BSL +12.98%: Delivered a strong 1st half result driven by increased Colorbond volumes in Australia, implying residential demand may be recovering more quickly than expected.
- 1H revenue $7.91 billion, -7.3% y/y
- 1H25 EBIT of $309m, at the upper end of $270-310m guidance, consensus was $299m
- Interim dividend per share A$0.30 vs. A$0.25 y/y
Bluescope put out a profit-warning in October, guiding to 25% lower earnings as Chinese exporters flooded the market with cheaper product. However, the 9% increase in Colorbond indicates there is an ongoing and increasing appetite for high quality steel in the market.
The business has guided to full-year earnings of $360m-$430m, reflecting expected improvements in US steel spreads, stronger domestic volumes in Australia, and ongoing cost and productivity initiatives. The improved outlook is incremental to news around U.S steel tariffs and optimism for an Australian exemption which will provide another tailwind for BSL.
MM is cautiously bullish BSL
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