Reliance Worldwide (RWC) H1 2025 earnings summary

Executive summary

• Net sales increased 14.8% to $676.5 million for the half year ended 31 December 2024, driven by the full-period contribution from the Holman acquisition and solid execution despite subdued home improvement and construction markets.

• Net profit after tax rose 31.8% to $67.2 million, with adjusted NPAT up 12.3% to $76.0 million, reflecting Holman’s contribution and cost savings.

• Integration of Holman progressing well, delivering revenue and cost synergies; operational improvements and ERP upgrade supported margin expansion.

• Positive volume growth in Americas and Australia offset weaker EMEA markets; manufacturing and operational footprint review underway, including distribution center closures.

• Strong cash generation enabled reduction in net debt and leverage, with a declared total distribution of US5.0 cents per share, including a share buyback.

Financial highlights

• Net sales reached $676.5 million, up 14.8% year-over-year; excluding Holman and Supply Smart, sales rose 3.8%.

• Adjusted EBITDA was $143.8 million, up 15.2% year-over-year; margin at 22.2% excluding Holman.

• Adjusted EPS rose 14.0% to US9.8 cents; reported EPS up 32.3% to 8.6 US cents.

• Cash generated from operations was $127.0 million, with cash conversion at 88.3%.

• Interim distribution of 5.0 cents per share, split equally between dividend and share buyback.

Outlook and guidance

• Group external sales for FY25 expected to rise by mid-single digits; excluding Holman and Supply Smart, sales to be broadly flat.

• Americas sales (ex-Supply Smart) to be flat; APAC (ex-Holman) up mid-single digits; EMEA down mid-single digits.

• Targeting improved consolidated EBITDA margin (excluding Holman) via cost reduction and efficiency.

• Operating cash flow conversion in FY25 expected above 90%; capex forecasted at $35–40 million.

• Distribution policy targets 40–60% of annual NPAT, split equally between cash dividends and share buy-backs.