Sims Shares Drop 7% Amid Global AI Rout as Recycler With Data Center Hardware Arm Heads Toward November AGM

SYDNEY — Shares of Sims Ltd. fell more than 7% on Friday as a global selloff in technology and artificial intelligence stocks hit the Australian market, weighing on the metals recycler, which has built a growing business around data center hardware.

Sims shares lost A$1.53, or 7.22%, to close at A$19.65, after trading between A$19.29 and A$20.95. About 883,000 shares changed hands, leaving the company valued at roughly A$3.8 billion.

The ASX 200 closed 0.5% lower as the AI selloff that began on Wall Street spread across Asia.

Sims did not release market-sensitive news on Friday.

Data center exposure

The company has increasingly tied its growth to AI infrastructure. Sims Lifecycle Services posted 91% growth in repurposed units and is positioning for GPU repurposing.

That business was a key driver of last year's results. Underlying EBIT surged 170% to A$468 million, led by Sims Lifecycle Services growth and strong non-ferrous pricing.

The near-term outlook for that unit is softer. The company expects Sims Lifecycle Services EBIT of A$75 million to A$90 million in the first half of fiscal 2027, with lower near-term volumes of high-speed DDR4 memory.

Recent results reaction

Investors were already cautious. Sims shares fell 12.78% to A$22.52 from A$25.82 after its full-year update in August. Return on invested capital reached 11.7%, a key milestone for shareholder returns.

The company paid a fully franked final dividend of 20 cents a share, bringing its full-year dividend to 34 cents.

AGM ahead

Shareholders will soon have a chance to question management. Sims scheduled its 2026 annual general meeting for 9 a.m. on Friday, Nov. 20, as a hybrid meeting in Sydney.

Shareholders will vote on granting CEO and Managing Director Stephen Mikkelsen 117,300 performance rights under the Long Term Incentive Plan.

Analyst view

According to 13 analysts, the average rating for Sims is "Hold."

Despite Friday's drop, the stock is up about 23% over the past year.