Reliance Worldwide (RWC) H2 2026 earnings summary

Executive summary

• Entered into a Process Deed with Brookfield Capital Partners for a potential acquisition at AUD 4.75 per share, valuing the company at approximately AUD 4.1 billion enterprise value; board granted Brookfield a four-week exclusivity period and a subsequent 30-day go-shop provision for alternative bids.

• FY26 net sales were $1,305.6m, down 0.7% year-over-year, with underlying sales up 1.5% after adjustments.

• Adjusted EBITDA was $242.1m, down 12.8% year-over-year, with margin declining to 18.5%.

• Adjusted NPAT was $125.1m, down 15.3%, and reported NPAT was $6.3m, reflecting $103.3m in post-tax one-off charges mainly from APAC restructuring and goodwill impairment.

• No final dividend declared for FY26 due to the Brookfield proposal; share buybacks and future distributions suspended pending outcome.

Financial highlights

• Cash generated from operations was $263.4m, with operating cash flow conversion at 108.8% of adjusted EBITDA.

• Net leverage ratio improved to 1.11x from 1.30x year-over-year; net debt reduced by $88.2m.

• Capex was $19.7m, 1.5% of sales, down from 2.5% prior year.

• Net working capital reduced by $35m year-over-year.

• No final distribution declared for FY26; two share buybacks repurchased 25.5 million shares for AUD 85.7 million.

Outlook and guidance

• No improvement expected in economic conditions for FY27; geopolitical uncertainty, commodity inflation, and interest rates remain headwinds.

• Americas, APAC, and EMEA external sales expected to rise by mid-to-high single-digit percentages; group sales to increase similarly.

• Adjusted EBITDA margin expected to be broadly consistent with FY26; targeted cost reductions of $10–12m.

• Most FY27 revenue uplift expected to come from price increases rather than volume.

• Capex forecasted at $25m–$30m; operating cash flow conversion above 90%.