Sims Limited has reported a solid FY25 result, supported by robust demand in North America and tariff support for domestic steel and aluminium, according to RBC Capital Markets analyst Owen Birrell. Sims Limited is a global leader in metal recycling, providing sustainable solutions for businesses, communities, and governments. The company purchases, processes, and sells ferrous and non-ferrous recycled metals, generating new raw materials while reducing waste.
According to Birrell, Sims’ underlying EBIT of $175 million, a notable increase from $59 million in FY24, aligned with expectations. The company also announced a fully franked final dividend of 13¢ per share, slightly below RBC’s anticipated figure. The implementation of cost reduction measures, which yielded $23 million in savings during the second half of FY25, is expected to contribute an additional $10 million to $15 million in annualised savings in FY26.
Birrell noted that performance varied across different divisions. While North American Metals experienced lower volumes but improved margins, SA Recycling surpassed expectations due to growth in non-ferrous materials. ANZ Metals faced challenges with margin pressure, and the SA Recycling joint venture benefited from increased volumes and demand for memory module repurposing. Looking ahead to FY26, Birrell anticipates sustained strong demand and healthy trading margins for the company.
