The Sims Ltd (ASX: SGM) share price is in focus after the company posted a 6.9% rise in full-year group revenue to $8,007.5 million, and underlying EBIT up 167.6% to $468.0 million.
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What did Sims Ltd report?
- Group sales revenue increased 6.9% to $8,007.5 million
- Underlying EBITDA jumped 69.3% to $727.8 million
- Underlying EBIT surged 167.6% to $468.0 million
- Underlying NPAT rose to $289.1 million (up from $83.1 million)
- Return on Invested Capital (ROIC) improved by 7.2 percentage points to 11.7%
- Final fully franked dividend of 20.0 cents per share, bringing the full-year total to 34.0 cents
What else do investors need to know?
Sims' Sims Lifecycle Services (SLS) division delivered standout growth, with sales revenue up 77.4% to $757 million, and underlying EBIT climbing 429.8% to $172.7 million, driven by strong demand for recovered memory components in the AI infrastructure sector. Repurposed units almost doubled to 16.8 million, reflecting deepening relationships with hyperscale data centre customers.
The North American and SA Recycling segments benefited from favourable non-ferrous prices and domestic US steel demand, offsetting ongoing challenges in the Australian and New Zealand metals business due to soft steel markets and limited tariff protection.
What's next for Sims Ltd?
Looking ahead, Sims expects supportive market conditions for non-ferrous metals and AI-related asset recovery to continue into FY27. While the timing of data centre decommissioning remains variable, the company expects SLS to contribute first-half underlying EBIT between $75 million and $90 million.
The group also sees ongoing US tariffs and new electric arc furnace capacity supporting demand for ferrous scrap in North America. In Australia and New Zealand, domestic demand could strengthen over the medium term as new steel production capacity comes online. Sims remains focused on recovery optimisation, operational excellence, and disciplined growth through targeted investments and bolt-on acquisitions.
Sims share price snapshot
The Sims share price has been a very strong performer over the past 12 months, outperforming the S&P/ASX 200 index (ASX: XJO) with a gain of around 50%.
