Sims (SGM) H2 2026 earnings summary

Executive summary

• Underlying EBIT rose 170% to AUD 468 million, driven by strong SLS, North America Metal, and SA Recycling growth, with ROIC reaching 11.7%.

• Sales revenue increased 6.9% year-over-year to AUD 8,007.5 million, supported by robust non-ferrous markets and DDR4 memory pricing.

• Statutory NPAT surged to AUD 245.3 million from AUD 2.4 million, with underlying NPAT up 247.9% to AUD 289.1 million.

• Dividend per share increased 47.8% to 34.0 cents, fully franked.

• SLS experienced significant growth, with repurposed units up 91% and strong positioning in data center refresh and decommissioning.

Financial highlights

• Underlying EBITDA rose 69.3% to AUD 727.8 million; EBITDA margin improved by 3.4 ppts to 9.1%.

• Operating cash flow reached AUD 423.6 million, with an EBITDA conversion rate of 71%.

• Net assets stood at AUD 2.7 billion; gearing at 19.6%.

• Capital expenditure totaled AUD 203.4 million, with AUD 97.5 million invested in acquisitions, including Tri Coastal Trading.

• Non-ferrous price uplift contributed AUD 200 million to inventory and receivables.

Outlook and guidance

• SLS first-half FY27 underlying EBIT expected between AUD 75–90 million, with lower high-speed DDR4 volumes in the near term.

• Non-ferrous demand and prices expected to remain strong in FY27, supporting trading margins.

• US tariffs and new EAF capacity to support ferrous scrap demand; Chinese steel exports to continue pressuring ANZ ferrous markets.