Company Announcements
February 17, 2026
BlueScope logs improved N. American results, affirms openness to acquisition offers
Written by Ethan Bernard
Australia-based steelmaker BlueScope reported higher profits in its North American operations in the first half of its fiscal-year 2026 as it remained open to bids for the overall company.
Its North Star BlueScope operation posted EBIT of A$321 million (USD$227 million) in 1H FY2026 ended Dec. 31, up from A$202 million in 2H FY2025. However, its Buildings and Coatings Products North American unit reported EBIT of A$129 million vs. A$131 million in the same comparison.
The combined N. American operations generated underlying EBIT of A$447 million in 1H FY2026, up 35% sequentially.
On the West Coast, Steelscape, BlueScope’s building products subsidiary, in which it holds a majority 51% stake (Nippon Steel holds the other 49%), logged a performance decline due to softer volumes. There, tariffs negatively impacted market demand and steel feed costs.
The company said North Star’s improved result was due to stronger realized spreads. The unit operated again at 100% utilization of available capacity and achieved a new daily production record during the half, according to BlueScope.
These results come as BlueScope said it remains open to bids for the overall company’s assets. Recall that BlueScope recently rejected a bid from Steel Dynamics Inc. and Australian operating company SGH Limited in December. The offer was valued at ~A$13.15 billion.
Regarding that transaction, Managing Director and CEO Tania Archibald reiterated her position, saying she supported the rejection. (A breaking news item with a new bid was published on Tuesday afternoon here.)
“The board remains open to any proposal that genuinely reflects BlueScope’s fundamental value, but we are not sitting here waiting,” Archibald said in an earnings call on Monday. “We’re getting on the front foot to unlock BlueScope’s value.”
Looking ahead to its second half, BlueScope expects overall underlying EBIT in the range of A$620 million to A$700 million. That’s up from underlying EBIT of A$558 million in the current period.
The improvement on 1H FY’26 is “on the back of stronger US steel spreads and improved sales volumes, which offset the impacts from softer Asian spreads and higher foreign exchange rates,” Archibald said.
She noted the North Star “debottlenecking” is progressing well across all nine project components.
“Now this will unlock an additional 300,000 tonnes per annum of capacity at our best-in-class mini-mill,” she added.
Tariffs
Over the weekend, there was talk the Trump administration could remove or significantly alter steel tariffs on imports, namely derivatives. (Nothing has occurred as of the writing of this article.)
When asked about the tariff confusion, Archibald was unconcerned.
“At the end of the day, it’s a bit of a peripheral issue. North Star does not compete based on tariffs,” she said.
She called it a “privileged” and “highly productive” asset.
“It’s well located (in Delta, Ohio). It’s close to its customers. It’s close to its raw material source, and it competes on its merit, not based on tariffs.”
Archibald said, “fundamentally,” that the US is still short of steel. “It’s still an importer of steel.”
She called the US “a large rich, deep market” where BlueScope sees a lot of opportunity despite additional capacity coming online.
“So I think it’s a great place to make and sell steel,” she concluded.
