Australia’s BlueScope Steel drops on earnings guidance downgrade

Investing.com-- Shares of Bluescope Steel (ASX:BSL) fell on Tuesday after the Australian steelmaker confirmed its first-half earnings would come in at the bottom end of its earlier guidance range, citing cost pressures and softer pricing in key markets.

The company told investors at its annual general meeting that underlying earnings before interest and tax for the first half of fiscal 2026 are expected to land at the lower end of the A$550 million to A$620 million forecast issued in August.

Sydney-listed shares of the company dropped as much as 9% to A$20.46. The stock pared some losses to trade just 3% lower as of 00:30 GMT.

BlueScope said Australian operations continue to face rising costs and weaker realised prices, though domestic building demand has improved.

Its U.S. North Star mill is still running at full utilisation, but benchmark spreads softened in recent months, partly offset by recent price increases.