Metal recycler Sims lifts its FY26 underlying EBIT guidance to between $420 million and $435 million from a prior $350 million to $400 million range. The company links the higher forecast to resilient conditions in non-ferrous metals, a segment that has been a key earnings driver.
Sims reports materially better trading conditions for non-ferrous metals across its operations, particularly in North America. The group expects its North American metal businesses to deliver a meaningful uplift to second-half FY26 earnings, doing much of the heavy lifting for the improved outlook.
Management also tightens and raises expectations for its Lifecycle Services division, targeting underlying EBIT of $170 million to $175 million in FY26. That unit benefits from structural growth in the global data centre ecosystem as more equipment flows through reuse and recycling channels.
The Lifecycle Services arm now sits alongside the traditional scrap and recycling operations as a core earnings pillar for Sims, rather than a side business. Demand from hyperscale and enterprise data centres feeds a steady stream of hardware, supporting higher-margin services and diversifying the group away from purely volume-driven scrap cycles.
Stronger non-ferrous markets enhance price realisation and margins across its recycling network, amplifying operating leverage in North America. Together, these factors create a more balanced earnings mix, less exposed to a single commodity or region.
The combination of robust non-ferrous demand and secular data centre growth is reshaping how Sims positions itself within the broader metals and sustainability sector. The company’s emphasis on Lifecycle Services aligns with increasing focus on circular economy models in technology infrastructure.
