Global metals recycler Sims expects higher second-half earnings in its North American business, supported by stronger non-ferrous (NF) scrap markets and improved ferrous trading conditions.
Australian-based Sims revised its fiscal 2026 full-year underlying earnings before interest and tax (Ebit) guidance for the year ending 30 June to A$420mn-435mn ($297-308mn), up from A$350mn-420mn in its 18 March outlook, the company said in an investor update.
Stronger operating performance in its North American divisions, including North America Metals (NAM) and joint venture SA Recycling (SAR), underpinned the adjustment.
US ferrous scrap prices rose across the first half of 2026, with national average shredded scrap reaching $419/gross ton (gt) delivered mill in June, up by $50/gt from June 2025. A 50pc tariff on imported steel reduced imports and sustained robust mill utilization rates in the US.
Non-ferrous scrap prices climbed sharply from January to May on tight supply and firm export demand. But zorba and copper scrap values retreated in early June after base metal prices fell and Asian buyers cut bids.
Strength in NAM and SAR is expected to offset weaker conditions in Australia and New Zealand, Sims said. Elevated Chinese steel exports pressured ferrous markets in those regions, despite recent marginal improvements in Asian ferrous prices.
The company expects underlying ebit at its e-waste recycling and data center services arm Sims Lifecycle Services to range from A$170mn-175mn, compared with A$165mn-185mn in its March outlook.
Strong demand from global data center construction supported the division's earnings over the past year, but fluctuations in decommissioning programs may cause variability in volumes and earnings, Sims said.
Sims will report full-year earnings in August.
