Sims (SGM) Investor Day 2026 summary

Strategic direction and growth initiatives

• Transitioned from turnaround to scalable growth, focusing on Metal and SLS platforms connected by circularity and operational capability.

• Emphasized expansion through feeder yard infill, integrating acquisitions like TCT and Baltimore Scrap, and network efficiency.

• Pursuing both organic and inorganic growth, with bolt-on acquisitions, occasional larger deals, and 24 NAM and 72 SAR sites added in five years.

• Targeting increased control of source material, maximizing shredder capacity, and leveraging operational synergies.

• Strategy aims for stronger earnings and multiple pathways to create additional value, including technology investments and process innovation.

Financial performance and capital management

• Achieved 11.7% ROIC in FY26, with NAM EBITDA at US$213m, SAR at US$478.7m, ANZ at A$117.5m, and SLS at US$129.1m.

• Underlying operating cash flow for FY26 was A$411.3m, with pre-growth free cash flow at A$180.8m.

• Dividend policy targets 25–35% of pre-growth free cash flow or underlying earnings, with FY26 final dividend at 0.20cps.

• Capital management prioritizes value creation, balance sheet strength, disciplined investment, and sustainable shareholder returns.

• Growth funding comes from operating cash flow, property sales, asset recycling, and selective larger strategic opportunities.

Market positioning and operational focus

• Strong presence in North America, with complementary networks between wholly owned and JV operations.

• Enhanced domestic and export optionality, robust logistics, and ability to direct material to highest-value channels.

• Non-ferrous now exceeds ferrous in revenue, driven by retail and NFSR (notably Zorba), and investments in recovery technology.

• Focus on buying unprocessed material and increasing shredder utilization to maximize margin and value extraction.

• Operating improvements have reduced costs per tonne by 27% from FY24 to FY26.