BlueScope returns $438m to shareholders with special dividend

The BlueScope Steel Ltd (ASX: BSL) share price is in focus today after the company announced it will return $438 million to shareholders via a $1.00 per share unfranked special dividend, following several recent asset sales and cash flow initiatives.

What did BlueScope report?

• Declared an unfranked special dividend of $1.00 per share, totalling $438 million
• Surplus cash generated from sale of 50% Tata BlueScope joint venture for $167 million
• Agreed sale of 33 hectares at West Dapto for $76 million
• Continued realisation of BlueScope Properties Group projects, releasing $200 million over FY25–FY26
• Dividend record date: 21 January 2026; payment date: 24 February 2026
• Dividend reinvestment plan not active for this special dividend

What else do investors need to know?

BlueScope’s board opted for a special unfranked dividend rather than a buy-back due to ongoing corporate activity and regulatory settings. The company’s capital management framework aims for a balanced approach, distributing at least 50% of free cash flow to shareholders through dividends and buy-backs.

In the past decade, BlueScope has invested more than $3.7 billion in growth projects and delivered over $3.8 billion in shareholder returns since FY17. The latest asset sales and working capital initiatives add to its disciplined capital management record.

What did BlueScope management say?

BlueScope MD & CEO Mark Vassella said:

This special dividend demonstrates BlueScope’s ability to generate and distribute returns to its shareholders. With a clear line of sight to the completion of our current significant capital investment program, BlueScope is positioned to not only return to the robust cash generation it has been known for, but to strengthen it further with the enhanced earnings of the business. The Board will continue to carefully balance investment in growth with shareholders returns as cash flows build.

What’s next for BlueScope?

BlueScope expects to ramp up free cash generation over the next 12–18 months as it completes its major investment program. Notably, capex is set to reduce by at least $500 million in FY27 compared to FY26 as these projects wind down.

Management highlights a focus on balancing investment in profitable growth with consistent shareholder returns, signalling further distributions as cash flows improve.

BlueScope share price snapshot

Over the past 12 months, BlueScope shares have risen 52%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has lifted 7% over the same period.

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The post BlueScope returns $438m to shareholders with special dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.