Up 134% Since October, Why Is This $6 Billion Asx 200 Stock Leaping Higher Again Today?

The S&P/ASX 200 Index (ASX: XJO) is just about flat today, despite the best lifting efforts of this ASX 200 stock.

The outperforming company in question is Sims Ltd (ASX: SGM).

Shares in the metal and electronics recycler closed yesterday trading for $29.44. In early morning trade on Wednesday, shares are changing hands for $31.04 apiece, up 5.4%. That gives Sims a market cap of just over $6 billion.

It also sees the ASX 200 stock up 98.9% since this time last year. And brave, or well-informed, investors who waded in and bought shares at the one-year closing lows of $13.27 on 1 October will now be sitting on gains of 133.9%.

Here's what's grabbing investor interest today.

ASX 200 stock jumps on earnings upgrade

The Sims share price is marching higher after the company released a promising trading update.

Investors are bidding up the ASX 200 stock, with Sims upgrading its FY 2026 underlying earnings before interest and tax (EBIT) guidance to the range of $420 million to $435 million.

That's up from prior full-year EBIT guidance in the range of $350 million to $400 million, which the company provided on 18 March.

Management cited "continued strength across non-ferrous markets, as well as improved trading conditions for ferrous" for the improved earnings outlook.

Sims said it now expects its North American Metal businesses to deliver "a significant increase" in second-half earnings (H2 FY 2026). Earnings are likely to get a boost from strong operating performances across both Sims North America Metals and SA Recycling.

The ASX 200 stock noted that ferrous prices in Asia have recently improved. However, prices in ANZ were reported to remain subdued due to ongoing elevated Chinese steel exports.

The company also said that its Sims Lifecycle Services business continues to "benefit significantly" from the fast-growing global data centre ecosystem.

With that in mind, management now expects the underlying FY 2026 EBIT for Sims Lifecycle Services to be in the range of $170 million to $175 million.

The company noted:

While the business continues to benefit from strong underlying demand and favourable long-term industry trends, the timing of customer decommissioning programs will influence the distribution of volumes and earnings between reporting periods.

What's been boosting Sims shares?

As today's update confirms, the ASX 200 stock has been enjoying a strong run this year.

At its half-year results (H1 FY 2026), released on 17 February, the company reported a 65.9% year-on-year increase in underlying EBIT to $121.1 million.

And on the bottom line, net profit after tax (NPAT) surged 70.9% to $60 million.

The post Up 134% since October, why is this $6 billion ASX 200 stock leaping higher again today? appeared first on The Motley Fool Australia.

More reading

• Sims lifts outlook as North American metals drive gains
• 7 ASX shares attracting upgraded ratings this week
• Here are the top 10 ASX 200 shares today
• These were the best-performing ASX 200 shares in May
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.