SYDNEY, June 10, 2026, 05:01 AEST
- Sims shares ended at A$28.11, up 61 cents, or 2.22%. The company’s market cap is about A$5.43 billion.
- S&P/ASX 200 ended Tuesday down 0.24% at 8,604.20.
- The ASX cash market didn’t open Monday for King’s Birthday. The exchange trades as usual from 10 a.m. to 4 p.m. Sydney time.
Sims Ltd (SGM.AX) gained 2.22% to A$28.11 on Tuesday, going against a softer Australian market. Traders watched the company’s technology recycling unit, with talk about whether it should get its own valuation.
Tough timing, but it works. The stock hasn’t opened yet at the dateline, so Tuesday’s close sets the last price ahead of Wednesday on the ASX.
Sims Lifecycle Services, or SLS, is now more than a scrap metal business. It works on IT asset and cloud infrastructure reuse, redeployment and recycling, connecting Sims Limited directly to data-centre spending and hardware replacement cycles for companies.
Sims is facing more calls to consider a demerger of its SLS unit, The Australian reported Sunday. The paper said Sims shares are up about 85% in the past 18 months, while the ASX 200 has gained 7% in that time. SLS is expected to post EBIT of A$165 million to A$185 million in fiscal 2026, a steep jump from A$33 million in 2025, according to the report.
Sims’ latest half-year figures help make sense of the buying interest. HY26 underlying EBIT came in at A$121.1 million, a rise of 65.9%. Underlying NPAT — net profit after tax before selected items — was A$60.0 million, up 70.9%.
Chief Executive Stephen Mikkelsen said the result was “good solid” in what he called a tough market, adding SLS saw “extraordinary demand for AI chips.” He said “disciplined cost management” also supported performance.
SLS reported underlying EBIT of A$49.0 million for the half, jumping 247.5% from last year. Growth came from more business with hyperscalers—big cloud firms looking to buy and swap out servers—and higher resale prices for DDR4 memory chips, which are still common in legacy setups.
Sims remains a cyclical materials business at its core. Market Index says the company buys, processes and sells both ferrous and non-ferrous recycled metals, along with repurposing and recycling IT equipment for commercial clients. Ferrous metals are iron-based, non-ferrous include aluminium and copper.
Australian stocks slipped after the close on Tuesday, pressured by gold, metals and mining, and materials names, according to Investing.com. The broad market backdrop wasn’t much help. Materials were mixed—BlueScope Steel held steady while South32 lost 2.16%, Google Finance data showed.
Risks exist here. Sims points to high Chinese steel exports as a big headwind for ferrous markets outside the U.S. The demerger story is tied to SLS maintaining earnings, depending on DDR4 resale prices and AI server demand staying strong. Softer memory-chip resale prices or a management decision against a breakup could sap the stock’s rerating.
Sims investors are watching Wednesday’s open for signs the SLS story still matters. Market Index puts Sims’ prelim report on Aug. 18 and annual results on Sept. 2. Those could be more chances for management to talk about earnings quality, capital allocation, or where the group is heading.
