the 50-day MA of 22.19, and above the 200-day MA of 22.54, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 81.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BSL.

Bluescope Steel Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AU$257.02M13.1025.46%7.21%-0.03%23.78%
C$2.51B26.345.89%4.09%-11.16%-72.19%
$10.43B7.12-0.05%2.87%2.86%-36.73%
AU$1.06B67.289.13%0.80%-12.17%-61.32%
$3.04B0.14%1.46%3.98%70.79%
$10.08B121.010.73%2.61%-4.46%-89.42%
AU$413.15M-16.34%-48.05%-1394.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BSL
Bluescope Steel
22.99
2.95
14.71%
AU:CIA
Champion Iron
5.44
-0.44
-7.48%
AU:MGX
Mount Gibson Iron Limited
0.35
0.03
9.37%
AU:SGM
Sims
15.89
3.48
28.01%
AU:BIS
Bisalloy Steel Group Ltd
5.07
2.14
73.04%
AU:VSL
Vulcan Steel Ltd.
7.22
-0.33
-4.37%

Bluescope Steel Corporate Events

BlueScope Steel Appoints New Director to Strengthen Leadership
Oct 2, 2025

BlueScope Steel Limited has announced the appointment of Cheri Marie Phyfer as a new director, effective October 1, 2025. This appointment is part of the company’s strategic efforts to strengthen its leadership team, potentially impacting its operational strategies and enhancing its industry positioning.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$23.50 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Announces 2025 Hybrid Annual General Meeting
Oct 2, 2025

BlueScope Steel Limited has announced that its 2025 Annual General Meeting (AGM) will be held as a hybrid event on November 18, 2025. The company has provided shareholders with various documents related to the AGM, including a notice of the meeting, a sample proxy form, and a virtual meeting guide. These documents will be dispatched to shareholders on October 14, 2025, and are available on the company’s website. This announcement reflects BlueScope’s commitment to engaging with its shareholders and ensuring transparency in its operations.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$23.50 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Announces Board Changes with New Director Nomination
Oct 2, 2025

BlueScope Steel has announced changes to its Board of Directors, with Peter Alexander retiring and John Nowlan standing for election as a non-independent non-executive director. Nowlan, who recently retired from a nearly 50-year career at BlueScope, is expected to bring valuable industry and operational experience to the Board, supporting the company’s growth and strategic execution while maintaining a majority of independent directors.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$23.50 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Releases FY2025 Sustainability Report
Sep 15, 2025

BlueScope Steel Limited has released its FY2025 Sustainability Report and Sustainability Data Supplement, highlighting the company’s ongoing commitment to sustainable practices. This release underscores BlueScope’s strategic focus on sustainability, which is expected to enhance its industry positioning and provide valuable insights for stakeholders regarding the company’s environmental and operational initiatives.

The most recent analyst rating on (AU:BSL) stock is a Buy with a A$27.25 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Announces Cessation of Securities
Sep 8, 2025

BlueScope Steel Limited announced the cessation of 129,243 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic decisions in managing its securities.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$24.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Announces Director’s Share Acquisition
Sep 8, 2025

BlueScope Steel Limited announced a change in the director’s interest, specifically concerning Mark Vassella. The change involved the acquisition of 143,415 ordinary shares by Mr. Vassella’s family trust, Allessav Nominees Pty Ltd, increasing their total indirect holdings. This acquisition reflects the vesting of rights and suggests a strategic alignment with the company’s performance goals, potentially impacting the company’s governance and stakeholder confidence.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$24.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Concludes Long-Standing Legal Proceedings
Aug 29, 2025

BlueScope Steel has accepted the Federal Court of Australia’s decision to decline its appeal against civil proceedings initiated by the ACCC, concerning matters from 2013 and 2014. This decision concludes a long-standing legal issue, potentially allowing BlueScope to focus on its core operations without the overhang of legal uncertainties, which may positively impact its industry positioning and stakeholder confidence.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$24.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Director Increases Shareholding, Signaling Confidence
Aug 28, 2025

BlueScope Steel Limited announced a change in the director’s interest, with Director Alistair Field acquiring an additional 6,560 fully paid ordinary shares through an on-market purchase, increasing his total holdings to 9,060 shares. This transaction, valued at $149,905.06, reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which could positively influence stakeholder perceptions.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$24.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Director’s Share Disposal Highlights Strategic Financial Move
Aug 28, 2025

BlueScope Steel Limited announced a change in the director’s interest, specifically involving Mark Vassella, whose indirect interest through his family trust, Allessav Nominees Pty Ltd, saw a disposal of 71,700 ordinary shares valued at $1,658,923.85. This transaction may impact the company’s stockholder dynamics and reflects a significant financial decision by a key executive, potentially influencing market perceptions and stakeholder interests.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$24.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Director Increases Shareholding
Aug 22, 2025

BlueScope Steel Limited announced a change in the director’s interest, with Jane McAloon acquiring 2,175 fully paid ordinary shares, increasing her total holdings to 22,457 shares. This acquisition, conducted through an on-market purchase, reflects a strategic move that could strengthen McAloon’s stake in the company, potentially impacting her influence on corporate decisions and aligning her interests with those of the shareholders.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$24.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Reports Resilient FY2025 Performance
Aug 18, 2025

BlueScope Steel Limited is a global leader in metal coating and painting for building and construction, with operations spanning over 15 countries and employing approximately 16,500 people. The company is primarily focused on the Asia-Pacific region, manufacturing a wide range of branded steel products for various industries.

BlueScope Steel Extends Share Buy-Back Program
Aug 17, 2025

BlueScope Steel Limited has announced an extension of its existing on-market buy-back program for its ordinary shares. This move indicates the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting a proactive approach to maintaining its market position.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Releases FY2025 Financial Results with Emphasis on Non-IFRS Measures
Aug 17, 2025

BlueScope Steel Limited has released its FY2025 financial results, highlighting the use of non-IFRS measures to evaluate its business performance. The company emphasizes that these measures provide a better understanding of its financial health, although they should be considered alongside IFRS measures. The release also includes disclaimers regarding forward-looking statements, indicating potential risks and uncertainties that could affect future performance.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Reports FY2025 Financial Results
Aug 17, 2025

BlueScope Steel has released its FY2025 financial results, highlighting the company’s strategic focus on maintaining robust operational performance and market positioning. The announcement underscores BlueScope’s commitment to leveraging non-IFRS measures for assessing business performance, providing stakeholders with a comprehensive understanding of its financial health.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Reports Resilient FY2025 Results Amid Market Challenges
Aug 17, 2025

BlueScope Steel reported a FY2025 underlying EBIT of $738 million, a significant decrease from the previous year, attributed to softer market conditions and global uncertainties. Despite this, the company maintains a strong position due to its strategic asset spread and operational excellence. Challenges included a delay in the BlueScope Coated Products business, resulting in a $439 million impairment, but the company remains committed to its North American growth strategy. BlueScope aims for future earnings growth through cost improvements and strategic investments, while also focusing on sustainability and safety initiatives. The company returned $293 million to shareholders and plans to extend its buy-back program, reflecting its commitment to financial discipline and stakeholder value.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

Bluescope Steel Announces Final Dividend for 2025
Aug 17, 2025

Bluescope Steel Limited has announced a final ordinary dividend of 30 cents per share, 50% franked, to be paid on October 14, 2025. This dividend reflects the company’s financial performance for the year ending June 30, 2025, and is indicative of its stable financial position and commitment to returning value to shareholders.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Reports Significant Profit Decline Amid Challenging Market Conditions
Aug 17, 2025

BlueScope Steel Limited reported a significant decline in its financial performance for the fiscal year ending June 30, 2025, with a 90% drop in reported net profit after tax (NPAT) to $83.8 million and a 51% decrease in underlying NPAT to $420.8 million. The decline was attributed to lower steel spreads and asset impairments, although the company maintained investment-grade credit ratings and returned $293 million to shareholders. Despite the downturn, BlueScope remains financially stable with a net debt position of $28 million and substantial liquidity of $2.8 billion, and it plans to continue its buy-back program and pay a 50% franked final dividend.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Announces Board and Leadership Changes
Aug 14, 2025

BlueScope Steel Limited announced key changes to its board with the retirement of long-serving director Mr. Ewen Crouch and the appointment of Ms. Cheri Phyfer, a US-based executive with extensive experience in building products. This move aligns with BlueScope’s strategic growth plans in North America, leveraging Ms. Phyfer’s expertise in consumer and branded products. Additionally, Ms. Yasmine Gardner has been appointed as the new Company Secretary, effective August 19, 2025.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Announces 2025 Site Visit and 2026 Financial Calendar
Jul 30, 2025

BlueScope Steel has announced a site visit and investor briefing scheduled for November 2025 at its Glenbrook Steelworks in New Zealand, which will focus on the New Zealand business and sustainability updates. Additionally, the company has released its financial calendar for 2026, outlining key dates for interim and annual results, dividend announcements, and the Annual General Meeting, indicating a structured approach towards transparency and stakeholder engagement.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

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.Date of analysis: Oct 28, 2025