BlueScope will return $438 million in surplus cash to shareholders through a special dividend of $1.00 per share, the company announced, citing proceeds from recent asset sales and property transactions.
In a statement, BlueScope said the unfranked dividend reflects surplus cash generated from several initiatives, including the sale of its 50 per cent stake in the Tata BlueScope joint venture for $167 million, an agreement to sell 33 hectares of land at West Dapto for $76 million, and the ongoing wind-down of residual projects within the BlueScope Properties Group.
The ASX-listed firm said these property projects are expected to release around $200 million in working capital across the 2025 and 2026 financial years.
The company said the board chose to return the surplus cash through a special dividend because an on-market share buy-back is currently not available due to corporate activity and regulatory settings.
BlueScope said the decision is consistent with its capital management framework and is separate from any previous or potential future proposals involving the company.
BlueScope Managing Director and Chief Executive Officer Mark Vassella said the dividend reflected the company’s ability to generate cash while continuing to invest in the business.
“This special dividend demonstrates BlueScope’s ability to generate and distribute returns to its shareholders,” Vassella said. He added that with major capital projects nearing completion, the company was positioned to rebuild and strengthen its cash generation.
“The Board will continue to carefully balance investment in growth with shareholder returns as cash flows build,” he said.
BlueScope said its free cash generation is expected to increase over the next 12 to 18 months as it completes the remainder of its major investment program.
As capital spending reduces, the company expects capital expenditure in FY2027 to be at least $500 million lower than in FY2026.
The company said it remains committed to a disciplined approach to capital management, targeting the return of at least 50 per cent of earned free cash flow to shareholders through dividends and buy-backs over time.
Since FY2017, BlueScope said it has invested more than $3.7 billion in growth projects while returning more than $3.8 billion to shareholders.
The special dividend will be unfranked for Australian tax purposes and declared as conduit foreign income.
BlueScope said there will be no New Zealand imputation credits attached and its dividend reinvestment plan will not operate for this payment.
Shares will trade ex-dividend from 20 January 2026, with a record date of 21 January 2026, and the dividend will be paid on 24 February 2026.
The content of this article is based on information supplied by BlueScope Steel Ltd. For more information, please refer to the official company announcement and communications from BlueScope. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
