Sims Limited (the Group) today announced an underlying EBIT of $73.0 million in the first half of fiscal year 2025 (HY25). This was 184% higher than HY24, and was driven by a substantial improvement in the operating performance of the North American Metal (NAM) business and continued growth in Sims Lifecycle Services. Statutory EBIT for HY25 was $66.4 million, representing a decrease of 65.1% compared to HY24, which included a gain on the disposal of the Landfill Management Services business. Underlying net profit after tax for HY25 increased to $35.1 million from $7.0 million. Sales revenue of $3,645.5 million was up 4.0% from the prior corresponding period.

Commenting on the HY25 financial results, Group CEO and Managing Director, Stephen Mikkelsen, said, “We delivered a strong performance against a challenging market, which many are citing as one of the most difficult in recent times. We achieved an underlying EBIT of $73.0 million, significantly reduced net debt, and returned cash to shareholders. More importantly, strategic initiatives in NAM drove a significant uplift in the Sims Metal trading margins, despite lower ferrous prices and broader market headwinds. Disciplined cost controls also helped mitigate inflationary pressures.

“As demand accelerates for recycled metals and repurposed technology infrastructure, our focus on margin and cash generation will ensure a strong balance sheet – enabling us to navigate market cycles, reward investors, and seize new growth opportunities,” said Mikkelsen.

Regarding the outlook in scrap markets, Mikkelsen said ferrous prices and intake volumes remain dynamic to regional market influences. Global steel overcapacity and China’s elevated exports are expected to continue. Non-ferrous demand has a robust foundation, and this is likely to be reflected in continued solid volumes and prices.

The growth of EAFs and the decarbonisation transition is driving significant recycled metal demand domestically, altering market dynamics. Increased demand for metal intensive infrastructure spending and the production of post consumption scrap is positive for metal recycling, both ferrous and non-ferrous.