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.
While the US led the way, BlueScope's result was also helped by a record performance in South East Asia and record sales in Australia of COLORBOND pre-painted steel products used in roofing, walling, guttering, and fencing and TRUECORE structural steel used for residential and commercial building frames.
In Australia, construction activity remained resilient, supported by housing, infrastructure and non-residential demand.
"The medium-term outlook is underpinned by favourable demographics and a sustained housing shortage," Ms Archibald said.
However, record levels of building products exports from China continue to pressure margins in the Australian business.
Even so, BlueScope says it's heading into 2026/27 with solid momentum with a goal to deliver first-half underlying earnings in a range of $860 million to $960 million.
If met, that could represent a strong runway for BlueScope when it heads into its second half.
However, Ms Archibald said costs remain a challenge due to the Middle East conflict, which has impacted the price of fuel, freight, and materials.
Given that, the steel boss pointed to Australia's manufacturing base and its need for well-priced fuel and energy as the overall energy transition across the economy continues.
"We see the gas market reform, and specifically domestic gas reservation, as absolutely critical to ... having an impact in the medium term on gas and more broadly energy prices," she said.
"We are very focused on the role gas will play in the transition toward lower emission steel making."
BlueScope will pay shareholders a final dividend of 65 cents, taking the total for the year to $1.30.
That's on top of a $1 special dividend paid in February and another special dividend of 70 cents to be paid in September.
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