Sims Raises Profit Outlook on Strong Metal Demand

The revised forecast marks a notable jump from the 350 million to 400 million Australian dollar range projected by the firm in March. Management attributes the improved outlook to stronger trading conditions in ferrous materials and high-performing operations within its North American divisions, including SA Recycling. While global nonferrous scrap prices—particularly for shredded metal mix Zorba—remain a primary catalyst, the company noted that local markets in Australia and New Zealand continue to face headwinds from elevated Chinese steel exports.

Sims also fine-tuned expectations for its electronics recycling unit, Sims Lifecycle Services, narrowing its earnings target to between 170 million and 175 million Australian dollars. This segment remains central to the company’s long-term strategy, benefiting from the rapid expansion of the global data center ecosystem. However, executives cautioned that the irregular timing of large-scale customer decommissioning programs will likely cause fluctuations in volume and earnings across future reporting periods.