Sims (ASX:SGM) released its fiscal 2026 half-year results, revealing a complex financial narrative defined by robust operational growth offset by significant non-cash statutory hits.
While the company reported a modest 3.7% increase in sales revenue to $3.78 billion, the divergence between its statutory and underlying figures highlights a volatile reporting period.
The company's underlying performance was a standout, with underlying NPAT rising 70.9% to reach $60 million, up from $35.1 million in the prior corresponding period.
The momentum was mirrored in the underlying EBIT, which jumped 65.9% to $121.1 million.
Investors were rewarded with a 40% increase in the total dividend per share, rising to 14 cents, while the return on invested capital improved by 1.9 percentage points to 6.2%.
Sims reported a statutory NPAT loss of $29.9 million, a sharp 197.1% reversal from the previous year’s profit.
The decline was primarily driven by $41.1 million in unrealised losses on derivative contracts and a $60 million expected credit loss regarding residual receivables from Unimetals in the UK.
Management remains focused on the underlying trajectory, noting that the core business remains resilient.