The Sims Ltd (ASX: SGM) share price is in focus today as the company holds its annual general meeting (AGM). In FY25, the company reported a strong uplift in underlying EBITâup nearly 200% to $174.9 million for FY25âand declared a fully franked full-year dividend of 23 cents per share.
What did Sims report in FY25?
- Underlying EBIT rose 193% to $174.9 million for FY25.
- Full-year dividend of 23 cents per share, fully franked (final dividend 13 cents).
- Underlying free cash flow increased to $107 million.
- Sims Lifecycle Services EBIT surged 84% year-on-year.
- Record-low Lost Time Injury Frequency Rate of 0.11.
- Achieved 49% reduction in Scope 1 and 2 emissions since FY20 baseline.
What else do investors need to know?
Sims boosted its FY25 performance by simplifying its business, including the divestment of its UK Metal operations, and focusing on higher-margin and domestic sales, especially in its North American and ANZ Metals businesses. SA Recycling performed well, making several bolt-on US acquisitions and increasing EBIT contribution by 17%.
Sims Lifecycle Services expanded rapidly, capturing strong demand from the fast-growing data centre segment and artificial intelligence trends. Sustainability remained central, with the group surpassing its 2025 climate targets by achieving a 49% emissions cut and sourcing 100% renewable power for its operated businesses.
What did Sims management say?
Stephen Mikkelsen, Group Chief Executive Officer & Managing Director said:
I am very proud of what the team has accomplished this year. Fiscal Year 2025 was a year of delivery against our turnaround plan, and the results reflect the progress we’ve made. We simplified our portfolio with the divestment of UK Metal, maintained strict cost discipline, and focused on metal margins, growth in Sims Lifecycle Services, and a strong contribution from SA Recycling. Together, these actions lifted underlying EBIT nearly 200 percent to $174.9 million.
What’s next for Sims?
Sims expects a meaningful improvement in group Underlying EBIT for the first half of FY26 compared to the same period last year, helped by resilient volumes and firm prices in non-ferrous metals. The company sees strong growth potential in recycling for electric arc furnaces and data centre demand, particularly through Sims Lifecycle Services.
Ongoing headwinds remain in ferrous markets, with elevated Chinese steel exports impacting both domestic and export prices. Sims plans to maintain margin discipline, invest for growth, and pursue sustainability targets as it supports decarbonisation and the circular economy.
Sims share price snapshot
Over the past 12 months, Sims shares have risen 21%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 3% over the same period.
The post Sims holds AGM following a strong FY25 earnings report appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.
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