The Sims Ltd (ASX: SGM) share price is in focus today after the company upgraded its FY26 underlying EBIT forecast to $420–435 million, up from a previous range of $350–400 million.
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What did Sims report?
- FY26 underlying Group EBIT expected between $420 million and $435 million (previously $350–400 million)
- Strong second-half earnings growth in North American Metals (NAM) and SA Recycling (SAR) divisions
- Sims Lifecycle Services (SLS) underlying EBIT forecast at $170–175 million for FY26
- Improved trading conditions for ferrous and non-ferrous metals globally
- Asian ferrous prices lifting, but ANZ ferrous environment remains subdued
What else do investors need to know?
The improved outlook is largely thanks to ongoing strength in non-ferrous markets and a rebound in ferrous trading conditions. Sims' North American businesses, in particular, are on track to deliver significant earnings growth in the second half of FY26, thanks to solid operational results.
Sims Lifecycle Services continues to benefit from global demand for data centre recycling and decommissioning, although earnings distribution may vary depending on clients' project timing. The company reminded shareholders that these estimates are unaudited, based on specific market assumptions, and more details will be revealed at the full-year results.
What's next for Sims?
Looking ahead, Sims is well positioned to benefit from strong long-term industry trends, like the rise of data centres and the broader push towards decarbonisation and circular solutions. Management highlighted the potential for further growth, especially if current favourable conditions in non-ferrous and North American ferrous markets persist.
Investors should keep an eye on sector dynamics—particularly ANZ ferrous conditions and global steel trade flows—as these will influence Sims' near-term performance.
Sims share price snapshot
Over the past 12 months, Sims shares have risen 89%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
