Sims Ltd. ( (SMUPF) ) has released its Q2 earnings. Here is a breakdown of the information Sims Ltd. presented to its investors.
Sims Limited is a global leader in metal recycling and IT asset repurposing, operating primarily in the ferrous and non-ferrous metals industry. The company also focuses on recycling IT assets and electronic equipment for commercial customers. In its latest earnings report for the half-year ended December 2024, Sims Limited reported a 4% increase in sales revenue to A$3,645.5 million, despite facing challenging market conditions. The company’s underlying net profit after tax (NPAT) saw a significant increase of 401.4% to A$35.1 million, although the statutory NPAT decreased by 68.6% due to a prior period gain on asset sales. Key highlights include a robust performance in the North American Metal segment, with sales revenue up by 7%, and a 20.6% increase in sales revenue for Sims Lifecycle Services, driven by higher activity levels from hyperscaler customers. Despite the challenging market conditions, Sims Limited has maintained a strong cash flow from operating activities, reporting a net cash inflow of A$347.8 million. The company continues to focus on strategic growth areas, including the expansion of its Lifecycle Services and the completion of several acquisitions. Looking ahead, Sims Limited remains cautiously optimistic, with expectations of continued strong momentum in the hyperscaler data center market and a robust foundation for non-ferrous demand. The company is also focused on mitigating cost inflation through ongoing cost savings initiatives.