Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Sims (ASX:SGM) share price soars 13% on FY25 trading update

The Sims Ltd (ASX:SGM) share price is up 13% after the metal business gave a promising trading update for FY25. 

The Sims Ltd (ASX: SGM) share price is up 13% after the metal business gave a promising trading update.

Sims describes itself as a global leader of metal recycling and the provision of circular solutions for technology.

FY24 trading update

Despite ongoing market challenges across all regions, the Sims metal businesses are projected to deliver an estimated EBIT of approximately $55 million in the first quarter of FY25.

North America

The ASX share said all the metals businesses are on track to contribute to the good start to FY25, particularly North American Metal (NAM), which is estimated to deliver $29 million of EBIT with a trading margin of 22%.

Sims pointed out that NAM’s performance “builds on the improvement” seen toward the end of FY24 where it delivered an EBIT of $12 million in Q4 after a loss of $15 million in the third quarter of FY24.

The ASX share said the recent performance is “encouraging”, driven by its efforts to focus on margin, including buying more unprocessed material and targeting “the most favourable markets”. Sims said these actions have delivered “tangible results”.

SA Recycling’s performance has been “robust”. Sims’ 50% share is expected to deliver EBIT of $24 million in the first quarter of FY25, which is a stronger pace than the FY24 second half run rate. and at a trading margin of 29%.

ANZ

Australia and New Zealand Metal continues to face challenging market conditions. It has been impacted by increased Chinese exports into Asia and a slowdown in the domestic market. The estimated EBIT for this division in FY25 is expected to be $13 million, with an expected trading margin of 27% for the quarter.

Management commentary

The Sims Managing Director and CEO Stephen Mikkelsen said:

It is encouraging to see the improved performance of our Metal businesses despite the challenging market conditions, particularly as we refocused our portfolio. I am especially pleased with the strong results in NAM, which highlight the successful execution of our strategy in a difficult market and the team’s commitment to organisational adjustments.

Final thoughts on the Sims share price

As always, rising profit can lead to a higher share price. At the right times, I’d say Sims can be a cyclical opportunity to buy, but it seems to be exiting the most difficult time now.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content