0256 GMT - Sims's lifecycle services business, or SLS, was the standout at the metal recycler's New Zealand investor day, say UBS analysts. "Importantly, SLS is tied to the growing capex spend of hyperscalers, with the ability to ramp up as required whilst maintaining a capital light business model." That results in significant earnings and cash flow operating leverage, they say. There are questions, though, about both the sustainability of price increases and the likelihood of increased competition or customers taking the work in-house, say the analysts. "We think SLS has the potential to be a thesis changer for Sims and is now an undisputable part of the earnings profile going forward, albeit with growth rate assumptions that will vary widely amongst consensus and buyside expectations." (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

December 01, 2025 21:56 ET (02:56 GMT)

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