Reliance Worldwide (RWC) H1 2026 earnings summary

Executive summary

• First half FY26 performance was impacted by US tariffs and weak end markets, but operational discipline led to strong cash generation and reduced leverage.

• Net sales for the half year ended 31 December 2025 were $645.4 million, down 4.6% year-over-year, with declines in the Americas and APAC, but growth in EMEA.

• Adjusted net profit after tax was $52.2 million, down 31.3% year-over-year; reported NPAT was $43.7 million, down 34.9%.

• Major strategic initiatives progressed, including commissioning a new Poland plant, plans for a Mexico facility, and the launch of SharkBite Max in Australia.

• Cost savings of $4.4 million were achieved through procurement, manufacturing, and distribution efficiencies.

Financial highlights

• Net sales for HY26 were $645.4 million, down 4.6% year-over-year; underlying sales declined 1.9%.

• Adjusted EBITDA was $111.4 million, down 22.5% year-over-year, with a margin of 17.3%.

• Adjusted NPAT was $52.2 million; adjusted EPS was 6.7 cents per share.

• Operating cash flow conversion was 92.1%; cash generated from operations was $102.6 million.

• Interim distribution of US4.0 cents per share, split equally between dividend and buyback.

Outlook and guidance

• Second half FY26 operating margins expected to improve sequentially in all regions, with Americas sales up mid- to high-single digits year-over-year.

• Full year FY26 external sales expected to be broadly flat; full year EBITDA margin will be lower than FY25.

• Tariff impact for FY26 remains $25–$30 million, with two-thirds absorbed in H1; FY27 residual impact now $5–$7 million.

• Cost savings of $8–10 million targeted for FY26; operating cash flow conversion expected above 90%.

• Directors declared a total distribution of US4.0 cents per share for the half year, split equally between an unfranked interim cash dividend and an on-market share buy-back.