Sims (SGM) Investor Day 2026 summary

Strategic Progress, Operational Transformation, and Market Positioning

• NAM and SA Recycling have achieved significant operational resets, delivering higher and more consistent earnings with reduced volatility, driven by cost structure improvements, disciplined capital allocation, and enhanced commercial flexibility across domestic and export markets.

• Expansion is pursued through bolt-on acquisitions, greenfield feeder yards, and transformational deals, with ongoing inorganic growth and integration of NEMT and Alumisource enhancing non-ferrous processing capabilities and market reach.

• Leadership and organizational changes have fostered a culture of accountability, regional decision-making, data-driven planning, and streamlined structures, with incentives aligned to financial outcomes and improved safety performance.

• Enhanced logistics, rail, and barge capabilities, along with robust supplier relationships and inventory management, support rapid shifts between markets and maximize margins.

• Complementary networks between NAM and SA Recycling expand the national footprint and sourcing capability, positioning both for EAF growth and rising US scrap demand.

Market Dynamics and Growth Drivers

• The North American scrap market is highly liquid and large, with stable industrial scrap generation, growing EAF steelmaking capacity, and supportive US trade measures.

• Electrification, digital infrastructure, data center expansion, and renewable energy projects are driving significant new demand for copper and aluminum, with expectations of over 700,000 tons of incremental demand for each metal.

• Both NAM and SA Recycling are positioned to benefit from EAF growth, with strategic locations, logistics, and dense regional networks providing cost advantages and access to key markets.

• Fragmented markets and network density create a long runway for value-accretive bolt-on acquisitions and programmatic M&A.

• Limited impact from Middle East conflict, with higher freight and oil costs managed through commercial terms and operational adjustments.

Portfolio, Expansion, and Operational Efficiency

• SA Recycling operates 150 locations in 15 states with 22 shredders, leveraging a dense hub-and-spoke network to source low-cost scrap and maintain stable trading margins.

• The business has accelerated its acquisition pace, adding 76 yards in the last five years, and maintains a robust pipeline for further consolidation and bolt-on growth.

• Utilization of processing assets is around 50%, providing significant headroom for volume growth as supply and demand increase.

• Non-ferrous business has grown rapidly, now representing over half of revenue, with investments in advanced processing and high-grading technologies to capture higher margins.

• Streamlined organizational structure, simplified performance metrics, and disciplined yard-level inventory practices support faster execution and operational discipline.