Sims Limited: Strong copper & aluminium prices bring guidance upgrade

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Sims Limited: Strong copper & aluminium prices bring guidance upgrade

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Sims Limited

Strong copper & aluminium prices bring

guidance upgrade

Reiterate Rating: BUY | PO: 33.00 AUD | Price: 29.44 AUD

Non-ferrous prices continue to drive earnings upgrade 17 June 2026

SGM has upgraded FY26 group EBIT guidance to A$420–435m from the prior A$350– Equity

400m. The revised midpoint sits 15%/9.0% above consensus of A$373m and our prior

A$393m. The upgrade is primarily driven by strong copper and aluminium prices in North

Key ChangesAmerica (NAM & SAR). Reflecting this, we lift our FY26 EBIT by 10% to A$431m and

increase our PO to A$33 (from A$31.65). We reiterate our Buy rating on, 1, sustained (A$) Previous Current

EPS momentum, 2, ongoing positive earnings revisions, 3, scope for multiple re-rating, Price Obj. 31.65 33.00

and 4, early-stage of the data centre circular economy cycle. 2026E EPS 1.21 1.35

2027E EPS 2.05 2.27

2028E EPS 2.62 2.61Copper & Aluminium: key profit drivers in metals recycling

We see non-ferrous (copper and aluminium) as the primary earnings driver within metals 2026E EBITDA (m) 649.7 686.7

recycling, benefiting from favourable pricing, spreads, and mix shift toward higher-value 2027E EBITDA (m) 860.0 913.6

scrap. While accounting for only ~10% of sales volumes, non‑ferrous contributes ~45% 2028E EBITDA (m) 994.4 990.1

of 1HFY26A segment revenue. This highlights that earnings remain highly leveraged to

pricing upside and trading margin optimization. With copper and aluminium prices Chen Jiang >>

Research Analyst

remaining strong, our commodities team forecasts further upside in FY27 (copper +5%, Merrill Lynch (Australia)

aluminium +24% from spot levels). We expect sustained metals recycling margin +61 2 9226 5771 chen_jiang@bofa.com