The third-quarter earnings season will test whether the strong performance reported by hardware recovery companies earlier in 2026 continued through September.
Results from Iron Mountain and Sims Limited and some pronouncements from Ingram Micro executives point to substantial growth in enterprise asset recovery, supported by data center investment and demand for secondary hardware. Ingram Micro has outlined an ambitious expansion strategy for its Lifecycle business, while metals refiners and battery recyclers face a more uneven commercial environment.
The sector enters the reporting season with different sources of earnings growth. Some companies are benefiting from rising volumes of retired data center equipment. Others depend more heavily upon commodity prices or the economics of processing secondary materials.
IT asset recovery: Strong demand, variable earnings
In the most recent reporting season, Iron Mountain’s second-quarter revenue was $2.03 billion, an 18.5% year-over-year increase. Adjusted EBITDA rose by 15.7% to $727 million.
Management identified its asset lifecycle management (ALM) and digital businesses as growth priorities, supported by increased cross-selling. The company raised its full-year guidance and projected about $1.98 billion in third-quarter revenue, with adjusted EBITDA of $745 million. The coming report will indicate whether that momentum continued.
Sims Limited provides a more detailed view of the economics of recovered enterprise hardware. Its Sims Lifecycle Services (SLS) business generated Australian $757 million ($532.8 million US) in revenue during fiscal 2026, up 77.4%. Underlying EBIT increased 429.8% to A$172.7 million ($119.2 million US). Repurposed units rose 90.9% to A$16.8 million ($11.6 million US). Management attributed the improvement to higher DDR4 memory resale prices and increased hyperscaler activity.
For July–December 2026, Sims projected SLS underlying EBIT of A$75 million to A$90 million ($51.9 million to $62.3 million US). Management expects continued favorable market fundamentals but warned that data center decommissioning schedules remain variable. It also anticipates lower volumes of high-speed DDR4 memory than in the preceding half-year. This means that while demand for recovered data center hardware remains strong, quarterly earnings can fluctuate as major decommissioning projects move between reporting periods.
Ingram Micro: Lifecycle expansion and Xvantage
Ingram Micro enters earnings season with a longer-term growth target for its Lifecycle business. At its September Capital Markets Day, management outlined annual Lifecycle sales growth of 10%-12% between fiscal 2026 and 2029, compared with 4%-6% for the company overall. Lifecycle includes ITAD and reverse logistics, alongside broader supply chain services. The target therefore represents more than disposition revenue.
Ingram Micro’s second-quarter sales increased 13.6% to $14.5 billion. Management initially projected third-quarter revenue of $13.55 billion to $13.95 billion, with non-GAAP diluted earnings per share of $0.72 to $0.82. At Capital Markets Day, the company indicated that it expected results at the high end of that guidance.
Industry-wide, the key takeaway is Ingram Micro’s effort to connect Lifecycle with its technology distribution relationships. Its Xvantage platform, which provides a digital route for channel partners to introduce recovery services during hardware replacement planning, is showing momentum and may have uplifting impact on other Lifecycle activities.
The forthcoming results will help assess the company’s broader profitability objectives, although Ingram Micro does not separately report Lifecycle earnings.
Metals recovery: Different markets, different outcomes
Sims’ metals operations also benefited from favorable trading conditions during fiscal 2026. Group underlying EBIT increased 167.6% to A$468 million ($323.8 million US). North American Metal underlying EBIT reached A$135.9 million ($94 million US), up 69.7%, while Sims’ share of SA Recycling underlying EBIT nearly doubled to A$235.5 million ($163 million US).
Non-ferrous markets supported earnings, although weaker ferrous conditions affected the Australia and New Zealand business.
Sims expects supportive non-ferrous conditions during fiscal 2027 but anticipates continued pressure from Chinese steel exports in its Australia and New Zealand ferrous business.
Umicore presents a different earnings profile. Following strong first-half results, the Belgian group raised its full-year adjusted EBITDA outlook to slightly above €1 billion ($1.1 billion). Management expects Recycling EBITDA to finish significantly above 2025 levels, although second-half earnings are forecast below the first half.
The company attributed the anticipated moderation partly to exceptional performance in Jewelry & Industrial Metals and Precious Metals Management that is unlikely to repeat.
The outlook suggests that strong annual refining earnings may coexist with weaker sequential performance.
Battery recycling: Improving throughput, unresolved risks
American Battery Technology Co. (ABTC) reported fiscal 2026 revenue of $21.7 million, up 407% from the previous year. Revenue in the June quarter reached $8.2 million, while quarterly gross profit increased to $1.3 million.
The annual results nevertheless showed a GAAP gross loss of $3.1 million, compared with a $10.6 million gross loss in fiscal 2025.
The improvement reflects higher recycling throughput and better operating economics. The company must now demonstrate that these gains can be sustained as production expands.
Its commercial outlook also depends on access to black-mass customers. New US export restrictions introduced in August threatened existing foreign sales arrangements. Earlier this month, ABTC announced Commerce Department approval for exports associated with $100 million in black mass sales.
The authorization supports access to overseas markets but does not represent revenue already recognized. The next results will provide further evidence of how the company’s expanded operations translate into financial performance.
What Q3 will reveal
Enterprise hardware recovery appears to be heading into a strong earnings season, helped by continued investment from hyperscalers and higher prices for used memory.
The picture is less consistent in metals recycling. Strong non-ferrous markets have helped profitability, but ferrous markets remain uneven across regions. Refiners also face tougher comparisons after an exceptionally strong first half of the year.
For battery recyclers, the question is whether growing processing volumes are finally translating into better financial results, particularly as market conditions continue to change.
Across the hardware recycling and recovery industry, the upcoming earnings reports should provide a clearer picture of how higher processing volumes and changing material prices are affecting profitability. The results will also help establish whether recent improvements in market conditions are translating into sustained earnings growth.
