Analysis
August 18, 2026
CRU: Sims' earnings soar
Written by CRU
This item was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.
Global recycler Sims Limited achieved net profit of A$245 M (US$174 million) in the fiscal year ending June, well up on A$2.4 million in the previous 12 months, lifted by strong markets, improved metal trading margins, and cost containment.
Referring to the Australian group’s main North American businesses, chief executive officer and managing director Stephen Mikkelsen said: “NAM (North America Metal) and SAR (SA Recycling) performed particularly well, benefiting from robust nonferrous markets and stronger US ferrous conditions supported by EAF growth and domestic tariffs. Their complementary networks enabled us to capture opportunities across distinct US markets.”
SLS, which recycles IT equipment and offers supply chain support for data center infrastructure services, also had a good year with underlying EBIT, the company’s preferred performance measure, increasing more than fivefold to A$173 million from A$32.6 million.
In contrast, underlying EBIT at the Australia and New Zealand Metal (ANZ) business fell 22.7% year-on-year to A$55.8 million because elevated Chinese steel exports into Asia continued to pressure ferrous prices and margins. However, the segment’s turnover rose 12.7% to A$1.78 billion on the back of higher average nonferrous selling prices and increased non-ferrous shipments.
Groupwide proprietary intake volumes went up 4.9% to 6.4 million metric tons, chiefly driven by factors in North America: competitor supply disruptions, stronger zorba, and domestic ferrous prices, which encouraged increased shred feed supply, and the four-month contribution from the Tri Coastal Trading acquisition in Houston, Sims said.
However, the group’s proprietary sales volumes were little changed at 6.3 million metric tons as a 3.6% decline in ANZ offset a 1.1% uplift for NAM. Sales revenue rose 6.9% to A$8.00 billion, helped by the trading margin going up by 6.2%.
Looking ahead, Sydney-headquartered Sims forecasts underlying EBIT will be between A$75 million and A$90 million in fiscal H1, down from A$121 million in the year-ago period.
“The factors that supported strong nonferrous demand and prices in FY’26 are expected to remain supportive in FY’27. Our North American businesses and ANZ have robust nonferrous product lines, and these will continue to deliver significant trading margin contributions,” the company added.
“Tariffs are expected to continue to protect US steel manufacturers and thereby support the demand for ferrous scrap, together with additional EAF capacity that has now come online in FY’26, and further capacity expected in FY’27.
“The construction of data centers continues to also support the demand for steel and in turn the demand for scrap.”
But Sims also noted that the timing of data center decommissioning remains variable.
