Sims Upgrades Earnings Forecast Amid NF Scrap Market Strength
Sims anticipates increased earnings for H2 2026, driven by non-ferrous scrap market gains and improved ferrous trading. The revised fiscal 2026 guidance for underlying EBIT is now A$420mn-435mn, reflecting robust performance in North America.
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Sims has revised its fiscal 2026 full-year underlying earnings before interest and tax (EBIT) guidance to A$420mn-435mn, up from A$350mn-420mn. This adjustment is attributed to stronger performance in North America, particularly within its North America Metals (NAM) and joint venture SA Recycling (SAR).
US ferrous scrap prices increased to $419/gross ton in June, bolstered by tariffs on imports, while non-ferrous scrap prices surged earlier in the year before retreating in June. Despite challenges in Australia and New Zealand due to high Chinese steel exports, the company expects NAM and SAR to counterbalance these conditions. Sims Lifecycle Services is projected to achieve EBIT between A$170mn-175mn, influenced by global data center construction demands and variable decommissioning program fluctuations.
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