The Sims Ltd (ASX: SGM) share price is in focus today, with SA Recycling reporting robust growth, highlighted by an 8.3% compound annual sales volume increase from FY21 to FY26 and 147 facilities now operating in 15 states across the US.
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What did Sims Group report?
- FY21-FY26 compound annual growth rate (CAGR) in sales volume of 8.3%.
- HY26 sales volume annualised at over 3,750,000 tonnes.
- 147 operational facilities and 22 shredders as part of SA Recycling's US footprint.
- 48% gearing ratio and estimated asset base of USD $2.26 billion as at HY26.
- Average annual EBITDA of $496 million (FY21–FY25).
- Average operating cash flow of $353 million between FY21–FY25.
What else do investors need to know?
The group is benefitting from favourable US policy settings, which have supported strong industry investment and demand for recycled metals. Through a dense network of regional facilities and established local sourcing relationships, Sims Group aims to secure consistent scrap supply and maintain stable margins, especially in non-ferrous metals.
Sims continues its disciplined growth strategy by investing in bolt-on acquisitions and advancing operational leverage, with significant utilisation headroom across shredders and yards. The business remains well-capitalised, with ongoing investment capacity for strategic growth.
What's next for Sims Group?
Looking ahead, Sims Group plans to unlock further value in non-ferrous recovery through process improvements and technology upgrades, as well as capitalising on growing domestic demand for segregated aluminium. The company expects utilisation rates and organic growth to create earnings leverage as the steel cycle improves.
A robust pipeline of bolt-on acquisitions remains in sight, particularly in highly fragmented markets, supporting Sims Group's ongoing expansion and consolidation in the US recycling sector.
Sims Group share price snapshot
Over the past year, Sims Group shares have risen 34%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.
