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 resilient repair and maintenance demand, despite weak 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; adjusted EPS increased 14.0% to 9.8 cents per share.

• Strong cash generation enabled a reduction in net debt and leverage, supporting ongoing dividends, share buybacks, and potential M&A.

• Manufacturing and operational footprint review underway, with two Australian distribution centers closed and another planned for closure in H2 FY25.

• SAP S/4HANA ERP upgrade completed on time and within budget, supporting operational efficiency.

Financial highlights

• Net sales rose 14.8% to $676.5M, including Holman acquisition; excluding Holman and Supply Smart, sales up 3.8% year-over-year.

• Adjusted EBITDA increased 15.2% to $143.8M; adjusted EPS up 14% to $0.098 per share; adjusted NPAT up 12.3% to $76.0M.

• Net profit after tax was $67.2M, up 31.8%; reported EPS up 32.3% to 8.6 US cents.

• Cash from operations was $127M, with cash conversion at 88.3%; interim distribution increased to $0.05 per share.

• Cost savings totaled $10.8M, including $1M in Holman synergies; $1M in one-off costs related to integration and DC closures.

Outlook and guidance

• FY25 group sales expected to rise mid-single digits including Holman; excluding Holman and Supply Smart, sales to be broadly flat year-over-year.

• Americas and EMEA sales expected to be flat to down mid-single digits; APAC sales (ex-Holman) to grow mid-single digits.

• Targeting improved consolidated EBITDA margin (ex-Holman) through cost reduction, efficiency, and synergy realization.

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

• FX headwinds anticipated in the second half; guidance includes spot FX rates.