Sims Limited (ASX: SGM) delivered a strong performance and strategy update during the chairman’s address at the 2025 AGM. The Company pointed to the strong performance in metals and lifecycle services departments, although it was a tough environment. Financial discipline was also one of the areas that were highlighted, along with sustainability.
Sims Limited (ASX: SGM) highlighted strong performance, discipline and sustainability.
What Did The Chairman Outline At The AGM?
The chairman started his speech with gratitude to the shareholders and prepared the ground for open communication and interaction. He indicated that the Company had a good performance in the fiscal year 2025 with the implementation of the Company’s key strategic initiatives.
Among others, he mentioned these initiatives: the introduction of better domestic sales options for the metals business, the shift of focus to higher-margin unprocessed material and the application of strict cost controls.
The further growth in the Company’s lifecycle services division, more than ever, confirmed the soundness of the business model. The chairman reiterated the Company’s reason for being, the eradication of waste, and said that sustainability still is the main factor of long-term value creation.
Sustainability Milestones Were Remarkable In FY25
Sims has slashed its Scope 1 and 2 emissions by 49% compared to its FY20 baseline, far surpassing the 23% cut target. The firm is also atop the list of users of 100% renewable electricity ,and that is the case for all its business operations.
Moreover, the carbon neutrality of the lifecycle services division was a milestone on the way to decarbonisation that the Company has set for itself. The chairman admitted that the situation by then would still be tough with regard to the achievement of 2030 targets.
He was quick to point out the Company’s unwavering commitment made through the “Say on Climate” vote at the meeting, among other things, to be transparent and keep the public informed. Movement towards the objective of achieving an open and diverse workplace, as well as strong safety and engagement performance, was also mentioned by the board.
Sims cut emissions 49% and achieved 100% renewable electricity.
Capital Management And Shareholder Returns Were Highlighted
The chairman clarified that the capital management scheme is aimed at keeping a sound balance sheet, financing the strategic growth and returning value to the shareholders. He proclaimed a 13 cents per share final dividend, fully franked, leading to a total annual dividend of 23 cents per share.
The chairman emphasised that the non-core assets would be divested and the capital thus raised would be used for new investments in the Company’s global hierarchy. Besides, the board continued to change its composition in FY25, bringing in two new directors with thorough industry insights and expertise who will be elected again at the annual general meeting.
How Does This Set Sims Up For The Future?
The chairman took a look into the future and saw potential opportunities and good conditions regarding the Company’s structure. He expressed that the Company’s metals division is in a good position in Australia, New Zealand and North America to take advantage of the rising electric arc furnace capacity and the consequently increasing demand for secondary aluminium and copper.
On the other hand, the lifecycle services division is in the right place at the right time to profit from the expansion of the hyperscale data centres and demand for repurposed materials driven by AI. He summed up the strategic focus as: discipline in margins, capital efficiency and simplification of the portfolio, all of them corresponding with the Company’s mission of creating a waste-free world.
Chairman highlighted strong future opportunities and metals growth positioning.
What Are The Near-Term Expectations And Challenges?
The chairman, along with the team, expects a significant uplift in the first half of FY26 compared with the first half of FY25 and a similar performance to the second half of FY25.
The metals business in North America will report an underlying EBIT that is almost the same as the first half of FY25, but with a substantial upturn in the second half of FY25. To the detriment of the metals business, Australia and New Zealand suffer from cheap Chinese steel flooding the market.
Underlying EBIT in Australia and New Zealand for 1H FY26 is expected to be in the range of $10 million to $15 million. On the other hand, the lifecycle services sector is likely to post an underlying EBIT of $45 million to $50 million for 1H FY26, which will already be more than the entire FY25 result.
Board Governance And Strategic Leadership Remain Focused
The Chairman pointed out that the board refreshment is of utmost importance as it will come with industry knowledge and strategic leadership to aid growth. New appointments to the board not only improve governance but also enable the Company to navigate through the decarbonisation and circular economy avenues that it has opened. An advisory vote on climate strategy was held at the AGM, which signals both shareholder involvement and the board’s commitment to transparency and accountability.
Also Read: Goodman Group AGM 2025: Chairman and CEO Unveil Strategic Growth Plans for Essential Infrastructure
FAQs
Q1. What is the focus keyword for this article?
The focus keyword is Sims Limited AGM address.
Q2. What dividend did Sims Limited declare?
Sims Limited declared a final dividend of 13 cents per share, fully franked, which means that the total for the full year will be 23 cents.
Q3. What sustainability milestone did the Company achieve?
The Company achieved a 49% reduction in Scope 1 and 2 emissions versus the FY20 baseline, setting a target of 23%, and reached 100% renewable electricity.
Q4. What is the near-term outlook for the lifecycle services business?
The lifecycle services business expects an underlying EBIT of US $45 million to US $50 million in 1H FY26, which has already surpassed the full-year result of FY25.
