Sims (ASX: SGM) – Sims Files FY26 Media Release

Sims Limited has delivered a remarkable set of FY26 results, with underlying net profit after tax surging 247.9% to $289.1 million from $83.1 million in FY25. This exceptional earnings growth came against a more modest 6.9% increase in sales revenue to $8,007.5 million, signaling substantial operational leverage and margin expansion across the business. Underlying EBIT more than doubled to $468.0 million, up 167.6% in reported terms and 181.1% at constant currency, as the group benefited from robust trading conditions, strategic repositioning, and standout performance from key segments.

The driving force behind this profit uplift was a dramatic improvement in Metal trading margins and exceptional growth in the Sims Lifecycle Services division. North America Metal and SA Recycling performed particularly well, capitalizing on strong non-ferrous markets and favorable US conditions underpinned by EAF growth and domestic tariffs. The company’s complementary network positions across North America enabled it to capture opportunities in distinct markets. SAR, operated as a joint venture, contributed $235.5 million in underlying EBIT, nearly double the $120.0 million in FY25. These divisions demonstrated the benefit of Sims’ simplified and strengthened Metal portfolio, which management has repositioned for the next phase of strategy.

A standout feature of the results is the transformation of Sims Lifecycle Services from a traditional asset recovery business into a strategic player in data center infrastructure supply chains. SLS underlying EBIT rocketed from $32.6 million to $172.7 million, positioning the company to capture growth tied to cloud computing and artificial intelligence infrastructure expansion. This evolution represents a material shift in Sims’ earnings composition and exposure profile, linking shareholder returns more directly to the structural growth in data center and AI investment.

The results were not without challenges. Australia and New Zealand Metal operations faced ongoing headwinds from elevated Chinese steel exports into Asian markets, which pressured ferrous prices and margins both domestically and internationally. However, the strength of North America and SAR more than compensated, with the group’s proprietary intake volumes growing 4.9% to 6.4 million tonnes. This volume growth, combined with margin expansion, highlights improved commercial execution and the benefit of competitor supply disruptions.

Sims’ return on invested capital improved sharply to 11.7% from 4.5%, reflecting the earnings uplift and more efficient capital deployment. The company’s confidence in the outlook is evident in its dividend policy, with a final dividend of 20 cents per share bringing total dividends for the year to a level 47.8% higher than FY25. Investors should monitor whether Sims can sustain SLS momentum, manage ANZ headwinds, and continue to capture tariff-driven tailwinds in North America as macroeconomic conditions evolve. This announcement has been flagged as price sensitive and material by the ASX.

View the full ASX announcement (PDF)

About Sims Limited (ASX: SGM)

Sims Limited is the world’s largest publicly traded metals and electronics recycler, with operations across more than 200 facilities in 15 countries. The company generates approximately three-quarters of its earnings from North America, with the remainder from Australia and New Zealand. Sims is also an emerging leader in municipal recycling and renewable energy industries.

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