BlueScope Steel (ASX:BSL) will return $438 million in surplus cash to shareholders through an unfranked special dividend of $1 per share.
The funds come from recent initiatives, including the $167 million sale of its 50% stake in the Tata BlueScope joint venture, the $76 million agreement to sell 33 hectares of land at West Dapto, and the ongoing realisation of residual projects in the BlueScope Properties Group, which is expected to release around $200 million in working capital over FY25 and FY26.
The board opted for an unfranked dividend, citing that an on-market buy-back is currently unavailable due to corporate and regulatory conditions.
BlueScope Managing Director and CEO Mark Vassella said the move reflects the company's strong cash-generating ability and its commitment to returning value to shareholders, while maintaining investment in growth.
He added that with the completion of its major capital investment program, BlueScope expects to boost cash flow further and reduce capital expenditure by at least $500 million in FY27 compared with FY26.
BlueScope follows a disciplined capital management framework, targeting the distribution of at least 50% of free cash flow through dividends and buy-backs.
Since FY17, the company has invested over $3.7 billion in growth projects and returned more than $3.8 billion to shareholders.
The special dividend, declared as conduit foreign income for Australian tax purposes, will not carry New Zealand imputation credits, and the dividend reinvestment plan will not be active.
Shares will trade ex-dividend from Jan. 20, with a record date of Jan. 21 and payment scheduled for Feb. 24.