Aussie BlueScope’s new furnaces may not add value but cut costs, Jefferies says

BLUESCOPE STEEL

27/11/2025 19:13

** Jefferies says steelmaker BlueScope’s BSL.AX Investor Day in New Zeland zeroed in on the economics of its upcoming electric arc furnace (EAF) mill

** Adds, the EAF may not be value accretive but should trim fixed costs and offer downside protection at the cycle’s trough

** BSL sees its NZ unit delivering a mid-cycle return on invested capital of ~14%, translating to ~NZ$140 mln ($80.11 mln) in EBIT, matching Jefferies’ NZ$135 mln in FY28

** Brokerage 'keeps' buy call at A$28/shr price target

** Stock up ~27% YTD as of last close

($1 = 1.7476 New Zealand dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by David Gregorio)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))