Reliance Worldwide (RWC) H2 2025 earnings summary

Executive summary

• FY 2025 was challenging due to persistent macroeconomic headwinds in all key markets, with anticipated improvements in construction and remodel activity not materializing.

• Net sales grew 5.5% year-over-year to $1,314.7m, with Holman acquisition offsetting weak end markets.

• Adjusted EBITDA rose 1.1% to $277.7m; adjusted NPAT up 0.6% to $147.7m.

• Integration of Holman and cost-saving initiatives contributed to resilient performance, with strong cash flow and successful integration.

• Manufacturing footprint changes and SAP implementation completed; sale of Spanish operations finalized.

Financial highlights

• Net sales grew 5.5% over FY 2024, driven by a full-year contribution from Holman; excluding Holman, net sales declined 0.5%.

• Adjusted EBITDA increased 1.1% to $277.7 million; adjusted EBITDA margin was 21.1% (22.3% excluding Holman).

• Adjusted net profit after tax rose 0.6% to $147.7 million; adjusted EPS up 1.6% to 19.0 cents.

• Cash generated from operations was $271 million, with a cash conversion rate of 97.6%.

• Total distributions for the year increased 5% to $0.10 per share.

Outlook and guidance

• No improvement in activity levels expected in key markets for the first half of FY 2026; group sales expected to be flat or down low single digits.

• Americas first half sales expected to decline low single digits; APAC and EMEA sales to be broadly flat.

• Tariffs will disproportionately impact first half FY 2026 earnings and margins, with mitigation initiatives phased throughout the year.

• Tariff impact on FY 2026 adjusted EBITDA estimated at $25–$30 million, incremental to FY 2025.

• Operating cash flow conversion expected above 90%; capex $25m–$30m; cost savings of $8m–$10m targeted.