BlueScope Steel Shares Dip as Company Warns First-Half Earnings to Hit Lower End of Guidance

BlueScope Steel (ASX:BSL) saw its share price fall on Tuesday after the Australian steel producer announced that its first-half fiscal 2026 earnings would likely come in at the lower end of its previously issued guidance. The update, delivered during the company’s annual general meeting, highlighted intensifying cost pressures and weaker steel pricing across several key markets—factors weighing on investor sentiment.

The company reaffirmed that its underlying earnings before interest and tax (EBIT) for the first half of FY2026 are expected to settle near the bottom of its earlier forecast range of A$550 million to A$620 million. Following the announcement, BlueScope’s shares slid as much as 9% to A$20.46 before recovering part of the decline to trade about 3% lower by 00:30 GMT.

According to BlueScope, its Australian steel operations continue to face ongoing challenges, including elevated production and input costs combined with softer realised prices. Despite these pressures, the company noted that domestic building activity has shown signs of improvement, offering some support to demand. Still, higher operational expenses appear to be overshadowing those gains.

In the United States, BlueScope’s North Star mini-mill remains fully utilised, underscoring strong operational performance. However, the company acknowledged that benchmark steel spreads have weakened in recent months. While recent price increases have helped cushion some of the impact, the softening spreads still represent a headwind for profitability.

Investors are closely watching how BlueScope navigates these shifting market dynamics, particularly as global steel demand continues to fluctuate and cost inflation remains persistent. The company’s reiteration of earnings guidance—albeit at the lower end—signals caution heading into 2026 but also suggests confidence in operational stability across its core facilities.