Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • Sims posted FY25 sales revenue of AUD 7,494.0 million, up 4.1% year-on-year.

  • Underlying EBIT rose 198.0% to AUD 174.9 million, while statutory EBIT declined 47.3% to AUD 68.6 million.

  • A fully franked final dividend of 13.0 cents per share was declared, taking the total FY25 dividend to 23.0 cents.

Sims Limited (ASX:SGM) announced its full-year results for fiscal 2025, recording sales revenue of AUD 7,494.0 million, a 4.1% increase from AUD 7,195.4 million in FY24. The increase was driven by a 4.0% rise in average sales prices for Metal, particularly supported by non-ferrous components, though partly offset by a 3.8% decline in overall proprietary Metal sales volumes. Sims Lifecycle Services (SLS) contributed with a 22.0% revenue increase during the year.

The Group reported underlying EBIT of AUD 174.9 million, up 198.0% compared to AUD 58.7 million in FY24. Statutory EBIT was AUD 68.6 million, down 47.3% from AUD 130.1 million in FY24, which included a one-off gain of AUD 182.6 million from the sale of its LMS business. The difference between statutory and underlying EBIT was largely due to asset impairments, restructuring costs, and the closure of SRR operations.

Free cash flow improved to AUD 106.8 million, compared to negative levels in FY24, while Return on Invested Capital rose to 4.9%, up from 1.8% in the prior year.

Segment Performance

North America Metals (NAM) recorded an underlying EBIT of AUD 80.1 million, a 735.7% increase from FY24. Revenue was AUD 4,503.6 million, up 0.5%, supported by higher non-ferrous volumes and prices. Trading margins rose 20.2%, assisted by acquisitions of Baltimore Scrap and Northeast Metal Traders.

Sims Aluminium Recycling (SAR) contributed AUD 120.0 million to underlying EBIT, up 17.4% from AUD 102.2 million in FY24. Revenue increased by 9.7% to AUD 5,232.4 million, supported by non-ferrous gains and incremental volumes from eight acquisitions.

Australia and New Zealand (ANZ) delivered an underlying EBIT of AUD 72.2 million. Revenue was AUD 1,575.5 million, down 1.2% year-on-year. A decline in ferrous volumes was offset by higher non-ferrous volumes, though trading margins declined 8.5% due to weaker market conditions influenced by Chinese exports and slowing domestic demand.

Sims Lifecycle Services reported an underlying EBIT of AUD 32.6 million, up from AUD 17.7 million in FY24. Processed unit volumes increased by 44.3% year-on-year, supported by demand for memory module repurposing and US data centre expansion linked to artificial intelligence adoption.

Capital Management

In FY25, Sims invested AUD 17.7 million in growth initiatives and AUD 183.0 million in sustaining projects covering safety, compliance, and maintenance. A fully franked final dividend of 13.0 cents per share was declared, bringing the total dividend for the year to 23.0 cents per share, up 130.0% from FY24.

Outlook

The Group highlighted supportive long-term demand trends for non-ferrous metals and scrap, underpinned by decarbonisation and tariff protection in the US. However, high Chinese steel exports remain a headwind for ferrous prices in international and ANZ markets. Sims Lifecycle Services is expected to benefit from continued hyperscaler data centre expansion and demand for repurposed units in FY26.