Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Sims Limited Reports Strong FY26 Growth as AI Demand Boosts Recycling and Lifecycle Services
Highlights
Sims Limited Delivers Strong FY26 Financial Performance
Sims Limited (ASX: SGM) released its full-year results for the period ended 30 June 2026 on 18 August 2026, reporting a substantial improvement in earnings amid favourable metal markets and growing demand for technology asset recovery. According to the company’s FY26 presentation, Group sales revenue increased 6.9% year-on-year to AU$8.01 billion, compared with AU$7.49 billion in FY25. Underlying EBITDA rose 69.3% to AU$727.8 million, while underlying EBIT jumped 167.6% to AU$468.0 million. Return on invested capital also improved by 7.2 percentage points to 11.7%. The company attributed the stronger earnings to improved metal margins, favourable non-ferrous market conditions, growth in Sims Lifecycle Services (SLS), and disciplined cost management. Statutory NPAT reached AU$245.3 million, compared with AU$2.4 million in FY25.
Sims Lifecycle Services Emerges as a Key Growth Driver
SLS delivered particularly strong results during FY26. Revenue increased 77.4% to AU$757.0 million, while underlying EBITDA climbed 314.6% to AU$190.3 million. Underlying EBIT jumped 429.8% to AU$172.7 million, lifting the EBIT margin to 22.8% from 7.6% a year earlier. Repurposed units increased 90.9% to 16.8 million, supported by strong hyperscaler demand. The company also highlighted robust DDR4 memory pricing and constrained memory supply as important contributors to SLS growth.
Outlook Supported by AI Infrastructure
Sims said the expansion of AI infrastructure is creating a growing pipeline of recoverable servers, memory and accelerator components. Increasingly complex AI systems are also creating opportunities for specialised testing, refurbishment, certification and resale services. The company’s FY26 performance indicates that its recycling and lifecycle-services operations are benefiting from structural demand across both metals and technology assets, providing a stronger platform for future growth.
Note- All data presented is based on information available at the time of writing.
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