Reliance Worldwide Corporation (RWC) investor relations material

Executive summary

• FY25 was challenging due to persistent macroeconomic headwinds in all key markets, but net sales grew 5.5% to $1,314.7m, mainly from the Holman acquisition, which was fully integrated and delivered synergies.

• Adjusted EBITDA rose 1.1% to $277.7m, and adjusted NPAT increased 0.5% to $147.7m, with operating earnings and margins remaining resilient.

• Strong cash flow generation enabled further debt reduction, with net debt down by $90m and leverage ratio reduced to 1.3x.

• Manufacturing footprint changes, SAP implementation, and sale of Spanish operations were completed.

• Cost-saving initiatives and operational consolidation supported performance.

Financial highlights

• Net sales grew 5.5% over FY24, driven by Holman; excluding Holman, net sales declined 0.5%.

• Adjusted EBITDA margin was 21.1% (22.3% excluding Holman); adjusted EPS up 1.6% to 19.0 cents.

• Cash generated from operations was $271M, with a cash conversion rate of 97.6%.

• Final distribution of $0.05 per share, total $0.10 per share for the year, up 5% from FY24.

• Reported NPAT up 13.6% and reported EPS up 14.7% year-over-year.

Outlook and guidance

• No improvement in activity levels expected in key markets for FY26; group sales for H1 expected to be flat to down low single digits.

• Americas H1 sales expected to decline low single digits; APAC and EMEA sales to be broadly flat.

• Tariffs to impact FY26 EBITDA by $25M–$30M, with mitigation initiatives phased throughout the year.

• EBITDA margin for H1 FY26 expected to be lower year-over-year due to tariffs and lower volumes.

• Operating cash flow conversion expected above 90%; capex $25M–$30M; cost savings of $8M–$10M targeted.