Reliance Worldwide (RWC) H2 2024 earnings summary

Executive summary

• FY24 delivered strong performance despite challenging market conditions, supported by resilient repair and maintenance demand, cost management, and successful new product rollouts.

• Holman acquisition completed and integration progressing well, with group-wide operational projects and revenue synergies underway.

• Achieved $23 million in cost reductions, maintaining stable margins despite lower volumes.

• Strong operating cash flow enabled further reduction in leverage and funded the Holman acquisition.

• Concurrent release of annual and ESG reports, highlighting sustainability and safety progress.

Financial highlights

• Net sales up 0.2% year-over-year to $1,245.8 million, including Holman; excluding Holman, net sales down 2.4%.

• Adjusted EBITDA of $274.6 million, flat year-over-year; margin at 22.3% (excluding Holman).

• Adjusted NPAT down 5.7% to $146.9 million.

• Operating cash flow of $314.2 million, up 7% year-over-year, with 114% cash conversion.

• Total FY24 distributions were US 9.5cps, split equally between dividends and share buybacks.

Outlook and guidance

• FY25 guidance limited to first half due to market uncertainty; consolidated net sales expected to be broadly in line with FY24, within low single-digit percentage points.

• Targeting EBITDA margin improvement in H1 FY25 versus prior year, with $10–15 million additional cost out planned.

• Holman expected to deliver results in line with acquisition case, with 60% of earnings in H1.

• Operating cash flow conversion expected above 90%; capex forecasted at $40–$45 million.

• No quantitative full-year earnings guidance due to economic and interest rate uncertainty.