Reliance Worldwide (RWC) H2 2024 earnings summary

Executive summary

• FY24 delivered strong financial performance despite challenging market conditions, with resilient repair and maintenance demand, effective 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.

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

Financial highlights

• Net sales reached US$1,245.8 million, up 0.2% year-over-year; excluding Holman, sales declined 2.4%.

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

• Adjusted net profit after tax was US$146.9 million, down 5.7% year-over-year.

• Operating cash flow increased 7% to US$314.2 million, with 114% cash conversion.

• Final distribution of US5.0 cents per share, split equally between cash dividend and share buyback.

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 improvement in consolidated EBITDA margin (excluding Holman) in H1 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.