Highlights

  • Underlying NPAT increased 70.9% to AUD 60.0 million, with underlying EBIT rising 65.9% to AUD 121.1 million.
  • Sales revenue grew 3.7% to AUD 3,778.6 million, while Return on Invested Capital improved to 6.2%.
  • An interim dividend of 14 cents per share was declared, up 40% from the prior period.

Sims Limited (ASX:SGM) has announced its fiscal 2026 half-year results, reporting higher underlying earnings driven by growth in Sims Lifecycle Services (SLS) and improved metal trading performance in North America. The highlight of the fiscal results is the net profit after loss of AUD 29.9 million, which resulted in drop in SGM’s share price.

Shares were trading at AUD 20.24 on 17 February 2026, down 4.89% for the day and up 43.85% over the past year.

Revenue Growth and Underlying Earnings Expansion

Sims reported statutory sales revenue of AUD 3,778.6 million for HY26, up 3.7% compared with HY25. Underlying EBITDA increased 24.0% to AUD 249.8 million, while underlying EBIT rose 65.9% to AUD 121.1 million.

Underlying NPAT reached AUD 60.0 million, compared with AUD 35.1 million in HY25. Diluted underlying earnings per share increased to 30.7 cents from 18.0 cents.

Return on Invested Capital improved to 6.2%, up 1.9 percentage points year-on-year.

Statutory results were impacted by AUD 41.1 million in unrealised losses on derivative contracts and a AUD 60 million expected credit loss relating to the residual receivable from Unimetals in the UK. As a result, statutory NPAT recorded a loss of AUD (29.9) million compared with a AUD 30.8 million profit in HY25.

Segment Performance

North America Metal (NAM) delivered underlying EBIT of AUD 53.3 million, up from AUD 46.7 million in HY25. Improved ferrous margin percentage and non-ferrous trading contributed to the increase.

Sims Adams Recycling (SAR) contributed AUD 59.0 million in underlying EBIT, compared with AUD 47.4 million in the prior year. Performance was supported by higher exposure to non-ferrous retail and Zorba products.

Australia and New Zealand (ANZ) reported underlying EBIT of AUD 21.5 million, down 43.3% due to softer ferrous conditions linked to elevated Chinese steel exports.

Sims Lifecycle Services (SLS) recorded underlying EBIT of AUD 49.0 million, a 247.5% increase from HY25. Growth was driven by demand for repurposed DDR4 chips amid constrained supply as manufacturers shift toward DDR5 platforms.

Cash Flow and Balance Sheet

Cash inflow from operating activities was AUD 155.2 million, compared with AUD 347.8 million in HY25. Capital expenditure totalled AUD 66.5 million for the period.

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

The Board declared an interim dividend of 14 cents per share, up from 10 cents in HY25.

Strategy and Outlook

During the half, Sims progressed logistics and port investments in North America, expanded SAR through five bolt-on acquisitions, and advanced electrification and recovery projects in ANZ.

SLS continued geographic expansion, including developments in Ireland and the United States, alongside digital transformation initiatives.

The company expects ongoing support from non-ferrous markets and sustained demand for DDR4 chip repurposing. Chinese steel exports remain a headwind for ferrous pricing outside the United States.

Full-year conditions are expected to remain influenced by market pricing dynamics, tariffs and global steel trade flows.

Sims reported higher underlying earnings and revenue growth in HY26, supported by performance in SLS and North American metal operations. Statutory results were impacted by derivative losses and credit provisions, while the company maintained dividend growth and progressed strategic initiatives across its global operations.

Frequently Asked Questions (FAQ)

  1. What was Sims’ underlying profit for HY26?
    Underlying NPAT was AUD 60.0 million, up 70.9% from HY25.
  2. Why did Sims report a statutory loss?
    Statutory NPAT was impacted by AUD 41.1 million in unrealised derivative losses and a AUD 60 million expected credit loss related to Unimetals in the UK.
  3. What dividend was declared?
    An interim dividend of 14 cents per share was declared for HY26.