Sims upgrades forecast to $435M for FY26

• Sims updated its full-year earnings forecast upward due to improved conditions across metal markets.
• The company's projected underlying earnings increased to a new range of 420 million to 435 million dollars.
• Improved business operations in North America and growth in global data centres are driving the updated outlook.

Sims (ASX:SGM) announced an upward revision to its expected financial performance for the 2026 fiscal year, citing continued strength across non-ferrous markets and improved trading conditions for ferrous metals.

The company stated that its underlying earnings before interest and tax are now expected to be between $420 million and $435 million, representing an increase from the previous guidance range of $350 million to $400 million issued on March 18.

The North American metal businesses are projected to deliver a significant increase in second-half earnings, supported by strong operating performances across both Sims North America Metals and SA Recycling.

The company also forecast that its Sims Lifecycle Services division will achieve an underlying profit between $170 million and $175 million for the 2026 fiscal year, driven by structural growth trends in the global data centre ecosystem.

Following the announcement, the Sims Limited share price was down at $29.44.

The metal recycling company continues to manage variations in geographic markets, noting that while ferrous prices in Asia have improved, market conditions in Australia and New Zealand remain subdued due to elevated Chinese steel exports.

The business indicated that the final timing of customer decommissioning programmes will continue to influence how its total volumes and earnings are distributed between corporate reporting periods.