Sims (SGM) H1 2026 earnings summary

Executive summary

• Sales revenue rose 3.7% year-over-year to $3,778.6 million, with strong SLS and non-ferrous performance offsetting ANZ's weak ferrous results.

• Underlying EBIT surged 65.9% to $121.1 million, and underlying NPAT increased 70.9% to $60.0 million, while statutory NPAT was a loss of $29.9 million due to significant items and unrealised hedge losses.

• Interim dividend increased 40% to 14 cents per share, fully franked.

• Tri-Coastal acquisition in Houston for US$66.5 million is expected to deliver over US$25 million EBITDA and unlock over US$100 million in land sales.

• SLS expanded into Ireland, replicating its U.S. hyperscaler model and targeting significant future growth.

Financial highlights

• Underlying EBITDA rose 24.0% to $249.8 million; statutory EBITDA fell 26.2% to $143.8 million.

• Group net assets stood at $2.5 billion; ROIC improved by 1.9 percentage points to 6.2%.

• Operating cash flow was $155.2 million, with a 95% EBITDA conversion rate.

• Capital expenditure was $66.5 million, mainly for metal recovery and facility upgrades.

• Net debt at 31 December 2025 was $306.8 million, down from $332.3 million at 30 June 2025.

Outlook and guidance

• SLS is positioned to benefit from strong DDR4 chip demand and constrained supply, supporting secondary-market pricing.

• Non-ferrous markets expected to remain robust, supporting trading margins across all regions.

• US tariffs to continue supporting domestic ferrous and non-ferrous demand, while Chinese steel exports remain a headwind for global ferrous prices.

• Long-term ferrous scrap fundamentals remain positive, underpinned by EAF capacity growth and decarbonisation policies.

• Additional SLS guidance to be provided at the March investor presentation.