SYDNEY, June 18, 2026, 07:05 AEST
- Sims raised its FY26 underlying EBIT outlook to A$420 million-A$435 million, up from A$350 million-A$400 million. The company pointed to stronger non-ferrous markets and improved ferrous trading as reasons for the upgrade.
- SGM finished Wednesday at A$29.96, gaining 1.77%. Shares hit A$31.81 during the session. The S&P/ASX 200 rose 0.54% to close at 8,966.30.
- Jefferies raised its price target on Sims to A$31 from A$19 and shifted to Hold, The Bull said. The broker pointed to delivery risk around earnings timing, China steel exports and commodity spreads.
Sims Limited moved back into focus Thursday as the Australian metal recycler raised its full-year earnings outlook. The stock had surged to as high as A$31.81 during the last session but settled at A$29.96 by the close.
ASX cash market sat in pre-open at the dateline. Orders can go in during this phase, but trading hasn’t begun yet. ASX says regular trading is 09:59:45 to 16:00 Sydney.
Sims is no longer just getting priced as a scrap-cycle stock. The market is starting to factor in its data-centre equipment recycling and decommissioning business, which offers a cleaner growth angle than metals and now has enough scale to move overall group earnings.
Sims on Wednesday raised its FY26 underlying EBIT guidance to A$420 million–A$435 million. The company had previously forecast A$350 million–A$400 million in March. Underlying EBIT excludes items Sims does not consider part of normal operations.
The company said non-ferrous metals like copper and aluminium did well, and conditions improved for ferrous metals—iron and steel scrap. Its North American metals arms, Sims North America Metals and SA Recycling, are expected to post a “significant” jump in earnings in the second half. But in Australia and New Zealand, the ferrous markets are still weak, with high Chinese steel exports weighing on demand.
Sims Lifecycle Services, which handles tech asset reuse and data-centre projects, now sees underlying EBIT between A$170 million and A$175 million. The company said structural growth in the global data-centre ecosystem is giving the unit a boost, but warned that the timing of customer decommissioning programmes will shape the flow of volumes and earnings.
Sims shares have rallied, jumping 63.74% in 2026 and 91.42% so far this financial year, according to Intelligent Investor data. The move comes as the benchmark S&P/ASX 200 edged up just 0.54% on Wednesday.
Sims got a lift after its guidance update, with Jefferies moving the stock up to Hold from Underperform. Jefferies also increased its price target for Sims to A$31 from A$19 and bumped its FY26 EBIT forecast 14% so it now matches the company’s outlook.
BlueScope Steel rose 1.22% Wednesday and South32 was up 0.47%, but both those moves were less dramatic than Sims’ intraday jump. The groups are not directly comparable—BlueScope makes steel, South32 is a diversified miner, and Sims is in recycled metals and tech asset recycling. Even so, the moves show the market picked out Sims after the guidance update.
Market risk is that shares have already priced in the positive news. Sims flagged that the upgraded estimates are unaudited and rely on several assumptions. If data-centre decommissioning slows, non-ferrous prices stay soft, or Chinese steel exports keep pressuring, investors may ask if these higher earnings are sustainable or just a peak. After months of gains, the stock offers less margin for error.
Sims has been around since 1917, starting out in Australia. The group runs over 150 sites across 13 countries and has about 3,900 employees. The next big test is the FY26 full-year results. Investors want to see if stronger guidance actually turns into cashflow and margins, and not just a higher run-rate to close out the year.
