Sims (SMUPF) AI Stock Analysis

Company Guidance

Sims guided that SLS is expected to deliver underlying EBIT of A$75–90m in H1 FY27, with management flagging lower volumes of high‑speed DDR4 in that half despite new DDR4 prices finishing FY26 >1,000% above the prior year; SLS repurposed units grew ~91% YoY and total repurposed units handled were nearly double prior year. At group level FY27 depreciation & amortisation is forecast at ~A$260m, the group converted >70% of EBITDA to operating cash and invested A$488m in capex and acquisitions over the last 12 months, finishing with net book assets of A$2.7bn and ROIC of 11.7%; the Board declared a final fully‑franked dividend of A$0.20 (FY26 total A$0.34). Management expects continued strong non‑ferrous contribution (Zorba/copper/aluminium) and North American ferrous support from tariffs and EAF growth, while ANZ will remain impacted by Chinese steel exports in FY27; working capital was broadly steady (restricted cash down from ~A$95m at the half) and inventory/receivables benefited from ~A$200m uplift from non‑ferrous prices. Other notable metrics called out were TRIFR 1.09, 5.9Mt ferrous recycled avoiding >9.5Mt CO2e (≈1.6x combined Scope 1‑3), and a pay equity gap under 2%.