Reliance Worldwide (RWC) H2 2024 earnings summary

Executive summary

• Delivered strong FY24 results with net sales up 0.2% to US$1,245.8 million, supported by resilient RMI end markets, successful new product rollouts, and the Holman acquisition and integration.

• Maintained stable operating earnings and margins despite challenging economic conditions and softer volumes across all regions.

• Achieved $23 million in cost reductions, supporting margin stability and offsetting lower volumes.

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

• Significant ESG progress, including a 52% reduction in injury frequency and a 35% reduction in Scope 1 and 2 emissions since FY21.

Financial highlights

• Net sales increased 0.2% year-over-year to US$1,245.8 million, with a four-month contribution from Holman; excluding Holman, net sales declined 2.4%.

• Adjusted EBITDA was US$274.6 million, flat year-over-year; margin excluding Holman rose to 22.3%.

• Adjusted net profit after tax was US$146.9 million, down 5.7% year-over-year; reported NPAT was US$110.1 million, down 21%.

• Operating cash flow was US$314.2 million, up 7% year-over-year, with a 114% cash conversion rate.

• 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; expects consolidated net sales broadly in line with FY24, within low single-digit percentage points.

• Targeting improvement in consolidated EBITDA margin (excluding Holman) in 1H FY25, 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.