Reliance Worldwide (RWC) H1 2025 earnings summary

Executive summary

• Achieved strong first-half financial performance, with net sales up 14.8% to $676.5M, driven by Holman acquisition, resilient repair and maintenance demand, and solid execution despite weak end markets.

• Positive volume growth in Americas and Australia offset weaker EMEA markets; operational projects and integration initiatives, including Holman and SAP S/4HANA ERP upgrade, progressed well.

• Manufacturing and operational footprint review underway, with two Australian distribution centers closed and further rationalization planned.

• SharkBite rollout in Bunnings stores and delivery of expected revenue initiatives and cost synergies remain on track.

• Net profit after tax (NPAT) increased 31.8% to $67.2M, reflecting Holman’s contribution and cost savings.

Financial highlights

• Net sales rose 14.8% to $676.5M; 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 9.8 cents; reported NPAT up 31.8% to $67.2M.

• Cash from operations was $127M, with cash conversion at 88.3%; interim distribution increased to 5.0 cents per share, split between dividend and buyback.

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

• Gross profit reached $265.7M, and operating profit was $107.8M.

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 expected above 90%; capex forecasted at $35–40M.

• Cost reduction and Holman synergies to deliver ~$15M in FY25 savings.