Sims rallies after lifting FY26 earnings guidance
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More news: Shares in Sims climbed in morning trade after the company downplayed the operational impact of the Middle East conflict on its FY26 underlying earnings.
Shares were up 9.19% to $20.55 at 1:00pm AEDT.
RBC Capital Markets analyst Owen Birrell holds a sector perform view on the stock, setting the price target at $23.
Birrell expects Sims Lifecycle Services to continue to grow following elevated DDR4 pricing, primarily resulting from ongoing demand and supply constraints as manufacturers step back from DDR4 production.
Sims guides on FY26 earnings increase, plays down Middle East war impact
The news: Metals recycling firm Sims has guided for underlying earnings growth in FY26 after describing the operational impact of conflict in the Middle East as “relatively limited” outside shipping and fuel costs.
The numbers: FY26 underlying EBIT is expected to be between $350 million and $400 million. The group reported underlying EBIT of $174.9 million in FY25.
Underlying EBIT for the company’s lifecycle services arm is expected to be in the range of $165 million and $185 million. That would mark an improvement from $32.6 million in FY25.
The context: Sims said despite ongoing Chinese steel exports impacting scrap prices across export and domestic markets, its metal business continues to be supported by strong non-ferrous prices, improved US domestic ferrous prices and a focus on sourcing unprocessed material.
Higher aluminium prices in reaction to supply concerns have contributed to a further uplift in zorba prices, it said.
The source: ASX
