Sims Limited improves outlook, reflecting continued strength across non-metals market

The Group focuses on safe operations with a well-aligned supply chain. This helps support expandable and repeatable capacity for the company.

Sims Limited (ASX: SGM)

The Group focuses on safe operations with a well-aligned supply chain. This helps support expandable and repeatable capacity for the company.
Sims Limited (ASX: SGM), on 17 June 2026, announced that its FY26 underlying EBIT is now expected to range between $420 million and $435 million.

The upgraded outlook is supported by sustained strength in non-ferrous markets and improving conditions in the ferrous segment. Consequently, the North American Metals businesses are expected to report a substantial increase in second-half earnings, driven by strong operational performance across both Sims North America Metals ("NAM") and SA Recycling ("SAR"). While ferrous prices in Asia have shown recent improvement, market conditions in ANZ remain weak due to continued high levels of Chinese steel exports.

Sims Lifecycle Services (“SLS”) underlying EBIT for FY26 is now expected to be between $170 million and $175 million. The company is supported by favourable structural trends that are contributing to the growth of the global data centre ecosystem. However, the timing of customer decommissioning programs may affect the distribution of volumes and earnings between reporting periods. The estimates provided in this update by Sims Ltd are unaudited and are based on various specific assumptions. 

On 6 May 2026, the conference highlighted key business updates which included the company’s key earning drivers,  continued DDR4 pricing and sustained hyperscaler demand. The non-ferrous segment benefits from a strong pricing environment, supported by higher Zorba prices. The company’s performance is also backed by US tariff protections.

The Middle East conflict has resulted in minimal operational disruption, primarily through logistics and fuel costs, with partial offset from improved trading conditions. ANZ ferrous prices remain weak in the short term, driven by increased Chinese steel exports. Also the company’s operations are supported by ongoing AI infrastructure build-out.

 DDR4 supply is being permanently discontinued, reflecting a structural rather than cyclical exit. The AI boom is absorbing most new memory investment, with production increasingly focused on addressing demand for new memory technologies. A large installed base continues to support ongoing demand for DDR4 through existing systems.

Revenue mix consists of Ferrous, Non-Ferrous, and Shredder Recovery contributing 49%, 11%, and 40% of HY26 revenue respectively. Performance continues to be driven by strong execution, including improved recovery rates, optimized product mix, and enhanced commercial strategies capturing pricing upside, resulting in greater earnings resilience through the cycle. 
The balance sheet reflects total gearing/debt below 15%, operating leverage under 0.5x, and optimisation through capital recycling. 

(Source: Company Announcements)