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Reliance Worldwide Corporation Mitigates US Tariff Impacts, Adjusts FY25 Outlook

Story Highlights
  • RWC is reducing reliance on Chinese imports by diversifying sourcing to other countries.
  • RWC adjusts FY25 outlook due to US economic conditions, expecting lower sales and EBITDA margin.
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Reliance Worldwide Corp. ( (AU:RWC) ) has shared an update.

Reliance Worldwide Corporation Limited has announced measures to mitigate the impacts of newly introduced US tariffs on its operations, particularly focusing on reducing its reliance on Chinese imports. The company is diversifying its sourcing to countries like Vietnam, Taiwan, Korea, and Thailand, and implementing price increases in the US to offset tariff costs. Despite these efforts, RWC anticipates a net cost impact on its FY26 EBITDA due to tariffs, but expects to maintain gross margin dollars by FY27. The company’s trading outlook for FY25 has been adjusted due to deteriorating economic conditions in the US, with sales expected to be at the lower end of previous guidance ranges. RWC continues to expect strong cash flow conversion, although its adjusted EBITDA margin is projected to be slightly lower than FY24.

More about Reliance Worldwide Corp.

Reliance Worldwide Corporation Limited (RWC) operates in the plumbing and water control industry, providing a range of products including plumbing fittings, valves, and other water control systems. The company has a significant presence in the Americas, Asia Pacific, and EMEA regions, focusing on manufacturing and distributing plumbing solutions.

YTD Price Performance: -15.53%

Average Trading Volume: 1,230

Technical Sentiment Signal: Buy

Current Market Cap: $2.06B

For detailed information about RWC stock, go to TipRanks’ Stock Analysis page.

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