The Sims Ltd (ASX: SGM) share price is in focus today after the company flagged an expected FY26 underlying EBIT between $350 million and $400 million, with its Sims Lifecycle Services segment contributing strongly.
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What did Sims report?
- FY26 Group underlying EBIT expected to be $350–$400 million
- Sims Lifecycle Services underlying EBIT forecast at $165–$185 million
- Stronger prices for non-ferrous metals and memory chips supporting performance
- Metal division sees uplift from aluminium (Zorba) prices and improved US ferrous pricing
- Ongoing headwinds in ferrous prices in Australia and New Zealand
What else do investors need to know?
Sims noted that the ongoing Middle East conflict has had only a limited operational impact so far, mainly affecting shipping and fuel costs. Despite continued high Chinese steel exports putting pressure on scrap prices, Sims' Metal business remains supported by robust non-ferrous pricing and a focus on sourcing more unprocessed material.
Sims Lifecycle Services continues to benefit from high secondary-market demand for DDR4 memory and strong activity from hyperscale customers. Investors will receive further details on this fast-growing division at Sims' Investor Day in Nashville on 25 March 2026.
What's next for Sims?
Looking ahead, Sims expects a strong third quarter and a materially improved second half in both its North America Metals (NAM) and South America Regions (SAR) divisions. However, the outlook for ferrous prices in Australia and New Zealand remains muted in the short term.
The company will unveil more about its SLS segment and key business drivers at the upcoming Investor Day, offering shareholders more clarity on Sims' strategy amid global market shifts.
Sims share price snapshot
Over the past 12 months, Sims shares have risen 22%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.
