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Reliance Worldwide Corporation Limited (ASX:RWC)

ALERT: Price-sensitive ASX Announcement for RWC
Current share price for RWC : $3.650 -0.2 (-5.19%)+
Announcement
Release
17 Feb 2026 7:48AM
Price at Release
$3.850
Full Release
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Summary
Reliance Worldwide Corporation Limited (RWC) reported a decline in net sales by 4.6% to $645.4 million for the six months ending 31 December 2025. The adjusted EBITDA also declined by 22.5% to $111.4 million, primarily due to the impact of US tariffs, which are expected to have a full-year cost impact between $25 million and $30 million. RWC plans to mitigate these impacts by changing sourcing strategies and opening a new facility in Mexico. The company declared a total distribution of US$30.7 million, including dividends and a share buy-back. The effective tax rate was 30.9%, with a tax expense adjustment leading to $12.1 million. RWC's outlook for FY26 anticipates consolidated external sales to remain flat, with improved margins expected in the second half due to tariff mitigation actions. Net debt at the end of the period was $310.4 million, with plans to maintain a leverage ratio within the target range. Capital expenditure for the year is estimated to be between $25 million and $30 million.
Key Points
  • Net sales for RWC in the six months ended 31 December 2025 were $645.4 million, which was 4.6% lower than the prior corresponding period.
  • Adjusted EBITDA for the same period was $111.4 million, 22.5% lower than the previous period.
  • US tariffs significantly impacted operating earnings, particularly in the Americas, with estimated full-year cost impacts of $25 million to $30 million.
  • RWC plans to reduce tariff impacts by adjusting sourcing strategies and opening a new facility in Mexico.
  • The company declared a total distribution of US$30.7 million, comprising a cash dividend and on-market share buy-back.
  • The financial outlook for FY26 anticipates consolidated external sales to be broadly flat, with adjustments for certain product exits.
  • RWC expects improved operating margins in the second half of FY26 due to mitigation actions against tariffs.
  • The effective tax rate for the period was 30.9%, with adjustments leading to a tax expense of $12.1 million.
  • Net debt as of 31 December 2025 was $310.4 million, and the company aims to maintain a leverage ratio within a target range.
  • RWC's capital expenditure for FY26 is expected to be between $25 million and $30 million.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.