Steelmaker brings it home, after rejecting predators

Australia's biggest steelmaker has delivered a big jump in annual profit, vindicating its decision to reject a takeover bid

BlueScope Steel, which has been undergoing a period of major investment and owns the Port Kembla steelworks in southern NSW, says it's now heading into a position of "real strength".

It made a bottom-line net profit of $802 million for the year ended June 30, up 857 per cent, although the result skewed higher after an impairment charge booked in the previous year rolled off the books.

The 2025/26 underlying result, before interest and tax, came to $1.27 billion, a jump of 73 per cent, helped by strong performances for its premium and pre-painted steel products.

Earlier this year, BlueScope rejected a $15 billion takeover bid, equating to $32.35 per share, from the Stokes family-controlled SGH and its US bid partner Steel Dynamics, saying it undervalued its assets and potential.

"We rejected those approaches on the basis that they did not reflect fair value for BlueScope shareholders, and that remains our view," chief executive Tania Archibald told reporters in a conference call.

"The result today points to the strength of the portfolio - the strength of the balance sheet, the step-up in shareholder returns.

"Arguably, we're starting to see some of the value reflected in the share price," Ms Archibald said, although she added there was some way to go.

BlueScope shares rose by almost one per cent to $33.95 in morning trading on Monday.

Most of the group's underlying result was driven by a 100 per cent rise in underlying earnings to $1 billion from its North America operations.

BlueScope owns the highly prized North Star steelmaking mill in Ohio, which uses scrap to produce hot-rolled steel at low cost.

"North America remains a great place to make and sell steel," Ms Archibald said, noting that the market overall remains structurally short of steel.

"The regulatory and industry environment is favourable and supportive of the demand outlook across steel-consuming sectors."

Steel demand in the US was stable to strong, driven by data centre infrastructure projects and the automotive sector.